BILL NUMBER: AB 702 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2009
INTRODUCED BY Assembly Member Salas
FEBRUARY 26, 2009
An act to add Chapter 11.7 (commencing with Section
50810) to Part 2 of Division 31 of the Health and Safety Code,
relating to housing and community development. An act
relating to housing and community development, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 702, as amended, Salas. Veterans Housing and
Assistance Program. Emergency Housing and Assistance
Fund.
Under the Emergency Housing and Assistance Program, the Department
of Housing and Community Development is authorized to make grants
from the continuously appropriated Emergency Housing and Assistance
Fund to local governments and nonprofit organizations to provide
emergency or transitional housing, as specified.
This bill would appropriate, for the 2009-10 fiscal year,
$4,000,000 from the General Fund to the Emergency Housing and
Assistance Fund, as specified, for operating facilities and capital
development grants. The bill would prohibit grants funded pursuant to
the appropriation to be used to supplant existing emergency shelter
or transitional housing funding. The bill would impose various
limitations on the award amounts of specified grants.
Under existing law, the Emergency Housing and Assistance Program,
the Department of Housing and Community Development is authorized to
make grants from the continuously appropriated Emergency Housing and
Assistance Fund to local governments and nonprofit organizations to
provide emergency or temporary housing for the homeless, as
specified.
This bill would establish the Veterans Housing and Assistance
Program, under which the Department of Housing and Community
Development would be authorized to make grants from the Veterans
Housing and Assistance Fund, upon appropriation by the Legislature,
to local governments and nonprofit organization to provide emergency
or temporary housing for homeless veterans, as specified. The bill
would authorize the department to adopt regulations, including
emergency regulations, for the administration of the program.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) For the 2009-10 fiscal year, the
sum of four million dollars ($4,000,000) is hereby appropriated from
the General Fund to the Emergency Housing and Assistance Fund which
shall be distributed pursuant to Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31 of the Health and Safety Code
for operating facilities and capital development grants.
(b) Grants funded pursuant to this section shall not be used to
supplant existing emergency shelter or transitional housing funding.
(c) Notwithstanding any regulatory provision to the contrary,
operating facilities grants shall not exceed one hundred thousand
dollars ($100,000) nor be less than thirty thousand dollars
($30,000). For counties with an allocation of greater than thirty
thousand dollars ($30,000), one grant of less than thirty thousand
dollars ($30,000) may be awarded if necessary to fully utilize the
county's allocation. For counties with an allocation of up to or
equal to thirty thousand dollars ($30,000), up to two grants of less
than thirty thousand dollars ($30,000) may be awarded.
SECTION 1. Chapter 11.7 (commencing with
Section 50810) is added to Part 2 of Division 31 of the Health and
Safety Code, to read:
CHAPTER 11.7. VETERANS HOUSING AND ASSISTANCE PROGRAM
50810. (a) It is the intent of the Legislature to encourage the
provision of shelter, with effective personal rehabilitation and
self-sufficiency development services, to homeless veterans at as low
a cost and as quickly as possible, without compromising the health
and safety of shelter occupants. It is also the intent of the
Legislature to encourage the move of homeless veterans from shelters
to a self-supporting environment as soon as possible, to encourage
provision of services for as many veterans at risk of homelessness as
possible, to encourage compatible and effective funding of homeless
services, and to encourage coordination among public agencies that
fund or provide services to homeless veterans. Because many
communities currently provide shelter and limited services only
during cold and wet weather to veterans who are unable or unwilling
to comply with traditional housing programs and because year-round
shelter will encourage these individuals to accept services and move
toward permanent housing, it is also the intent of the Legislature to
increase the availability of year-round shelter to meet the special
needs of those veterans, including a Safe Haven that provides
supportive housing for seriously mentally ill homeless veterans.
(b) There is hereby created the Veterans Housing and Assistance
Program.
(c) To the extent possible, the Veterans Housing and Assistance
Program shall not conflict with the federal Stewart B. McKinney
Homeless Assistance Act, as approved on July 22, 1987, cited as
Public Law 100-77, as it is, from time to time, amended, and
regulations promulgated thereunder by the United States Department of
Housing and Urban Development, or its successor.
50810.1. (a) There is hereby created in the State Treasury the
Veterans Housing and Assistance Fund. All moneys in the fund shall,
upon appropriation by the Legislature, be used by the department to
carry out the purposes of this chapter. Any repayments, interest, or
new appropriations shall be deposited in the fund, notwithstanding
Section 16305.7 of the Government Code. Money in the fund shall not
be subject to transfer to any other fund pursuant to any provision of
Part 2 (commencing with Section 16300) of Division 4 of Title 2 of
the Government Code, except to the Surplus Money Investment Fund.
