BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1380 (Mitchell) - Homeless Coordinating and Financing Council
          
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          |Version: April 21, 2016         |Policy Vote: HUMAN S. 3-0, T. & |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 9, 2016       |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  SB 1380 would create the Homeless Coordinating and  
          Financing Council (Council), as specified. This bill would  
          require agencies and departments administering state programs  
          that provide housing or housing-related assistance to persons  
          experiencing homelessness or who are at risk of homelessness, as  
          specified, to collaborate with the Council to revise or adopt  
          guidelines and regulations that incorporate core components of  
          Housing First.


          Fiscal  
          Impact:  
            Coordinating Council  :  One-time and ongoing costs potentially  
            in excess of $200,000 (General Fund) to the Department of  
            Housing and Community Development (HCD) to staff and  
            facilitate meetings, as well as collaborate with agencies on  
            activities as outlined under the listed goals of the Council.  
            The costs for a representative of HCD to participate in  







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            Council meetings are estimated to be minor.   
            Department of Social Services (DSS)  :  Minor costs to  
            participate on the Council. Potentially significant workload  
            (General Fund) to review existing housing assistance programs  
            to ensure compliance with the core components of the Housing  
            First model.
            Department of Veterans Affairs (DVA)  :  Minor costs to  
            participate on the Council. No significant impact to existing  
            housing programs, as they currently adhere to the core  
            components of the Housing First model.  
           CDCR  :  Potentially significant impacts (General Fund) to the  
            Division of Adult Parole Operations to the extent specific  
            components of the Housing First model are inconsistent with  
            current policy and practices utilized for parolee services.
            State Treasurer's Office (STO)  :  Minor costs of less than  
            $10,000 (General Fund) to have a representative participate on  
            the Council.
            Compliance with Housing First components  :  Unknown,  
            potentially significant costs to DSS and CDCR to bring  
            existing housing and housing-related assistance programs into  
            compliance with the Housing First core components including  
            but not limited to the component specifying case managers and  
            service coordinators who are trained in and actively employ  
            evidence-based practices.  


          Background:  Under existing law, various state agencies and departments  
          have prescribed responsibilities relating to the provision of  
          housing and/or housing-related assistance to individuals who are  
          homeless or are at risk of homelessness. While not exhaustive,  
          the following list provides an example of the types of  
          housing-related supports provided by state agencies:
          California Department of Housing and Community Development (HCD)  
          administers a variety of programs to meet a large range of  
          housing needs, including emergency shelters and transitional  
          housing, affordable rental housing, and affordable  
          homeownership. As a general rule, HCD administers programs that  
          receive money from the state's General Fund, either through the  
          budget or from general obligation bonds. Currently, HCD, in  
          collaboration with California Housing Finance Agency and the  
          California Department of Veterans Affairs (DVA), is  
          administering $600 million in general obligation bonds to  
          provide multifamily housing to veterans under the voter-approved  
          Veterans Housing and Homeless Prevention Bond Act of 2014. The  








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          program requires providers to adhere to Housing First practices.  


          The California Housing Finance Agency (CalHFA) is the state's  
          affordable-housing bank. CalHFA borrows money from the private  
          financial market at below-market interest rates by issuing  
          tax-exempt revenue bonds. CalHFA also provides down-payment  
          assistance in the form of deferred, "silent second" mortgages  
          (i.e., the borrower makes no monthly payments but repays the  
          loan at sale or refinance). On behalf of counties that choose to  
          dedicate some of their revenues from Proposition 63 - the mental  
          health services tax - for supportive housing, CalHFA also  
          administers the Mental Health Services Act Housing Program. This  
          program provides developers of affordable housing who agree to  
          set aside units for persons with mental illness with both  
          capital funding and critical operating and service funding. 

          Tax Credit Allocation Committee (TCAC) within the State  
          Treasurer's Office allocates tax credits to developers of  
          affordable rental housing. 

          CalWORKs Housing Support Program is an evidence-based rapid  
          rehousing support program for CalWORKs families that are  
          experiencing homelessness or housing instability which is a  
          barrier to self-sufficiency or child well-being. Included in the  
          program are rental assistance and security costs, as well as  
          caseworker engagement with the clients' landlord, home finding,  
          credit repair, and financial literacy. The Housing Support  
          Program was established in 2014. This program contains core  
          components of Housing First. The program is not available in all  
          counties. 

          CalWORKs Homeless Assistance Program offers temporary shelter  
          assistance and permanent housing assistance to homeless families  
          under the CalWORKs program. Permanent housing assistance can be  
          provided to help secure or maintain permanent housing and help  
          prevent eviction for a family. Temporary shelter assistance is  
          provided to homeless families for up to 16 consecutive days. Any  
          break in the use of the assistance, including one night spent  
          with a friend or relative, automatically terminates a family's  
          ability to receive shelter assistance for any days remaining  
          within the 16 consecutive day limit. The 16 consecutive day  
          limit is a lifetime limit for temporary shelter assistance,  
          provided that a family doesn't meet criteria for an exception.








