AB 1109, as amended, Bonilla. Emergency housing and assistance.
Existing law requires the Department of Housing and Community Development to administer the Emergency Housing and Assistance Program. Under the program, moneys from the continuously appropriated Emergency Housing and Assistance Fund are available for the purposes of providing shelter, as specified, to homeless persons at as low a cost and as quickly as possible, without compromising the health and safety of shelter occupants, to encourage the move of homeless persons from shelters to a self-supporting environment as soon as possible, to encourage provision of services for as many persons at risk of homelessness as possible, to encourage compatible and effective funding of homeless services, and to encourage coordination among public agencies that fund or provide services to homeless individuals, as well as agencies that discharge people from their institutions.
Existing law requires the department to distribute funds appropriated for activities providing for capital development programs, including acquisition, leasing, construction, and rehabilitation of sites for emergency shelter and transitional housing for homeless persons, as grants in the form of forgivable deferred loans, as prescribed. Existing law requires the department to terminate the grant and require the repayment of the deferred loan in full, if a transfer or conveyance of the project property that results in the property no longer being used as an emergency shelter or transitional housing occurs before the term of the loan expires.
This bill would provide that when property is transitioned from an emergency shelter or transitional housing to permanent supportive housing and serves people who are homeless or at risk of homelessness, an existing loan may be deferred and forgiven, as if the property had remained an emergency shelter or transitional housing. Prior to a transition, the bill would require a project to obtain department approval to transition and would require the department to consider specified factors in determining whether to approve a transition. The bill would require a project transitioned to permanent supportive housing to have a loan term of 20 years. The bill would require the department to terminate the loan and would require repayment of the deferred loan in full if the project property is no longer used as permanent supportive housing for people who are homeless or at risk of homelessness. By authorizing the use of continuously appropriated funds for a new purpose, this bill would make an appropriation.
begin insertThis bill would also incorporate changes in Section 50802 of the Health and Safety Code proposed by AB 873, that would become operative on the date this bill becomes operative only if AB 873 and this bill are both chaptered and become effective on or before January 1, 2014, and this bill is chaptered last.
end insertVote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 50802 of the Health and Safety Code is
2amended to read:
(a) The department shall ensure that not less than 20
2percent of the moneys in the Emergency Housing and Assistance
3Fund shall be allocated to nonurban counties during any given
4fiscal year. If the funds designated for facilities operation that are
5allocated to nonurban counties are not awarded by the end of that
6fiscal year, then those unencumbered funds shall be allocated in
7the next fiscal year to urban counties. Funds for capital
8development that are not awarded by the end of the second fiscal
9year shall be awarded in the subsequent fiscal year to urban
10counties.
11(b) The amount of funds that the department allocates from the
12Emergency Housing
and Assistance Fund to each region, excluding
13funds allocated pursuant to subdivision (a), shall be based upon a
14formula that accords at least 20 percent weight to each of the
15following factors:
16(1) The relative number of persons in the region below the
17poverty line according to the most recent federal census, updated,
18if possible, with an estimate by the Department of Finance,
19compared to the total of the urban counties.
20(2) The relative number of persons unemployed within each
21region, based on the most recent one-year period for which data
22is available, compared to the total of the urban counties.
23(c) Grant funds shall be disbursed as expeditiously as possible
24by the department.
25(d) The department shall use not more than 5 percent of the
26amount available for funds pursuant to this chapter to defray the
27department’s administrative costs pursuant to this chapter.
28(e) Notwithstanding any other provision of this chapter, the
29department shall distribute funds appropriated for purposes of the
30activities specified in paragraph (2) of subdivision (a) of Section
3150803 as grants in the form of forgivable deferred loans, subject
32to all of the following:
33(1) (A) Funding shall be made available to each project as a
34loan with a term of five years for rehabilitation, seven years for
35substantial rehabilitation, or 10 years for acquisition and
36rehabilitation or new construction. Each deferred loan shall be
37secured by a deed of trust and
promissory note. Repayment of the
38loan shall be deferred as long as the project is used as an emergency
39shelter or transitional housing. At the completion of the specified
40year term, the loan shall be forgiven. If a transfer or conveyance
P4 1of the project property, however, occurs prior to that time that
2results in the property no longer being used as an emergency shelter
3or transitional housing, the department shall terminate the grant
4and require the repayment of the deferred loan in full.
5(B) If the property is transitioned from an emergency shelter or
6transitional housing to permanent supportive housing, and serves
7people who are homeless or at risk of homelessness, the loan may
8also be deferred and forgiven according to subparagraph (A), as
9if it had remained an emergency shelter or transitional housing.
10Prior to a transition, a
project shall obtain department approval to
11transition to permanent supportive housing to ensure that the
12proposed transition is consistent with this subdivision. In
13considering whether to approve a transition, the department shall
14evaluate the following factors:begin delete the compatibility of the permanent the suitability
15supportive housing with the surrounding land uses,end delete
16of the building for use as permanent supportivebegin delete housing,end deletebegin insert housingend insert
17 and project financial feasibility. A project transitioned to permanent
18supportive housing pursuant to this subdivision shall have a loan
19term of 20 years from the beginning of its approved use as
20permanent supportive housing for people
who are homeless or at
21risk of homelessness. If a transitioned project property is no longer
22being
used as permanent supportive housing for people who are
23homeless or at risk of homelessness, the department shall terminate
24the loan and require repayment of the deferred loan in full.
25(i) For purposes of this subparagraph, “permanent supportive
26housing” has the same meaning as the term “supportive housing,”
27as defined in paragraph (2) of subdivision (b) of Section 50675.14.
28(ii) For purposes of this subparagraph, “people who are
29homeless” means individuals described in Section 11302 of Title
3042 of the United States Code, and paragraph (2) of subdivision (e)
31of Section 11139.3 of the Government Code.
