BILL NUMBER: AB 1929	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Chau

                        FEBRUARY 19, 2014

   An act to add Section 51312.5 to the health and Safety Code,
relating to mental health.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1929, as introduced, Chau. California Housing Finance Agency:
MHSA funding: special needs housing for person with mental illness.
   Existing law, the Mental Health Services Act (hereafter, the
MHSA), an initiative measure, was approved by the voters in November
2004 as Proposition 63. The MHSA establishes the Mental Health
Oversight and Accountability Commission, and imposes a tax of 1% on
incomes above $1,000,000 for the purpose of financing new or expanded
mental health services. Under the MHSA, the State Department of
Mental Health is required, among other things, to distribute funds
for local assistance for designated mental health programs according
to a local plan. The MHSA permits amendment by the Legislature by
a2/3 vote of each house if the amendment is consistent with and
furthers the intent of the MHSA, and also permits the Legislature to
clarify procedures and terms of the MHSA by a majority vote.
   Existing law establishes the California Housing Finance Fund in
the State Treasury, and authorizes the transfer of construction loan
funds to the construction lender or to the contractor as necessary to
meet draws for progress payments pursuant to rules and regulations
of the California Housing Finance Agency. Existing law authorizes the
agency to make loans to finance affordable housing, including
residential structures, housing developments, multifamily rental
housing, special needs housing, as defined, and other forms of
housing permitted by provisions regulating housing and community
development.
   Existing law authorizes the agency to issue revenue bonds, in
accordance with specified requirements, for the purpose of financing
the acquisition, construction, rehabilitation, refinancing, or
development of special needs housing, including, but not limited to,
supportive housing intended to benefit persons identified as having
special mental health needs, including housing intended to meet the
housing needs of persons eligible for mental health services funded
in whole or in part under the MHSA.
   This bill would authorize a county mental health department to
deposit with the agency funding received by the county under the MHSA
for the development of housing to meet the special housing needs of
persons with mental illness. The bill would authorize the agency to
receive MHSA funding from a county to finance the acquisition,
construction, rehabilitation, refinancing, or development of special
needs housing for persons with mental illness.
   This bill would declare that it clarifies procedures and terms of
the Mental Health Services Act.
   This bill would authorize the agency to enter into financial and
other agreements with the county, and other agencies as necessary, to
commit sufficient county funds derived from the MHSA, including
future allocations, for the purpose of securing revenue bonds issued
by the agency for the purposes of meeting the special housing needs
of persons with mental illness.
   This bill would require the agency to provide technical assistance
to a county mental health department as necessary to assist the
county in selecting the special needs housing that would best meet
the needs of the county's special needs residents.
   The bill would authorize the agency to charge the county a fee,
not to exceed the actual costs, for providing assistance under these
provisions and would authorize payment of these fees from county MHSA
funds.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Mental Health Services Act (hereafter, the MHSA), an
initiative measure approved by the voters in November 2004 as
Proposition 63, provides funding for local assistance for designated
mental health programs.
   (b) A critical component of the success of community services for
persons with mental illness is the availability of supportive
housing.
   (c) Funding under the MHSA has is available to local agencies for
development of supportive housing. However, the complexity of the
process surrounding the financing and development of capital projects
presents obstacles to the development of this housing in sufficient
quantities.
   (d) The purpose of this act is to provide a statutory structure to
facilitate this process by authorizing county mental health
departments to more fully utilize the assistance of the California
Housing Finance Agency.
  SEC. 2.  Section 51312.5 is added to the Health and Safety Code, to
read:
   51312.5.  (a) A county mental health department may deposit with
the agency funding received by the county under the Mental health
Services Act for the development of housing to meet the special
housing needs of persons with mental illness.
   (b) The agency may receive MHSA funding from a county to finance
the acquisition, construction, rehabilitation, refinancing, or
development of special needs housing for persons with mental illness.

   (c) The agency may enter into financial and other agreements with
the county, and other agencies as necessary, to commit sufficient
county funds derived from the MHSA, including, but not limited to,
funds from future allocations, for the purpose of securing revenue
bonds issued by the agency under this chapter for the purposes of
meeting the special housing needs of persons with mental illness.
   (d) The agency shall provide technical assistance to a county
mental health department as necessary to assist the county in
selecting the special needs housing that would best meet the needs of
the county's residents with mental illness.
   (e) The agency may charge the county a fee for providing
assistance under this chapter, not to exceed the actual costs of
those services. These fees may be paid from county MHSA funds.
  SEC. 3.  The Legislature finds and declares that this act clarifies
procedures and terms of the Mental Health Services Act within the
meaning of Section 18 of the Mental Health Services Act.