BILL ANALYSIS Ó
AB 483
Page 1
Date of Hearing: April 6, 2011
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
AB 483 (Torres) - As Introduced: February 15, 2011
SUBJECT : Housing finance
SUMMARY : Changes the definition of "target population" for
purposes of the Supportive Housing component of the Multi-Family
Housing Program (MHP-SH). Specifically, this bill :
1)Changes the definition of "target population" for purposes of
MHP-SH to mean any of the following:
a) Persons, including families, who meet the definition
of "chronic homelessness" in the U.S. Department of
Housing and Urban Development SuperNOFA for Continuum of
Care or Collaborative Applicant Program;
b) Young adults and emancipated youth 25 years of age
and younger experiencing homelessness; or
c) Individuals exiting from institutional settings,
including, but not limited to, jails, hospitals, prisons,
and institutes of mental disease, who were homeless when
entering the institutional setting, who have a
disability, and who resided in that setting for a period
of not less than 15 days.
2)Specifies that persons who have lived in supportive housing
for less than 12 months and who otherwise would have qualified
under any of the above definitions may also be included in the
target population.
3)Adds the following to the data that MHP-SH borrowers must
report annually to the Department of Housing and Community
Development (HCD):
a) If a resident moved during the reporting period, the
reason for the move and the type of housing to which the
resident moved, if known; and
b) The resident's housing status prior to occupancy,
including the term of the resident's homelessness.
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EXISTING LAW
1)Establishes MHP to assist with the new construction,
rehabilitation, and preservation of permanent and transitional
rental housing for lower income households (Health and Safety
Code Section 50675).
2)Establishes criteria for projects funded through the
supportive housing component of the MHP program (Health and
Safety Code Section 50675.14).
3)Defines "supportive housing for purposes of MHP-SH as housing
with no limit on length of stay, that is occupied by the
target population, and that is linked to onsite or offsite
services that assist the supportive housing resident in
retaining the housing, improving his or her health status, and
maximizing his or her ability to live and, when possible, work
in the community (Health and Safety Code Section 50675.14).
4)Defines "target population" for purposes of MHP-SH as persons
with low incomes having one or more disabilities, including
mental illness, HIV or AIDS, substance abuse, or other chronic
health conditions, or individuals eligible for services
provided under the Lanterman Developmental Disabilities
Services Act, and specifies that the target population may
include, among other populations, adults, emancipated youth,
families, families with children, elderly persons, young
adults aging out of the foster care system, individuals
exiting from institutional settings, veterans, and homeless
people (Health and Safety Code Section 50675.14).
5)Requires the criteria established by HCD for selecting
supportive housing projects to give priority to the following:
a) Supportive housing projects that house persons with
disabilities who would otherwise be at high risk of
homelessness, where the application for funding
demonstrates collaboration with programs that meet the
needs of the supportive housing residents' disabilities;
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and
b) Supportive housing projects that include a focus on
measurable outcomes and a plan for evaluation.
6)Requires borrowers under MHP-SH, beginning the second year
after project occupancy, to include the following data in
their annual reports to HCD:
a) The length of occupancy by each supportive housing
resident for the period covered by the report;
b) Changes in each supportive housing resident's employment
status during the previous year; and
c) Changes in each supportive housing resident's source and
amount of income during the previous year.
FISCAL EFFECT : None
COMMENTS :
The MHP program funds the construction, rehabilitation, and
preservation of permanent and transitional rental homes for
lower-income households by providing loans to non-profit and
for-profit housing developers. The state's last two affordable
housing bonds, Proposition 46 of 2002 and Proposition 1C of 2006
provided funding for MHP. MHP-SH, a subset of the MHP program,
requires sponsors to provide supportive services such as case
management, health care, and vocational services for residents
of the development. MHP-SH dollars have helped fund the creation
of over 2,400 supportive housing units statewide.
Supportive housing is a proven cost-effective approach to
reducing chronic homelessness. It allows people suffering from
severe barriers to housing stability to remain stably housed.
Among homeless people with mental illness and substance
addiction, 81% of supportive housing residents remain stably
housed after one year. These individuals decreased their jail
days by 76%, their emergency department visits by 58%, and their
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inpatient days by 57%. However, it is not cost-effective for
those who only need an affordable place to live to escape or
prevent homelessness.
Under current law, the MHP-SH statute allows funded projects to
serve anyone who is homeless or at risk of homelessness. Under
MHP regulations, a household is "at risk of homelessness" if
household income is at less than 20% of area median income or
state median income (AMI or SMI) and the household has no rental
subsidy, or if household income is between 20% and 30% of AMI or
SMI and the household is facing immediate eviction, release from
an institution, an overcrowded living situation, substandard
housing, or housing costs of over 50% of the household's income.
Because of the broad definition of the MHP-SH target population,
some MHP-SH projects have assisted people who would never have
become homeless without supportive housing. Many among the
eligible population needed a more affordable home but not
necessarily the supportive services to remain housed.
AB 483 changes the definition of "target population" for
purposes of MHP-SH to ensure that the program serves individuals
who need supportive services, particularly the chronically
homeless, to ensure that program funds are being used
effectively. The bill redefines "target population" as any of
the following:
Persons and families meeting the definition of "chronic
homelessness" in the U.S. Department of Housing and Urban
Development SuperNOFA for Continuum of Care or
Collaborative Applicant Program.
Young adults and emancipated youth 25 years of age and
younger experiencing homelessness, including homeless young
adults exiting the foster care system.
Individuals exiting institutional settings, including,
but not limited to, jails, hospitals, prisons, and
institutes of mental disease, who were homeless when
entering the institutional setting, who have a disability,
and who resided in that setting for a period of not less
than 15 days.
Persons who have lived in supportive housing for less
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than 12 months and who otherwise would have qualified as
part of one the above subgroups.
AB 483 also adds additional reporting requirements for borrowers
under MHP-SH, including information on where a resident moves
upon leaving a supportive housing project, including the reason
for the move and the type of housing to which the resident
moves, and information on residents' housing status prior to
moving into the development, including the length of
homelessness.
REGISTERED SUPPORT / OPPOSITION :
Support
Corporation for Supportive Housing (sponsor)
California Communities United Institute
California Rural Legal Assistance Foundation
EveryOne Home (Alameda County Continuum of Care)
Housing California
Western Center on Law and Poverty
Opposition
None on file
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085