BILL ANALYSIS Ó
AB 1618
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CONCURRENCE IN SENATE AMENDMENTS
AB
1618 (Committee on Budget)
As Amended June 15, 2016
2/3 vote. Budget Bill Appropriation Takes Effect Immediately
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|ASSEMBLY: | | (April 28, |SENATE: |36-1 |(June 27, 2016) |
| | |2016) | | | |
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(Vote not relevant)
Original Committee Reference: BUDGET
SUMMARY: Makes necessary statutory and technical changes to
implement the Budget Act of 2016 related to 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.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Establish 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
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with specified membership, to distribute $2 billion 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)State 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 1% tax on income exceeding $1 million dollars.
3)Fund the program through the issuance of bonds by the
Treasurer and secured by Prop 63 revenues and allocates the
funds as follows:
a) $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.
b) $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.
4)Authorize an alternative process to the distribution of
competitive grants for counties with at least 5% of the
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state's homeless population and provides a set aside of 8% for
small counties.
5)Establish 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.
6)Specify 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.
7)Appropriate $6.2 million from Proposition 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.
8)Require annual reporting by the counties, HCD and an
evaluation.
9)Authorize a General Fund loan of $1 million for program
implementations prior to receipt of bond funds.
10)State legislative intent that the costs to service the debt
for the bond shall not impede direct mental health services
provided by the counties.
11)Make the following changes to Mental Health Services Act
(MHSA) to improve transparency and accountability:
a) 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.
b) Requires DHCS to regularly post the annual revenue and
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expenditure reports and each county's three-year MHSA
expenditure plan.
c) Requires counties to certify the accuracy of the data
they submit to DHCS.
d) Permits DHCS to request that the State Controller's
Office withhold MHSA funds from counties that fail to
comply with reporting requirements.
e) Requires DHCS to regularly conduct county MHSA program
reviews (as related to the requirements of the existing
performance contracts) and to post on its Web site findings
from these reviews and county plans of corrections when
deficiencies are identified.
f) Requires DHCS to summarize county MHSA performance
outcomes.
FISCAL EFFECT: Appropriates $6.2 million from Prop. 63,
authorizes a General Fund loan of $1 million, and provides for
the issuance of $2 billion in bonds by the Treasurer and secured
by Prop 63 revenues.
COMMENTS: The trailer bill language provides the necessary
statutory references to enact the 2016-17 Budget related to No
Place Like Home Initiative.
Analysis Prepared by:
Genevieve Morelos/ BUDGET / 916-319-2099 FN:
0003523
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