BILL ANALYSIS
AB 2064
Page 1
Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
AB 2064 (John A. Perez and Bass) - As Amended: April 26, 2010
SUBJECT : Emergency Housing Shelter Operations Grant Account:
notice of funding availability.
SUMMARY : Requires the Department of Housing and Community
Development (HCD) to release a Notice of Funding Availability
(NOFA) for the Emergency Housing Assistance Program (EHAP).
Specifically, this bill :
1)Requires the Department of Finance (DOF) to determine how much
General Fund money is available in the Emergency Housing
Shelter Operations Grant Account within the Emergency Housing
and Assistance Fund.
2)Requires HCD to issue a NOFA for EHAP no later than 30 days
after this bill is enacted indicating the amount available for
the NOFA, as determined by DOF.
EXISTING LAW
1)Creates EHAP to encourage the provision of shelter to homeless
persons and the move of homeless persons from shelters to a
self-supporting environment as soon as possible (Health and
Safety Code Section 50800).
2)Creates the Emergency Housing and Assistance Fund within the
State Treasury, with all money in the fund continuously
appropriated to HCD to carry out the purposes of EHAP (Health
and Safety Code Section 50800.5).
3)Allows grants awarded by HCD under EHAP to be used for various
eligible activities, including, but not limited to, the
following:
a) Operating facilities, including, but not limited to,
operations staff salaries, maintenance, repair, utilities,
equipment, and debt reduction;
b) Providing for capital development programs, such as
acquisition, leasing, construction, and rehabilitation of
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sites for emergency shelter and transitional housing for
homeless persons;
c) Administrative costs;
d) Operating expenses relating to supervising and
counseling clients;
e) Providing residential rental assistance; and
f) Leasing or renting rooms for provision of temporary
shelter.
(Health and Safety Code Section 50803)
FISCAL EFFECT : Unknown
COMMENTS :
HCD administers EHAP to help finance emergency shelters and
transitional housing and provide supportive services for
homeless individuals and families. The program provides two
separate types of assistance: grants to cover a portion of a
facility's operating costs (called EHAP-OG for operations
grants) and forgivable loans for the construction,
rehabilitation, and expansion of facilities (called EHAP-CD for
capital development).
EHAP-OG is the only state-funded program that supports the
operational costs of emergency shelters and transitional
housing. Historically, the program has been funded from the
General Fund at a level of $4 million per year, providing
approximately 10 percent of the overall funding for local
homeless shelters. However, the Legislature and governor last
appropriated funds to EHAP-OG in the 2007-2008 fiscal year.
Governor Schwarzenegger vetoed this funding from the 2008-2009
budget, and did not include money for the program in his
2009-2010 proposed budget. The Assembly added in $4 million for
the program for 2009-2010, but it was removed in conference
committee.
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 last year and found that California stands to lose
millions in federal funding as a result of eliminating state
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funding for EHAP-OG. This is because local jurisdictions often
use EHAP-OG grants as a match for federal dollars available
through the Federal Emergency Shelter Program (FESG). The
survey also showed a dramatic reduction in services at emergency
shelters throughout the state as a result of the elimination of
state funding. According to the survey:
Conservative estimates show that more than 25,000 fewer
people will be able to access emergency shelter services.
This number includes hundreds of families and thousands of
children.
Fifty-eight percent of past grant recipients report the
necessity to lay off staff, resulting in further job losses
and increased demand for unemployment benefits.
Rural areas are being particularly hard hit, as the EHAP
grants received by rural counties generally account for
larger portions of their emergency shelter budgets.
Winter shelters are likely to be forced to close their
doors early or not open at all.
Nearly 20 percent of shelters will be forced to close a
program and two shelters report they may have to close
permanently.
In order to fill operating revenue gaps, emergency
shelters are growing more dependent on less-reliable
funding streams, such as private donations and local
government funds.
With the veto of funding in the FY 08-09 budget and no funding
in the FY 09-10 budget, this committee's understanding was that
there was no money available for EHAP. However, the governor's
budget for the 2010-2011 fiscal year includes a sweep of $4.2
million from EHAF to the General Fund. This money was
apparently in the fund even as the EHAP-OG program effectively
was being eliminated, but the Legislature was not made aware of
its existence.
AB 2064 requires HCD, no later than 30 days from enactment of
the bill, to issue a NOFA for the balance of funds currently
available in the Emergency Housing Assistance Program Shelter
Operations Grant Account. The bill reaffirms the Legislature's
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past direction to HCD to make available the funds previously
appropriated by the Legislature for statewide shelter operations
grants without delay.
Urgency clause:
The author would like to amend the bill to add an urgency clause
in order to expedite the issuance of the NOFA.
Arguments in support
According to the authors:
"?for the past two years, over $4 million has stagnated in
[EHAF] instead of being made available to shelters across
the state to help Californians in need.
The prevalence of homelessness in California because of the
national economic downturn has increased among some of our
state's most vulnerable populations, including children,
emancipated foster youth, the unemployed, and families
undergoing home foreclosure, individuals with mental health
and drug addiction issues, and veterans (who make up
approximately 20 percent of the state's homeless
population). At a time when the need is so great,
emergency shelters find themselves dependent on diminishing
funding streams to keep their doors open.
It is critically important that these facility operations
grants be made available as soon as possible to alleviate
the plight of the many Californians who are currently
homeless and at-risk for homelessness."
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085