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
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          |Author:   |Leyva                                                 |
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          |Version:  |1/6/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Alison Dinmore                                        |
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          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.  








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          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  








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            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  








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            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  








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          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 --








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