BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 384


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          Date of Hearing:  June 14, 2016


                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS


                                 Jacqui Irwin, Chair


          SB  
          384 (Leyva) - As Amended January 6, 2016


          SENATE VOTE:  38-0


          SUBJECT:  Veteran housing:  multifamily units:  underserved  
          veterans


          SUMMARY:  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.  Specifically, this bill:  





          1)Requires that, for all multifamily housing units acquired,  
            constructed, rehabilitated, or preserved on or after January  
            1, 2017, for the purpose of housing veterans, a percentage of  
            the state funds to be used in the act for purposes of the VHHP  
            shall be reserved for housing for underserved veterans. The  
            percentage reserved shall be determined by the California  
            Department of Veterans Affairs (CalVet) in consultation with  
            the appropriate local agencies.










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          2)Defines "underserved veterans" as those veterans either  
            experiencing or at risk of experiencing homelessness at a  
            disproportionate rate to their veteran or nonveteran  
            counterparts, as determined by the most recent United States  
            Department of Housing and Urban Development Annual Homeless  
            Assessment Report (AHAR) that includes an assessment of  
            veteran homelessness, or other similar source the department  
            deems appropriate.



          3)Mandates that the department shall, as specified, determine  
            the percentage of funds from the Housing for Veterans Fund  
            established pursuant to Military and Veterans Code Section  
            998.44 to be reserved annually pursuant to subdivision (a),  
            with the first determination to be made on July 1, 2017, and  
            thereafter each year on July 1. 



          4)Directs that if there are insufficient applications for  
            proposed housing projects meeting the requirements of  
            subdivision (a), the reserved funding shall revert back to the  
            Housing for Veterans Fund and be available for other purposes  
            authorized by the act.


          EXISTING LAW:   AB 639 (Perez, 2014) and Proposition 41 (2014)  
          established the VHHP.  Military and Veterans Code section  
          987.002 (c) states that:


            The California Housing Finance Agency, the Department of  
            Housing and Community Development, and the Department of  
            Veterans Affairs, herein after "departments," shall work  
            collaboratively pursuant to the memorandum of understanding,  
            as specified in Section 987.006, to carry out the duties and  
            functions of this article.








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          FISCAL EFFECT: 





          According to the Senate Appropriations Committee:





          1)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) 



          2)Unknown costs to the HCD and the CalHFA, likely less than  
            $50,000, to revise existing VHHP guidelines. (Housing for  
            Veterans Fund)



          3)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.



          COMMENTS:  









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           Unilateral Determination of Reserve Percentage


           Determination of the percentage of funds to be reserved annually  
          is essentially to be done by CalVet alone.  This is in contrast  
          to Military and Veterans Code section 987.002 (c) which  
          indicates a Legislative intent that the program be run  
          collaboratively by three state agencies, CalVet, CalHFA, and  
          CalHCD.  Instead of a collaboration with CalHFA and HCD, the  
          bill requires CalVet to consult with "appropriate local  
          agencies."


           Unclear Standard for Determining Reserve Percentage


           The bill states:


            For purposes of this section, "underserved veterans" means  
            those veterans either experiencing or at risk of experiencing  
            homelessness at a disproportionate rate to their veteran or  
            nonveteran counterparts, as determined by the most recent  
            United States Department of Housing and Urban Development  
            Annual Homeless Assessment Report (AHAR) that includes an  
            assessment of veteran homelessness, or other similar source  
            the department deems appropriate.


          Disproportionate rate is not a clear term, nor is it clear what  
          geographic and/or time frame should be considered.  CalVet is  
          not required to use the AHAR, but may use any similar source it  
          deems appropriate.


           Does the VHHP currently lack the authority to focus on  
          subpopulations and is there evidence that VHHP is not  
          considering the needs of subpopulations?








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           The current VHHP Program Guidelines have multiple mentions of  
          directing efforts to those homeless veterans most in need and  
          include scoring criteria to prioritise subpopulations.  Also,  
          section 116 of the Guidelines is entitled, "Vulnerable  
          Populations Best Practices" and indicates best practices for  
          developers who seek participation in VHHP.  The Guidelines have  
          been amended once since VHHP's inception, could they not be  
          amended again to effectuate the author's intent?


          








          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Legion - Department of California


          AMVETS - Department of California


          California Women's Law Center


          Military Officers Association of America - California Council of  








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          Chapters


          Veterans of Foreign Wars - Department of California


          Vietnam Veterans of American - California State Council




          Opposition


          None on File




          Analysis Prepared by:Jenny Callison / V.A. / (916)  
          319-3550