BILL ANALYSIS
AB 702
Page 1
ASSEMBLY THIRD READING
AB 702 (Salas)
As Amended June 1, 2009
Majority vote
HOUSING 6-0 VETERANS AFFAIRS 6-0
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|Ayes:|Torres, De La Torre, Eng, |Ayes:|Salas, Huber, Lieu, V. |
| |Fletcher, Ma, Saldana | |Manuel Perez, Saldana, |
| | | |Yamada |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|De Leon, Ammiano, Charles | | |
| |Calderon, Davis, Fuentes, | | |
| |Hall, John A. Perez, | | |
| |Price, Skinner, Solorio, | | |
| |Torlakson, Krekorian | | |
| | | | |
|-----+---------------------------+---+--------------------------|
|Nays:|Nielsen, Duvall, Harkey, | | |
| |Miller, | | |
| |Audra Strickland | | |
| | | | |
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SUMMARY : Requires the Department of Housing & Community
Development (HCD) to ensure that a percentage of the money in
the Emergency Housing Assistance Program (EHAP) fund is
allocated to sponsors of veterans' only homeless projects or
projects that give preference to veterans during any fiscal year
in proportion to the percentage of homeless veterans represent
of the total homeless population Specifically , this bill:
1)Requires HCD in conjunction with California Department of
Veterans Affairs (CDVA) to use existing data to calculate the
percentage of veterans within the homeless population.
2)Provides that if the funds for sponsors of veterans' only
homeless projects or veterans' preference projects are not
fully utilized during the fiscal year then the remaining funds
AB 702
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will be allocated that fiscal year for general distribution.
FISCAL EFFECT : No direct state costs. Potentially
reallocation of future EHAP funds should they become available.
COMMENTS : HCD operates two programs that fund the construction
and operating expenses of homeless shelters and transitional
housing, the Emergency Housing and Assistance Program Capital
Development (EHAP-CD) and the EHAP.
The EHAP-CD provides funding to acquire, build, and convert or
rehabilitate emergency shelters, transitional housing and safe
havens that provide shelter and supportive services for homeless
families and individuals. The funds are made available as
deferred payment loans at 3% simple interest for terms ranging
from five to 10 years based on the type of development activity.
In 2002, the voters approved the Housing and Emergency Trust
Act of 2002, which included $195 million for the EHAP-CD. In
2006, the voters approved the Emergency Housing Shelter Trust
Fund Act of 2006, Proposition 1C, which authorized $2.85 billion
in general obligation bonds to continue several existing
bond-funded housing programs and to develop new infrastructure
programs to support housing development. Among the existing
programs, the EHAP-CD received $50 million in funding.
The Emergency Housing and Assistance Program (EHAP) provide
operational grants to emergency shelters, transitional housing
projects, and supportive services for homeless individuals and
families. This program has been funded by the General Fund in
the past, however, the Governor vetoed the $4 million in funding
for the program in 2007-2008 Budget. EHAP is the only
state-funded program that supports the operational costs of
emergency shelters and transitional housing. Local
jurisdictions can use the EHAP grants as a match to federal
dollars availabe in the Federal Emergency Shelter Program
(FESG). Housing California, which advocates for increasing the
supply and variety of decent, safe and affordable housing for
homeless and low-income people, surveyed emergency shelters
around the state and found that the state stands to lose
millions more in federal funding as a result of the veto of
these funds.
According to the author, veterans represent a significant
portion of the homeless population. There are approximately
AB 702
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195,827 veterans that are homeless with an estimated 49,724
veterans homeless in California. Although veterans account for
only 11% of the total population age 18 and older, homeless
veterans represent 26% of the total homeless population. Also,
the author notes that regardless of gender, veterans are more
likely to be homeless than their non-veteran counterparts with
male veterans being 1.25 times more likely to be homeless, and
female veterans three times more likely to be homeless than
non-veterans.
This bill would require HCD to make a portion of EHAP funds
available initially to shelters that serve veterans only or have
a veterans' preference. The amount of funds made available to
shelters that serve veterans will be based on the percentage of
veterans in the homeless population. If the funds are not
exhausted by the veterans-only or veterans preference shelters
the funds will be made available to other homeless shelters.
There are currently no funds budgeted for this program.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN: 0001358