BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1818
                                                                  Page  1

          Date of Hearing:   April 29, 2008

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                  Mary Salas, Chair
                   AB 1818 (Fuentes) - As Amended:  April 28, 2008
           
          SUMMARY  :   Allows sponsors of supportive housing developments to  
          restrict occupancy to veterans with special needs if, among  
          other things, it is on property owned or leased by the United  
          States Department of Veterans Affair or is on property owned or  
          leased by the California Department of Veterans Affairs.   
          Specifically,  this bill  :  provides that the sponsor of a  
          supportive housing development may restrict occupancy to  
          veterans, if all of the following conditions apply:  

          1.The veterans to be served possess significant barriers to  
            social reintegration and employment that require specialized  
            treatment and services and are due to a physical or mental  
            disability, substance abuse, or the effects of long-term  
            homelessness;

          2.The sponsor also provides, or assists in providing, the  
            specialized treatment and services;

          3.The project is located on property owned or leased by the  
            United States Department of Veterans Affairs or the California  
            Department of Veterans and leased to the sponsor for a term of  
            at least 55 years; and, 

          4.The project meets all the other requirements for assistance,  
            and would have rated or ranked high enough to receive an award  
            without the occupancy restriction.


           EXISTING LAW  :

          1.Provides for the regulations and administration of the  
            Emergency Housing and Assistance Program.  Provides that the  
            emergency shelter and services will be provided on a  
            first-come first-served basis, and that nothing in existing  
            law shall be construed to preclude a provider of emergency or  
            transitional housing from restricting occupancy on the basis  
            of either sex or military veteran status, if the veterans  
            served possess significant barriers to social reintegration  
            and employment due to a physical or mental disability,  








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            substance abuse, or the effects of a long-term homelessness  
            that require specialized treatment and services, and the  
            provider of emergency shelter or transitional housing also  
            provides the specialized treatment and services.  (Health &  
            Safety Code Section 50801.5(b)(3).)

          2.Establishes the Multifamily Housing Program, administered by  
            the Department of Housing and Community Development, to  
            provide funding for the new construction, rehabilitation, and  
            preservation of permanent and transitional rental housing for  
            low income households.  Provides that eligible applicants  
            include local public entities, for profit or nonprofit       
            corporations, limited equity housing cooperatives,  
            individuals, Indian reservations and rancheries, and limited  
            partnerships.  Provides that applicants must have developed at  
            least one affordable housing development.  Provides that funds  
            will be made available as deferred payment loans.  Provides  
            that, in exchange for state funds, the developer must agree to  
            maintain the units as affordable for 55 years.  (Health and  
            Safety Code Section 50675.1.)

          3.Prohibits discrimination on the basis of race, national  
            origin, ethnic group identification, religion, age, sex, color  
            or disability under any program or activity that is conducted,  
            operated, or administered by the state or state agency, that  
            is funded directly by the state, or that receives any  
            financial assistance from the state.  (Government Code Section  
            11135.)  Other provisions of state law and many local  
            ordinances prohibit discrimination in housing based on a  
            number of specified characteristics.  (Fair Employment and  
            Housing Act (Government Code Sections 11135, 12920 and 12955);  
            Unruh Civil Rights Act (Civil Code Sections 51, 51.3, 51.10);  
            Health and Safety Code Section 50800 et seq.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   According to the author's office, current law does  
          not allow, or is not clear about allowing, housing providers to  
          restrict occupancy to veterans with special needs.  The author's  
               office states that this uncertainty is reinforced by the  
          fact that the State Legislature in 2003 passed legislation that  
          allows state funds to be used for shelters and transitional  
          housing, but does not reference permanent supportive housing.   
          According to the sponsor, this bill will help address the  
          challenges to veterans with special needs by providing an  








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          alternate housing option.

          AB 1818 prior to the April 3, 2008 amendment was opposed by the  
          Western Center on Law and Poverty in a letter which stated, "AB  
          1818 redirects very limited resources, desperately needed by  
          numerous Californians, to a single, albeit equally worthy group:  
           veterans."  This opposition centered on whether the inclusion  
          of qualified veteran only housing projects would drain finite  
          funding resources faster.  Limiting access to specified  
          properties will protect the funds and ensure that other needy  
          groups may access existing funds.  Those funds are intended to  
          help the large number of California's renters who face excessive  
          housing costs as a result of having special housing needs  
          arising from their employment status, age, or disability.   
          Available data on the homeless population indicate that Veterans  
          make up 25% of the homeless population in California.   

           Overwhelming Number of U.S. Homeless Veterans  .  According to the  
          U.S. Department of Veteran Affairs (DVA), there are  
          approximately 154,000 homeless veterans in our nation and twice  
          as many experience homelessness at some point during the course  
          of a year.  The DVA website states that many other veterans are  
          considered near homeless or at risk because of their poverty,  
          lack of support from family and friends, and dismal living  
          conditions in cheap hotels or in overcrowded or substandard  
          housing.  According to the DVA, the number of homeless male and  
          female Vietnam era veterans is greater than the number of  
          service persons who died during that war -- and a small number  
          of Desert Storm veterans are also appearing in the homeless       
          population.  Almost all homeless veterans are male (about three  
          percent are women), the vast majority are single, and most come  
          from poor, disadvantaged backgrounds.  Similar to the general  
          population of homeless adult males, about 45% of homeless  
          veterans suffer from mental illness and (with considerable  
          overlap) slightly more than 70% suffer from alcohol or other  
          drug abuse problems.  Roughly 56% are African American or  
          Hispanic.

          A report by the Democratic staff of the House Veterans Affairs  
          Committee found that from October 2005 to June 2006, the number  
          of Iraq and Afghanistan veterans seeking services from walk-in  
          veterans centers doubled, from 4,467 to 9,103.  An article by  
          the Washington Post supports the need for more options for  
          homeless veteran where it states, "As in the Vietnam War era,  
          when thousands of vets ended up homeless, there are already  








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          signs that the recent conflicts are taking a traumatic  
          psychological toll on some service members. Many veterans'  
          advocates said that despite unprecedented attempts by the  
          military and Veterans Affairs to care for veterans, increasing  
          numbers of the new generation of warriors are ending up  
          homeless."
          "This is something we need to be concerned about," said Cheryl  
          Beversdorf, President of the National Coalition for Homeless  
          Veterans, a Washington-based nonprofit.

           Committee Questions:

           1.Does limiting these projects to a small amount of sites serve  
            the purpose of potentially providing shelter the overwhelming  
            number of homeless veterans?

          2.Is the legislative intent of this bill to limit the types of  
            veteran only housing that can be funded with state funds?

          3.Should the bill be amended to include a declaration of  
            existing law that clarifies that veteran only housing is not  
            discriminatory?

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          A Community of Friends, Inc. (sponsor)
          California Association of Veterans Service Agencies
          California State Commanders Veterans Council
          Century Housing
          Housing California 
          New Directions, Inc.
          Swords to Plowshares
          Tenderloin Neighborhood Development Corporation
          Western Center on Law & Poverty

           Opposition 
           
          None on file  
          Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550