BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 384


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          Date of Hearing:  June 29, 2016 


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                  David Chiu, Chair


          SB  
          384 (Leyva) - As Amended June 21, 2016


          SENATE VOTE:  38-0


          SUBJECT:  Veteran housing:  multifamily units:  underserved  
          veterans


          SUMMARY:  Requires that a percentage of state bond funds  
          allocated annually for purposes of the Veterans Housing and  
          Homeless Prevention (VHHP) Act of 2014 be reserved for housing  
          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  
            VHHP funds must be reserved for housing for underserved  
            veterans. 



          2)Provides that the percentage reserved for underserved veterans  
            shall be determined annually by the California Department of  
            Veterans Affairs (CalVet), the California Department of  
            Housing and Community Development (HCD) and the California  
            Housing Finance Agency (CalHFA), in consultation with the  








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            appropriate local agencies, with the first determination to be  
            made on July 1, 2017, and thereafter each year on July 1.



          3)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 CalVet, HCD, and  
            CalHFA deem appropriate.



          4)Provides that if there are insufficient applications for  
            proposed housing projects for underserved veterans, as  
            specified, the reserved funding shall revert back to the  
            Housing for Veterans Fund and be available for other purposes  
            authorized by the VHHP.


          EXISTING LAW:  


          1)Establishes the VHHP, an initiative measure enacted by the  
            voters as Proposition 41 at the June 3, 2014, primary  
            election, authorizing $600 million in bonds for the  
            acquisition, construction, rehabilitation, and preservation of  
            affordable multifamily supportive housing, affordable  
            multifamily transitional housing, or related facilities for  
            veterans and their families (Military and Veterans Code  
            Section 998.540, et seq.).


          2)Requires CalVet, HCD, and CalHFA to work collaboratively to  
            carry out the duties and functions of the VHHP (Military and  
            Veterans Code Section 987.002).








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          3)Requires the VHHP 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.


          FISCAL EFFECT:  According to the Senate Committee on  
          Appropriations:


          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 HCD and 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  








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            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:  


           The VHHP:


           AB 639 (Perez), Chapter 727, Statutes of 2013, established the  
          VHHP, an initiative enacted by the voters as Proposition 41 at  
          the June 3, 2014 primary election.  The VHHP restructures $600  
          million of the $900 million in bonds approved by the voters for  
          the CalVet Home Loan Program in 2008 and uses them instead to  
          fund the acquisition, construction, rehabilitation, and  
          preservation of affordable multifamily supportive housing,  
          affordable multifamily transitional housing, or related  
          facilities for veterans and their families.





          The VHHP tasks CalVet, CalHFA, and HCD with collaboratively  
          administering the program and explicitly restricts the use of  
          bond proceeds to those housing units designated for veterans and  
          their families. The focus of the program is on housing for  
          veterans who are homeless or at risk for homelessness and in  
          need of services such as mental health counseling, substance  
          abuse treatment, job training, and physical therapy to address  
          injuries. HCD released the first VHHP Program Notice of Funding  
          Availability (NOFA) in February 2015, announcing the  








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          availability of approximately $75 million in VHHP funding.  In  
          June 2015, the administering 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 NOFA, which  
          announced a funding availability of $75 million and incorporated  
          the revised guidelines, closed in mid-December 2015.  In April  
          2016, the administering departments awarded approximately $116  
          million to 28 approved projects.  As of June 2016, a total of  
          31% of VHHP funds have been awarded, with $390,718,638 in  
          funding remaining.


           Need for the bill:  According to the author:


            "California is home to over 1.8 million veterans. Women  
            comprise 10% of the state's veteran population making it the  
            second largest population of women veterans in the nation,  
            behind Texas.  By 2030, the population is expected to be 15%.





            "Veterans returning home from military service represent an  
            extremely vulnerable population.  Many lack a supportive  
            family network when they return home and have  
            physical/psychological injuries related to their service.  The  
            US Department of Veterans Affairs estimates that 1 in 5 women  
            have experienced sexual assault or harassment while serving in  
            the military.  











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            "California's vulnerable veteran population is more likely to  
            face homelessness due to a significant lack of affordable  
            housing, livable wage 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.





           Unique needs of female veterans:  According to CalVet, female  








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          veterans make up 10% of all veterans nationwide, and 11% of all  
          veterans in California.  There are higher rates of physical and  
          mental health problems (such as Military Sexual Trauma (MST) and  
          substance abuse) among female veterans that can be linked to an  
          overall increase in unemployment and homelessness.  Female  
          veterans also experience barriers to receiving and utilizing  
          standard veterans benefits.  


