The model ordinance proposes banning persistent camping in one location and encampments that block sidewalks. It requires local officials to offer shelter before removing temporary dwellings.

The $3.3 billion in funding is aimed at expanding behavioral health housing and treatment options for mentally ill and homeless populations, supporting the creation of thousands of treatment beds and outpatient services.

The legal basis is supported by a U.S. Supreme Court ruling that allows cities to crack down on encampments, providing clarity for local governments to manage them.

While the initiative emphasizes providing shelter, critics argue that the state does not have enough supportive housing and shelter beds to adequately address the displacement of people from encampments.