BILL ANALYSIS Ó AB 2631 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON HUMAN SERVICES Susan Bonilla, Chair AB 2631 (Santiago) - As Amended April 5, 2016 SUBJECT: CalWORKs: housing assistance SUMMARY: Removes the once-in-a-lifetime limit on CalWORKs homeless assistance benefits and extends to 30 days, per year, the permissible length of time for receipt of temporary shelter assistance. Specifically, this bill: 1)Strikes language stipulating that CalWORKs special needs benefits related to housing, including various components of the homeless assistance program, are nonrecurring and further stipulates that assistance for temporary shelter shall be available once per calendar year to eligible families. 2)Extends the amount of time during which temporary shelter assistance may be received from 16 to 30 days. 3)Provides that no appropriation, as specified, shall be made for purposes of implementing this bill. AB 2631 Page 2 4)Makes technical amendments, including removing provisions that specify or refer to eligibility periods that conflict with the provisions contained in this bill. EXISTING LAW: 1)Establishes under federal law the Temporary Assistance for Needy Families (TANF) program to provide aid and welfare-to-work services to eligible families and, in California, provides that TANF funds for welfare-to-work services are administered through the CalWORKs program. (42 U.S.C. 601 et seq., WIC 11200 et seq.) 2)Establishes income, asset and real property limits used to determine eligibility for the program, including net income below the Maximum Aid Payment (MAP), based on family size and county of residence, which is around 40% of the Federal Poverty Level. (WIC 11150 to 11160, 11450 et seq.) 3)Establishes a 48-month lifetime limit of CalWORKs benefits for eligible adults, including 24 months during which a recipient must meet federal work requirements in order to retain eligibility. (WIC 11454, 11322.85) 4)Requires all individuals over 16 years of age, unless they are otherwise exempt, to participate in welfare-to-work activities as a condition of eligibility for CalWORKs. (WIC 11320.3, 11322.6) 5)Establishes the number of weekly hours of welfare-to-work participation necessary to remain eligible for aid, including requirements for an unemployed parent in a two-parent assistance unit, as specified. (WIC 11322.8) AB 2631 Page 3 6)Entitles a family to receive an allowance for nonrecurring special needs related to housing or homelessness after that family has used all available liquid resources in excess of $100, as specified, and grants this allowance for different purposes and amounts, as follows: a) Replacement of clothing and household equipment and for emergency housing needs other than temporary shelter; b) Temporary shelter assistance for homeless families receiving CalWORKs for one period of 16 consecutive days, except as specified, and counts a break in the consecutive use of this assistance as permanent exhaustion of the benefit; and c) Permanent housing assistance available to pay for last month's rent and security deposits when these payments are reasonable conditions of securing a residence, or to pay for up to two months of rent arrearages, when these payments are a reasonable condition of preventing eviction. (WIC 11450 (f)) 7)Prohibits the sum of all housing assistance special needs provided for to exceed $600 per event. FISCAL EFFECT: Unknown. COMMENTS: CalWORKs: The California Work Opportunity and Responsibility to Kids (CalWORKs) program provides monthly income assistance and employment-related services aimed at moving children out of poverty and helping families meet basic needs. Federal funding for CalWORKs comes from the Temporary Assistance for Needy Families (TANF) block grant. The average 2015-16 monthly cash grant for a family of three on CalWORKs (one parent and two AB 2631 Page 4 children) is $506.55. According to recent data from the California Department of Social Services, over 540,000 families rely on CalWORKs, including over one million children. Nearly 80% of the children are under age twelve and 40% are under age five. Average grant amounts of $506.55 per month for a family of three means $16.88 per day, per family, or $5.62 per family member, per day to meet basic needs, including rent, clothing, utility bills, food, and anything else a family needs to ensure children can be cared for at home and safely remain with their families. This grant amount puts the annual household income at $6,078 per year. Federal Poverty Guidelines for 2015 show that 100% of poverty for a family of three is over three times that at $20,090 per year. Homelessness in California: Point in time data from the Annual Homeless Assessment Report (AHAR) produced by the US Department of Housing and Urban Development (HUD) reveals that on a