BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SJR 11
                                                                  Page  1

          Date of Hearing:   August 6, 2013

                   ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
                                Mariko Yamada, Chair
                  SJR 11 (DeSaulnier) - As Amended:  August 5, 2013

           SENATE VOTE  :   34-0
           
          SUBJECT  :   Housing with services.

           SUMMARY  :   Memorializes Congress and the President of the United  
          States to support and encourage housing with services models  
          which incorporate federally subsidized housing programs into a  
          range of supportive services that enable residents to remain  
          occupants even though their physical state has deteriorated, and  
          they are no longer fully independent. Specifically,  this  
          resolution makes the following findings and declarations  :   

          1)That "housing with services" as subsidized residential  
            properties occupied by low-income seniors that provide access  
            to a range of long-term supports and services offered by  
            appropriately credentialed providers.

          2)That the state's demographic shift indicates exponential  
            growth of the 65+ population which is currently roughly  
            one-in-ten, to roughly one-in-five by 2035.

          3)That the incidence of poverty and near poverty amongst  
            Californians over the age of 65 is significant, and how age  
            and poverty are correlated.

          4)That the United States Department of Housing and Urban  
            Development's (HUD) Section 202 projects, and the projects  
            managed through California-based hubs, are poised for housing  
            with services models.

          5)That there is cost benefits of extending supportive services  
            to HUD 202 programs over the costs of placements in  
            institutional settings.

          6)That HUD is cultivating a growing commitment to develop  
            housing with services in order to maximize individual  
            residents' capacity to remain free of institutional settings.

          7)That California has made a commitment to maximizing the least  








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            restrictive, most integrated housing settings as articulated  
            through the State's Olmstead Plan and the Money Follows the  
            Person Program.

          8)Expresses praise for methods that promote greater  
            collaboration between subsidized housing and home and  
            community-based services.

          9)Urges the President and Congress to support housing with  
            services models, innovations, and funding.

          10)Urges the President and Congress to direct the Centers of  
            Medicare and Medicaid Services to expand Section 1115 and  
            1915(c) waivers to test and integrate supportive services into  
            affordable housing settings. 

           EXISTING LAW  :  

          1)The federal HUD Section 202 Supportive Housing for the Elderly  
            Program provides direct loans or capital advances from the  
            federal government to enable private, not-for-profit sponsors  
            to produce secure, barrier-free, and supportive housing  
            facilities for older persons. 

          2)The California Department of Housing and Community Development  
            (HCD), within the Business, Transportation and Housing Agency,  
            develops housing policy and building codes, regulates  
            manufactured homes and mobile home parks, and administers  
            housing finance, economic development and community  
            development programs.

          3)The California Housing Finance Agency (CalHFA), within HCD,  
            makes low-rate loans through the sale of taxable and tax  
            exempt bonds.  CalHFA provides assistance in below-market  
            interest rate mortgages and down payment assistance for  
            first-time homebuyers, insurance for single-family home  
            purchase mortgages, and loans for the development of  
            multifamily rental housing.  

          Two principal policy statements on supporting the needs of aging  
          people are the California Olmstead Plan, and the State Plan on  
          Aging.  

          1)The California Olmstead Plan was issued in 2003.  The plan  
            articulates principles of an ongoing effort to promote  








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            opportunities for adults with disabilities to live  
            independently.  The plan promotes self-determination, choice,  
            and community integration. The plan expresses a goal to expand  
            the availability of housing options for persons with  
            disabilities, and ensure the availability of housing options  
            that are augmented by services and supports, and can  
            facilitate the full inclusion of the resident into the  
            community.

          2)The State Plan on Aging is published every five years.   
            Federal law requires state units on aging to submit a state  
            plan.  When approved, federal funds become available.  The  
            current state plan, "California State Plan on Aging,  
            2009-2013" addresses key socio-demographic factors that shape  
            needs, priorities, and promising practices identified by the  
            California Department of Aging (CDA) and the 33 area agencies  
            on aging (AAAs).  The plan describes the CDA's work with AAAs  
            to provide cost-effective, quality services to adults with  
            disabilities, and their caregivers.  

           FISCAL EFFECT  :   None

           COMMENTS  :   

           AUTHORS STATEMENT  : "The number of persons at risk for  
          institutionalization in nursing homes is expected to grow  
          dramatically in the next two decades as our population ages.   
          Facilitating aging-in-place keeps seniors in their home  
          environment and is less costly to taxpayers.  Housing with  
          Services models connect long-term supports and services to  
          affordable housing for seniors, offering an additional  
          aging-in-place option.  Housing with Services models can include  
          service coordination, wellness and health education, health  
          monitoring provided by a nurse educator, co-location of health  
          services, or a community based adult service center.  This  
          resolution encourages the federal government to support Housing  
          with Services generally and to expand Medicare waivers to  
          facilitate the integration of services into affordable housing  
          for seniors and persons with disabilities."

           SUPPORT  : According to Leading Age, HUD rental subsidies have  
          resulted in the development of over 6,000 Section 202 facilities  
          housing approximately 263,000 households of older persons.  
          Waiting lists for Section 202 facilities are long, applicants  
          frequently must wait over 2 years.  Persons are eligible to  








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          apply for assistance if their incomes are very low, (which is  
          generally equal to 50 percent of the area median family income,  
          adjusted for household size).  Residents are predominantly  
          elderly women, living alone, with incomes between $5,000 and  
          $15,000.  

          According to Leading Age, HUD reports that housing made  
          available under the Section 202 program is considered of good  
          quality, and performs better during on-site inspections than  
          other housing programs. Resident satisfaction surveys suggest  
          that residents are more satisfied with their home than  
          participants in other programs.  In 2006, the median age of  
          Section 202 residents was 74 years, and 31 percent were age 80  
          or older.  Residents of Section 202 projects in 2006 had a  
          median tenure of 4 years; 18 percent of all households had lived  
          in the project for more than ten years. 

          According to information provided by Leading Age, A critical  
          aspect of Section 202 housing is that it can accommodate  
          residents with supportive services as their independence begins  
          to deteriorate.  Furthermore, a majority of Section 202 projects  
          have the capacity to provide an array of communal services for  
          their residents.  Community space for social and/or recreational  
          purposes is available in over 90 percent of the projects.   
          Currently, space for congregate dining and supportive service  
          providers is used in about half of projects.  Examples of formal  
          services are meals (funded through Administration on Aging, and  
          other state and local funds), housekeeping (funded through  
          Medicaid waivers, and other local funds), assistance with  
          medications (funded through Medicaid waivers and other, local  
          funds), and bathing (funded through Medicaid waivers, and other  
          local funds).  HUD administers programs through two hubs in  
          California; San Francisco, and Los Angeles. 

          A service coordinator is a person trained to work with residents  
          and their families when supportive services are needed.   
          According to HUD, in 2006, 38 percent of all Section 202  
          properties reported having a service coordinator on staff, and  
          that older facilities tend to be larger than newer projects,  
          which permit greater economies of scale in staffing than in the  
          newer, smaller facilities.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 








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          Leading Age California
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Robert MacLaughlin / AGING & L.T.C. /  
          (916) 319-3990