32(2) Applications for funding shall be made pursuant to
33department-issued statewide “Notices of Funding
Availability”
34without the need for additional regulations.
35(3) The department shall set forth the criteria for evaluating
36applications in the “Notices of Funding Availability” and shall
37make deferred loans based on those applications that best meet the
38criteria.
P5 1(4) The department shall specify in the “Notice of Funding
2Availability” both maximum and minimum grant amounts that
3may be varied for urban and nonurban counties.
4(5) Contracts for projects that have not begun construction
5within the initial 12-month period shall be terminated and funds
6reallocated. The department, however, may extend this period by
7a period not to exceed 12 months.
begin insertSection 50802 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
9amended to read:end insert
(a) The department shall ensure that not less than 20
11percent of the moneys in the Emergency Housing and Assistance
12Fund shall be allocated to nonurban counties during any given
13fiscal year. If the funds designated for facilities operation that are
14allocated to nonurban counties are not awarded by the end of that
15fiscal year, then those unencumbered funds shall be allocated in
16the next fiscal year to urban counties. Funds for capital
17development that are not awarded by the end of the second fiscal
18year shall be awarded in the subsequent fiscal year to urban
19counties.
20(b) The amount of funds that the department allocates from the
21Emergency Housing and Assistance Fund to each region, excluding
22funds allocated pursuant to
subdivision (a), shall be based upon a
23formula that accords at least 20 percent weight to each of the
24following factors:
25(1) The relative number of persons in the region below the
26poverty line according to the most recent federal census, updated,
27if possible, with an estimate by the Department of Finance,
28compared to the total of the urban counties.
29(2) The relative number of persons unemployed within each
30region, based on the most recent one-year period for which data
31is available, compared to the total of the urban counties.
32(c) Grant funds shall be disbursed as expeditiously as possible
33by the department.
34(d) The department shall use not more than 5 percent of the
35amount available for funds pursuant to this chapter to defray the
36department’s
administrative costs pursuant to this chapter.
37(e) Notwithstanding any other provision of this chapter, the
38department shall distribute funds appropriated for purposes of the
39activities specified inbegin delete paragraphend deletebegin insert
paragraphsend insert (2)begin insert and (7)end insert of
P6 1subdivision (a) of Section 50803 as grants in the form of forgivable
2deferred loans, subject to all of the following:
3(1) begin insert(A)end insertbegin insert end insert Funding shall be made available to each project as a
4loan with a term of five years for rehabilitation, seven years for
5substantial rehabilitation,begin delete orend delete 10 years for acquisition and
6rehabilitation or newbegin delete construction.end deletebegin insert
construction, or 20 years for
7conversion to permanent supportive housing for homeless families
8and individuals.end insert Each deferred loan shall be secured by a deed of
9trust and promissory note. Repayment of the loan shall be deferred
10as long as the project is used as an emergency shelterbegin insert, permanent
11supportive housing,end insert or transitional housing. At the completion of
12the specified year term, the loan shall be forgiven. If a transfer or
13conveyance of the project property, however, occurs prior to that
14time that results in the property no longer being used as an
15emergency shelterbegin insert, permanent supportive housing,end insert or transitional
16housing, the department shall terminate the grant and require the
17repayment of the deferred loan in full.
18(B) If the property is transitioned from an emergency shelter
19or transitional housing to permanent supportive housing, and
20serves people who are homeless or at risk of homelessness, the
21loan may also be deferred and forgiven according to subparagraph
22(A), as if it had remained an emergency shelter or transitional
23housing. Prior to a transition, a project shall obtain department
24approval to transition to permanent supportive housing to ensure
25that the proposed transition is consistent with this subdivision. In
26considering whether to approve a transition, the department shall
27evaluate the following factors: the suitability of the building for
28use as permanent supportive housing and project financial
29feasibility. A project transitioned to permanent supportive housing
30pursuant to this subdivision shall have a loan term of 20 years
31from the beginning of its approved use as permanent supportive
32housing for people who are homeless or at risk of
homelessness.
33If a transitioned project property is no longer being used as
34permanent supportive housing for people who are homeless or at
35risk of homelessness, the department shall terminate the loan and
36require repayment of the deferred loan in full.
37(i) For purposes of this subparagraph, “permanent supportive
38housing” has the same meaning as the term “supportive housing,”
39as defined in paragraph (2) of subdivision (b) of Section 50675.14.
P7 1(ii) For purposes of this subparagraph, “people who are
2homeless” means individuals described in Section 11302 of Title
342 of the United States Code, and paragraph (2) of subdivision
4(e) of Section 11139.3 of the Government Code.
5(2) Applications for funding shall be made pursuant to
6
department-issued statewide “Notices of Funding Availability”
7without the need for additional regulations.
8(3) The department shall set forth the criteria for evaluating
9applications in the “Notices of Funding Availability” and shall
10make deferred loans based on those applications that best meet the
11criteria.
12(4) The department shall specify in the “Notice of Funding
13Availability” both maximum and minimum grant amounts that
14may be varied for urban and nonurban counties.
15(5) Contracts for projects that have not begun construction
16within the initial 12-month period shall be terminated and funds
17reallocated. The department, however, may extend this period by
18a period not to exceed 12 months.
Section 1.5 of this bill incorporates amendments to
20Section 50802 of the Health and Safety Code proposed by both
21this bill and Assembly Bill 873. It shall only become operative if
22(1) both bills are enacted and become effective on or before
23January 1, 2014, (2) each bill amends Section 50802 of the Health
24and Safety Code, and (3) this bill is enacted after Assembly Bill
25873, in which case Section 1 of this bill shall not become operative.
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