BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1109
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1109 (Bonilla) - As Amended:  May 2, 2013 

          Policy Committee:                              Housing and  
          Community Development                         Vote: 7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows a loan recipient under the capital development  
          component of the Emergency Housing and Assistance Program  
          (EHAP-CD) to transition the property from an emergency shelter  
          or transitional housing to permanent affordable housing,  
          including permanent supportive housing that serves people who  
          are homeless or at risk of homelessness.

           FISCAL EFFECT  

          Negligible state fiscal impact.

           COMMENTS  

           1)Purpose  .  According to the author, if facilities receiving  
            awards under EHAP-CD can continue to serve the same  
            population, yet do so under a permanent housing model, they  
            should be allowed to transition their facilities in order to  
            access additional federal funds.

           2)Background  .  The Emergency Housing Assistance Program Capitol  
            Development (EHAP-CD) provides funding for the construction,  
            rehabilitation, expansion and site acquisition of emergency  
            shelters and transitional housing for homeless individuals and  
            families.  In recent years, the focus of efforts to combat  
            homelessness have shifted from simply providing shelter to  
            getting people into permanent housing that does not limit  
            their length of stay.

            Unfortunately, providers who accepted money under EHAP cannot  
            transition their service model to compete for these new funds  








                                                                  AB 1109
                                                                  Page  2

            because state law locks them in to the emergency shelter and  
            transitional housing model until the term of their loan ends.  
            This is true even if modifying their service model would allow  
            them to better serve the target population or keep their doors  
            open.
                
            3)Previous legislation:  AB 221 (Carter), Chapter 546, Statutes  
            of 2011, allowed HCD to use EHAP funds for supportive housing  
            projects. However, the bill only applied to new loans and did  
            not give existing loan recipients the ability to convert to  
            permanent supportive housing.

           4)There is no registered opposition to this bill. 



           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081