BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON VETERANS AFFAIRS
                             Senator Jim Nielsen, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 384         Hearing Date:    4/14/15
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          |Author:    |Leyva                                                |
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          |Version:   |2/24/15                                              |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Wade Teasdale                                        |
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             Subject:  Veteran housing:  multifamily units:  underserved  
                                      veterans


           DESCRIPTION
            
          Summary:
           To help meet the specific housing needs of underserved veterans,  
          this bill sets aside a percentage of any state funds being used  
          to acquire, construct, rehabilitate or preserve multifamily  
          housing units for veterans, in general.

           Existing law:
              1.   Provides for various programs and bond issuances to  
               provide housing for veterans.

             2.   Includes the Veterans Housing and Homeless Prevention  
               Act of 2014, (VHHP), which provides for the acquisition,  
               construction, rehabilitation, and preservation of  
               affordable multifamily supportive housing, affordable  
               transitional housing, affordable rental housing, or related  
               facilities for veterans and their families.

           This bill:
              1.   For all multifamily housing units acquired, constructed,  
               rehabilitated, or preserved on or after January 1, 2016,  
               for the purpose of housing veterans, a percentage of the  
               state funds to be used shall be reserved to provide housing  
               for underserved veterans.

             2.   Requires the California Department of Veterans Affairs  







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               (CalVet) to determine the functional definition of  
               "underserved veterans" based on the needs of veterans at  
               the time funding is awarded.

             3.   Requires CalVet, in consultation with the appropriate  
               local agencies, to determine the percentage of housing  
               funds set aside for underserved veterans.

                                           
          BACKGROUND
           
           State Housing Programs - General  

           Housing Programs - General  

          In most years, about 150,000 houses and apartments are built in  
          California. Most of these housing units are built entirely with  
          private dollars. Some, however, receive financial help from  
          federal, state, or local governments. For example, the state  
          provides local governments, nonprofits, and private developers  
          with low-cost loans to fund a portion of the housing units'  
          construction costs. Typically, housing built with these funds  
          must be sold or rented to Californians with low incomes. A  
          portion of housing units built with state funds is set aside for  
          homeless Californians. These include homeless shelters,  
          short-term housing, and supportive housing. A January 2013  
          federal government survey identified 137,000 homeless  
          Californians, including about 15,000 veterans. (Source: LAO  
          Analysis, Proposition 41, June 2014 statewide ballot pamphlet).

          Supportive housing is permanent rental housing linked to a range  
          of onsite or offsite support services, including mental and  
          physical health care, drug and alcohol abuse counseling, and job  
          training programs, designed to enable residents to maintain  
          stable lives. There is no limit on length of stay.

          Transitional housing is a type of supportive housing used to  
          facilitate the movement of homeless individuals and families to  
          permanent housing. A homeless person may live in a transitional  
          apartment for a specified period of time, while receiving  
          supportive services that enable independent living. These are  
          buildings configured and operated as rental housing  
          developments, but are operated under program requirements that  
          call for the termination of assistance and recirculation of the  








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          housing unit to another eligible program participant at some  
          predetermined future point in time - which shall be no less than  
          six months and often capped at two years. The intent is to  
          provide extended shelter and supportive services for homeless  
          individuals and/or families with the goal of helping them live  
          independently and transition into permanent housing.

          A relatively recent innovation in serving homeless populations,  
          "Housing First" provides an alternative to progressive systems  
          based on the emergency shelter/transitional housing model.  
          Rather than moving homeless individuals or households through  
          different "levels" of housing and eventually to "independent  
          housing," the Housing First approach immediately moves the  
          homeless from the streets or shelters into their own apartments.

           Veterans' nontraditional housing needs

           According to a federal agency report to the Congress:

                 A veteran is 50 percent more likely to be homeless than  
               a non-veteran. Although only eight percent of adults in the  
               United States are veterans, federal surveys suggest that  
               veterans represent up to 16 percent of America's homeless  
               population.

                 Rates of homelessness among veterans living in poverty  
               are particularly high for veterans identifying as  
               Hispanic/Latino (1:4) or African-American (1:4).

                 Two groups of homeless veterans - women and people  
               between ages 18 and 30 - are small in number. However,  
               female veterans and young veterans are at high risk of  
               becoming homeless, and both groups are growing within the  
               overall veteran population.

                 According to major point-in-time survey, nearly half of  
               homeless veterans on a given night were located in four  
               states: California, Florida, Texas, and New York. Only 28  
               percent of all veterans were located in those same four  
               states.

               (Source: "Veteran Homelessness: A Supplemental Report to  
               the 2009 Annual Homeless Assessment Report to Congress,"  
               U.S. Dept of Housing and Urban Development/U.S. Department  








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               of Veterans Affairs.)


          In reviewing AB 639 (J. Pérez, 2013), the Assembly Committee on  
          Housing and Development observed:

               Despite California's high number of homeless veterans, the  
               state does not have any programs that are directly targeted  
               at serving this population, or at serving lower-income  
               veterans who are at risk of homelessness. HCD offers  
               various programs that support the development of  
               multifamily rental housing for low income Californians,  
               including supportive and transitional housing, but none are  
               veteran-specific.

          AB 639 (J. Pérez, 2013) became Proposition 41 on the June 2014  
          statewide ballot and received voter approval. In enacting the  
          VHHP, the measure authorizes issuance of $600 million in general  
          obligation bonds to fund the acquisition, construction,  
          rehabilitation, and preservation of multifamily supportive  
          housing, affordable transitional housing, affordable rental  
          housing, and related facilities for veterans and their families.

