This bill appropriates a total of $3,500,000 to the Department of Health and Human Services (DHHS) to enhance community housing options for individuals with mental illness. Specifically, it allocates $1,500,000 for the fiscal year ending June 30, 2026, to support existing mental health housing stocks and expand facilities through grants to community mental health centers, with a maximum of $50,000 per bed. Additionally, it provides $1,000,000 for the fiscal years ending June 30, 2026, and June 30, 2027, for supported housing programs operated by designated community mental health centers, aimed at covering non-billable services. The bill also directs DHHS to adjust Medicaid reimbursement rates for community mental health center housing programs for high acuity patients, increasing the daily rate from approximately $278 to $350, which will be eligible for a 50 percent federal match.

The bill includes provisions that are nonlapsing, meaning the appropriated funds will not expire at the end of the fiscal year. The governor is authorized to draw from the treasury for these appropriations, and the department is required to initiate grant applications by December 1, 2025. The effective date for the act is set for July 1, 2025. Overall, the bill aims to improve mental health housing support and services, thereby addressing the needs of individuals requiring community-based mental health care.