BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:          SB 1380           Hearing Date:    4/19/2016
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          |Author:   |Mitchell                                              |
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          |Version:  |4/14/2016    Amended                                  |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Alison Dinmore                                        |
          |:         |                                                      |
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          SUBJECT:  Homeless Coordinating and Financing Council


            DIGEST:  This bill requires a state agency or department that  
          funds, implements, or administers a state program that provides  
          housing or housing-related services to people experiencing  
          homelessness or at risk of homelessness, except as specified, to  
          adopt guidelines and regulations to include Housing First  
          policies.  This bill establishes the Homeless Coordinating and  
          Financing Council (Coordinating Council) to oversee  
          implementation of the Housing First regulations and, among other  
          things, to identify resources, benefits, and services that can  
          be accessed to prevent and end homelessness in California.  

          ANALYSIS:
          
          Under existing law, several state agencies, including but not  
          limited to, the Department of Housing and Community Development,  
          California Department of Veterans Affairs, California Housing  
          Finance Agency, and the California Department of Social  
          Services, have prescribed responsibilities relating to homeless  
          persons.

          This bill:

          1)  Creates the Homeless Coordinating and Financing Council,  
            which shall have the following goals:
             a)   Oversee the implementation of this bill.
             b)   Identify mainstream resources, benefits, and services  
               that can be assessed to prevent and end homelessness in  







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               California.
             c)   Create partnerships among state agencies and  
               departments, local government agencies, participants in the  
               U.S Department of Housing and Urban Development (HUD)  
               Continuum of Care Program, federal agencies, the U.S.  
               Interagency Council on Homelessness (US ICH), nonprofit  
               entities working to end homelessness, and the private  
               sector, for purposes of arriving at specific strategies to  
               end homelessness.
             d)   Promote systems integration to increase efficiency and  
               effectiveness.
             e)   Coordinate existing funding and applications for  
               competitive funding.  Any action taken pursuant to this  
               paragraph shall not restructure or change any existing  
               allocations or allocation formula. 
             f)   Make policy and procedural recommendations to  
               legislators and other government entities. 
             g)   Identify and seek funding opportunities for state  
               entities that have programs to end homelessness and  
               facilitate and coordinate those state entities' efforts to  
               obtain funding. 
             h)   Broker agreements between state agencies and departments  
               and between state agencies and departments and local  
               jurisdictions to align and coordinate resources, reduce  
               administrative burdens of accessing existing resources, and  
               foster common applications to services, operating, and  
               capital funding.
             i)   Serve as a statewide homelessness planning and policy  
               development resource. 
             j)   Report to the Governor, federal Cabinet members, and the  
               Legislature on homelessness and work to reduce  
               homelessness.
             aa)  Ensure accountability and results in meeting the  
               strategies and goals of the council.

          2)  Requires the Governor, within 180 days of enacting this  
            bill, to appoint up to 15 members to the Coordinating Council  
            as follows:
             a)   A representative of the Governor's office.
             b)   A representative of the Department of Social Services.
             c)   A representative of the California Housing Finance  
               Agency.
             d)   A representative of the Department of Health Care  
               Services.
             e)   A representative of the Department of Veterans Affairs.








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             f)   A representative of the Department of Corrections and  
               Rehabilitation.
             g)   A representative of the Tax Credit Allocation Committee  
               in the State Treasurer's office. 
             h)   A person who is, or has been, homeless in California to  
               the extent funding is available to pay for travel costs and  
               stipends.
             i)   Representatives of local agencies or organizations that  
               participate in the United States Department of Housing and  
               Urban Development (HUD) Continuum of Care Program.
             j)   A state advocate or other member of the public or state  
               agencies, according to the Governor's discretion. 
             aa)  The council may, at its discretion, invite stakeholders,  
               individuals who have experienced homelessness, members of  
               philanthropic communities, and experts to participate in  
               meetings or provide information to the council. 

          3) Requires the Assistant Director for Homeless and Housing  
            Policy within the Department of Housing and Community  
            Development to provide staff for the council.  

          4)  Defines "Housing First" as the evidence-based model that  
            uses housing as a tool, rather than a reward, for recovery.   
            It connects homeless people to housing as quickly as possible  
            and does not make housing contingent on participation in  
            services.  Housing First includes time-limited rental or  
            services assistance, so long as the housing and service  
            provider assists the recipient in accessing permanent housing  
            and in securing longer-term rental assistance, income  
            assistance, or employment.

