BILL ANALYSIS
AB 2064
Page 1
ASSEMBLY THIRD READING
AB 2064 (John A. Perez and Bass)
As Amended May 6, 2010
2/3 vote. Urgency
HOUSING 8-1 APPROPRIATIONS 12-5
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|Ayes:|Torres, Arambula, |Ayes:|Fuentes, Ammiano, |
| |Bradford, Eng, Gilmore, | |Bradford, |
| |Saldana, Torlakson, Tran | |Charles Calderon, Coto, |
| | | |Davis, Monning, Ruskin, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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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.
3)Adds an urgency clause allowing the bill to take effect
immediately upon enactment.
FISCAL EFFECT : The Governor's proposed 2010 - 2011 Budget
sweeps $4.2 million in unspent General Fund (GF) from the
Emergency Housing Shelter Operations Grant Account. This bill
would require that those funds be restored and distributed as
EHAP grants.
COMMENTS : HCD administers EHAP to help finance emergency
AB 2064
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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 GF
at a level of $4 million per year, providing approximately 10%
of the overall funding for local homeless shelters. However,
the Legislature and Governor last appropriated funds to EHAP-OG
in fiscal year (FY) 2007-2008. 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
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:
1)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.
2)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.
3)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.
AB 2064
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4)Winter shelters are likely to be forced to close their doors
early or not open at all.
5)Nearly 20% of shelters will be forced to close a program and
two shelters report they may have to close permanently.
6)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 2008-09 budget and no funding
in the FY 2009-10 budget, it was the understanding of the
Legislature that there was no money available for EHAP.
However, the Governor's budget for the 2010-2011 FY includes a
sweep of $4.2 million from EHAF to the GF. 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
past direction to HCD to make available the funds previously
appropriated by the Legislature for statewide shelter operations
grants without delay.
Analysis Prepared by : Anya Lawler & Lisa Engel / H. & C.D. /
(916) 319-2085
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