Homelessness Amendments

Created a new Homeless Services Restricted Account funded by cigarette tax revenues to provide matching grants to counties for specific homeless services like behavioral health and mobile crisis teams.

Amended the Cigarette Tax Restricted Account to direct excess revenue (over $87 million annually) to the new Homeless Services Restricted Account beginning July 1, 2026.

Updated definitions for 'Emergency shelter' to explicitly include shelters opened during code blue events and subsequent winter response periods.

Added new definitions for 'First-tier eligible municipality' and 'Second-tier eligible municipality' to determine which cities qualify for specific homeless services funding.

Revised the Code Blue Alert section to define code blue events based on extreme cold temperatures (18-25 degrees Fahrenheit) and clarified the rules for shelter operations during these events.

Authorized service providers to temporarily expand congregate shelter bed capacity up to 135% during extreme heat (105+ degrees) with municipal consent, effective starting April 1, 2026.

Changed the name of the Shelter Cities Advisory Board to the Shelter Cities Coordinating Council and the Shelter Counties Advisory Board to the Shelter Counties Coordinating Council.

Updated lease agreement rules to allow funds received from leasing state property to be used for operations and maintenance of the leased space.

Increased the threshold for transferring excess cigarette tax revenue to the Homeless Services Restricted Account from $48,900,000 to $87,000,000 per fiscal year.

Clarified that lease payments received from the Division of Facilities Construction and Management may be used for the operations and maintenance of the leased shelter space.

Added a specific limit allowing congregate shelters to expand capacity up to 135% of their designated bed capacity under certain conditions.

Expanded the list of allowable uses for Homeless Services Restricted Account funds to explicitly include on-site behavioral support services and licensed clinical services for supported living programs.

Updated the definition of 'unsheltered homelessness' to explicitly list sleeping in a vehicle, abandoned building, farm, wilderness, street, park, or encampment.

Created the Homeless Services Restricted Account to receive cigarette tax surplus revenue and county matching funds for specific homeless services.

Established the Property Loss Related to Homelessness Compensation Enterprise Fund to provide loans or compensation to businesses and individuals suffering property loss near shelters.

Adjusted the 'Annual local contribution' calculation for non-participating local governments, increasing the 2027 threshold from $275,000 to $500,000 and changing the percentage from 2.55% to 5%.

Created the Mitigation Fund Task Force to assess public safety costs and develop a funding formula for municipalities hosting shelters.

Added code blue alert provisions requiring the Department of Health and Human Services to issue alerts for extreme weather events affecting homeless populations.

Added definitions for 'third-tier eligible municipality' and 'unsheltered homelessness' to clarify eligibility and service categories.

Modified shelter capacity rules to allow temporary expansion up to 135% of designated beds during extreme heat (105+ degrees) with municipal consent.

Set the effective date for most provisions to April 1, 2026, with some technical changes effective May 6, 2026.

The revenue threshold for depositing funds into the Homeless Services Restricted Account was increased from $48.9 million to $87 million.

The annual local contribution formula for fiscal years starting July 1, 2027, was updated to allow a higher fixed amount ($500,000) and a higher percentage (5%) of tax revenue.

Lease rates for housing facilities are now explicitly capped at documented direct operation and maintenance costs.

Funding can now be used for on-site behavioral support services and licensed clinical services for individuals with serious mental illnesses.

A new termination clause was added to lease agreements, allowing termination if the housing sponsor fails to meet chapter requirements.

The definition of 'Annual local contribution' was updated to apply to fiscal years beginning on or after July 1, 2026, rather than 2027.

Created the Homeless Services Restricted Account to assist counties with winter overflow shelters, micro shelters, and permanent supportive housing, funded by cigarette tax revenue and county matching funds.

Modified the sales and use tax distribution formula to require participating local governments to contribute a portion of their tax revenue (Annual Local Contribution) to the Homeless Shelter Cities Mitigation Restricted Account.

Established a new rulemaking process for the Office of Homeless Services to determine capacity limits for homeless shelters in cooperation with the fire marshal and local councils.

Enacted a 'Code Red Alert' system for extreme heat events, allowing shelters to expand capacity by up to 35% and prohibiting the seizure of personal items needed for survival.

Added a 'third-tier eligible municipality' category for smaller municipalities with shelters of at least 50 beds operating for three months during winter.

Updated definitions for 'Emergency shelter' and 'Eligible shelter' to explicitly include code blue and code red event scenarios.

Adjusted the 'Annual Local Contribution' threshold for fiscal year 2027 from $275,000 to $500,000 and changed the percentage calculation from 2.55% to 5%.