BILL ANALYSIS Ó SB 1380 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1380 (Mitchell) - As Amended June 30, 2016 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|5 - 2 | |Committee: |Development | | | | | | | | | | | | | ----------------------------------------------------------------- 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 SB 1380 Page 2 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. SB 1380 Page 3 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. SB 1380 Page 4 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 SB 1380 Page 5 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 SB 1380 Page 6 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 SB 1380 Page 7 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