BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 384|
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THIRD READING
Bill No: SB 384
Author: Leyva (D)
Amended: 1/6/16
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE: 5-0, 4/14/15
AYES: Nielsen, Hueso, Allen, Nguyen, Roth
SENATE TRANS. & HOUSING COMMITTEE: 9-0, 1/12/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani,
McGuire, Mendoza, Roth
NO VOTE RECORDED: Leyva, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 6-0, 1/21/16
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza
NO VOTE RECORDED: Nielsen
SUBJECT: Veteran housing: multifamily units: underserved
veterans
SOURCE: Author
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:
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1)Provides $600 million in general obligation bonds to fund the
VHHP, which is intended to provide multifamily housing to
veterans, focusing on those at risk of homelessness or
experiencing temporary or chronic homelessness.
2)Requires 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 the VHHP program to fund the
acquisition, construction, rehabilitation, and preservation of
affordable multifamily supportive housing, affordable
transitional housing, affordable rental housing, or related
facilities for the target population and their families to
provide access and maintain housing stability.
3)Requires 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.
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2)Defines "transitional housing" and "transitional housing
development" as rental housing 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 experiencing
homelessness at a disproportionate rate to their veteran or
nonveteran counterparts, as determined by the most recent U.S.
Department of Housing and Urban Development Annual Homeless
Assessment Report (AHAR) that includes an assessment of
veteran homelessness, or 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 authorized purposes.
Background
According to a federal agency report to the Congress:
A veteran is 50 percent more likely to be homeless than a
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nonveteran. 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.
According to one major point-in-time survey, on a given night
nearly half of homeless veterans were concentrated in just
four states: California, Florida, Texas, and New York - even
though only 28 percent of all veterans were located in those
same four states.
Rates of homelessness among veterans living in poverty are
particularly high for veterans identifying as Hispanic/Latino
(1:4) or African-American (1:4).
A recent report by the Government Accountability Office 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.
Comments
Applicant learning curves. Typically, grant applicants require
at least two funding rounds to fully understand a new program's
requirements. In early 2015 the VHHP program's initial Notice of
Funding Availability was released for the first $75 million of
bond money. Thirty-two applications were received, requesting
approximately $125 million. In June 2015, the administering
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departments awarded approximately $63 million to 17 approved
projects.
The departments solicited public stakeholder input to identify
lessons learned during the first round. In October 2015, in
response to that feedback, the departments revised their
guidelines. The application window for the second round (under
the revised guidelines) closed in mid-December, and program
administrators are expected to make the awards during the second
quarter of 2016.
On January 5, 2016, during a joint Senate oversight hearing
reviewing the program's progress, some developers stated that
they have delayed submitting their applications until the third
round so as to fully understand all requirements in the current
guidelines. Making additional changes to the statute might
require additional guideline changes, which could lead to
further uncertainty and delays for those seeking funding.
Related/Prior Legislation
SB 689 (Huff, 2015), regarding the Veterans Housing and
Homelessness Prevention Act, 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. (The bill is currently in the Committee
on Senate Transportation and Housing)
AB 253 (Hernandez, 2015) requires state agencies to give a
preference to VHHP applicants that demonstrate a multiyear
commitment of Mental Health Services Act Funding for the
applicant's project funding plan. (The bill is currently in the
Committee on Senate Transportation and Housing.)
AB 639 (J. Pérez, Chapter 727, Statutes of 2013) establishes the
Veterans Housing and Homeless Prevention Bond Act of 2014,
authorizing issuance of $600 million in general obligation bonds
to fund 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 statewide in June, 2014. (Approved by the voters in June
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2014 as Proposition 41.)
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
Estimated CalVet costs of approximately $206,000 annually for
two PY of staff to establish the program, annually determine
the underserved veteran population, consult with local
agencies, and determine the percentage to reserve for these
purposes. (Housing for Veterans Fund)
Unknown costs to the HCD and the CalHFA, likely less than
$50,000, to revise existing VHHP guidelines. (Housing for
Veterans Fund)
Potential delays in the allocation of VHHP bond revenues for
projects that qualify for funding under the current program
guidelines. This would occur when there are insufficient
applicants to fully allocate reserved funds, in which case the
funds would revert back to the Housing for Veterans Fund for
other authorized VHHP purposes.
SUPPORT: (Verified1/22/16)
American Legion - Department of California
AMVETS - Department of California
California Women's Law Center
Military Officers Association of America - California Council of
Chapters
Veterans of Foreign Wars - Department of California
Vietnam Veterans of American - California State Council
OPPOSITION: (Verified1/22/16)
None received
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Prepared by: Wade Cooper Teasdale / V.A. / (916) 651-1503
1/25/16 16:05:00
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