BILL ANALYSIS Ó AB 388 Page 1 ASSEMBLY THIRD READING AB 388 (Chang) As Amended April 22, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+-----------------------+-------------------| |Housing |7-0 |Chau, Steinorth, | | | | |Burke, Chiu, Beth | | | | |Gaines, Lopez, Mullin | | | | | | | |----------------+------+-----------------------+-------------------| |Veterans |9-0 |Irwin, Mathis, Alejo, | | |Affairs | |Brough, Brown, Chávez, | | | | |Daly, Frazier, Salas | | | | | | | |----------------+------+-----------------------+-------------------| |Appropriations |15-0 |Gomez, Bigelow, Bloom, | | | | |Bonta, Calderon, | | | | |Chang, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, Quirk, | | | | |Rendon, Wagner, Weber, | | | | |Wood | | | | | | | | | | | | ------------------------------------------------------------------- AB 388 Page 2 SUMMARY: Requires the Department of Housing and Community Development (HCD), in collaboration with the Department of Veterans Affairs (CalVet) to include specified information relating to the effectiveness of the Veterans Housing and Homeless Prevention (VHHP) Bond Act of 2014 in an annual report. Specifically, this bill: 1)Requires the annual report to include the following information: 2)Performance outcome data, which must include: a) Housing stability information, including: i) How many tenants maintained housing and the length of time those tenants spent in housing; ii) How many tenants move on to other housing, excluding tenants who move on for a higher level of care and those tenants who died during tenancy. a) Housing exit information, including: i) How many tenants left housing; ii) The dates those tenants left housing; iii) The reason those tenants left housing; and AB 388 Page 3 iv) Where tenants who have left housing find new housing. c) Tenant satisfaction as measured by a survey; and d) Changes in income, benefits, and education. 2)Client data, which may include: a) Demographic characteristics of the veteran and his or her family; b) Educational and employment status of the veteran; and c) Veteran-specific information including disability ratings, type of discharge, branch, era of service, and veterans affairs health care eligibility. EXISTING LAW: 1)Establishes the VHHP (Proposition 41), an initiative enacted by the voters in the June 3, 2014, primary election, authorizing $600 million in bonds for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable multifamily transitional housing, or related facilities for veterans and their families (Military and Veterans Code Section 998.540, et seq.). 2)Requires the California Housing Finance Agency (CalHFA), HCD, and CalVet to work collaboratively to carry out the duties and functions of the VHHP Act (Military and Veterans Code Section AB 388 Page 4 987.002). 3)Requires HCD to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments, during the previous fiscal year, of the housing programs administered by HCD (Health and Safety Code Section 50408). 4)Requires HCD's annual report to include, among other things, an evaluation, in collaboration with CalVet, of any program established by HCD pursuant to the VHHP Act (Health and Safety Code Section 50408). FISCAL EFFECT: According to the Assembly Appropriations Committee, annual costs, for three years, of approximately $123,000 (General Fund) for up to one position for the likely need to establish a new data collection system. On-going costs of approximately $57,000 for half a position thereafter. COMMENTS: Background: AB 639 (Perez), Chapter 727, Statutes of 2013, established the VHHP, an initiative measure enacted by the voters as Proposition 41 at the June 3, 2014 primary election. The VHHP restructures $600 million of the $900 million in bonds approved by the voters for the CalVet Home Loan Program in 2008 and uses them instead to fund the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable multifamily transitional housing, or related facilities for veterans and their families. The VHHP tasks HCD with administering the new funding program in collaboration with CalVet and explicitly restricts the use of bond proceeds to those housing units designated for veterans and their AB 388 Page 5 families. The focus of the program is on housing for veterans who are homeless or at risk for homelessness and in need of services such as mental health counseling, substance abuse treatment, job training, and physical therapy to address injuries. Existing law requires HCD to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by HCD. The annual report must include an evaluation, in collaboration with CalVet, of any program established by HCD pursuant to the VHHP. The VHHP Program guidelines require local governments and non-profits receiving VHHP funds for supportive and/or transitional housing to report to HCD and/or CalVet on client data and performance outcome data. Among other things, the guidelines provide that performance outcome data may include an array of information, such as "information on housing stability, housing exit information, tenant satisfaction as measured in a survey, and changes in income, benefits and education." While performance outcome and client data are mandatory, there are no required criteria for what this data must include. This bill would require the inclusion of a specific set of data, partially based on suggested criteria within the program guidelines, in HCD's annual report. Purpose of this bill: According to the author, "[r]ecent program guidelines established place reporting requirements on the sponsors of Proposition 41 housing programs. The content of those reports is currently permissive and therefore leaves room for these reports to leave out information measuring the success level of these programs." AB 388 Page 6 Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0000490