BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 1109
Author: Bonilla (D), et al.
Amended: 5/2/13 in Assembly
Vote: 27
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 7/2/13
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/12/13
AYES: De León, Gaines, Hill, Lara, Steinberg
NO VOTE RECORDED: Walters, Padilla
ASSEMBLY FLOOR : 71-0, 5/24/13 - See last page for vote
SUBJECT : Emergency Housing Assistance Program
SOURCE : Housing California
DIGEST : This bill deems an Emergency Housing Assistance
Program Capital Development (EHAP-CD) award recipient that
converts the emergency shelter or transitional housing
development to permanent housing that serves people who are
homeless or at risk of homelessness to be in compliance with the
program's loan deferral and forgiveness conditions.
ANALYSIS : Administered by the Department of Housing and
Community Development (HCD), the EHAP supports the development
and operation of emergency shelters, transitional housing
facilities, and safe havens, each of which has a limited term of
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tenancy. EHAP has two components: the EHAP-CD, which funds
capital needs; and the EHAP operating facility grant component,
which funds operating costs.
HCD awards EHAP-CD funds through a statewide competition and
makes the awards available in the form of forgivable loans with
terms of five years for projects involving rehabilitation, seven
years for substantial rehabilitation, or 10 years for
acquisition and rehabilitation or new construction. HCD defers
payments on these loans as long as applicants use the facilities
as emergency shelters or transitional housing, and HCD forgives
the loans entirely at the completion of these terms.
This bill deems an EHAP-CD recipient that converts the emergency
shelter or transitional housing development to permanent housing
(i.e., housing that has no time limit on tenancy) that serves
people who are homeless or at risk of homelessness to be in
compliance with the program's loan deferral and forgiveness
conditions.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Minor one-time costs, less than $50,000, for the HCD to
revise existing regulations to allow an exception to EHAP-CD
repayment conditions for deferred loans. Minor ongoing costs
to update loan documents for loan recipients who wish to
convert a property to permanent affordable housing.
(Emergency Housing and Assistance Fund)
Potential cost pressures to provide more operational funds
for supportive services that are offered in conjunction with
supportive housing. HCD programs that may be subject to
future cost pressures are the EHAP-operating facility grant
program and the Supportive Housing Program, which are funded
from bond funds and the General Fund.
SUPPORT : (Verified 8/14/13)
Housing California (source)
Abode Services
AFSCME
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California Rural Legal Assistance Foundation
Corporation for Supportive Housing
Everyone Home, Ending Homelessness in Alameda County
Sacramento Housing Alliance
United Outreach of El Dorado County
Western Center on Law and Poverty
ARGUMENTS IN SUPPORT : According to the author's office, the
federal government has adopted a new approach to combating
homelessness which focuses funding priority on permanent housing
rather than transitional housing. In general, transitional
housing providers have been able to renew their previous grants
thus far, but they are not competitive for new monies, nor do
they increase the competitiveness of their jurisdiction as a
whole for new funding.
Unfortunately, EHAP-CD recipients cannot transition their
service model to compete for these new funds because state law
locks them in to the emergency shelter and transitional housing
model. This is true even if modifying their service model would
allow them to better serve the target population or keep their
doors open. This bill allows EHAP-CD recipients to be more
competitive for federal housing funding by allowing them to
convert existing facilities to permanent housing without
requiring repayment of the EHAP loan.
ASSEMBLY FLOOR : 71-0, 5/24/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bradford, Brown, Buchanan,
Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Hagman,
Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine,
Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina,
Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez,
Quirk, Quirk-Silva, Rendon, Salas, Stone, Ting, Wagner, Weber,
Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Bonta, Donnelly, Grove, Holden, Skinner,
Waldron, Wilk, Vacancy, Vacancy
JA:k 8/14/13 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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