BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 689            Hearing Date:     4/28/2015
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          |Author:   |Huff                                                  |
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          |Version:  |4/15/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |No              |
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          |Consultant|Alison Dinmore                                        |
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          SUBJECT:  Veterans: housing


            DIGEST:  This bill requires state agencies to prioritize  
          projects under the Veterans Housing and Homeless Prevention Act  
          of 2014 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. 

          ANALYSIS:
          
          Existing law:
          
          In November 2014, voters approved the Veterans Housing and  
          Homeless Prevention Bond Act of 2014 (VHHP), also known as  
          Proposition 41, which authorized the issuance of $600 million in  
          general obligation bonds to provide multifamily housing to  
          veterans pursuant to the VHHP.  The VHHP required the California  
          Housing Finance Agency (CalHFA), California Department of  
          Housing and Community Development (HCD), and California  
          Department of Veterans Affairs (CDVA) to establish and implement  
          a program that focuses on veterans at risk of homelessness or  
          experiencing temporary or chronic homelessness.  This program  
          will fund the acquisition, construction, rehabilitation, and  
          preservation of affordable multifamily supportive housing,  







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          affordable transitional housing, affordable rental housing, or  
          related facilities for veterans and their families to allow  
          veterans to access and maintain housing stability.

          The act requires the program to:

          1)Leverage public, private, and nonprofit funding sources
          2)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 
          3)Ensure that program guidelines and terms provide requirements  
            or scoring criteria to advance applicants with 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

          Existing law defines "supportive housing" as housing occupied by  
          the target population and that is linked to on- or off-site  
          services that assist the resident in retaining the housing,  
          improving his or her health status, and maximizing his or her  
          ability to live and, when possible, work in the community.  The  
          intent is to enable residents to maintain stable lives and  
          places no limit on the length of stay. 

          Existing law defines "transitional housing" and "transitional  
          housing development" as a rental housing development that  
          operates under program requirements that call for the  
          termination of assistance and recirculation of the assisted unit  
          to another eligible program recipient at a predetermined future  
          point in time, but not less than six months.  

          This bill requires CalHFA, HCD, and CDVA to prioritize projects  
          under the VHHP that provide drug and mental health treatment  
          services that meet one of the following standards:

          1)If the project accepts only residents who are prequalified to  
            receive mental health and drug treatment services from the VA,  
            the project shall be located near or accessible to those  
            services.  

          2)If a project accepts residents who receive mental health and  
            drug treatment services from agencies or providers other than  
            the VA, the project shall ensure that it also provides a  








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            qualified mental health professional on staff or by  
            contracting for the services of a qualified mental health  
            professional.  A qualified mental health professional shall  
            have the equivalent of at least two years' experience working  
            with veterans and must be a licensed psychologist, clinical  
            counselor, social worker, marriage and family therapist, or  
            psychiatrist. 
          
          COMMENTS:

          1)Purpose of the bill.  According to the U.S. Department of  
            Housing and Urban Development, there are more than 12,000  
            homeless veterans in California, many of whom are in need of  
            mental health services.  According to the author, since  
            projects receiving funds from Proposition 41 bonds will be  
            capturing some of California's homeless veteran population by  
            providing them with housing, the state can and should provide  
            them with the opportunity to also obtain mental health  
            services. 

            The author states that the statute is vague on awarding  
            Proposition 41 funds to projects as it relates to mental  
            health.  While it mentions there is prioritization for  
            projects including mental health services, it does not provide  
            a clear definition of those services.  This bill helps guide  
            CDVA, HCD, and CalHFA in giving priority to projects with bona  
            fide mental health treatment intentions including the use of  
            certified, credentialed professionals to meet the special  
            needs of veterans.

          2)Access to VA services.  Due to unique circumstances that  
            veterans experience upon returning home from deployment,  
            veterans require unique services to help them integrate back  
            into society, receive benefits and job training, and maintain  
            mental and physical stability.  The VA offers services and  
            benefits that are tailored specifically for veterans, and for  
            this reason, access to these services is important.  While the  
            VA has health-care facilities across the country, some  
            facilities are difficult for veterans in rural areas to  
            access.  A recent change in federal law permits veterans, in  
            certain circumstances, to receive non-federal VA health care  
            rather than waiting for a VA appointment or traveling to a VA  
            facility.

            The author accepted amendments in the Veterans Affairs  








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            Committee, and these amendments prioritize projects with a  
            mental health and drug treatment component to either: 1) be  
            located near and provide access to VA facilities, or 2) to  
            employ on staff or contract for a qualified mental health  
            professional, such as a therapist or psychiatrist, with at  
            least two years' full-time relevant experience providing  
            services to veterans.  

          3)VHHP guidance about mental health services.  On February 18,  
            2015, HCD adopted its initial program guidelines, which, among  
            other things: 1) prioritize projects that combine housing and  
            supportive services, and 2) establish application selection  
            criteria that integrate prioritization criteria expressed  
            through preference-point weighting.  Under these guidelines,  
            applications are rated with a maximum total score of 133  
            points for projects including supportive housing or  
            transitional housing, or both, and 105 points for other  
            projects.  