          5)  Defines "Core Components of Housing First" as the following:

             a)   Tenant screening and selection practices that promote  
               accepting applicants regardless of their sobriety or use of  
               substances, completion of treatment, or participation in  
               services.
             b)   Applicants are not rejected on the basis of poor credit  
               or financial history, poor or lack of rental history,  
               criminal convictions unrelated to tenancy, or behaviors  
               that indicate a lack of "housing readiness."
             c)   Acceptance of referrals directly from shelters, street  
               outreach, drop-in centers, and other parts of crisis  
               response systems frequented by vulnerable people  
               experiencing homelessness.








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             d)   Supportive services that emphasize engagement and  
               problem-solving over therapeutic goals and service plans  
               that are highly tenant-driven without predetermined goals.
             e)   Participation in services or program compliance is not a  
               condition of permanent housing tenancy.
             f)   Tenants have a lease and all the rights and  
               responsibilities of tenancy, as outlined in California's  
               Civil, Health and Safety, and Government codes. 
             g)   The use of alcohol or drugs in and of itself, without  
               other lease violations, is not grounds for eviction.
             h)   In communities with coordinated assessment with entry  
               systems, incentives for funding promote tenant selection  
               plans for supportive housing that prioritize eligible  
               tenants based on criteria other than  
               "first-come-first-serve," including, but not limited to,  
               the duration or frequency of homelessness, vulnerability to  
               early mortality, or high utilization of crisis services.   
               Prioritization may include triage tools, developed through  
               local data, to identify high-cost, high-need homeless  
               residents.
             i)   Case managers and service coordinators who are trained  
               in and actively employ evidence-based practices.
             j)   Services are informed by a harm-reduction philosophy  
               that recognizes drug and alcohol use and addiction as part  
               of tenants' lives, where tenants are engaged in  
               non-judgmental communication regarding drug and alcohol  
               use, and where tenants are offered education regarding how  
               to avoid risky behaviors and engage in safer practices, as  
               well as participating in evidence-based treatment if the  
               tenant so chooses. 
             aa)  The project and specific apartment may include special  
               features that accommodate disabilities, reduce harm, and  
               promote health and community and independence among  
               tenants. 

          6)  Requires agencies and departments administering state  
            programs created on or after July 1, 2017, to collaborate with  
            the Coordinating Council to adopt guidelines and regulations  
            to incorporate core components of Housing First.   
            Additionally, agencies and departments administering state  
            programs in existence prior to July 1, 2017, shall collaborate  
            with the Coordinating Council to adopt guidelines and  
            regulations to incorporate core components of Housing First by  
            July 1, 2019, if the existing guidelines and regulations do  
            not already incorporate the core components of Housing First. 








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          7) Defines "state programs" as any programs a California state  
            agency or department funds, implements, or administers for the  
            purpose of providing housing or housing-based services to  
            people experiencing homelessness or at risk of homelessness,  
            with the exception of federally funded programs with  
            requirements inconsistent with this chapter or programs that  
            fund emergency shelters. 

          COMMENTS:

          1)Purpose.  According to the author, homelessness affects  
            multiple systems in California.  A state as large, diverse,  
            and complex as California requires a coordinating body to  
            enable state agencies to maximize federal funding, leverage  
            local dollars, and ensure programs touching homeless  
            Californians are as effective as possible. California has  
            several programs designed to fund housing for our homeless  
            residents, but has no coordinated plan or program to address  
            homelessness systematically. While many other states with  
            large homeless populations have an interagency council on  
            homelessness, California does not have any coordinating body  
            that fosters collaboration among the state agency's  
            homelessness impacts, or with local governments dealing with  
            homelessness on the ground.  This bill would require programs  
            funding housing for homeless residents to use evidence-based  
            practices recognized and adopted throughout all federal  
            agencies. 

          2)Interagency Councils on Homelessness.  According to the  
            Corporation for Supportive Housing, over 20 other states have  
            interagency councils on homelessness.  The US ICH is comprised  
            of 19 federal agencies that meet four times per year to  
            advance federal collaboration and coordination.  In between  
            Council meetings, US ICH convenes interagency working groups  
            focused on key issues and activities.  These meetings all  
            focus on identifying high-impact strategies and aligning  
            efforts to achieve the goals of Opening Doors.  Opening Doors,  
            released in 2010 and updated in 2015, is the nation's first  
            comprehensive federal strategy to prevent and end  
            homelessness.  Interagency Councils in other states have  
            focused on establishing coordination among state and local  
            agencies to further the goal of creating housing  
            opportunities.  This bill would establish an interagency  
            council at the California state level, to facilitate and  








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            coordinate those state entities' efforts to obtain funding to  
            end homelessness.  

