BILL ANALYSIS
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 123
A
AUTHOR: Portantino
B
VERSION: March 16, 2009
HEARING DATE: June 9, 2009
1
FISCAL: To Appropriations
2
3
CONSULTANT:
Hailey
SUBJECT
Housing for elderly or disabled persons
SUMMARY
Exempts from Department of Social Services (DSS) licensing
two additional types of housing: residences covered by the
low income housing tax credit and Section 8 subsidized
housing.
ABSTRACT
Current law
1) Establishes the State Department of Social Services
(DSS) setting forth its responsibilities to administer the
Community Care Facilities Act to require specific
facilities to meet prescribed licensing standards.
2) Exempts from community care licensing any housing for
elderly or disabled persons that is approved and operated
pursuant to provisions of federal law.
This bill
1) Exempts from community care licensing two types of
housing: residences covered by the low income housing tax
credit and Section 8 subsidized housing, if it is occupied
Continued---
STAFF ANALYSIS OF ASSEMBLY BILL 123 (Portantino) Page
2
by elderly or disabled persons and if supportive services
are made available to residents at their option and if the
supportive services are not provided by the owner or
operator of the facility.
2) Allows the owner or operator of the facility to
coordinate supportive services or to help residents gain
access to supportive services.
FISCAL IMPACT
According to the Assembly Appropriations Committee, this
bill will bring "minor savings to the state from reduced
regulatory costs."
BACKGROUND AND DISCUSSION
This bill adds two additional federally subsidized
low-income housing types for seniors and people with
disabilities to the existing list of housing exempt from
licensure by DSS under the Community Care Facilities Act,
the Residential Care Facilities for the Elderly Act, and
provisions related to licensure of residential facilities
for persons with chronic life-threatening illnesses.
AB 2686 (Mazzoni), Chapter 945, Statutes of 1998 exempted
four specified federally subsidized housing programs from
licensure requirements imposed on residential community
care facilities by DSS. The four programs are known as
Section 202, Section 811, Section 236 and Section
221(d)(3). These programs are operated by the U.S.
Department of Housing and Community Development. The
housing is federally insured or receives mortgage
assistance. In these exempted facilities, supportive
services may be made available to residents at their
option, "as long as the project owner or operator does not
contract for or provide the supportive services." However,
the owner or operator "may coordinate, or help residents
gain access to, the supportive services, either directly,
or through a service coordinator." Thus, the operator of
the housing does not directly provide or contract for the
supportive services and, therefore, is not subject to
licensing requirements applicable to community care
facilities. The housing operators are, however, subject to
STAFF ANALYSIS OF ASSEMBLY BILL 123 (Portantino) Page
3
federal rules and regulations governing the housing
programs.
AB 123 adds two additional housing categories to the list
of exemptions: (1) the Low Income Housing Tax Credit
(LIHTC), under 26 U.S.C. Sec. 42, and (2) Section 8
subsidized housing, under 42 U.S.C. Sec. 1437f. The same
criteria applicable to the exemptions to the original four
federal housing programs also apply to those added by AB
123; that is, the project owner does not provide or
contract for supportive services, but may coordinate or
help residents access such services through a service
coordinator.
Prior legislation
AB 1526 (Lieber 2007), which passed the Assembly in a form
similar to AB 123, was amended extensively before its
Senate Human Services Committee hearing and was later
amended again to address an unrelated subject.
Need for the bill
According to Aging Services of California, AB 123's
sponsor, "nearly one-third of all units developed through
the [LIHTC] program in this state are occupied by seniors.
According to [DHCD], one out of every four units of public
housing this state is occupied by someone over the age of
62. Expanding the current exemption to include these two
additional types of affordable housing will help to ensure
that a greater number of seniors are able to age in place."
Votes in the Assembly :
Human Services: 7-0
Appropriations:16-0
Floor: 70-0
POSITIONS
Support: Aging Services of California (sponsor)
Albert Einstein Residence Center
Alhambra Retirement Community
American Federation of State, County and
Municipal Employees
Andres Duarte Terrace
STAFF ANALYSIS OF ASSEMBLY BILL 123 (Portantino) Page
4
Association of Regional Center Agencies
California Alliance for Retired Americans
California Association of Public Authorities
Cambrian Center
Casa de la Paloma
Castle Argyle Senior Housing Residents
Center for Elders' Independence (53 individuals)
Community Resource for Independent Living
Congress of California Seniors
Covenant Manor
EAH (Nonprofit Housing Corporation)
Episcopal Home Communities
Eskaton Jefferson Manor
Gold Country Retirement Community Center
Judson Terrace Homes
Kent Gardens Senior Community
La Mirada Vistas
L. C. Hotchkiss Terrace
Lytton Gardens Senior Communities
Northern California Presbyterian Homes and
Services
Park Paseo
PEP Housing
Pilgrim Place
Pioneer House
Pleasanton Gardens
Retirement Housing Foundation
Saint John Manor
Satellite Housing
St. Paul's Senior Homes and Services
Southern California Presbyterian Homes
Sycamore Terrace
William C. Arthur Terrace
1 individual
Oppose: None received
-- END --