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--- STAFF ANALYSIS OF ASSEMBLY BILL 123 (Portantino) Page 2 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 3 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 STAFF ANALYSIS OF ASSEMBLY BILL 123 (Portantino) Page 4 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 -- END --