BILL ANALYSIS Ó SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 660 SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: runner VERSION: 2/18/11 Analysis by: Mark Stivers FISCAL: no Hearing date: April 12, 2011 SUBJECT: Public housing authorities: school attendance requirements DESCRIPTION: This bill allows public housing authorities to make regular school attendance a continuing condition of eligibility for tenant rental assistance vouchers. ANALYSIS: Under Section 8 of the Federal Housing Act of 1937, public housing authorities make available to lower-income households rental assistance vouchers known as Housing Choice Vouchers. A household may use a voucher to rent any home or apartment within the jurisdiction. The household pays 30% of its income towards rent, and the housing authority pays the remainder up to a regionally established "fair market rent." The tenant household may choose to rent a home or apartment that is more expensive than the fair market rent but then must pay all of the overage. The federal Department of Housing and Urban Development has adopted regulations to implement the Housing Choice Voucher program. These regulations identify the reasons for which a housing authority may deny or terminate assistance. The regulations include a list of mandatory reasons for termination, which includes illegal drug use, violent criminal activity, and alcohol abuse that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents; eviction for serious violation of the lease; failure to sign and submit consent forms for obtaining necessary information; and failure to submit required evidence of citizenship or eligible immigration status. In addition, the regulations include a list of permissive reasons for termination which includes fraud, bribery, or a criminal act in connection with a federal housing program; unpaid rent or damage reimbursements; abusive or SB 660 (RUNNER) Page 2 violent behavior towards housing authority personnel; and enumerated program violations. This bill allows public housing authorities to make regular school attendance a continuing condition of eligibility for Housing Choice Vouchers. COMMENTS: 1.Purpose of the bill . According to the author, education is the most cost effective way to improve a child's life. The goal of this bill is to improve school attendance in order to raise the academic performance of children who live in subsidized housing. The bill is not being sought to punish parents but instead to motivate them to ensure that their kids are attending school. Given that Housing Choice Vouchers are subsidized by taxpayers, the author asserts that it is not asking too much to require students to attend school in accordance with the law. 2.Likely precluded by federal regulations . Both housing authority representatives and legal services attorneys agree that housing authorities may not adopt grounds for terminations other than those listed in the federal regulations. While staff cannot find a case directly on point to this bill, in Hill v. Richardson (1990), a federal appeals court expressly agreed with the provision of the settlement agreement stating that "the reasons specified in Ýthe federal regulations for the predecessor Section 8 certificate program] shall be the only bases upon which the Indiana Department of Human Services may deny or terminate Section 8 assistance because of action or inaction by the Section 8 applicant or participant." If a housing authority were to add truancy as a reason for termination from the Housing Choice Voucher Program, it is likely that a court would not uphold the termination. Given this likelihood, a state law allowing housing authorities to terminate assistance based on school attendance would likely have little impact other than to expose authorities to litigation. The committee may wish to consider the wisdom of enacting a state law in apparent violation of federal regulations. 3.Severe consequence . While encouraging school attendance is a laudable goal, terminating housing assistance for an entire family may be an excessive consequence for truancy. For example, if one child failed to attend class on a regular SB 660 (RUNNER) Page 3 basis, the entire family could be subject to eviction. In a case where a parent is at fault, the children would likewise be made to suffer for the failures of the parent. Families who receive vouchers generally have very low incomes and very few, if any, alternatives in the private housing market. Currently, a parent that fails to send a child to school is guilty of an infraction and subject to a fine of $100 for a first conviction and up to $500 for a third or subsequent conviction. In addition, a parent of a pupil in kindergarten or grades 1 to 8 whose child is a "chronic truant" and who has failed to reasonably supervise and encourage the pupil's school attendance is guilty of a misdemeanor punishable by up to one year in jail and/or a fine of up to $2,000. The committee may wish to consider whether it is appropriate to punish an entire family for truancy rather than the responsible individual. 4.Arguments in opposition . Opponents believe that housing authorities are restricted from adding lease provisions to standards lease agreements and that housing authorities, that a nexus is lacking between school attendance and housing assistance, and that housing authorities, even if they wanted to, would be unable to take on the task of enforcing school attendance due to limited and shrinking budgets. As a result, opponents believe that it is improper to use the Housing Choice Voucher program to address school attendance issues. 5.Technical amendment . On page 1, line 5 and page 2, line 3 strike "certificate" and insert "voucher". SB 660 (RUNNER) Page 4 POSITIONS: (Communicated to the Committee before noon on Wednesday, April 6, 2011) SUPPORT: None received. OPPOSED: California Association of Housing Authorities California Rural Legal Assistance Foundation Western Center on Law and Poverty