Using HSP to purchase housing structures

The California Department of Social Services (CDSS) has issued guidance regarding use of Housing Support Program funds to purchase housing structures.  CDSS has set aside $1,500,000 to purchase housing structures, which includes RVs, mobile homes and tiny homes.  Housing structures do not include any type of housing that is permanently fixed to the ground.  Counties can submit plans to CDSS for purchase of structures, and each individual purchase must be approved by CDSS.

Counties generally will not purchase structures until they have identified a family for the unit.  Counties must ensure that a habitability inspection of the structure is completed before purchase. 

Counties must identify a space where the structure will be located before purchase.  CDSS encourages counties to locate space within a designated park.  If developed parks are not available, counties may seek private land to place the structure.  The county must ensure that the family has a written lease agreement with the land owner.

Maximum purchase price for the structure is $24,999.  This includes inprovements to make the structure habitable.  This cap does not include other Housing Support Program services such as assistance with move in costs and ongoing space rent.

Families must enter into an agreement with the county.  This agreement can include a creating a lien to protect the structure from being sold without county approval; client obligations such as not reselling the property for a period of time, paying the taxes, and paying rent and other fees; county obligations such as retaining title for a period of time and assisting the client with taxes and other fees; using the structure as a personal residence; and recovering the property if the family does not meet their obligations.

Counties must identify parameters for how they will target families receiving Housing Support Program for structure purchases.  (ACIN I-85-18, December 7, 2018.)