BILL ANALYSIS Ó
AB 1109
Page 1
ASSEMBLY THIRD READING
AB 1109 (Bonilla)
As Amended May 2, 2013
2/3 vote
HOUSING 7-0 APPROPRIATIONS
16-0
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|Ayes:|Torres, Beth |Ayes:|Gatto, Harkey, Bigelow, |
| |Gaines, Atkins, | |Bocanegra, Bradford, Ian |
| |Brown, Chau, | |Calderon, Campos, Eggman, Gomez, |
| |Maienschein, | |Hall, Rendon, Linder, Pan, |
| |Mullin | |Quirk, Wagner, Weber |
| | | | |
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SUMMARY : 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 : According to the Assembly Appropriations
Committee, this bill would have a negligible state fiscal
impact.
COMMENTS : EHAP-CD funds the construction, rehabilitation,
expansion, and site acquisition of emergency shelters and
transitional housing for homeless individuals and families. The
program offers deferred payment loans at 3% simple interest to
local government agencies and nonprofit corporations. Loan
terms range from 5 to 10 years based on the type of development
activity and are forgiven when the term is complete. During the
loan term, use of the property for anything other than a shelter
or transitional housing triggers automatic loan repayment.
Under EHAP, emergency shelters can provide housing for homeless
individuals and families for up to six months, while
transitional housing may provide shelter for up to 24 month.
However, all new federal homeless assistance dollars are going
to support permanent housing solutions due to mounting evidence
that for most populations, temporary shelter is more costly and
less successful at reducing homelessness than permanent housing.
AB 1109
Page 2
Transitional housing providers have been able to renew their
previous federal grants thus far, but they are not competitive
for new monies and they do not increase the overall
competitiveness of their Continuum of Care (a Continuum of Care
is a geographical administrative unit through which homeless
assistance providers in a specific area work together to apply
for federal funding).
AB 221 (Carter), Chapter 546, Statutes of 2011, allowed HCD to
use EHAP funds for permanent supportive housing, but the bill
only applied to new loans and did not give existing loan
recipients the ability to convert. Thus, providers who have
outstanding EHAP loans cannot transition their service model to
compete for new federal funds because state law locks them in to
the emergency shelter or 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 their target
population. This bill addresses this issue by allowing EHAP-CD
loan recipients to convert their facilities into permanent
affordable housing, including permanent supportive housing, for
those individuals and families who are homeless or at risk of
homelessness.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0000639