BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 123
          Author:   Portantino (D), et al
          Amended:  3/16/09 in Assembly
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  5-0, 6/9/09
          AYES:  Liu, Maldonado, Alquist, Runner, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8 

           ASSEMBLY FLOOR  :  70-0, 4/16/09 - See last page for vote


           SUBJECT  :    Housing for elderly or disabled persons

           SOURCE  :     Aging Services of California


           DIGEST  :    This bill 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.

           ANALYSIS  :    Existing 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  
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            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 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.

           Background

           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  
          federal rules and regulations governing the housing  
          programs.

          This bill 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  







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          criteria applicable to the exemptions to the original four  
          federal housing programs also apply to those added by this  
          bill, 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

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

           SUPPORT  :   (Verified  6/19/09)

          Aging Services of California (source) 
          Albert Einstein Residence Center 
          Alhambra Retirement Community 
          American Federation of State, County and Municipal  
          Employees
          Andres Duarte Terrace 
          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 
          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 
          L. C. Hotchkiss Terrace 
          La Mirada Vistas 
          Lytton Gardens Senior Communities
          Northern California Presbyterian Homes and Services 
          Park Paseo 
          PEP Housing 







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          Pilgrim Place 
          Pioneer House
          Pleasanton Gardens 
          Retirement Housing Foundation 
          Saint John Manor 
          Satellite Housing 
          Southern California Presbyterian Homes 
          St. Paul's Senior Homes and Services
          Sycamore Terrace 
          William C. Arthur Terrace

           ARGUMENTS IN SUPPORT :    According to Aging Services of  
          California, "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."


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Carter, Conway, Cook, Coto, Davis, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Miller, Monning, Nestande, Niello,  
            Nielsen, John A. Perez, V. Manuel Perez, Portantino,  
            Price, Ruskin, Salas, Saldana, Silva, Smyth, Solorio,  
            Audra Strickland, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Tom Berryhill, Caballero, Charles  
            Calderon, Chesbro, De La Torre, Fuller, Huber, Mendoza,  
            Nava, Skinner


          CTW:nl  6/23/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE








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