          3)  Council membership and staffing.  The Coordinating Council  
            is comprised of 15 members representing state entities that  
            work on homelessness issues.  Noticeably absent from this  
            list, however, is the Department of Housing and Community  
            Development.  This department oversees many existing state  
            housing programs that serve homeless individuals and arguably  
            is the agency with the most expertise in Housing First  
            principles.  Additionally, this bill requires the Assistant  
            Director for Homeless and Housing Policy within the Department  
            of Housing and Community Development to provide staff for the  
            Council.  This position is not a statutorily defined position  
            and there is a possibility that this position may not always  
            be filled.  Further, the Assistant Director for Homeless and  
            Housing Policy does not have any staff. 

            The committee may wish to consider adding a representative of  
            the Housing and Community Development Department to the  
            council and require this department to provide staff to the  
            council, in place of the Assistant Director for Homeless and  
            Housing Policy.  
          
          4)  Too many cooks in the kitchen.  The idea of the Coordinating  
            Council is to create more efficiency and facilitate discussion  
            among relevant agencies and therefore remove layers of  
            bureaucracy.  Too many participants, however, could  
            potentially undermine the goal of this council.  To that end,  
            the committee may wish to consider reducing the number of  
            Coordinating Council participants to 11.  This can be  
            accomplished by removing the representative from the  
            Governor's office (since arguably the administration is  
            represented by the relevant departments), reducing the number  
            of homeless persons to one, and providing two representatives  
            from local agencies.  When necessary, the bill provides that  
            the council may at its discretion invite stakeholders,  
            individuals who have experienced homelessness, members of  
            philanthropic communities, and experts to participate in  
            meetings or provide information to the council.  The Governor  
            also retains discretion to appoint a state advocate or other  
            member of the public or state agencies.  

          5)  Housing First.  Housing First  is an evidence-based housing  
            model that centers on providing people experiencing  








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            homelessness with housing as quickly as possible  - and then  
            providing services as needed.  A core component of Housing  
            First includes a tenant screening process that promotes  
            accepting applicants regardless of their sobriety or use of  
            substances, completion of treatment, or participation in  
            services.  This model recognizes that an individual  
            experiencing homelessness should be provided shelter and  
            stability before underlying issues can be successfully  
            tackled. 

            The Housing First model is contrasted with a model known as  
            "housing readiness," which is exhibited in some transitional  
            housing models.  This model requires homeless people to earn  
            their way into transitional housing and make progress on  
            certain goals; when they are deemed well enough; they earn  
            their spot in permanent housing.

          6)  What programs would be affected?  In recent years, the  
            federal government has shifted its focus towards funding  
            Housing First programs.  In fact, federal McKinney-Vento  
            Homeless Assistance Grants must be used for Housing First  
            programs.  As a result, housing programs under the Department  
            of Housing and Community Development, such as the Veterans  
            Housing and Homeless Prevention Program, already integrate  
            core components of Housing First.  Existing programs under  
            other state agencies, however, such as the Transitional  
            Housing Program Plus (THP-Plus) administered by the Department  
            of Social Services, and other housing programs at the state  
            level that fund other housing models, would likely have to  
            adopt core Housing First principles.  

            Under this bill, new programs created on or after July 1,  
            2017, would be required to adopt guidelines and regulations to  
            incorporate the core components of Housing First.  Existing  
            programs that do not already incorporate the core components  
            of Housing First would be required to revise or adopt  
            guidelines and regulations that incorporate the core  
            components of Housing First. 

          7)  Double-referral.  This bill was heard in the Senate Human  
            Services Committee on April 12 and passed on a 3-0 vote.  

          
          Related Legislation:
          








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          AB 998 (Fong, 2013) - would have created the California  
          Interagency Council on Homelessness and required various state  
          agencies to meet quarterly to coordinate efforts on  
          homelessness.  This bill died on suspense in the Assembly  
          Appropriations Committee. 

          AB 1167 (Fong, 2011) - would have created a state Interagency  
          Council on Homelessness, with specified membership and duties.   
          This bill died in the Senate Appropriations Committee. 

          AB 1875 (Fong, 2009) - would have created a state Interagency  
          Council on Homelessness, with specified membership and duties.   
          This bill died in the Assembly Business, Professions and  
          Consumer Protections Committee. 

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


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          April 13, 2016.)
          
            SUPPORT:  

          Poverty Matters (sponsor)
          Corporation for Supportive Housing
          Destination: Home

          OPPOSITION:

          None received 


                                      -- END --