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 ----------------------------------------------------------------- |Author: |Huff | |----------+------------------------------------------------------| |Version: |4/15/2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |No | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Alison Dinmore | |: | | ----------------------------------------------------------------- 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, SB 689 (Huff) Page 2 of ? 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 SB 689 (Huff) Page 3 of ? 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 SB 689 (Huff) Page 4 of ? 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 SB 689 (Huff) Page 5 of ? 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 SB 689 (Huff) Page 6 of ? 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: SB 689 (Huff) Page 7 of ? 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 -- END --