BILL ANALYSIS AB 123 Page 1 Date of Hearing: April 1, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 123 (Portantino) - As Amended: March 16, 2009 Policy Committee: Human ServicesVote:7 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill expands the types of affordable housing for elderly or disabled persons that are exempt from licensure by the Department of Social Services (DSS), under the California Community Care Facilities Act. FISCAL EFFECT Minor savings to the state from reduced regulatory costs. COMMENTS 1)Purpose . This bill allows residents in certain types of affordable housing to remain in their residences and have access to community-based supportive services that might keep them from having to move into an assisted living environment or skilled nursing facility. Under current law, four federally subsidized housing programs for the elderly and disabled are exempt from the licensure requirements for residential community care facilities (RCFEs). This legislation adds two additional federally subsidized low-income housing programs to that list. Specifically, the Low Income Housing Tax Credit, under U.S.C. Section 42, and Section 8 subsidized housing, under U.S.C. Section 1437f, will now be exempt from state RCFE licensing requirements. AB 123 Page 2 2)Related Legislation . In 2007, AB 1526 (Lieber) was substantially similar to this bill. That legislation was amended to deal with an unrelated subject. AB 2686 (Mazzoni; Chapter 945, Statutes of 1998) exempted four specified federal subsidized housing programs from licensure requirements imposed on community care facilities by DSS. AB 123 adds two additional types of subsidized housing to the list of exempt facilities. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081