BILL ANALYSIS Ó
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SENATE THIRD READING
SB
846 (Committee on Budget and Fiscal Review)
As Amended June 14, 2016
2/3 vote. Budget Bill Appropriation Takes Effect Immediately.
SENATE VOTE: Vote not relevant
SUMMARY: Makes necessary statutory and technical changes to
implement the Budget Act of 2016 related to the No Place Like
Home Program to further the development of permanent supportive
housing for persons who are in need of mental health services
and are homeless, chronically homeless, or at risk of
homelessness. Specifically, this bill:
1)Establishes the No Place Like Home Program to be administered
by the Department of Housing and Community Development (HCD),
in consultation with Advisory Committee and specifies the
membership to distribute $2 billion among the counties to
finance capital costs, including acquisition, design,
construction, rehabilitation or preservation and capitalized
operating costs of permanent supportive housing for persons
who are eligible for services under Proposition 63 and are
homeless, chronically homeless, or at risk of chronic
homelessness.
2)States that establishing a housing program providing permanent
supportive housing to persons who are in need of mental health
services and are homeless, chronically homeless or at risk of
homelessness is in furtherance of the purposes of Proposition
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63, enacted in the November 2, 2004 statewide general election
that imposed a 1% tax on income exceeding one million dollars.
3)Funds the program through the issuance of bonds by the
Treasurer and secured by Prop 63 revenues and allocates the
funds as follows:
a) $1.8 billion for a competitive grant program to counties
that meet minimum eligibility criteria related to their
ability to use the funds to develop and operate permanent
supportive housing to persons who are eligible for services
under Proposition 63 and are homeless, chronically homeless
or at risk of chronic homelessness, with a preference for
targeting those who are chronically homeless or at risk of
chronic homelessness.
b) $200 million to be distributed to counties for
construction, rehabilitation or preservation and
capitalized operating costs of permanent supportive housing
for persons who are eligible for services under Proposition
63 and are homeless, chronically homeless or at risk of
chronic homelessness, with a priority for with mental
health supportive needs who are homeless or at risk of
chronic homelessness.
4)Authorizes an alternative process to the competitive grants
for counties with at least 5% of the state's homeless
population and provides a set aside of 8% for small counties.
5)Establishes four categories for the competitive grants based
on population and a separate category for Los Angeles and
requires at least four rounds of grants as specified.
6)Specifies that the loans are in the form of secured deferred
payment loans to pay for the costs of development and
specifies additional loan terms; provides for funds to secure
or avert default.
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7)Appropriates $6.2 million from Prop 63 funds for technical and
application assistance to the counties, specifies amounts
based on county size and authorizes HCD to contract for expert
technical assistance.
8)Requires annual reporting by the counties, HCD and an
evaluation.
9)Authorizes a General Fund loan of $1 million for program
implementations prior to receipt of bond funds.
10)States legislative intent that the costs to service the debt
for the bond shall not impede direct mental health services
provided by the counties
FISCAL EFFECT: Appropriates $6,200,000 from Prop 63, authorizes
a General Fund loan of $1 million, and provides for the issuance
of $2 billion in bonds by the Treasurer and secured by Prop 63
revenues.
COMMENTS: The trailer bill language provides the necessary
statutory references to enact the 2016-17 Budget related to
housing.
Analysis Prepared by:
Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0003433
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