BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 123                                       
          A
          AUTHOR:        Portantino                                   
          B
          VERSION:       March 16, 2009
          HEARING DATE:  June 9, 2009                                 
          1
          FISCAL:        To Appropriations                            
          2
                                                                      
          3
          CONSULTANT:                                                
          Hailey
                                        
                                     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.

                                     ABSTRACT  

           Current law
           1)  Establishes the State Department of Social Services  
          (DSS) setting forth its responsibilities to administer the  
          Community Care Facilities Act to require specific  
          facilities to meet prescribed licensing standards.

          2)  Exempts from community care licensing any housing for  
          elderly or disabled persons that is approved and operated  
          pursuant to provisions of federal law.

           This bill
           1)  Exempts from community care licensing two types of  
          housing: residences covered by the low income housing tax  
          credit and Section 8 subsidized housing, if it is occupied  
                                                         Continued---



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          by elderly or disabled persons and if supportive services  
          are made available to residents at their option and if the  
          supportive services are not provided by the owner or  
          operator of the facility.

          2)  Allows the owner or operator of the facility to  
          coordinate supportive services or to help residents gain  
          access to supportive services.

                                         
                                 FISCAL IMPACT  

          According to the Assembly Appropriations Committee, this  
          bill will bring "minor savings to the state from reduced  
          regulatory costs."
                                         
                           BACKGROUND AND DISCUSSION  

          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. 
             
          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 and Community Development.  The  
          housing is federally insured or receives 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  




          STAFF ANALYSIS OF ASSEMBLY BILL 123 (Portantino)      Page  
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          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.

           Prior legislation
           AB 1526 (Lieber 2007), which passed the Assembly in a form  
          similar to AB 123, was amended extensively before its  
          Senate Human Services Committee hearing and was later  
          amended again to address an unrelated subject.

           Need for the bill
           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."

           Votes in the Assembly  :
          Human Services:   7-0
          Appropriations:16-0
          Floor:         70-0



                                    POSITIONS  

          Support:  Aging Services of California (sponsor) 
                    Albert Einstein Residence Center 
                    Alhambra Retirement Community 
                    American Federation of State, County and  
                    Municipal Employees
                    Andres Duarte Terrace 




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                    Association of Regional Center Agencies
                    California Alliance for Retired Americans 
                    California Association of Public Authorities
                    Cambrian Center 
                    Casa de la Paloma 
                    Castle Argyle Senior Housing Residents 
                    Center for Elders' Independence (53 individuals) 
                    Community Resource for Independent Living
                    Congress of California Seniors
                    Covenant Manor 
                    EAH (Nonprofit Housing Corporation) 
                    Episcopal Home Communities 
                    Eskaton Jefferson Manor 
                    Gold Country Retirement Community Center 
                    Judson Terrace Homes 
                    Kent Gardens Senior Community 
                    La Mirada Vistas 
                    L. C. Hotchkiss Terrace 
                    Lytton Gardens Senior Communities
                    Northern California Presbyterian Homes and  
                    Services 
                    Park Paseo 
                    PEP Housing 
                    Pilgrim Place 
                    Pioneer House
                    Pleasanton Gardens 
                    Retirement Housing Foundation 
                    Saint John Manor 
                    Satellite Housing 
                    St. Paul's Senior Homes and Services
                    Southern California Presbyterian Homes 
                    Sycamore Terrace 
                    William C. Arthur Terrace 
                    1 individual 


          Oppose:        None received



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