BILL ANALYSIS
AB 123
Page 1
Date of Hearing: March 24, 2009
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall, Jr., Chair
AB 123 (Portantino) - As Amended: March 16, 2009
SUBJECT : Housing for elderly or disabled persons.
SUMMARY : Exempts from Department of Social Services (DSS)
licensing two additional types of housing: Residences covered
by the low income housing tax credit and Section 8 subsidized
housing.
EXISTING LAW
1)Defines, under the Health and Safety Code, those residential
facilities subject to licensure by DSS and prescribes health
and safety standards such facilities must meet as a condition
of licensure.
2)Exempts designated housing facilities for seniors or people
with disabilities from licensure, including housing approved
and operated pursuant to prescribed provisions of federal law,
or with mortgages that are insured or that receive mortgage
assistance pursuant to federal law.
FISCAL EFFECT : Unknown. However, in analyzing a 2007 bill that
would have provided identical exemptions (AB 1526 (Lieber)), the
Assembly Appropriations Committee determined that there would be
"[m]inor savings to the state due to reduced regulatory costs."
COMMENTS : This bill adds two additional federally subsidized
low-income housing types for seniors and people with
disabilities to the existing list of housing exempt from
licensure by DSS under the Community Care Facilities Act, the
Residential Care Facilities for the Elderly Act, and provisions
related to licensure of residential facilities for persons with
chronic life-threatening illnesses.
Prior legislation--AB 2686 (Mazzoni), Chapter 945, Statutes of
1998--exempted four specified federally subsidized housing
programs from licensure requirements imposed on residential
community care facilities by DSS. The four programs are known
as Section 202, Section 811, Section 236 and Section 221(d)(3).
These programs are operated by the U.S. Department of Housing
AB 123
Page 2
and Community Development (DHCD). The housing is federally
insured or receive mortgage assistance. In these exempted
facilities, supportive services may be made available to
residents at their option, "as long as the project owner or
operator does not contract for or provide the supportive
services." However, the owner or operator "may coordinate, or
help residents gain access to, the supportive services, either
directly, or through a service coordinator." Thus, the operator
of the housing does not directly provide or contract for the
supportive services and, therefore, is not subject to licensing
requirements applicable to community care facilities. The
housing operators are, however, subject to federal rules and
regulations governing the housing programs.
AB 123 adds two additional housing categories to the list of
exemptions: (1) the Low Income Housing Tax Credit (LIHTC),
under 26 U.S.C. Sec. 42, and (2) Section 8 subsidized housing,
under 42 U.S.C. Sec. 1437f. The same criteria applicable to the
exemptions to the original four federal housing programs also
apply to those added by AB 123; that is, the project owner does
not provide or contract for supportive services, but may
coordinate or help residents access such services through a
service coordinator.
AB 1526 (Lieber 2007), which would have provided the same
exemptions as AB 123, was heard by the Assembly Human Services
Committee and received no negative votes. AB 1526 was
subsequently amended to include other and more controversial
provisions. It was eventually amended to an unrelated subject
matter.
According to Aging Services of California, AB 123's sponsor,
"nearly one-third of all units developed through the [LIHTC]
program in this state are occupied by seniors. According to
[DHCD], one out of every four units of public housing this state
is occupied by someone over the age of 62. Expanding the
current exemption to include these two additional types of
affordable housing will help to ensure that a greater number of
seniors are able to age in place."
In response to concerns that AB 123 might remove oversight, the
author points out that these affordable housing properties are
highly regulated and monitored for compliance with program
requirements. Moreover, because the types of housing exempted
by AB 123 are not currently licensed by DSS, AB 123 may be
AB 123
Page 3
characterized more accurately as preventative rather than a
change in current law.
REGISTERED SUPPORT / OPPOSITION :
Support
Aging Services of California (sponsor)
Albert Einstein Residence Center
American Federation of State, County and Municipal Employees
(AFSCME)
Andres Duarte Terrace
California Alliance for Retired Americans
Cambrian Center
Casa de la Paloma
Castle Argyle Senior Housing Residents
Center for Elders' Independence (CEI)
(53 individuals)
Community Resource for Independent Living (CRIL)
Covenant Manor
EAH (Nonprofit Housing Corporation)
Eskaton Jefferson Manor
Gold Country Retirement Community Center
Judson Terrace Homes
Kent Gardens Senior Community
La Mirada Vistas
L. C. Hotchkiss Terrace
Northern California Presbyterian Homes and Services
Park Paseo
PEP Housing
Pilgrim Place
Pioneer House
Retirement Housing Foundation
Saint John Manor
Satellite Housing
Southern California Presbyterian Homes
Sycamore Terrace
The Alhambra Retirement Community
The Episcopal Home Communities
William C. Arthur Terrace
1 individual
Opposition
None on file
AB 123
Page 4
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089