California Will Fund Sober Homeless Housing Under New Law

California plans to free up existing state funding for homeless housing that requires residents to be sober, shifting away from a strict “housing first” model and toward recovery and intervention.

Assembly Bill 1556, authored by Assemblyman Matt Haney and signed on Sept. 29 by Gov. Gavin Newsom, clarifies that sober housing providers are eligible for state funding as long as they follow a set of requirements.

For many years, California focused on a housing first policy to quickly connect homeless individuals with housing units, according to an Aug. 3 Assembly Floor bill analysis. This low-barrier approach means that individuals entering these shelters did not need to meet certain criteria, such as getting sober or drug-free.

While the low-barrier housing model has placed thousands of people into shelters, it does not work for individuals who want to recover from drug addictions, the analysis stated.

“There are thousands of people who want, and need, to live in a strictly sober living arrangement, but they can’t access it because this type of housing is limited and hard to find,” Haney said in the analysis. “This causes people to live in housing that is not best suited for their sobriety journey and puts them at a higher risk of falling back into homelessness.”

Current homelessness program funding does not apply to sober housing or recovery housing because these shelters were not defined as serving the homeless population.

AB 1556 redefines recovery housing as “a residence that serves individuals experiencing, or who are at risk of experiencing, homelessness and who opt into a drug-free environment,” making them eligible for funding, according to the analysis.

To receive funding under AB 1556, sober housing providers must follow the core “housing first” requirements; for example, applicants cannot be screened out based on current sobriety, participating in supportive services is not a prerequisite, and tenants are selected based on situation rather than first-come, first-served.

Additionally, housing providers cannot evict residents solely because they relapse.

The housing provider must maintain a written policy outlining how to address residents who relapse and must offer the option for such residents to move into low-barrier housing. If residents decline, then they can be evicted.

These sober housing programs must also provide staff and residents with training on emergency preparedness and overdose prevention and response. Overdose reversal medication needs to be readily accessible to staff and residents onsite.

“Every Californian deserves a fair shot at a stable home,” Newsom said in a Sept. 29 press release announcing the housing bills he had signed.

The governor’s office stated that the new legislation will help “connect homeless individuals with recovery-oriented housing.”

San Francisco Mayor Daniel Lurie, who co-sponsored Haney’s AB 1556, said access to state funding will help the city secure more resources for sober and recovery-focused housing.

“Every day is an opportunity for someone struggling with addiction to get on the path to recovery, and we need to be prepared to support them as soon as they’re ready,” said Lurie in a press release.

AB 1556 is expected to cost the state an additional $200,000 annually to cover one new staff position to track data, provide guidance, and monitor compliance among sober housing providers that apply for funding, according to an Assembly Appropriations Committee bill analysis.

Drug-Free, Sober Shelters

Some regions across the state operate homeless housing dedicated to sobriety and recovery initiatives, including in Los Angeles County, Orange County, San Diego County, and the San Francisco Bay Area.

Sober living at these residences can cost between $800 and $15,000 per month depending on staffing availability, privacy levels, and location, according to a cost breakdown by Higher Purpose Recovery, a mental health and addiction treatment provider in Orange County. Standard shared units typically cost less than private units that include meals and on-site amenities.

Tustin in Orange County operates a sober housing location with a zero-tolerance policy on drugs and alcohol. According to the city, a drug-sniffing dog visits the residence randomly to ensure compliance.

Under Mayor Lurie, San Francisco in 2025 launched a “breaking the cycle” approach to solving homelessness, which includes expanding recovery housing. Additionally, the city announced in August plans for redoing all city homelessness services contracts to focus on accountability and measurable results.

San Francisco spends about $1 billion in taxpayer money to support its homelessness programs, according to the city announcement. Moving forward, the city will meet with community partners and service providers for input.