BILL ANALYSIS
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THIRD READING
Bill No: AB 2064
Author: John A. Perez (D), et al
Amended: 7/1/10 in Senate
Vote: 27 - Urgency
SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-2, 6/29/10
AYES: Lowenthal, DeSaulnier, Kehoe, Pavley, Simitian, Wolk
NOES: Huff, Harman
NO VOTE RECORDED: Ashburn
SENATE APPROPRIATIONS COMMITTEE : 7-4, 8/12/10
AYES: Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
NOES: Ashburn, Emmerson, Walters, Wyland
ASSEMBLY FLOOR : 60-16, 6/1/10 - See last page for vote
SUBJECT : Emergency Housing Assistance Program funds
SOURCE : Author
DIGEST : 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,
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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 General Fund revenues. Legislative
appropriations to the EHAP Program are deposited in the
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.
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This bill:
1. 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.
2. Requires HCD award grants within 180 days after issuing
to notice of funding availability.
Background
Impact of cuts . According to a survey of 64 homeless
service 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
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Major Provisions 2010-11 2011-12
2012-13 Fund
HCD administration $200 Special*
Foregone reversion $4,000General
*Emergency Housing and Assistance Fund
SUPPORT : (Verified 6/29/10)
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
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West Hollywood Presbyterian Church
Women's and Children's Crisis Shelter
ARGUMENTS IN SUPPORT : According to the author's office,
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.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Bass, Beall, Bill
Berryhill, Blakeslee, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Furutani, Galgiani, Gilmore, Hall, Hayashi, Hernandez,
Hill, Huber, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma,
Mendoza, Monning, Nava, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Skinner, Solorio, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, John
A. Perez
NOES: Anderson, DeVore, Fuller, Gaines, Garrick, Hagman,
Harkey, Knight, Logue, Miller, Nestande, Niello, Nielsen,
Norby, Silva, Smyth
NO VOTE RECORDED: Tom Berryhill, Jeffries, Audra
Strickland, Vacancy
JJA:do 8/16/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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