BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 388


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          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


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          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










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               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  








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            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  








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          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."  












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          Analysis Prepared by:                                               
                          Rebecca Rabovsky / H. & C.D. / (916) 319-2085  FN:  
          0000490