BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1380


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          Date of Hearing:  June 29, 2016


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                  David Chiu, Chair


          SB  
          1380 (Mitchell) - As Amended June 20, 2016


          SENATE VOTE:  29-7


          SUBJECT:  Homeless Coordinating and Financing Council


          SUMMARY:   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 and  
          establishes the Homeless Coordinating and Financing Council  
          (Coordinating Council) to oversee implementation of the Housing  
          First regulations and, among other things, identify resources,  
          benefits, and services that can be accessed to prevent and end  
          homelessness in California.  Specifically, this bill: 


          1)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  








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            employment.

          2)Defines "Core Components of Housing First" to mean all of 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; 


             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 the  Civil  
               Code, Health and Safety Code, and Government codes; 


             g)   The use of alcohol or drugs in and of itself, without  
               other lease violations, is not grounds for eviction; 










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             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; and  


             aa)  The project and specific apartment may include special  
               features that accommodate disabilities, reduce harm, and  
               promote health and community and independence among  
               tenants. 


          1)Creates the Coordinating Council, which shall have the  
            following goals:

             a)   Identify mainstream resources, benefits, and services  
               that can be assessed to prevent and end homelessness in  
               California;
             b)   Create partnerships among state agencies and  








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               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;


             c)   Promote systems integration to increase efficiency and  
               effectiveness;


             d)   Coordinate existing funding and applications for  
               competitive funding.  Any action taken shall not  
               restructure or change any existing allocations or  
               allocation formula;


             e)   Make policy and procedural recommendations to  
               legislators and other government entities; 


             f)   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; 


             g)   Broker agreements between state agencies, 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;


             h)   Serve as a statewide homelessness planning and policy  
               development resource; 









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             i)   Report to the Governor, federal Cabinet members, and the  
               Legislature on homelessness and work to reduce  
               homelessness; and


             j)   Ensure accountability and results in meeting the  
               strategies and goals of the council.


          1)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 from the Department of Housing and  
                 Community Development (HCD); 
               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;


               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;









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               h)     A homeless person who lives in California to the  
                 extent funding is available to pay for travel;


               i)     Two representatives of local agencies or  
                 organizations that participate in the HUD Continuum of  
                 Care Program;


               j)     State advocates or other members of the public or  
                 state agencies, according to the Governor's discretion. 


               aa)    Two representatives from different stakeholder  
                 groups. One selected by the Senate Committee on Rules and  
                 the other by the Speaker of the Assembly; and 


               bb)    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. 


          1)Requires HCD to provide staff for the council.  

          2)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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          3)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. 
          


          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. 



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



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



          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. 









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          FISCAL EFFECT:  According to the Senate Committee on  
          Appropriations:


            Coordinating Council  :  One-time and ongoing costs potentially  
            in excess of $200,000 (General Fund) to the 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.   
            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  








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            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


          
          COMMENTS:  



          California is home to 21% of the nation's homeless population.  
          On average on any given night, 115,738 people experience  
          homelessness. California leads the nation in the number of  
          chronic homeless with 29,178 chronically homeless residents at  
          any given point in time which is 31% of the nation's total.  
          California also has 28% of the nation's homeless youth  
          population.  The state has a variety of programs to address  
          homelessness operated by multiple agencies and departments,  
          including the Veterans Housing and Homeless Prevention Program,  
          the CalWorks Housing Program, the Mental Health Services Act,  
          the and Multi-family Housing Program with Supportive Services. 





          In 2005, Governor Arnold Schwarzenegger launched his Chronic  
          Homeless Initiative which included the creation of an  
          Interagency Council comprised of the leaders of eleven agencies  
          and departments with responsibility for housing and services for  
          citizens who are at risk of or already chronically homeless. The  
          Interagency Council initiated the process of a collaboratively  
          developed Ten Year Chronic Homelessness Action Plan and created  
          a Vision Statement and Guiding Principles. The plan was not  
          formally adopted until 2010 and has not been the guiding policy  
          document envisioned at the time. The interagency council was not  
          created by statute leaving no formal process for state agencies  
          and departments to coordinate efforts to address homelessness.  








