BILL ANALYSIS Ó SB 384 Page 1 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. SB 384 Page 2 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. SB 384 Page 3 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: SB 384 Page 4 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? SB 384 Page 5 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 SB 384 Page 6 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