(b) The department may require the transfer of moneys in the
Veterans Housing and Assistance Fund to the Surplus Money Investment
Fund for investment pursuant to Article 4 (commencing with Section
16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the
Government Code. All interest, dividends, and pecuniary gains from
these investments shall accrue to the Veterans Housing and Assistance
Fund, notwithstanding Section 16305.7 of the Government Code.
50810.3. As used in this chapter:
(a) "Department" means the Department of Housing and Community
Development.
(b) "Designated local board" means a group, including social
service providers and a representative of local government, that has
met department requirements for distribution of grants allocated by
the department pursuant to this chapter.
(c) "Director" means the Director of Housing and Community
Development.
(d) "Eligible organization" means an agency of local government or
a nonprofit corporation that provides, or contracts with community
organizations to provide, emergency shelter or transitional housing
for veterans, or both.
(e) "Emergency shelter" means housing with minimal supportive
services for homeless veterans that is limited to occupancy of six
months or less by a homeless veteran. No individual or household may
be denied emergency shelter because of an inability to pay.
(f) "Nonurban county" means any county with a population of less
than 200,000, as published in the most recent edition of Population
Estimates of California Cities and Counties, E-1, prepared by the
Department of Finance, Population Research Unit.
(g) "Region" means a county or a consortium of counties
voluntarily banding together by action of a designated local board.
(h) "Safe Haven" means supportive housing for seriously mentally
ill homeless veterans, many of whom have cooccurring substance abuse
problems, that have been unable or unwilling to participate in
high-demand housing programs.
(i) "Transitional housing" means housing with supportive services
for up to 24 months that is exclusively designated and targeted for
recently homeless veterans. Transitional housing includes
self-sufficiency development services, with the ultimate goal of
moving recently homeless veterans to permanent housing as quickly as
possible, and limits rents and service fees to an ability-to-pay
formula reasonably consistent with the United States Department of
Housing and Urban Development's requirements for subsidized housing
for low-income persons. Rents and service fees paid for transitional
housing may be reserved, in whole or in part, to assist residents in
moving to permanent housing.
(j) "Urban county" means any county that is not a nonurban county.
(k) "Veteran" shall have the same meaning as provided in Section
980 of the Military and Veterans Code.
50810.5. (a) The department shall adopt regulations for the
administration of the Veterans Housing and Assistance Program. The
regulations shall govern the equitable distribution of funds in
accordance with the intent and provisions of this chapter, and shall
ensure that the program is administered in an effective and efficient
manner. The regulations shall provide for reasonable delegation of
authority to designated local boards, ensure that local priorities
and criteria are reasonably designed to address the needs of homeless
veterans, and ensure that designated local boards meet reasonable
standards of inclusiveness, accountability, nondiscrimination, and
integrity.
(b) The regulations adopted pursuant to this section shall ensure
that emergency shelter and services will be provided on a
first-come-first-served basis for whatever time periods are
established by the shelter. No individual or household may be denied
shelter or services because of an inability to pay. Nothing in this
provision shall be construed to preclude a shelter from accepting
payment vouchers provided through any other public or private program
so long as no shelter beds are reserved beyond sundown for that
purpose. Notwithstanding Section 11135 of the Government Code or any
other provision of law, nothing in this section shall be construed to
preclude a provider of emergency shelter or transitional housing
from restricting occupancy on the basis of any of the following:
(1) Sex.
(2) In the case of an emergency shelter or transitional housing
offered exclusively to veterans 24 years of age or younger pursuant
to Section 11139.3 of the Government Code, on the basis of age.
However, in the case of families, providers of emergency shelter
or transitional housing shall provide, to the greatest extent
feasible, adequate facilities within their range of services so that
all members of a family may be housed together, regardless of age and
gender.
50810.7. (a) The department shall ensure that not less than 20
percent of the moneys in the Veterans Housing and Assistance Fund
shall be allocated to nonurban counties during any given fiscal year.
If the funds designated for facilities operation that are allocated
to nonurban counties are not awarded by the end of that fiscal year,
then those unencumbered funds shall be allocated in the next fiscal
year to urban counties. Funds for capital development that are not
awarded by the end of the second fiscal year shall be awarded in the
subsequent fiscal year to urban counties.
(b) The amount of funds that the department allocates from the
Veterans Housing and Assistance Fund to each region, excluding funds
allocated pursuant to subdivision (a), shall be based upon a formula
that accords at least 20 percent weight to each of the following
factors:
(1) The relative number of persons in the region below the poverty
line according to the most recent federal census, updated, if
possible, with an estimate by the Department of Finance, compared to
the total of the urban counties.
