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