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          CalWORKs Family Stabilization Program provides intensive case  
          management and services in addition to those provided by the  
          county's WTW program to families who are experiencing an  
          identified situation or crisis that is destabilizing the family.  
          Additional services include treatment for family members,  
          intensive day treatment, non-medical outpatient drug treatment,  
          residential treatment, and emergency shelter, movement to  
          transitional housing, rehabilitative services and/or substance  
          abuse counseling and treatment. While Family Stabilization  
          Program is not a housing program, counties are given flexibility  
          to offer housing assistance within the program.


          CDCR Parolee Service Center (PSC) and Residential Multi-Service  
          Center (RMSC) programs are provided to find housing for homeless  
          parolees. The CDCR indicates the programs include exclusionary  
          criteria created in the interests of public safety.




          Proposed Law:  
            This bill creates the Homeless Coordinating and Financing  
          Council, the goals of which include but are not limited to the  
          following: 
                 Oversee the implementation of this bill. 
                 Identifying mainstream resources, benefits, and services  
               that can be assessed to prevent and end homelessness in  
               California. 
                 Creating 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. 
                 Promote systems integration to increase efficiency and  
               effectiveness. 
                 Coordinate existing funding and applications for  
               competitive funding. Any action taken pursuant to this  
               paragraph shall not restructure or change any existing  








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               allocations or allocation formula. 
                 Make policy and procedural recommendations to  
               legislators and other government entities. 
                 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. 
                 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. 
                 Serve as a statewide homelessness planning and policy  
               development resource. 
                 Report to the Governor, federal Cabinet members, and the  
               Legislature on homelessness and work to reduce  
               homelessness.
                 Ensure accountability and results in meeting the  
               strategies and goals of the council. 

                 Requires the Governor, within 180 days of enacting this  
               bill, to appoint up to 15 members to the Coordinating  
               Council as follows: 

                  o         A representative from the HCD. 
                  o         A representative of the Department of Social  
                    Services. 
                  o         A representative of the California Housing  
                    Finance Agency. 
                  o         A representative of the Department of Health  
                    Care Services. 
                  o         A representative of the Department of Veterans  
                    Affairs. 
                  o         A representative of the Department of  
                    Corrections and Rehabilitation. 
                  o         A representative of the Tax Credit Allocation  
                    Committee in the State Treasurer's office. 
                  o         A homeless person who lives in California. To  
                    the extent funding is available, their travel costs  
                    shall be paid for. 
                  o         Two representatives of local agencies or  
                    organizations that participate in the United States  
                    Department of Housing and Urban Development (HUD)  








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                    Continuum of Care Program. 
                  o         State advocates or other members of the public  
                    or state agencies, according to the Governor's  
                    discretion. 
                  o         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. 
                 Requires the HCD to provide staff for the council. 
                 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. 
                 Defines "Core Components of Housing First" as the  
               following: 
                  o         Tenant screening and selection practices that  
                    promote accepting applicants regardless of their  
                    sobriety or use of substances, completion of  
                    treatment, or participation in services. 
                  o         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." 
                  o         Acceptance of referrals directly from  
                    shelters, street outreach, drop-in centers, and other  
                    parts of crisis response systems frequented by  
                    vulnerable people experiencing homelessness. 
                  o         Supportive services that emphasize engagement  
                    and problem-solving over therapeutic goals and service  
                    plans that are highly tenant-driven without  
                    predetermined goals. 
                  o         Participation in services or program  
                    compliance is not a condition of permanent housing  
                    tenancy. 
                  o         Tenants have a lease and all the rights and  
                    responsibilities of tenancy, as outlined in  
                    California's Civil, Health and Safety, and Government  








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                    codes. 
                  o         The use of alcohol or drugs in and of itself,  
                    without other lease violations, is not grounds for  
                    eviction. 
                  o         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. 
                  o         Case managers and service coordinators who are  
                    trained in and actively employ evidence-based  
                    practices. 
                  o         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.
                  o         The project and specific apartment may include  
                    special features that accommodate disabilities, reduce  
                    harm, and promote health and community and  
                    independence among tenants. 
                 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.
                 Requires agencies and departments administering state  
               programs in existence prior to July 1, 2017, to 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. 
                 Defines "state programs" as any programs a California  
               state agency or department funds, implements, or  
               administers for the purpose of providing housing or  








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               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.


          Prior  
          Legislation:  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. AB 998 was held on the Suspense File of the  
          Assembly Appropriations Committee.
          AB 1167 (Fong) 2011 would have created a state Interagency  
          Council on Homelessness, with specified membership and duties.  
          AB 1167 was held on the Suspense File of this Committee.


          AB 1177 (Fong) 2010 was substantially similar to AB 1167 noted  
          above. AB 1177 was held on the Suspense File of this Committee.


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




          Staff  
          Comments:  The HCD has indicated the Council representative  
          would likely be HCD's Assistant Director of Homeless and Housing  
          Policy. Costs associated with travel to/from and attendance at  
          Council meetings are not expected to be significant.
          The bill provides a broad description of the Council's goals,  
          but lacks detail regarding the actual staff work it would  
          generate. As a result, costs associated with providing staff for  
          the Council cannot be estimated with any certainty. Given the  
          requirement that the Council collaborate with agencies and  
          departments to adopt or revise guidelines and regulations, HCD  
          anticipates additional resources would be required. Costs are  
          unknown but potentially in excess of $200,000 annually.










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