BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 2064
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: J. Perez
VERSION: 5/6/10
Analysis by: Mark Stivers FISCAL: yes
Hearing date: June 29, 2010 URGENCY: YES
SUBJECT:
Emergency Housing Assistance Program funds
DESCRIPTION:
This bill requires the Department of Housing and Community
Development, no later than 30 days after the effective date of
the bill, to issue a notice of funding availability for the full
balance of funds available to the Emergency Housing Assistance
Program.
ANALYSIS:
The Emergency Housing Assistance Program (EHAP), administered by
the Department of Housing and Community Development (HCD),
provides grants to cover partially the operating costs of
emergency shelters, transitional housing, and supportive
services for homeless individuals.
Where HCD has recognized a designated local board (DLB)
comprised of local government and social service
representatives, the DLB solicits and reviews applications and
selects grantees from among eligible applications in their
region consistent with the DLB's adopted 1ocal emergency shelter
strategy. HCD reviews applications and selects grantees in
areas not covered by a DLB. Pursuant to statute, HCD reserves
eighty percent of funds for urban counties and twenty percent
for rural counties. Within these setasides, HCD allocates funds
by county based on a formula including unemployment rates and
the number of persons living in poverty, with each county
receiving a minimum grant of $10,000.
Because EHAP grants fund operation costs rather than capital
costs, the Legislature has historically funded this program with
AB 2064 (PEREZ) Page 2
General Fund revenues. Legislative appropriations to the EHAP
Program are deposited in the Emergency Housing Assistance Fund
(EHAF). In 2000, the Legislature appropriated $14 million for
this program. Funding dropped to $5.3 million per year in 2002
and 2003 and again to $4 million per year from 2004 through
2007. It is estimated that at the $4 million per year level,
EHAP funding made 25,000 shelter nights available per year for
individuals and families with children. In each of these years,
HCD awarded the full amount of appropriated funds, but as some
programs that received awards fell through, "disencumbrances"
accrued to the fund. Instead of re-awarding these disencumbered
amounts, HCD allowed the money to sit in the fund and used the
interest earned to support its EHAP program costs.
In 2008 and 2009, Governor Schwarzenegger line-item vetoed the
Legislature's budget appropriations for the EHAP Program.
Although $4.2 million had accumulated in the EHAF Fund, HCD
complied with the governor's order to restrict spending from any
source and did not make, nor since has made, these funds
available. For this year's budget, the governor has proposed
transferring all of the funds on account in the EHAF back to the
General Fund. As of January 31, the balance of the account is
$4.7 million.
This bill requires the Department of Finance to determine the
amount of General Fund moneys in EHAF and requires HCD, no later
than 30 days after the effective date of the bill, to issue an
EHAP notice of funding availability for this amount.
COMMENTS:
1.Purpose of the bill . According to the author, California has
the highest homeless population, and in the mist of high
unemployment and a tough economy many more Californians find
themselves at-risk for homelessness. Local governments,
community organizations, and religious groups are trying their
best to respond to the increased demand for providing shelter
for the homeless. The state can and must do its part. HCD
currently sits on $4.7 million that the Legislature has
already appropriated by the Legislature for this purpose, but
HCD has not made these funds available. This bill requires
HCD to make the EHAP funds available immediately in order to
alleviate the plight of the many Californians who are
currently homeless or at-risk of homelessness.
2.Impact of cuts . According to a survey of 64 homeless service
AB 2064 (PEREZ) Page 3
providers conducted by the sponsor, Housing California, the
lack of EHAP funding available over the last two years has had
the following results:
25,000 fewer people were able to access emergency
shelter services;
Rural areas were significantly impacted, because state
shelter grants make up a larger portion of rural counties'
emergency shelter operating budgets;
Nearly twenty percent of former EHAP recipients were
forced to close a program and/or shut down permanently.
Many winter shelters were forced to close their doors
early or not open at all.
Fifty-eight percent of past grant recipients reported
the necessity to lay off staff, resulting in further job
losses and increased demand for unemployment benefits.
The lack of state funding threatened the loss of
millions in federal funding because local jurisdictions
often use EHAP grants as a match for Federal Emergency
Shelter Program grants.
1.Budget Conference Committee action pending . As mentioned
above, Governor Schwarzenegger has proposed transferring all
of the funds on account in the EHAF back to the General Fund
as part of this year's budget. This issue is currently before
the Budget Conference Committee. In the event that the
conference committee approves the governor's proposal and the
budget is enacted prior to or within 30 days after enactment
of this bill, there will be no funds for HCD to make
available.
2.Require award date ? This bill requires HCD to issue notice of
funding availability within 30 days of the bill's enactment.
The bill does not, however, require HCD to make awards within
a certain time frame or even at all. The committee may wish
to consider adding a deadline for HCD to award the funds
within 180 days of issuing the NOFA.
3.Urgency statute . This bill is an urgency statute that would
take effect immediately upon the Governor's signature. As
such, HCD would have only 30 days after signing to issue the
required notice of funding availability.
4.Technical amendment . On page 2, line 26 and page 3, line 1
strike "the Emergency Housing Shelter Operations Grant Account
within"
AB 2064 (PEREZ) Page 4
Assembly Votes:
Floor: 60-16
Appr: 12-5
HCD: 8-1
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 23, 2010)
SUPPORT: Association of Bay Area Governments
Berkeley Food & Housing Project
California Coalition for Youth
California Council of Community Mental Health
Agencies
California Partnership to End Domestic Violence
California State Association of Counties
Central California Family Crisis Center
City of Oakland
Corporation for Supportive Housing
Didi Hirsch Mental Health Services
East Oakland Community Project
Eastmont Community Center
Family Emergency Shelter Coalition
Foothill AIDS Project
House of Ruth
Housing California
Jewish Family Service of Los Angeles
Jovenes, Inc.
League of California Cities
Los Angeles Youth Network
Mental Health Association in California
New Image Emergency Shelter for the Homeless, Inc
Non-Profit Housing Association of Northern
California
Pacific Clinics
People Assisting the Homeless
Rolling Start, Inc
Sacramento Area Emergency Housing Center
Sacramento Hunger Coalition
Shelter Partnership
Sonoma County Task Force for The Homeless
Toberman Neighborhood Center
United Way of the Bay Area
Upward Bound House
West Hollywood Presbyterian Church
AB 2064 (PEREZ) Page 5
Women's and Children's Crisis Shelter
OPPOSED: None received.