          The 2011 California Women Veteran survey found that a majority  
          of female veterans do not self-identify as veterans, and have a  
          higher rate of underutilizing their veterans benefits or  
          participating in veterans organizations.  The survey also found  
          that women veterans were more likely to have children or  
          dependents with them, and were not likely to use the Department  
          of Housing and Urban Development Veterans Affairs Supportive  
          Housing (HUD-VASH) program due to substandard housing conditions  
          and/or a failure to allow dependents.


          A 2013 memorandum from the Women's Law Center provides empirical  
          support for sex-segregation in veteran-only housing facilities.   
          It identifies homeless women veterans as a high-risk, special  
          needs group based on their "significant history of multiple  
          traumas" such as MST.  Women veterans, especially those who have  
          experienced MST and domestic violence, report feeling safer in a  
          female-only environment.  Women veterans with Post-Traumatic  
          Stress Disorder report that "women-centered treatment was the  
          most important factor contributing to their comfort with VA  
          services."  


            Already allowed under existing law?   The author points to the  
          importance of meeting the needs of underserved veterans, but  
          there is nothing under the current VHHP program guidelines that  
          would prevent the administering agencies from awarding funds to  
          projects that serve these subpopulations, including women  
          veterans.  Program guidelines already include scoring criteria  
          to prioritize projects that combine housing and supportive  








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          services, such as job training, mental health, drug treatment,  
          case management, care coordination, or physical rehabilitation.   



          While there is no mention of "underserved" populations in the  
          program guidelines, it does address "vulnerable" populations.   
          Section 116 of the guidelines is entitled "Vulnerable  
          Populations Best Practices" and indicates best practices for  
          developers who seek participation in the VHHP.  According to the  
          guidelines, "veterans experiencing low income or homelessness  
          are already vulnerable and within this population there are  
          those still more vulnerable than others, such as children,  
          elderly, and/or persons with a history of trauma (e.g. MST,  
          domestic violence)."  The guidelines go on to provide best  
          practices for developments that serve these populations.  


          Definition of "underserved":   The bill 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 another similar source  
          CalVet, HCD, and CalHFA deem appropriate.  This is a vague  
          definition and provides broad discretion to the agencies to  
          annually set-aside funding for as-yet-unknown veteran  
          subpopulations.   





           Guideline revision as an option?   In October 2015, in response  
          to public stakeholder feedback, the administering departments  
          revised the VHHP guidelines. If clarity on how to best serve  
          underserved veterans is needed, then revising the guidelines  
          could be an option and would likely involve more input from  








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          stakeholders.  


          Related legislation:


           AB 639 (Perez), Chapter 727, Statutes of 2013: Established the  
          VHHP, an initiative enacted by the voters as Proposition 41 at  
          the June 3, 2014 primary election.  


          SB 689 (Huff, 2015):  Would require state agencies to prioritize  
          projects 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 US  
          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 died in the  
          Senate Transportation and Housing Committee.


          AB 253 (Hernández): Would require 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 the Senate Transportation and Housing Committee.


          SB 866 (Roth): Authorizes a housing developer or service  
          provider that receives bond moneys under the VHHP to provide  
          housing or services to veterans and their children in women-only  
          facilities in limited instances, as specified.  This bill is  
          awaiting hearing in the Assembly Committee on Veterans Affairs.


           Double-referred:  This bill was also referred to the Committee on  
          Veterans Affairs, where it passed 8-0 on June 14, 2016.








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           Committee amendments:   The Committee may wish to consider the  
          following technical, clarifying amendments:


          On page 2, in line 9 after "department" add: 


           ,the California Housing Finance Agency, and the Department of  
          Housing and Community Development collectively and


           On page 2, lines 16-17, strike:


            ,November 2015,


           On page 2, line 26, strike  998.44  and add  998.544


           On page 2, strike lines 29 through 31 and on page 3, strike  
          lines 1-3 and add:


           be made using the most recent determination of underserved  
          veterans made pursuant to subdivision (b).


           REGISTERED SUPPORT / OPPOSITION:




          Support


          American Legion, Department of California








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          AMVETS, Department of California
          California Association of County Veterans Service Officers 
          California State Commanders Veteran Council
          California Women's Law Center


          Military Officers Association of America - California Council of  
          Chapters
          National Association of Social Workers, California Chapter


          Veterans of Foreign Wars - Department of California
          Vietnam Veterans of America, California State Council


          Opposition


          None on file




          Analysis Prepared by:Rebecca Rabovsky / H. & C.D. / (961)  
          319-2085