BILL ANALYSIS Ó AB 2631 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2631 (Santiago) - As Amended April 5, 2016 ----------------------------------------------------------------- |Policy |Human Services |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill 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. FISCAL EFFECT: 1)Major ongoing costs for temporary shelter assistance in the range of $22 million to $45 million (GF) for increasing the AB 2631 Page 2 number of days of temporary assistance from 16 consecutive days to 30 calendar days. Over 30,250 requests for temporary shelter were approved in the last year, with an average of 10 days of assistance at an average daily cost of about $72. These costs would be offset to some extent by reduced payments to families who choose to retain a portion of the 16-day benefit for future use but do not subsequently use it or no longer qualify. 2)Potentially significant ongoing costs in the range of $5.5 million (GF) for allowing the use of benefits once a year instead of the current law limitation of once in a lifetime. 3)Potentially significant costs in the hundreds of thousands to low millions of dollars (GF) for additional payments of permanent homeless assistance for cases previously ineligible and/or denied due to existing statute prohibiting payments to families in previous receipt of any amount of temporary shelter assistance. The average permanent housing assistance payment was $850 in 2013-14, with over 1,625 denied requests for assistance in one 12-month period alone. If half of the denials would have been impacted by this bill, costs to provide payments would be nearly $700,000. It is unknown how many requests have been denied over the life of the Homeless Assistance Program due to a family's previous receipt of temporary shelter assistance payments of less than the maximum 16 days, but it is likely significant. Additionally, it is unknown how many more requests have not been submitted due to recognition of the existing restriction on eligibility. 4)Unknown costs, but likely less than $1 million, for automation modifications required to enable the tracking of this information. AB 2631 Page 3 5)Ongoing state-reimbursable local costs (GF) for county agencies to re-evaluate eligibility for temporary and permanent housing assistance payments. COMMENTS: 1)Purpose. 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." 2)CalWORKs homeless assistance. Temporary shelter assistance for up to 16 consecutive days is provided to homeless families under the CalWORKs program. Temporary shelter assistance for a family of up to four people is $65 per day, plus $15 for each additional family member, up to a maximum of $125 per day. 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 AB 2631 Page 4 family's ability to receive shelter assistance for any days remaining within the 16 consecutive day limit. The 16 consecutive day limit is a lifetime limit for temporary shelter assistance, provided that a family doesn't meet criteria for an exception. Exceptions include 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. According to DSS, recipient families us an average of 10 days of temporary shelter assistance. 3)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 was held in the Senate Appropriations Committee. AB 2631 Page 5 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081