(2) The relative number of persons unemployed within each region,
based on the most recent one-year period for which data is available,
compared to the total of the urban counties.
(c) Grant funds shall be disbursed as expeditiously as possible by
the department.
(d) The department shall use not more than 5 percent of the amount
available for funds pursuant to this chapter to defray the
department's administrative costs pursuant to this chapter.
(e) Notwithstanding any other provision of this chapter, the
department shall distribute funds appropriated for purposes of the
activities specified in paragraph (2) of subdivision (a) of Section
50810.13 as grants in the form of forgivable deferred loans, subject
to all of the following:
(1) Funding shall be made available to each project as a loan with
a term of five years for rehabilitation, seven years for substantial
rehabilitation, or 10 years for acquisition and rehabilitation or
new construction. Each deferred loan shall be secured by a deed of
trust and promissory note. Repayment of the loan shall be deferred as
long as the project is used as an emergency shelter or transitional
housing. At the completion of the specified year term, the loan shall
be forgiven. If a transfer or conveyance of the project property,
however, occurs prior to that time that results in the property no
longer being used as an emergency shelter or transitional housing,
the department shall terminate the grant and require the repayment of
the deferred loan in full.
(2) Applications for funding shall be made pursuant to
department-issued statewide "Notices of Funding Availability" without
the need for additional regulations.
(3) The department shall set forth the criteria for evaluating
applications in the "Notices of Funding Availability" and shall make
deferred loans based on those applications that best meet the
criteria.
(4) The department shall specify in the "Notice of Funding
Availability" both maximum and minimum grant amounts that may be
varied for urban and nonurban counties.
(5) Contracts for projects that have not begun construction within
the initial 12-month period shall be terminated and funds
reallocated. The department, however, may extend this period by a
period not to exceed 12 months.
50810.9. (a) A designated local board or a county shall be
eligible for its specified allotment by submitting to the department
a one-page application requesting the funding. The application shall
briefly state how the county's proposed use of the funds is
consistent with Section 50809.11 and shall designate the grant
recipient or recipients for the funds.
(b) The department shall disburse the specified allotments to the
grant recipient or recipients no later than 30 days after receipt of
the application, if the department determines that the application is
consistent with subdivision (a).
(c) The department shall allocate these additional Emergency
Housing and Assistance Program funds above the base year amount
consistent with Section 50810.7.
(d) The department's administrative costs shall not exceed the
amount provided for in subdivision (d) of Section 50810.7.
50810.11. (a) The department shall issue a notice or notices of
funding availability to potential applicants and designated local
boards, as applicable, as soon as possible after funding becomes
available for the Veterans Housing and Assistance Program. Each
notice of funding availability shall indicate the amounts and types
of funds available under this program.
(b) A designated local board, or the department in the absence of
a designated local board, shall solicit, receive, and select among
applications for grants pursuant to this chapter from eligible
organizations through an open, fair, and competitive process. These
applications shall be ranked and selected by a designated local
board, or by the department in the absence of a designated local
board.
(c) Notwithstanding subdivision (b), the department may restrict a
designated local board from selecting any application requesting a
grant for capital developments if the amount requested by the
application exceeds the limits determined by the department, and the
department determines that the designated local board is not
qualified to evaluate the application. The department shall establish
criteria for distinguishing between a designated local board that
may be so restricted and a designated local board that would not be
so restricted. A designated local board may appeal to the director,
or to the director's designee, any decision made by the department
pursuant to this subdivision. The department, by June 30, ____, shall
consider increasing the maximum grant limits to ____ dollars ($____)
for operating grants and ____ dollars ($____) for capital grants.
(d) The department, or the designated local board, as applicable,
shall not grant more than ____ dollars ($____) to any eligible
organization within a region in a funding round even if the eligible
organization has filed multiple applications.
(e) The department shall determine requirements of the grant
contract and shall contract directly with the grant recipient. The
department shall not delegate this function to the designated local
boards. Eligible designated local boards may use a percentage of the
regional award funds to defray administrative costs. The department
shall establish this percentage, which shall not exceed 2 percent.
(f) The designated local board shall regulate the performance of
any grant contract within their region, subject to department
oversight and requirements established by the department.
(g) The department shall not perform a secondary rating or ranking
review on those grant applications that have been solicited,
received, and selected by a designated local board according to a
local ranking criterion that has been approved by the department.
(h) In addition, the funding limitations contained in this section
shall not apply to the appropriation in that budget item.
50810.13. (a) Grants awarded by the department pursuant to this
chapter shall be used by a grant recipient to defray costs of
eligible activities defined in department regulations, including, but
not limited to, any of the following activities:
(1) Operating facilities, including, but not limited to,
operations staff salaries, maintenance, repair, utilities, equipment,
and debt reduction.
