BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1380  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1380  
          (Mitchell) - As Amended June 30, 2016


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          |Policy       |Housing and Community          |Vote:|5 - 2        |
          |Committee:   |Development                    |     |             |
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          |             |                               |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY: 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  
          homelessness or at risk of homelessness to adopt guidelines and  
          regulations to include Housing First policies.  It also  
          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  








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            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.

          2)Creates the Coordinating Council and specifies its goals  
            including identifying resources, creating partnerships,  
            promoting systems integration, making recommendations to  
            legislators, and ensuring accountability, among other goals.  
            Requires the Department of Housing and Community Development  
            (HCD) to provide staff for the council.  

          3)Requires the Governor, within 180 days of enacting this bill,  
            to appoint up to 15 members to the Coordinating Council,  
            including representatives from specified state agencies,  
            advocates, stakeholders, and a homeless person, among others. 

          4)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, must 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. 

          FISCAL EFFECT:


          1)Coordinating Council:  One-time and ongoing costs potentially  
            in excess of $200,000 (GF) 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.   








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          2)Department of Social Services (DSS):  Minor costs to  
            participate on the council. Potentially significant workload  
            (GF) to review existing housing assistance programs to ensure  
            compliance with the core components of the Housing First  
            model.



          3)Department of Veterans Affairs (CalVet):  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.



          4)Department of Corrections and Rehabilitation (CDCR):   
            Potentially significant impacts (GF) 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.



          5)State Treasurer's Office (STO):  Minor costs of less than  
            $10,000 (GF) to have a representative participate on the  
            council.



          6)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.








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          COMMENTS:


          1)Purpose. 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."



          2)Background.  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  








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            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, and 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. 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  








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            staff to the interagency council.


          
          3)Related Legislation.  AB 2821 (Chiu), pending in the Senate  
            Appropriations Committee, creates 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. 

          4)Prior Legislation.





             a)   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. That bill was held on this Committee's  
               Suspense File.



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



             c)   AB 1177 (Fong, 2010) was substantially similar to AB  
               1167 noted above. That bill was held on the Senate  
               Appropriations Suspense File.



             d)   AB 1875 (Fong, 2009) would have created a state  
               Interagency Council on Homelessness, with specified  








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               membership and duties. That bill stalled in the Assembly  
               Committee on Business, Professions, and Consumer  
               Protection.
          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081