            Among other things, to be eligible for funding, projects must:  


             a.   "Utilize a Lead Service Provider with at least four  
               years' experience providing services to homeless people  
               that includes comprehensive case management" for projects  
               providing supportive housing or transitional housing, and 
             b.   "Involve a development site that is reasonably  
               accessible to services and amenities appropriate for the  
               proposed tenant population ?"

            Projects that have supportive housing or transitional housing,  
            or both, must comply with the following relevant requirements:  


             a.   Provide case management services on-site.  At least one  
               member of the case management staff shall have a master's  
               degree in appropriate disciplines.
             b.   Provide appropriate transportation so residents can  
               access off-site services.
             c.   Provide the following minimum services, either directly  
               or through commitment letters or formal agreements with  
               other agencies:
                     Intensive case management to engage with each  
                 veteran and jointly develop an individual service plan
                     Benefits counseling and advocacy, including  








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                 assistance in enrolling in Medi-Cal and obtaining other  
                 mainstream services, as well as VA system navigation and  
                 assistance in obtaining discharge upgrade and veterans  
                 benefits
                     Mental health care, such as assessment, crisis  
                 counseling, individual and group therapy, and support  
                 groups
                     Substance use services, such as treatment, relapse  
                 prevention, and support groups

          1)Is there a problem to solve?  The current statute and  
            guidelines pursuant to that statute require a project with  
            supportive services or transitional housing to: 1) utilize a  
            Lead Service Provider with at least four years' experience  
            providing services to homeless people, 2) provide at least one  
            on-site case manager with a master's degree in the appropriate  
            disciplines, 3) provide transportation to off-site services,  
            4) provide mental health services, and 5) provide benefits  
            counseling, including connecting veterans with the VA.  

            This bill would further require that if a project accepts  
            residents who receive mental health and drug treatment  
            services from agencies or providers other than the VA, the  
            project shall ensure that it also provides a qualified mental  
            health professional, such as a psychologist or psychiatrist,  
            on staff or by contracting for those services.  Given that the  
            guidelines already require at least one case manager on staff  
            with a master's degree, require transportation to off-site  
            services, and require benefits counseling including connecting  
            veterans with the VA, the committee may wish to consider  
            whether there is a need for this bill. 
          
          5)  Too soon?  The VHHP program guidelines, which establish  
            terms, conditions and procedures for funds awarded under the  
            VHHP, were released on February 18, 2015.  These guidelines  
            were drafted following a public process in which the  
            departments received input from veterans and housing  
            stakeholders across the state.  The Notice of Funding  
            Availability for the first $75 million of the bond money was  
            released shortly thereafter, and requires applicants to submit  
            applications by April 27, 2015.   The awards for the first  
            round of funding will be made sometime this summer.  

            Generally, with new programs such as this, it takes applicants  
            one or two funding rounds to fully understand the requirements  








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            that a state agency puts in place.  Some projects that applied  
            for funding this first round may not fully understand the  
            guidelines and will need to make changes in their application  
            for the next round.  Others may choose to wait to apply until  
            the second round to fully understand the program requirements.  
             In fact, given the novelty of the program, the application  
            deadline was moved back a week from the original April 20,  
            2015 deadline.  Making changes to the statute will likely  
            require the departments make changes to the guidelines and  
            undergo the public review process, which could lead to  
            uncertainty for those seeking funding and further delay the  
            awarding of funding.  Given that the first round of funding  
            applications are due the day before this bill is heard in  
            committee, the committee may wish to consider holding this  
            bill and revisiting the statutory requirements after one or  
            two funding rounds have been completed and after the  
            departments and the legislature have had a chance to evaluate  
            the program. 

          Related Legislation:
          
          SB 384 (Leyva) - would require a percentage of all funds for  
          multifamily housing units for veterans acquired, constructed,  
          rehabilitated, or preserved on or after January 1, 2016, to be  
          reserved for underserved veterans.  Senator Leyva decided to  
          make this a 2-year bill; she wants to see what kinds of projects  
          are awarded funds this year and wait to make changes to the  
          statute until after the legislature has had time to evaluate the  
          program.  

          AB 639 (Perez, Chapter 727, Statutes of 2013) - created the  
          Veterans Housing and Homeless Prevention Act of 2014 and allows  
          for $600 million in bonds to be used for housing homeless and  
          low-income veterans.  

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  No    Local:  
           No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          April 22, 2015.)
          
            SUPPORT:  









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          American Legion - Department of California
          AMVETS - Department of California
          California Association of County Veterans Service Officers
          California Council of Chapters
          California Council of Community Mental Health Agencies
          California State Commanders Veterans Council
          Care Possible
          College Hospital Costa Mesa
          Military Officers Association of America
          Mental Health America of California
          National Alliance on Mental Illness
          Share Our Selves
          VFW - Department of California
          Vietnam Veterans of America - California State Council
          43 Individuals

          OPPOSITION:

          None received
          
          
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