single night in January 2014, there were 578,424 homeless people counted in the United States, 216,261 of which were people who were part of homeless families. That same report reveals that 113,952 (nearly 20%) of those homeless people were counted in California, 71,437 of which were unsheltered. It is important to note that this number is for a single night and is neither exhaustive of the number of Californians experiencing homelessness on a daily basis nor the number of Californians who experience homelessness each year. Homelessness has particularly damaging effects on children. According to the National Center on Family Homelessness, nearly 2.5 million children in the US will experience homelessness over the course of a year. The AHAR revealed that on that same night in January 2014, 135,701 homeless individuals were children under age 18. The effects of homelessness on children span from hunger and related physical, cognitive and developmental issues AB 2631 Page 5 to lowered academic achievement and increases in stress, depression, emotional instability and overall poor mental health. CalWORKs homeless assistance: For purposes of identifying families eligible for CalWORKs homeless assistance, a family is considered homeless if the family lacks a fixed and regular nighttime residence, if the family's primary nighttime residence is a shelter, or if the family is residing in a public or private place that is not an appropriate sleeping place for human beings. Additionally, a family can be considered homeless for CalWORKs purposes if the family has received an eviction notice and the cause of eviction is the result of a verified financial hardship. Temporary shelter assistance and permanent housing assistance are two types of housing assistance provided to homeless families under the CalWORKs program. Whereas permanent housing assistance can be provided to help secure or maintain permanent housing and help prevent eviction for a family, temporary shelter assistance is provided to homeless families for up to 16 consecutive days. Temporary shelter assistance for a family of up to four people is $65 per day, and $15 is provided for each additional family member. The maximum amount of temporary shelter assistance any family can receive is $125 per day, and the assistance can only be used to pay for housing provided in a commercial establishment, a shelter, or an established rental property. Additionally, CalWORKs recipients must provide proof to the county that they are searching for permanent housing while they are receiving this benefit and proof that the shelter assistance was used to pay for allowable housing. Any break in the use of the assistance, including one night spent with a friend or relative, automatically terminates a family's ability to receive shelter assistance for any days remaining within the 16 consecutive day limit. AB 2631 Page 6 The 16 consecutive day limit is a lifetime limit for temporary shelter assistance, provided that a family doesn't meet criteria for an exception. A family may receive temporary shelter assistance more than once in a lifetime if the family's homelessness is the direct result of domestic violence, a medically verified physical or mental illness, excluding diagnoses that include substance abuse, or a fire or other natural catastrophe beyond the family's control. Still, a family cannot receive the 16 consecutive days of homeless assistance more than once in a 12-month period, and families can only receive shelter assistance for domestic violence twice in a lifetime. In California each month, county CalWORKs offices receive an average of 4,300 requests for homeless assistance. Need for this bill: According to the author, "Combating homelessness requires strategies to reduce the number of families and individuals who become homeless. Unfortunately, many Californians are struggling to make ends meet and are one paycheck from becoming homeless. Increasing the Homeless Assistance Program to 30 days and once a year will give families slightly more time to become stable and self-sufficient." PRIOR LEGISLATION: AB 264 (Maienschein), 2014, would have deleted the requirement that CalWORKs temporary shelter assistance be provided consecutively to a limit of 16 days and instead allowed a family to receive temporary shelter assistance for a total of 16 calendar days to be used at any time they were both homeless and receiving CalWORKs aid. It died in the Senate Appropriations Committee. REGISTERED SUPPORT / OPPOSITION: AB 2631 Page 7 Support Coalition of California Welfare Rights Organization (CCWRO) National Association of Social Workers CA Chapter (NASW-CA) California Catholic Conference Western Center on Law and Poverty Opposition None on file. Analysis Prepared by:Daphne Hunt / HUM. S. / (916) 319-2089 AB 2631 Page 8