BILL ANALYSIS                                                                                                                                                                                                    Ó




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


                                UNFINISHED BUSINESS 


          Bill No:  SB 1380
          Author:   Mitchell (D), et al.
          Amended:  8/18/16  
          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

           SENATE FLOOR:  29-7, 5/31/16
           AYES:  Allen, Beall, Block, Cannella, De León, Galgiani,  
            Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso,  
            Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza,  
            Mitchell, Monning, Moorlach, Pan, Pavley, Roth, Wieckowski,  
            Wolk
           NOES:  Anderson, Bates, Gaines, Morrell, Nielsen, Stone, Vidak
           NO VOTE RECORDED:  Berryhill, Fuller, Nguyen, Runner

           ASSEMBLY FLOOR:  55-24, 8/29/16 - See last page for vote

           SUBJECT:   Homeless Coordinating and Financing Council


          SOURCE:    Poverty Matters
          








                                                                    SB 1380  
                                                                     Page 2



          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  
          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  
          (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.


          Assembly Amendments add legislative findings and declarations  
          regarding homeless youth and persons fleeing domestic violence,  
          add to the list of council goals, modify council membership, and  
          provide expectations and mandates for time-limited supported  
          services for homeless youth. 


          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 CalWORKs program to provide  








                                                                    SB 1380  
                                                                     Page 3



             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 "homeless," "Core Components of Housing First," and  
             "state programs."


           3) Defines "Housing First" to mean the evidence-based model  
             that uses housing as a tool, rather than a reward, for  
             recovery and that centers on providing or connecting homeless  
             people to permanent housing as quickly as possible. Housing  
             First providers offer services as needed and requested on a  
             voluntary basis and that do not make housing contingent on  
             participation in services. It 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.


           4) Establishes requirements and expectations for time-limited,  
             supportive services programs serving homeless youth


           5) Creates the Council and goals for the Council, including,  
             but not limited to the following: 


              a)    To identify mainstream resources, benefits, and  
                services that can be accessed to prevent and end  
                homelessness in California.
              b)    To create partnerships among state and federal  








                                                                    SB 1380  
                                                                     Page 4



                agencies and departments, local government agencies, and  
                nonprofit entities working to end homelessness, homeless  
                services providers, and the private sector, for the  
                purpose of arriving at specific strategies to end  
                homelessness.
              c)    To promote systems integration to increase efficiency  
                and effectiveness while focusing on designing systems to  
                address the needs of people experiencing homelessness,  
                including unaccompanied youth under 25 years of age.
              d)    To coordinate existing funding and applications for  
                competitive funding. Any action taken pursuant to this  
                paragraph shall not restructure or change any existing  
                allocations or allocation formulas.
              e)    To make policy and procedural recommendations to  
                legislators and other governmental entities.
              f)    To identify and seek funding opportunities for state  
                entities that have programs to end homelessness and to  
                facilitate and coordinate those state entities' efforts to  
                obtain that funding.
              g)    To broker agreements between state agencies and  
                departments and between state agencies and departments and  
                local jurisdictions to align and coordinate resources,  
                reduce administrative burdens of accessing existing  
                resources, and foster common applications for services,  
                operating, and capital funding.
              h)    To serve as a statewide facilitator, coordinator, and  
                policy development resource on ending homelessness in  
                California.
              i)    To report to the Governor, federal Cabinet members,  
                and the Legislature on homelessness and work to reduce  
                homelessness.
              j)    To ensure accountability and results in meeting the  
                strategies and goals of the council.
              aa)   To identify and implement strategies to fight  
                homelessness in small communities and rural areas.
              bb)   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, as specified.










                                                                    SB 1380  
                                                                     Page 5



           1) 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.  


           2) 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.


           3) Requires the Governor, within 180 days of enacting this  
             bill, to appoint up to 15 members to the Council, as  
             specified. 


           4) Requires the Senate Committee on Rules and the Speaker of  
             the Assembly to each appoint one representative of the  
             council from two different stakeholder organizations.  


           5) 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.


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


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


           8) Permits the Council to establish working groups, task  
             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  








                                                                    SB 1380  
                                                                     Page 6



             schedules.


           9) 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.


           10)Requires the Department of Housing and Community Development  
             (HCD) to provide staff for the Council.   


           11)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


          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 who were  
          unsheltered. According to the author, California has the  
          nation's largest homeless population -- 22 percent of the  
          nation's total.









                                                                    SB 1380 
                                                                     Page 7




          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. 


          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  








                                                                    SB 1380  
                                                                     Page 8



          description of some of these state agencies and their programs:


           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  
            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  








                                                                    SB 1380  
                                                                     Page 9



          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. 


          Prior Legislation


          AB 2821 (Chiu, 2016) would create the Housing for a Healthy  
          California Program to provide rental assistance to individuals  
          who are homeless and receive services from the Whole Person Care  
          pilot program, Health Homes, or another locally controlled  
          funding source.  The bill is pending in the Assembly awaiting  
          concurrence on Senate amendments.  


          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.









                                                                    SB 1380  
                                                                     Page 10




          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 Assembly Appropriations Committee:


           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.   

           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.

           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.

           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.








                                                                    SB 1380  
                                                                     Page 11




           State Treasurer's Office:  Minor costs of less than $10,000  
            (GF) 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:  (Verified  8/29/16)


          Poverty Matters (source)
          Brownie Mary Democrats of California
          California National Organization for Women
          Century Housing Corporation
          City of Santa Monica
          Coalition for Youth 
          Corporation for Supportive Housing
          County Health Executives Association of California
          County Welfare Directors Association of California
          Destination: Home
          Health Officers Association of California 
          Housing California
          Malibu Democratic Club
          Office of the Lieutenant Governor of California
          Office of the Mayor of San Francisco
          Residents United Network
          Rural County Representatives of California
          Santa Clara County Board of Supervisors
          The Arc and United Cerebral Palsy California Collaboration 
          Upward Bound House
          One individual   


          OPPOSITION:  (Verified  8/29/16)










                                                                    SB 1380  
                                                                     Page 12



          None received


           ASSEMBLY FLOOR:  55-24, 8/29/16
           AYES: Achadjian, Alejo, Arambula, Atkins, Bloom, Bonilla,  
            Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu,  
            Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin,  
            Jones-Sawyer, Kim, Levine, Lopez, Low, Maienschein, McCarty,  
            Medina, Mullin, Nazarian, O'Donnell, Quirk, Ridley-Thomas,  
            Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber,  
            Williams, Wood, Rendon
           NOES: Travis Allen, Baker, Bigelow, Brough, Chang, Chávez,  
            Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones,  
            Lackey, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson,  
            Steinorth, Wagner, Waldron, Wilk
           NO VOTE RECORDED: Linder


          Prepared by: Taryn Smith / HUMAN S. / (916) 651-1524
          8/30/16 20:24:27


                                    **** END ****