BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1380 (Mitchell) - Homeless Coordinating and Financing Council ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 21, 2016 |Policy Vote: HUMAN S. 3-0, T. & | | | H. 9 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- 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 SB 1380 (Mitchell) Page 1 of ? 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 SB 1380 (Mitchell) Page 2 of ? 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. SB 1380 (Mitchell) Page 3 of ? 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 SB 1380 (Mitchell) Page 4 of ? 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) SB 1380 (Mitchell) Page 5 of ? 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 SB 1380 (Mitchell) Page 6 of ? 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 SB 1380 (Mitchell) Page 7 of ? 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. SB 1380 (Mitchell) Page 8 of ? -- END --