BILL ANALYSIS                                                                                                                                                                                                    Ó




           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       SB 1380|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  SB 1380
          Author:   Mitchell (D), et al.
          Amended:  4/21/16  
          Vote:     21 

           SENATE HUMAN SERVICES COMMITTEE:  3-0, 4/12/16
           AYES:  McGuire, Hancock, Liu
           NO VOTE RECORDED:  Berryhill, Nguyen

           SENATE TRANS. & HOUSING COMMITTEE:  9-1, 4/19/16
           AYES:  Beall, Cannella, Allen, Galgiani, Leyva, McGuire,  
            Mendoza, Roth, Wieckowski
           NOES:  Gaines
           NO VOTE RECORDED:  Bates

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/27/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Homeless Coordinating and Financing Council


          SOURCE:    Poverty Matters

          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 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 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.  









                                                                    SB 1380  
                                                                     Page 2




          ANALYSIS:  


          Existing law:


           1) Defines, in federal statute, the word "homeless" for the  
             purpose of housing assistance, to mean an individual or  
             family who lacks a fixed, regular, and adequate nighttime  
             residence, as specified. (42 CFR 91.5)


           2) States legislative findings and declarations about  
             homelessness, the housing shortfall and other related issues.  
             (HSC 50003.3)


           3) Establishes the federal Temporary Assistance for Needy  
             Families (TANF) program, which permits states to implement  
             the program under a state plan. (42 USC § 601 et seq.)


           4) Establishes in state law the California Work Opportunity and  
             Responsibility to Kids (CalWORKs) program to provide cash  
             assistance and other social services for low-income families  
             through the TANF program. Under CalWORKs, each county  
             provides assistance through a combination of state, county  
             and federal TANF funds. (WIC 10530)


          This bill:


           1) Makes a series of legislative finding and declarations  
             regarding homelessness.


           2) Defines "Housing First," "Core Components of Housing First,"  
             and "state programs."










                                                                    SB 1380  
                                                                     Page 3



           3) Creates the Homeless Coordinating and Financing Council  
             (Council) and goals for the Council, as specified. 


           4) Requires agencies and departments administering state  
             programs created on or after July 1, 2017, to collaborate  
             with the Council to adopt guidelines and regulations to  
             incorporate core components of Housing First.  


           5) Requires agencies and departments administering state  
             programs in existence prior to July 1, 2017, to collaborate  
             with the Council to adopt guidelines and regulations to  
             incorporate core components of Housing First by July 1, 2019,  
             if existing guidelines and regulations do not already do so.


           6) Requires the Governor, within 180 days of enacting this  
             bill, to appoint up to 15 members to the Council.  Membership  
             includes, but is not limited to, representatives from eight  
             specified state entities with a role in housing and  
             homelessness policy.  Council membership also includes a  
             homeless person who lives in California, two representatives  
             of local agencies or organizations, and other advocates, as  
             specified. 


           7) Permits the Council to invite stakeholders, individuals who  
             have experienced homelessness, members of philanthropic  
             communities, and experts to participate in meetings or  
             provide information to the Council.


           8) Requires the Council to hold public meetings at least once  
             every quarter.


           9) Requires that Council members shall serve at the pleasure of  
             the Governor. 


           10)Permits the Council to establish working groups, task  








                                                                    SB 1380  
                                                                     Page 4



             forces, or other structures from within its membership or  
             with outside members to assist it in its work within existing  
             funding. Working groups, task forces, or other structures  
             established by the Council shall determine their own meeting  
             schedules.


           11)Requires that Council members shall serve without  
             compensation, except that members who are, or have been,  
             homeless may receive reimbursement for travel, per diem, or  
             other expenses.


           12)Requires the Department of Housing and Community Development  
             to provide staff for the Council.   


           13)Permits Council members to enter into memoranda of  
             understanding with other Council members to achieve the  
             Council goals in order to facilitate communication and  
             cooperation between the entities the Council members  
             represent.


          Background 


          According to the author, homelessness affects multiple systems  
          in California.  Larger cities like Los Angeles, San Francisco,  
          and San Diego, as well as smaller municipalities like Redding  
          and Ukiah, are searching for answers and best practices to help  
          homeless populations in their respective areas, per the author. 


          Per the author, 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. This bill creates a statewide council for the purpose  
          of coordinating the state's efforts to fight homelessness.










                                                                    SB 1380  
                                                                     Page 5



          SB 1380 also requires state programs that fund housing for  
          homeless residents to adopt guidelines and regulations that  
          incorporate the core components of "Housing First," as defined  
          in this bill. According to the author, Housing First is the only  
          evidence-based model proven to reduce homelessness, prevent  
          returns to homelessness, and decrease public expenditures. 


