CA SB606

Enacts the Functional Zero Act, requiring Homeless Housing, Assistance, and Prevention (HHAP) program applicants to submit assessments of what is needed to achieve "functional zero" (homelessness becomes rare and brief) and "functional zero unsheltered" (sufficient housing for all unsheltered, chronically homeless individuals)

Mandates applicants provide a financial model assessing investment needs for capital construction of permanent housing and interim interventions, operating supports, rental assistance with private landlords, and services to help people exit and remain out of homelessness

Requires detailed analysis of federal, state, and local funding programs serving homeless populations, including annual funding amounts, number of persons served disaggregated by race and gender, types of housing/services provided, and length-of-stay limitations

Compels applicants to report on local homeless housing incentives, including shelter crisis declarations, steps to reduce discretionary approvals, zoning waivers, fee waivers for affordable housing projects, and whether "by right" project appeals are allowed

Requires applicants to demonstrate efforts to include small cities (those not directly receiving HHAP funding) in their regionally coordinated homeless action plans