BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 483
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          ASSEMBLY THIRD READING
          AB 483 (Torres)
          As Introduced  February 15, 2011
          Majority vote 

           HOUSING             7-0                                         
           
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          |Ayes:|Torres, Atkins, Bradford, |     |                          |
          |     |Cedillo, Hueso, Jeffries, |     |                          |
          |     |Miller                    |     |                          |
          |     |                          |     |                          |
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           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 United States (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):









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               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.

           FISCAL EFFECT  :  None

           COMMENTS  :  The Multi-Family Housing Program (MHP) funds the 
          construction, rehabilitation, and preservation of permanent and 
          transitional rental homes for lower-income households.  The 
          state's last two housing bonds, Proposition 46 of 2002 and 
          Proposition 1C of 2006 provided funding for MHP. MHP-SH, a 
          subset of MHP, 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 
          inpatient days by 57%.  However, it is not cost-effective for 
          those who only need an affordable place to live to prevent 
          homelessness.

          MHP-SH currently allows funded projects to serve anyone who is 
          homeless or at risk of homelessness.  Under MHP-SH 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 








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          become homeless without supportive housing.  Many among the 
          eligible population needed a more affordable home but not 
          necessarily the supportive services to remain housed.  

          This bill 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:

          1)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.

          2)Young adults and emancipated youth 25 years of age and younger 
            experiencing homelessness, including homeless young adults 
            exiting the foster care system.

          3)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. 

          4)Persons who have lived in supportive housing for less than 12 
            months and who otherwise would have qualified as part of one 
            the above subgroups. 

          This bill also adds additional reporting requirements for 
          borrowers under MHP-SH, including information on where a 
          resident moves upon leaving a supportive housing project, 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.


           Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085                                          FN:  0000198











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