Proposition 1, a $6.4 billion mental health bond narrowly approved by California voters in 2024, was intended to quickly expand treatment beds and housing for people with mental illness, but none of the initial 10 projects expected in 2025 have opened.
Nine out of ten projects supposed to open by the end of last year have been delayed, with new completion dates now ranging from this summer to 2028, and one project has been cancelled.
The backstory: The state awarded nearly half the bond money last spring in what Governor Gavin Newsom called the fastest distribution of such funds in state history, though delays remain widespread.
The big picture: Newsom’s administration cited issues like tariffs, supply chain challenges, permitting problems, and construction resource competition as key causes for the delays.
The vast majority of the 177 funded projects have not yet come to fruition, despite being slated to deliver 6,919 residential treatment beds and 27,561 outpatient treatment slots – both exceeding original goals.
Driving the news: Local issues such as failed property purchases, the need for seismic retrofitting, and administrative obstacles have further slowed progress in places like Los Angeles, Hollister, and Costa Mesa.
Nonprofits awarded grants have sometimes had to decline funding or drastically revise plans due to changing state and federal policy or local real estate complications.
Zoom in: Proposition 1 also funds permanent housing through the Homekey+ program, with $768 million awarded so far for 2,260 homes, including 545 reserved for veterans; the first such projects are expected this summer.