BILL NUMBER: SB 891 CHAPTERED 10/11/01 CHAPTER 743 FILED WITH SECRETARY OF STATE OCTOBER 11,2001 PASSED THE SENATE SEPTEMBER 14, 2001 PASSED THE ASSEMBLY SEPTEMBER 13, 2001 AMENDED IN ASSEMBLY SEPTEMBER 12, 2001 AMENDED IN ASSEMBLY AUGUST 20, 2001 AMENDED IN ASSEMBLY JULY 18, 2001 AMENDED IN SENATE MAY 2, 2001 AMENDED IN SENATE APRIL 19, 2001 INTRODUCED BY Senator Escutia (Principal coauthor: Assembly Member Cedillo) FEBRUARY 23, 2001 An act relating to affordable housing, and making an appropriation therefor. (Approved by Governor October 10, 2001. Filed with Secretary of State October 11, 2001.) I am signing Senate Bill 891, however I am reducing the General Fund appropriation to $100,000. This bill would have authorized the expenditure of $250,000 for the New Economics for Women transitional housing project, known as La Posada. This program and those it serves will benefit greatly from the added funds this bill will provide for needed classroom space and a security system. However, given the rapid decline of our economy and a budget shortfall of $1.1 billion through the first three months of this fiscal year alone, I have no choice but to fund less than the requested amount. I would also note that this bill designates the Department of Parks and Recreation as the department that would administer this grant. This is an inappropriate designation. I am requesting cleanup legislation in January that would designate the Department of Housing and Community Development as administrator of this grant to the La Posada project. GRAY DAVIS, Governor LEGISLATIVE COUNSEL'S DIGEST SB 891, Escutia. New Economics for Women. Existing law establishes the Multifamily Housing Program, administered by the Department of Housing and Community Development, to provide assistance in the form of deferred payment loans for, among other things, the costs of developing dwelling units, transitional housing, and child care, and after school care and social service facilities integrally linked to assisted dwelling units that are affordable to lower income households. This bill would appropriate $250,000 from the General Fund to the Department of Parks and Recreation for allocation as a grant to the governing board of New Economics for Women to provide for the capital outlay needs of the La Posada Housing Project. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The history of our nation and this state is a rich and enduring tapestry woven with the threads of many remarkable lives and cultures. (b) The lives, work, and contributions of immigrants and their families have added strength, vitality, and purpose to that tapestry. (c) Immigrants constitute one of the fastest growing segments of our population, with single women with young children comprising an increasing percentage of immigrants, homeless, and domestic violence victims. (d) New Economics for Women (NEW) is the country's only nonprofit community development corporation developed and operated by Latinas. Founded in 1985 in Los Angeles' Belmont/Pico-Union district of downtown Los Angeles, NEW's mission is to assist young, single parent families in their transition from poverty to economic self-sufficiency. NEW accomplishes this mission through a wide range of housing, health, consumer, and business initiatives. (e) NEW was founded in 1985 as a nonprofit organization and has been an innovative leader in developing affordable transitional housing and economic self-sufficiency programs that meet the needs of single parent families of the Belmont area in downtown Los Angeles. NEW has developed and also manages additional transitional housing in east Los Angeles, San Pedro, and the San Fernando Valley with onsite services designed to empower women and families to reach their goals of economic prosperity through job and skill development, consumer and financial management education, computer training, and parenting classes. (f) La Posada is NEW's unique affordable housing development, which opened in 1996. La Posada is designed to improve the lives of an especially vulnerable population, single teen mothers and their children, by offering a real opportunity and safe haven from poverty, domestic violence, and homelessness. The complementary intermediate term housing and customized social services are critical to breaking the cycle of poverty and enabling young women and their children to remove or reduce the economic and social barriers to employment and independent living. (g) New residents increasingly arrive from the streets, emergency shelters, or domestic violence situations with young infants. Most are at high risk for destructive behavior, which, in addition to early pregnancy, can lead to continued economic dependence and lack of opportunity, both of which are passed on to the next generation. During its five-year existence, La Posada has served as a successful transition for young mothers from poverty, domestic violence, homelessness, and welfare dependency to independent, healthy, and economically independent self-sufficient young women and families. (h) While the number of births to unmarried mothers has decreased in California over the past 10 years to 32.8 percent in 1998, which places our state at 27th in the nation, the phenomenon of teen pregnancy continues to plague our youth at an alarming rate. (i) La Posada's demonstrated success with targeted, consistent intervention and a safe, stable residence can reverse the cycle of poverty and violence, and has resulted in positive change and a foundation for self-sufficient living for these young families. SEC. 2. The sum of two hundred fifty thousand dollars ($250,000) is hereby appropriated from the General Fund to the Department of Parks and Recreation for allocation as a grant to the governing board of New Economics for Women to provide for the capital outlay needs of the La Posada Housing Project.