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 ****