BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2631


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2631 (Santiago) - As Amended April 5, 2016


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          |Policy       |Human Services                 |Vote:|7 - 0        |
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          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  








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            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.








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          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  








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            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.











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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081