BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 870 Hearing Date: 6/30/2015
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|Author: |Cooley |
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|Version: |6/24/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Alison Dinmore |
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SUBJECT: Homelessness: rapid rehousing enhancement program
DIGEST: This bill creates a rapid rehousing enhancement program
within the Department of Housing and Community Development (HCD)
to award grants for counties and private nonprofit organizations
that operate rapid rehousing programs.
ANALYSIS:
Existing law:
1)Federal law defines as homeless an individual or family who
lacks a fixed, regular, and adequate nighttime residence.
There are four federally defined categories under which
individuals and families may qualify as homeless: 1) literally
homeless; 2) imminent risk of homelessness; 3) homeless under
other federal statues; and 4) fleeing/attempting to flee
domestic violence.
2)The federal Emergency Solutions Grants (ESG) program provides
funding to states for homeless prevention activities.
This bill:
1)Creates a two-year enhancement program in HCD to award grants
to counties and private nonprofit organizations that operate a
rapid rehousing program and requires HCD to administer it.
2)Requires HCD to develop guidelines to select four counties or
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private nonprofit organizations to participate in the
enhancement program. Eligible grantees include counties or
providers eligible to receive ESGs from the state with a
demonstrated high funding need.
3)Requires HCD to select grantees by giving priority to those
counties or private nonprofit organizations with existing
rapid rehousing programs with a demonstrated effectiveness in
delivering rapid rehousing programs for individuals and
veterans.
4)Appropriates $2 million from the General Fund to HCD for the
purposes of the enhancement program. HCD shall distribute $1
million each year in 2016 and 2017, less any administrative
costs, and may spend no more than 5% on administrative costs.
The grants shall be distributed equally to each of the
selected counties or private nonprofit organizations.
5)Requires grant recipients under this program to meet existing
federal and state reporting requirements under the ESG
regulations.
6)Defines "homeless" in the same manner as federal regulations.
COMMENTS:
Purpose of the bill. According to the author, California has
113,952 homeless people, which accounts for 20% of the nation's
homeless population. This is due in large part to a lack of
affordable housing in our state. California should support
innovative ways to better utilize resources to combat
homelessness and its economic impact. This bill creates an
enhancement program in four counties or private nonprofit
organizations to support "rapid rehousing" principles and
provide homelessness prevention and rapid rehousing activities
such as housing search, mediation, or outreach to property
owners, legal services, credit repair, security or utility
deposits, utility payments, and assistance with moving for
people who are at risk of homelessness. The grantees are to be
selected by HCD and shall demonstrate success in utilizing rapid
rehousing to serve homeless persons and homeless veterans.
Effectively, each county will receive $250,000 for the program
both in 2016 and 2017.
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Background on rapid rehousing. Rapid rehousing has become an
increasingly important tool in a community's response to
homelessness. The model has shown success on the individual
level by helping households exit homelessness and not return to
shelter. Additionally, it has helped communities decrease the
number of people experiencing homelessness and the amount of
time households spend homeless. Rapid rehousing places a
priority on moving a family or individual experiencing
homelessness into permanent housing as quickly as possible,
ideally within 30 days of becoming homeless and entering a
program.
As part of the American Recovery and Reinvestment Act (ARRA) of
2009, the Department of Housing and Urban Development (HUD)
received a one-time allocation of $1.5 billion for the
Homelessness Prevention and Rapid Rehousing Program (HPRP), to
respond to the increase in homelessness among families and
individuals who traditionally did not have a history of
homelessness but, following a job loss, foreclosure or other
financial crisis, were now homeless. The program targeted
individuals who would be homeless but for this assistance. HPRP
provided financial assistance and services to prevent
individuals and families from becoming homeless and help those
who were experiencing homelessness to be quickly rehoused and
stabilized. HPRP funds could be used for short-term or
medium-term rental assistance and housing relocation and
stabilization services, such as mediation, credit counseling,
security or utility deposits, utility payments, moving cost
assistance, and case management. This program ended in 2012.
In 2009, the McKinney-Vento Homeless Assistance Act was amended
to re-authorize as the Homeless Emergency Assistance and Rapid
Transition to Housing (HEARTH) Act, which in addition to other
changes, increased homeless prevention resources. The HEARTH
Act modified the existing Emergency Shelter Grants and renamed
it the Emergency Solutions Grants Program (ESG). HEARTH
expanded the homeless prevention activities possible under ESG
to include homelessness prevention and rapid rehousing
activities, housing search, mediation, or outreach to property
owners, legal services, credit repair, security or utility
deposits, utility payments, and assistance with moving for
people who are at risk of homelessness. These activities are
much like those funded under HPRP.
Enhancing existing programs. HCD distributes ESG funds to
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eligible recipients that serve eligible areas throughout the
state with one- or two-year grants. Various counties that
receive ESG funds have expertise providing rapid rehousing and
homeless prevention services and would be equipped to receive
state funding were it made available. This program would
provide a funding enhancement to eligible counties or providers
that have existing rapid rehousing programs that have a
demonstrated effectiveness in delivering rapid rehousing
programs for individuals and veterans. The intent is to provide
additional funds to existing programs with a demonstrated high
funding need.
Assembly Votes:
Floor: 66-12
Appr: 12-5
H&CD: 5-1
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 24, 2015.)
SUPPORT:
American Federation of State, County, and Municipal Employees
California Catholic Conference
California Police Chiefs Association
California Primary Care Association
City of Thousand Oaks
County of Sacramento
County of San Bernardino
Housing California
League of California Cities
OPPOSITION:
None received
-- END --
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