BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: SB 384 Hearing Date: 1/12/2016 ----------------------------------------------------------------- |Author: |Leyva | |----------+------------------------------------------------------| |Version: |1/6/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Alison Dinmore | |: | | ----------------------------------------------------------------- SUBJECT: Veteran housing: multifamily units: underserved veterans DIGEST: This bill requires on or after January 1, 2017, that a percentage of the state funds under the Veterans Housing and Homeless Prevention (VHHP) Program be reserved for underserved veterans. ANALYSIS: Existing law: 1)Enacts the Veterans Housing and Homeless Prevention Bond Act of 2014 (VHHP or "the Act"), also known as Proposition 41, which authorized the issuance of $600 million in general obligation bonds to provide multifamily housing to veterans pursuant to the VHHP. The VHHP required the California Housing Finance Agency (CalHFA), California Department of Housing and Community Development (HCD), and California Department of Veterans Affairs (CalVet) to establish and implement a program that focuses on veterans at risk of homelessness or experiencing temporary or chronic homelessness. This program will fund 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 to allow veterans to access and maintain housing stability. SB 384 (Leyva) Page 2 of ? 2)Requires, pursuant to the VHHP, the program to do the following: a) Leverage public, private, and nonprofit funding sources. b) Prioritize projects that combine housing and supportive services, including but not limited to: job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation. c) Ensure that program guidelines and terms provide requirements or scoring criteria to advance applicants that combine permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers that offer housing or services to veterans. 1)Defines "supportive housing" as housing occupied by the target population and that is linked to on- or off-site services that assist the resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. The intent is to enable residents to maintain stable lives and places no limit on the length of stay. 2)Defines "transitional housing" and "transitional housing development" as a rental housing development that operates under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at a predetermined future point in time, but not less than six months. This bill: 1)Requires a percentage of state funds used in accordance with the VHHP, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, to be reserved for housing for underserved veterans. This percentage shall be determined by CalVet, in consultation with the appropriate local agencies. 2)Defines "underserved veterans" as those veterans either experiencing homelessness at a disproportionate rate to their veteran or non-veteran counterparts, as determined by the most recent U.S. Department of Housing and Urban Development Annual SB 384 (Leyva) Page 3 of ? Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or other similar source the department deems appropriate. 3)Requires CalVet to determine the percentage of funds to be reserved annually, with the first determination to be made on July 1, 2017 and each year thereafter on July 1. The determination shall be made using the most recent AHAR that includes an assessment of veteran homelessness, or other similar source that the department deems appropriate. 4)Requires, when insufficient applications for proposed housing projects meet the requirements of this bill, the reserved funding to revert back to the Housing for Veterans Fund and be available for other purposes authorized by the Act. COMMENTS: 1)Purpose of the bill. According to the author, California's vulnerable veteran population is more likely to face homelessness due to a significant lack of affordable housing, livable wages, and access to necessary health care services. A recent report by the Government Accountability Office (GAO) found that women veterans identifying themselves as homeless more than doubled, increasing by more than 140% from 2006 to 2010. During the same time frame, there was a 45% increase in homelessness for male veterans. For female veterans, especially those who have suffered from military sexual trauma, living in a housing facility that houses mainly men poses serious safety and health risks. Women do not feel comfortable or safe in these facilities. Most (about 60%) of transitional housing facilities do not allow young children. This limitation, combined with the safety risks of living in male dominated facilities, makes finding housing for female veterans with children nearly impossible. SB 384 seeks to eliminate some of these barriers by ensuring that funding is available for housing for underserved veterans - allowing construction of facilities that serve this vulnerable population. 2)Targeting funding to underserved homeless veteran populations. The intent of this bill is to require funding to meet the needs of underserved populations of homeless veterans, including female veterans, children, and others that may have special needs. While the bill requires the departments to SB 384 (Leyva) Page 4 of ? reserve money for projects that serve underserved populations, the departments have no control over those projects that apply for funding. For this reason, if the departments receive insufficient applications for funding to meet the requirements of this bill, any reserved funding shall revert back to the Housing for Veterans Fund and be available for other purposes authorized by the Act. The intent of the VHHP program is to serve homeless veterans and in particular, the chronically homeless. The legislation is written broadly to include all homeless veterans, including underserved populations such as women and children. Arguably, there is nothing in the legislation that precludes the departments from funding projects that serve underserved populations. The author argues, however, that this legislation will ensure, to the extent possible, that state funds will be specifically reserved to meet the special needs of underserved populations, if such projects apply. 3)Too soon? The VHHP program recently received applications for the second round of funding and likely will not make the awards until the second quarter of this year. This second round of funding followed a public process of receiving input from stakeholders on experience from the first round. Generally, with new programs such as this, it takes applicants a couple of funding rounds to fully understand the requirements that a state agency or agencies puts in place. This program in particular places novel requirements that applicants have not seen or experienced before. On January 5, 2016, during a joint Senate oversight hearing covering the progress of the program, Senators of this committee heard from some stakeholders that they were holding off applying until the third round to fully understand the requirements in the current guidelines. Making changes to the statute will require the departments to make changes to the guidelines and undergo the public review process, which could lead to uncertainty for those seeking funding and further delay the awarding of funding. 4)Double-referral. This bill was heard in Senate Veterans Affairs Committee on April 14, 2015 and approved 5-0. Related Legislation: SB 689 (Huff) - requires state agencies to prioritize projects SB 384 (Leyva) Page 5 of ? under the VHHP that, for the purposes of providing mental health and drug services, either: 1) accept only residents that are prequalified to receive services from the U.S. Department of Veterans Affairs (VA), or 2) if they accept residents who receive services from agencies other than the VA, employ on staff or contract for a qualified mental health professional with at least two years' full-time relevant experience providing services to veterans. This bill is currently in this Committee. AB 253 (Hernandez) - requires state agencies to give a preference to applicants for funding under the VHHP that demonstrate a multiyear commitment of Mental Health Services Act Funding for the applicant's project funding plan. This bill is currently in this Committee. AB 639 (Perez, Chapter 727, Statutes of 2013) - created the VHHP and allows for $600 million in bonds to be used for housing homeless and low-income veterans. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, January 6, 2016.) SUPPORT: American Legion - Department of California AMVETS - Department of California Military Officers Association of America, California Council of Chapters VFW - Department of California Vietnam Veterans of America - California State Council OPPOSITION: None received -- END -- SB 384 (Leyva) Page 6 of ?