(2) Providing for capital development programs, such as
acquisition, leasing, construction, and rehabilitation of sites for
emergency shelter and transitional housing for homeless veterans.
(3) Administrative costs.
(4) Operating expenses relating to supervising and counseling
clients.
(5) Providing residential rental assistance.
(6) Leasing or renting rooms for provision of temporary shelter.
(b) Funds allocated to a nonurban county pursuant to subdivision
(a) of Section 50810.7 may be used to pay the cost of leasing or
renting individual units, hotel rooms, or motel rooms for use as
emergency shelters. No more than 15 percent of the funds allocated to
a region other than a nonurban county shall be expended for this
purpose.
(c) By regulation, the department shall establish a level, not to
exceed 5 percent of a grant award, which any eligible recipient may
use to defray administrative costs.
50810.15. Each designated local board shall provide a process for
appeal of its decisions and comply with the requirements of this
chapter and the regulations promulgated hereunder.
50810.17. (a) Each designated local board shall submit a local
emergency shelter strategy for its region to the department for
approval describing the procedures for complying with requirements
pursuant to this chapter and the regulations promulgated thereunder.
The department shall establish, by regulation, the types of
information that each designated local board shall include in the
strategy, including, but not limited to, each of the following:
(1) A statement of goals and how goals will be achieved.
(2) A statement of priorities and how the priorities complement
the local continuum of care planning process.
(3) A description of the application process and ranking criteria
for the Veterans Housing and Assistance Program.
(4) Copies of application forms for the Veterans Housing and
Assistance Program that the designated local board will use to
evaluate requests for grants.
(5) A statement of how grant recipients shall be encouraged to
develop year-round emergency shelters and transitional housing to
meet the diverse needs of the homeless veterans population that
include families, youth, and persons with physical and mental
disabilities, people who are addicted to alcohol and drugs, people
living with HIV/AIDS, the elderly, and pregnant women. Also, a
description of how the local plan serves the needs of veterans and
their families at risk of homelessness as a result of eviction.
(b) The department shall establish a deadline, by which date the
designated local board shall be required to submit a strategy for the
department's review.
(c) Upon the department's approval of a strategy, the designated
local board shall make the strategy broadly available to shelter and
service providers and to other interested persons in its region.
50810.19. (a) Project budgets may be changed, within limits
established by the department.
(b) Funds allocated to a region shall remain available for funding
applications within the region for a time period or dollar limit to
be specified by department regulations. The department may designate
a time period or dollar limit for the distribution of capital
development funds that is different from the time period or dollar
limit for the distribution of noncapital development funds. When the
designated local board is unable to distribute funds during the time
period designated by the department, the funds shall revert to the
fund for distribution.
50810.21. (a) The director shall establish a statewide advisory
body on emergency and transitional housing. The department shall
consult with the advisory body in the development of regulations and
guidelines for certification of designated local boards, requirements
for the local emergency shelter strategies, assessment of statewide
needs of homeless veterans and providers of services to homeless
veterans, coordination of services and funds of state agencies, and
general guidance and direction related to this chapter. The director
shall establish, and the department shall begin consulting with, the
advisory body within 30 days of the operative date of the act that
adds this chapter.
(b) The advisory body established pursuant to this section shall
be appointed by, and serve at the pleasure of, the director and shall
represent a broad range of representatives of designated local
boards, emergency shelter providers, and transitional housing
providers from throughout the state. There shall be at least one
member who is a homeless or formerly homeless veteran; at least one
member who represents a statewide nonprofit advocacy organization
concerned with veterans; at least one member who represents a
statewide nonprofit advocacy organization concerned with homelessness
and low-cost affordable housing; one member who represents a
designated local board; one member who represents a federal
interagency council concerned with veterans' issues; one member who
represents a federal interagency council concerned with homeless
issues; one member representing state services for homeless persons;
one member representing state services for veterans; one member who
is a residential building owner or manager; one member who is a
commercial building owner or manager; and one member of the public.
The department shall not use funds made available pursuant to this
chapter to fund the activities of the advisory body.
50810.23. The department may adopt emergency regulations to
implement this chapter, with respect to award of funds and the
administration of the program, to the extent necessary before the
department issues the first notice of funding availability pursuant
to Section 50810.11. The adoption of emergency regulations shall be
conclusively presumed to be necessary for the immediate preservation
of the public peace, health, safety, or general welfare within the
meaning, or purposes, of Section 11346.1 of the Government Code. Any
changes in regulations made by the department pursuant to this
section shall be identified in the notice of funding availability
published by the department pursuant to Section 50810.11.