          The law requires CalVet, the Department of Housing and Community  
          Development (HCD), and California Housing Finance Agency (CHFA)  
          to jointly design the program, which then will be implemented by  
          HCD. Affordable housing developers then partner with veterans  
          service providers to build affordable housing dwellings,  
          including supportive housing, which will provide housing and  
          services to veterans who are homeless or who have extremely low  
          income to assist the veterans to achieve housing stability and  
          improve self-sufficiency. In February 2015, HCD adopted its  
          initial program guidelines and issued a notice of funds  
          available.

          Per the Legislative Analyst, Proposition 41 provides:

                  Housing for Low-Income Veterans  :

               -      Funds construction, renovation, and acquisition of  
                 affordable multifamily housing, such as apartment  
                 complexes.

               -      Provides local governments, nonprofit organizations,  








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                 and private developers with financial assistance, such as  
                 low-interest loans, to fund part of a project's costs.

               -      Housing built with these funds would be rented to  
                 low-income veterans and their families -those who earn  
                 less than 80 percent of average family income, as  
                 adjusted by family size and county. (For example, the  
                 average statewide amount for a single person to be  
                 considered low-income for this program is about $38,000.  
                 State law requires these units to be affordable, meaning  
                 rent payments made by veterans cannot exceed 30 percent  
                 of the income limit for the program.)

                  Housing for Homeless Veterans  :

               -      Gives funding priority to projects that would house  
                 homeless veterans and veterans who are at risk of  
                 becoming homeless.

               -      In particular, at least one-half of the funds would  
                 be used to construct housing for extremely low-income  
                 veterans. These veterans earn less than 30 percent of the  
                 amount earned by the average family in the county where  
                 they live. (The average statewide amount for a single  
                 person to be considered extremely low-income is about  
                 $14,000.) A portion of the funding for extremely  
                 low-income veterans would be used to build supportive  
                 housing for homeless veterans.

           Federal Housing Assistance/Supportive Services for Veterans

           The U.S. Department of Housing and Urban Development (HUD)  
          partners with the U.S. Department of Veterans Affairs' (USDVA)  
          Supportive Housing Program to manage the HUD-VASH program, which  
          serves the most vulnerable veterans, and provides special  
          services for women veterans, those recently returning from  
          combat zones, and veterans with disabilities.

          As of September 30, 2013, HUD had allocated more than 58,000  
          Housing Choice vouchers across the country, which allows  
          veterans and their families to live in market-rate rental  
          housing, while receiving USDVA-provided case management for  
          clinical and supportive services. A housing subsidy is paid to  
          the landlord directly by the local public housing authority on  








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          behalf of the participating veteran. The veteran then pays the  
          difference between the actual rent charged by the landlord and  
          the amount subsidized by the program.

           
          COMMENT
           
           1.Committee Staff Comments  :

             a)   This bill adds §980.7 to the Military and Veterans Code  
               (MVC) and would apply to "all multifamily housing units  
               acquired, constructed, rehabilitated, or preserved on or  
               after January 1, 2016, for the purpose of housing  
               veterans." The scope of this proposed language would  
               include, but likely extend beyond the VHHP Act enacted via  
               Proposition 41 (2014).  
            
              b)   The Prop 41 program is still in its infancy. In  
               mid-February 2015, HCD adopted implementing regulations,  
               including the application process and selection criteria.  
               Shortly thereafter, HCD published a Notice of Funding  
               Availability announcing that $75 million was available for  
               applications to be filed by April 27, 2015.  

              c)   Although Proposition 41 and the HCD regulations address  
               the needs of low-income and homeless veterans, neither  
               mentions "underserved veterans" nor provides any language  
               helpful to program analysts in determining which  
               demographic cohorts of veterans may be underserved.
           
             d)   Suggested Amendments for Consideration

                   1)        Per the author's office, the intent is that  
                    CalVet and local agencies collaborate in identifying  
                    the inadequately met needs of discrete populations of  
                    "underserved veterans" as they vary by community. The  
                    author might consider amending subdivision (b) of the  
                    proposed MVC §980.7 to make it consistent with the  
                    collaboration requirement contained in subdivision  
                    (a):

                         (b) For purposes of this section, "underserved  
                         veterans" shall have the meaning determined by  
                         the department, in consultation with the  








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                         appropriate local agencies, based on the needs of  
                         veterans at the time funding is awarded.

                  2)        In addition, the term "underserved" should be  
                    defined more functionally so that it includes one or  
                    more criteria, which may be applied by CalVet and  
                    local agencies in analyzing a given community's  
                    veteran demographics and the unique, unmet housing  
                    needs of local veterans.

           1.Related Legislation

              SB 689 (Huff, pending Senate Vet Affairs, 2015  ): Regarding the  
            Veterans Housing and Homelessness Prevention Act, this bill  
            requires prioritization given to applications for proposed  
            housing projects that would maintain a qualified mental health  
            professional, as defined, on staff or on contract for  
            services.

             AB 639 (J. Pérez, Ch. 727, Stats. 2013  ): Establishes the  
            Veterans Housing and Homeless Prevention Bond Act of 2014,  
            which authorizes issuance of $600 million in general  
            obligation (GO) bonds to fund the acquisition, construction,  
            rehabilitation, and preservation of multifamily supportive  
            housing, affordable transitional housing, affordable rental  
            housing, and related facilities for veterans and their  
            families, if approved by the voters at the June, 2014,  
            statewide election. (As Proposition 41, the measure was  
            approved by the voters 65.4% to 34.6%.)


           POSITIONS
           
          Sponsor:  Author

          Support:  
          American Legion - Department of CA
          AMVETS - Department of CA
          CA Association of County Veterans Service Officers (CACVSO)
          CA State Commanders Veteran Council
          Military Officers Association of America - CA Council of  
          Chapters
          Veterans of Foreign Wars - Department of CA
          Vietnam Veterans of American - CA State Council








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          Oppose:   None on file


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