BILL ANALYSIS Ó
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Senator Mark Leno, Chair
2015 - 2016 Regular
Bill No: AB 1618 Hearing Date: June 27,
2016
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|Author: |Committee on Budget |
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|Version: |June 23, 2016 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Farra Bracht |
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Subject: No Place Like Home Program: establishment
Summary: This bill establishes the No Place Like Home Program to further
the development of permanent supportive housing for persons who
are in need of mental health services and are homeless,
chronically homeless, or at risk of homelessness.
Proposed
Law: This measure includes the following key changes:
1.Establishes the No Place Like Home Program (NPLH) to be
administered by the Department of Housing and Community
Development (HCD), in consultation with an advisory committee
with a specified membership, to distribute $2 billion dollars
among the counties to finance capital costs, including
acquisition, design, construction, rehabilitation or
preservation and capitalized operating costs of permanent
supportive housing for persons who are eligible for services
under Proposition 63 and are homeless, chronically homeless,
or at risk of chronic homelessness.
2.States that establishing a housing program providing permanent
supportive housing to persons who are in need of mental health
services and are homeless, chronically homeless or at risk of
homelessness is in furtherance of the purposes of Proposition
63, enacted in the November 2, 2004 statewide general election
that imposed a one percent tax on income exceeding one million
dollars.
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3.Funds the program through the issuance of bonds by the
Treasurer and secured by Prop 63 revenues and allocates the
funds as follows:
$1.8 billion for a competitive grant program to counties
that meet minimum eligibility criteria related to their
ability to use the funds to develop and operate permanent
supportive housing to persons who are eligible for services
under Proposition 63 and are homeless, chronically homeless
or at risk of chronic homelessness, with a preference for
targeting those who are chronically homeless or at risk of
chronic homelessness.
$200 million to be distributed to counties for
construction, rehabilitation or preservation and
capitalized operating costs of permanent supportive housing
for persons who are eligible for services under Proposition
63 and are homeless, chronically homeless or at risk of
chronic homelessness, with a priority for with mental
health supportive needs who are homeless or at risk of
chronic homelessness.
1.Authorizes an alternative process to the competitive grants
for counties with at least five percent of the state's
homeless population and provides a set aside of eight percent
for small counties.
2.Establishes four categories for the competitive grants based
on population, with a separate category for Los Angeles County
and requires at least four rounds of grants as specified.
3.Specifies that the loans are in the form of secured deferred
payment loans to pay for the costs of development and
specifies additional loan terms; provides for funds to secure
or avert default.
4.Appropriates $6.2 million from Prop 63 funds for technical and
application assistance to the counties, specifies amounts
based on county size and authorizes HCD to contract for expert
technical assistance.
5.Requires annual reporting by the counties, HCD and an
evaluation.
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6.Authorizes a General Fund loan of $1 million for program
implementations prior to receipt of bond funds.
7.States legislative intent that the costs to service the debt
for the bond shall not impede direct mental health services
provided by the counties.
8.Makes the following changes to the Mental Health Services Act
(MHSA) to improve transparency and accountability:
Requires the Department of Health Care Services
(DHCS) to revise MHSA county annual revenue and
expenditure reporting requirements, in consultation with
county representatives, to ensure timely, accurate, and
consistent data.
Requires DHCS to regularly post the annual revenue
and expenditure reports and each county's three-year MHSA
expenditure plan.
Requires counties to certify the accuracy of the
data they submit to DHCS.
Permits DHCS to request that the State Controller's
Office withhold MHSA funds from counties that fail to
comply with reporting requirements.
Requires DHCS to regularly conduct county MHSA
program reviews (as related to the requirements of the
existing performance contracts) and to post on its
website findings from these reviews and county plans of
corrections when deficiencies are identified.
Requires DHCS to summarize county MHSA performance
outcomes.
1.Amends the MHSA to provide that at least one of the Governor's
appointees to the Mental Health Services Oversight and
Accountability Commission shall have a background in auditing.
Fiscal
Effect: Appropriates $6.2 million from Prop. 63, authorizes a General
AB 1618 (Committee on Budget) Page 4
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Fund loan of $1 million, and provides for the issuance of $2
billion in bonds by the Treasurer and secured by Prop. 63
revenues.
Support: None on file.
Opposed: None on file.
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