(a) Subject to subdivision (b), a transitional housing placement provider, as defined in subdivision (r) of Section 11400, that provides transitional housing services to eligible foster children, as defined by Section 475 of Title IV-E of the federal Social Security Act (42 U.S.C. § 675(8)), and nonminor dependents, as defined by subdivision (v) of Section 11400, in a facility licensed pursuant to § 1559.110 of the Health and Safety Code, shall be paid as follows:

(1)  For a program serving foster children who are at least 16 years of age and not more than 18 years of age, a monthly rate that is 75 percent of the average foster care expenditures for foster children 16 to 18 years of age, inclusive, in group home care in the county in which the program operates.

(2) For a program serving nonminor dependents, the rate structure established pursuant to subdivision (b) of Section 11403.2.

(b) Payment to a transitional housing placement provider for transitional housing services provided to a person described in subdivision (a) of Section 11403.2 shall be subject to the following conditions:

(1) An amount equal to the base rate, as defined in subdivision (c), shall be paid for transitional housing services provided.

(2) Any additional amount payable pursuant to subdivision (a) shall be contingent on the election by the county placing the youth in the transitional housing placement program to participate in the costs of the additional amount, pursuant to subdivision (f).

(c) (1) As used in this section, “base rate” means the rate a transitional housing placement provider was approved to receive on June 30, 2001. If a program commences operation after this date, the base rate shall be the rate the program would have received if it had been operational on June 30, 2001.

(2) Notwithstanding subdivision (a), a transitional housing placement provider with an approved rate on July 1, 2001, shall not receive a lower rate than its base rate.

(d) Any reductions in payments to a transitional housing placement provider pursuant to the implementation of paragraph (2) of subdivision (b) shall not preclude the program from acquiring from other sources, additional funding necessary to provide program services.

(e) The department shall develop, implement, and maintain a ratesetting system schedule for transitional housing placement providers pursuant to subdivisions (a) to (c), inclusive.

(f) (1) Funding for the rates payable under this section for persons described in paragraph (1) of subdivision (a) of Section 11403.2, prior to the 2011-12 fiscal year, shall be subject to a sharing ratio of 40 percent state and 60 percent county share of nonfederal funds.

(2) Funding for the rates payable under this section for persons described in paragraph (2) of subdivision (a) of Section 11403.2, prior to the 2011-12 fiscal year, shall be subject to a sharing ratio of 100 percent state and 0 percent county funds.

(3) Notwithstanding paragraphs (1) and (2), beginning in the 2011-12 fiscal year, and for each fiscal year thereafter, funding and expenditures for programs and activities under this section shall be in accordance with the requirements provided in Sections 30025 and 30026.5 of the Government Code.

(g) The department shall develop, implement, and maintain a ratesetting methodology and rate schedule for providers identified in paragraph (1) of subdivision (a) by December 31, 2019. Until a new rate schedule is implemented, the rates shall be based on the rates in existence on December 31, 2017, plus the annual adjustment described in subdivision (c) of Section 11403.2.

(h) (1) Subject to an appropriation in the annual Budget Act for this purpose, the rate paid to a transitional housing placement provider serving nonminor dependents shall be supplemented with a housing supplement, which shall be calculated by the department as follows:

(A) For nonminor dependents who are custodial parents, the difference between the fair market rent for a one-bedroom apartment in the county in which the nonminor dependent resides and 21.45 percent of the rate established pursuant to subdivision (b) of Section 11403.2.

(B) For nonminor dependents who are not custodial parents, the difference between one-half of the fair market rent for a two-bedroom apartment in the county in which the nonminor resides and 21.45 percent of the rate established pursuant to subdivision (b) of Section 11403.2.

(2) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services shall annually calculate the housing supplement described in this subdivision and shall inform county welfare agencies by November 1 of each year of the amount of the supplement by means of all-county letters or similar written instructions. These all-county letters or similar instructions shall have the same force and effect as regulations.

(3) A county shall not receive less than the rate established pursuant to subdivision (h).

(4) For purposes of this subdivision, “fair market rent” means the rent calculated for the fair market rent system developed by the United States Department of Housing and Urban Development for use in determining the allowable rent level for individuals who participate in the Housing Choice Voucher program, and that includes the cost of housing and utilities, except for telephone, cable, and internet, and is calculated annually for each county and released at the start of each fiscal year by the United States Department of Housing and Urban Development.

(5) (A) The department shall work with the County Welfare Directors Association of California and the Statewide Automated Welfare System (CalSAWS) to develop and implement the necessary system changes to implement the housing supplement provided pursuant to paragraph (1).

(B) (i) This supplement shall begin on July 1, 2021, for the counties utilizing the CalWIN system, or when the department notifies the Legislature that CalWIN can perform the necessary automation to implement it, whichever is later.

(ii) This supplement shall begin on September 1, 2022, for the counties utilizing the CalSAWS system, or when the department notifies the Legislature that CalSAWS can perform the necessary automation to implement it, whichever is later.

(Amended by Stats. 2021, Ch. 86, Sec. 38. (AB 153) Effective July 16, 2021.)