          Poverty.  A 2014 Stanford poverty center report found that 26.3  
          percent of children aged six or younger were living below the  
          poverty level as defined by the California Poverty Measure, and  
          24.9 percent were classified below poverty using the official  
          measure. The California Poverty Measure takes into account costs  
          of living besides food, including transportation, child care,  
          medical out of pocket expenses. Researchers have indicated that  
          California's high poverty rate is significantly impacted by the  
          state's high housing costs and other high costs of living. 


          Homelessness in California .  According to the Annual Homeless  
          Assessment Report produced by the U.S. Department of Housing and  
          Urban Development on a single night in January 2014, there were  
          113,952 homeless people in California, 71,437 of whom were  
          unsheltered. According to the author, California has the  
          nation's largest homeless population -- 22 percent of the  
          nation's total.


          The health, personal, and economic challenges that chronically  
          homeless individuals and families face and the lack of  
          effective, coordinated services to address these problems often  
          lead to a vicious cycle of housing instability and health  
          deterioration.  Health conditions of those experiencing  
          long-term homelessness often prevent housing stability, while  
          persistent homelessness impedes access to needed health and  
          employment services.  Consequently, people who are chronically  
          homeless cycle through costly emergency-driven public systems -  
          emergency shelters, emergency rooms, detoxification centers,  
          criminal justice facilities - without getting the ongoing care  
          they need to address severe mental illness, substance abuse  
          disorders, or chronic health conditions. 









                                                                    SB 1380  
                                                                     Page 6




          Housing First. Housing First approaches homelessness by  
          providing permanent, affordable housing for families and  
          individuals, and then providing supportive services in order to  
          help people avoid returning to homelessness. Housing First is  
          premised on the idea that housing should not be denied to  
          anyone, even if they are abusing alcohol or other substances.  
          Under Housing First, supportive services are offered to maximize  
          housing stability and prevent returns to homelessness as opposed  
          to addressing predetermined treatment goals prior to providing  
          housing. Many current state programs, and some programs that are  
          under development, already embrace the Housing First model. 


          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.


          Housing and Homeless Programs. There are number of state  
          agencies involved in providing housing assistance, serving the  
          homeless, preventing homelessness, and financing the development  
          of affordable housing. In addition, the federal government has  
          its own programs and programs requirements. Below is a brief  
          description of some of these state agencies and their programs:


           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. 

           The California Housing Finance Agency is the state's  
            affordable-housing bank and administers a number of programs  
            that support affordable housing, including issuing tax-exempt  
            revenue bonds and providing down-payment assistance 

           Tax Credit Allocation Committee within the State Treasurer's  








                                                                    SB 1380  
                                                                     Page 7



            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. Included in  
            the Program are rental assistance and security costs,  
            caseworker engagement with the clients' landlord, home  
            finding, credit repair, and financial literacy. This program  
            contains core components of Housing First. 

           CalWORKs Homeless Assistance Program offers temporary shelter  
            assistance and permanent housing assistance to homeless  
            families under the CalWORKs program.  

           Transitional Housing Program-Plus (THP-Plus) is a transitional  
            housing program for young adults who exited from foster care  
            (including those supervised by probation) on or after their  
            18th birthday who are not yet 24 years of age. 


          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 HCD, 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 THP-Plus administered by the Department of  
          Social Services (DSS), 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,  
          will 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 will be required to revise or adopt guidelines and  
          regulations that incorporate the core components of Housing  
          First. 









                                                                    SB 1380  
                                                                     Page 8




          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.  The bill was held in the Assembly Appropriations  
          Committee. 


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


          AB 1177 (Fong, 2010) was substantially similar to AB 1167 noted  
          above. The bill was held in the Senate Appropriations Committee.


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




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee: 


           The Council:  One-time and ongoing costs potentially in excess  
            of $200,000 (General Fund) to 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 Council meetings  
            are estimated to be minor.   









                                                                    SB 1380  
                                                                     Page 9




           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:  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.  


            California Department of Corrections and Rehabilitation  
            (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:  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.  


          SUPPORT:   (Verified5/27/16)


          Poverty Matters (source)
          Lieutenant Governor Gavin Newsom
          Brownie Mary Democrats of California
          California National Organization for Women
          Corporation for Supportive Housing








                                                                    SB 1380  
                                                                     Page 10



          County Health Executives Association of California
          County Welfare Directors Association of California
          Destination: Home
          Housing California
          Malibu Democratic Club
          Rural County Representatives of California
          Santa Clara County Board of Supervisors
          The Arc and United Cerebral Palsy California Collaboration 
          Upward Bound House
          1 individual   


          OPPOSITION:   (Verified5/27/16)


          None received


           


           
          Prepared by: Taryn Smith / HUMAN S. / (916) 651-1524
          5/28/16 17:00:38


                                    **** END ****