BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 384  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 384  
          (Leyva) - As Amended June 30, 2016


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          |Policy       |Veterans Affairs               |Vote:|8 - 0        |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |Housing and Community          |     |7 - 0        |
          |             |Development                    |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires that a percentage of state bond funds  
          allocated annually for purposes of the Veterans Housing and  
          Homeless Prevention (VHHP) Act of 2014, as determined annually  








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          by the California Department of Veterans Affairs (CalVet), the  
          California Department of Housing and Community Development (HCD)  
          and the California Housing Finance Agency (CalHFA), be reserved  
          for housing underserved veterans, defined 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  
          homele  s  sness, or other similar sources CalVet, HCD, and CalHFA  
          deem appropriate..  


          FISCAL EFFECT:


          1)Increased annual costs of approximately $200,000 (Special  
            Fund) to CalVet for two staff to establish the program,  
            annually determine the underserved veteran population, consult  
            with local agencies, and determine the percentage to reserve  
            for the purposes specified. 



          2)Unknown, probably minor, annual cost (Special Fund) to the  
            Department of Housing and Community Development (HCD) and the  
            California Housing Finance Agency (CalHFA) to revise existing  
            VHHP guidelines. 



          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. 










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          COMMENTS:


          1)Background.  Current law establishes the VHHP, an initiative  
            measure enacted by the voters as Proposition 41 at the June 3,  
            2014, 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  


            CalVet, HCD, and CalHFA are required to work collaboratively  
            to carry out the duties and functions of the VHHP. HCD  
            released the first VHHP Program Notice of Funding Availability  
            (NOFA) in February 2015, announcing the 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.


            According to CalVet, female 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  








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            also experience barriers to receiving and utilizing standard  
            veterans benefits.  


          2)Purpose.  According to the author, the women veteran  
            population in California is the second largest population of  
            women veterans in the nation, behind Texas. The author states,  
            "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."





            SB 384 is intended to ensure that sufficient funding is set  
            aside each year to address the needs of underserved vulnerable  
            populations of veterans.  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  
            services, such as job training, mental health, drug treatment,  








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            case management, care coordination, or physical  
            rehabilitation.  





          Analysis Prepared by:Pedro Reyes / APPR. / (916)  
          319-2081