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          In 2013, HCD participated in a federally funded Policy Academy  
          to reduce the rate of chronic homelessness in participating  
          states through a cross-agency federal effort to provide  
          intensive, targeted technical assistance to state teams. The  
          Policy Academy succeeded in revising HCD's programs and in  
          developing greater collaboration with the State Department of  
          Health Care Services.   





          According to the Corporation for Supportive Housing, over 20  
          other states have interagency councils on homelessness. This  
          bill proposes to create an interagency council to coordinate  
          state resources to address homelessness. HCD would provide staff  
          to the interagency council.  





           Coordination of local, state and federal resources  :  HUD and  
          other planners and policymakers use aggregate Homelessness  
          Management Information Systems (HMIS) data to better inform  
          homeless policy and decision making at the federal, state, and  
          local levels.  HMIS enables HUD to collect national-level data  
          on the extent and nature of homelessness over time.  
          Specifically, an HMIS can be used to produce an unduplicated  
          count of homeless persons, understand patterns of service use,  
          and measure the effectiveness of homeless programs.  Data on  
          homeless persons is collected and maintained at the local level.  
           This data would be useful at the state level to coordinate  
          programs across agencies that serve homeless clients including  
          CalWORKS and Medi- Cal. The committee may wish to consider  
          setting as a goal of the Interagency Council the creation of a  
          statewide data system or warehouse that collects local data  
          through HMIS, with the ultimate goal of matching data on  
          homelessness to programs impacting homeless recipients of state  








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          programs, such as Medi-Cal and CalWORKS.





           Housing First Approach  :   Housing First is an evidence-based  
          housing model that centers on


          providing people experiencing 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  








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          make progress on certain goals;


          when they are deemed well enough; they earn their spot in  
          permanent housing.  The Federal government through the  
          leadership of the US Interagency Council of Homelessness has  
          successfully integrated the housing first approach into programs  
          at the federal level.  





          Purpose of this bill  :  According to the author, "Homelessness  
          affects multiple systems in California, and a state as large,  
          diverse, and complex as California requires a coordinating body  
          that would allow our 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. In fact, our programs promote  
          policies at odds with each other, some funding evidence-based  
          housing programs while others fund programs not effectively  
          addressing homelessness.  While almost every state with a large  
          homeless population has an interagency council on homelessness,  
          California does not have any coordinating body that fosters  
          collaboration among the state agencies homelessness impacts, or  
          with local governments dealing with homelessness on the ground.  
          SB 1380 would require programs funding housing for homeless  
          residents to use evidence-based practices recognized and adopted  
          throughout all federal agencies by July 1, 2019. "Housing First"  
          is the only evidence-based model proven to reduce homelessness,  
          prevent returns to homelessness, and decrease public  
          expenditures. While allowing for transitional housing for  
          populations for whom transitional housing makes sense, the  
          Housing First provisions of SB 1380 promote practices that  
          work."









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           Committee amendments  :  


           


          On page 7, strike out lines 3 and 4 and insert, "A formerly  
          homeless person who lives in California."  


           


           On page 6, after line 30, insert the following: "To create a  
          statewide data system or warehouse that collects local data  
          through Homeless Management Information Systems, with the  
          ultimate goal of matching data on homelessness to programs  
          impacting homeless recipients of state programs, such as  
          Medi-Cal and CalWORKS."


           


          Related legislation:





           AB 2821 (Chiu) would create the Medi-Cal Housing Program to fund  
          rental assistance for homeless Medi-Cal recipients receiving  
          services through the Whole Person Care Pilot program authorized  
          by the 2016 1115 Medi-Cal Waiver. This bill is pending in Senate  
          Transportation and Housing Committee.  








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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. 


          








          REGISTERED SUPPORT / OPPOSITION:








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          Support


          California Coalition for Youth
          CaliforniaHealth+ Advocates
          City of Riverside
          Corporation for Supportive Housing
          County Health Executives Association of California
          Health Officers Association of California
          Rural County Representatives of California
          Santa Clara County Board of Supervisors


          Opposition


          None on file




          Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085