BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1109
          Author:   Bonilla (D), et al.
          Amended:  9/4/13 in Senate
          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, as  
          specified.

           Senate Floor Amendments  of 9/4/13 require the Department of  
          Housing and Community Development (HCD) preapprove the  
          conversion, and specify new loan terms and conditions.
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           ANALYSIS  :    Administered by 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 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:

          1. Deems an EHAP-CD recipient that coverts 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.

          2. Requires that HCD pre-approve the transition.  

          3. Requires HCD evaluate the compatibility of the permanent  
             supportive housing with surrounding land uses, the  
             suitability of the facility for use as permanent supportive  
             housing, and project financial feasibility. 

          4. Requires, if approved, the new loan term be 20 years from the  
             date of transition, except that the loan becomes due  
             immediately if the facility ceases to serve as permanent  
             supportive housing.

           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  

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             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  9/5/13)

          Housing California (source) 
          Abode Services 
          AFSCME
          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.  

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           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  9/5/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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