BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 702
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 702 (Salas) - As Amended:  April 20, 2009 

          Policy Committee:                              H. & C.D.Vote:6-0
                       Veterans Affairs                          6-0
          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill appropriates $4 million from the General Fund to the  
          Emergency Housing and Assistance Fund, for operating facilities  
          and capital development grants.  The bill also:

          1)Prohibits grants funded pursuant to the appropriation to be  
            used to supplant existing emergency shelter or transitional  
            housing funding.

          2)Impose various limitations on the award amounts of specified  
            grants.

           FISCAL EFFECT
           
          GF cost of $4 million in 2009-10.
           
           COMMENTS

           1)Rationale. The purpose of this bill is to restore $4 million  
            for emergency housing assistance grants that was vetoed by the  
            governor from the 2009-10 budget.

           2)Background  . The Emergency Housing Assistance Program (EHAP)  
            provides facility operating grants for emergency shelters,  
            transitional housing projects, and supportive services for  
            homeless individuals and families. Last year, the Governor  
            proposed a budget-balancing reduction of $401,000 to this  
            program, resulting in a 10 percent reduction of state  
            contributions.  The Legislature restored that cut through the  
            budget process, but the governor vetoed the restored funding  
            as well as the entire state contribution to emergency housing  
            facilities (an additional $3.6 million cut). 








                                                                  AB 702
                                                                  Page  2

          .. 
           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081