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 ****