BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 767|
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THIRD READING
Bill No: AB 767
Author: Ammiano (D)
Amended: 4/30/09 in Assembly
Vote: 27 - Urgency
SENATE TRANSPORTATION & HOUSING COMM .: 11-0, 6/16/09
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman,
Hollingsworth,
Kehoe, Oropeza, Pavley, Simitian, Wolk
SENATE APPROPRIATIONS COMMITTEE : 11-0, 6/29/09
AYES: Kehoe, Cox, Corbett, Leno, Oropeza, Price, Runner,
Walters, Wolk, Wyland, Yee
NO VOTE RECORDED: Denham, Hancock
ASSEMBLY FLOOR : 78-0, 6/1/09 - See last page for vote
SUBJECT : Proposition 1C: Homeless Youth and BEGIN
programs
SOURCE : Department of Housing and Community Development
DIGEST : This bill extends the setaside of Proposition 1C
funds for the Homeless Youth and Building Equity and Growth
in Neighborhoods (BEGIN) Programs by two years.
ANALYSIS : In November 2006, California voters approved
Proposition 1C, the $2.85 billion Housing and Emergency
Shelter Trust Fund Act of 2006.
CONTINUED
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Proposition 1C included $50 million for the Homeless Youth
Program, administered by the Department of Housing and
Community Development (HCD) as a subcomponent of the
omnibus Multifamily Housing Program (MHP). Under the
Homeless Youth Program, HCD funds transitional and
permanent housing for homeless and emancipated foster youth
tied to supportive services that assist the youth in
stabilizing their lives and developing the skills and
resources they need to make a successful transition to
independent, self-sufficient adulthood. Proposition 1C
sets aside the $50 million for this program for a period of
30 months from first availability (which is July 31, 2009).
Any funds not encumbered within these 30 months revert for
use in MHP, for which homeless youth developments may
continue to apply in competition with other non-homeless
youth housing.
Proposition 1C also included $125 million for the BEGIN
Program. Administered by HCD, BEGIN provides grants to
local governments for the provision of downpayment
assistance loans to low or moderate income homebuyers who
purchase a home in a new development for which the local
government has reduced one or more regulatory constraints
that impede the development of affordable housing. These
funds are also set aside for 30 months from first
availability (which is November 17, 2009). Any funds not
encumbered within these 30 months revert for use in HCD's
omnibus homeownership program, the CalHome Program.
This bill extends the setaside of Proposition 1C funds for
the Homeless Youth and BEGIN Programs by two years.
Specifically, this bill:
1.Provides that any funds not encumbered for the purposes
of the Homeless Youth Program by July 31, 2011 shall
revert for use in MHP, unless HCD determines that funds
should revert sooner due to diminished demand.
2.Provides that any funds not encumbered for the purposes
of the BEGIN Program by November 17, 2011 shall revert
for use in the CalHome Program, unless HCD determines
that funds should revert sooner due to diminished demand.
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Comments
Developing housing for homeless youth is challenging, in
part due to the limited funding available for necessary
supportive services. Nonetheless, HCD believes, based on
conversations with developers who would like to submit new
applications and the experience of program staff, that
there would be a slow and but relatively steady stream of
applications if funding were to remain available under the
Homeless Youth setaside.
With respect to BEGIN, HCD staff indicates that they have
been contacted by many cities, counties and developers
interested in submitting applications. Based on these
contacts, HCD anticipates that the remaining $40 million
could be awarded by June 30, 2010.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12
Fund
Extend program funding Continue authorization of bond
expenditures Bond*
on Homeless Youth and BEGIN Programs
and delay reversion to MHP and CalHome
Programs
* Delays a shift of unencumbered bond funds (approximately
$24 million) for Homeless Youth Program purposes to general
purposes within the Housing Rehabilitation Loan Fund, and
delays a shift of unencumbered bond funds (approximately
$40 million) from the Building Equity and Growth in
Neighborhoods Fund to the Self-Help Housing Fund.
SUPPORT : (Verified 7/1/09)
Department of Housing and Community Development (source)
Bernal Heights Neighborhood Center
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Bill Wilson Center, Santa Clara
California Building Industry Association
California Society of Clinical Social Work
California Youth Empowerment Network
City and County of San Francisco, Mayor's Office of Housing
City of East Palo Alto, Housing Services Department
Corporation for Supportive Housing
David & Margaret Youth and Family Services, La Verne
East Palo Alto Community Alliance and Neighborhood
Development
Organization
Housing Leadership Council of San Mateo County
Koreatown Youth and Community Center, Los Angeles
Larkin Street Youth Services
San Mateo County Board of Supervisors
Western Center on Law and Poverty
ARGUMENTS IN SUPPORT : According to the author's office,
demand for both the Homeless Youth and BEGIN programs has
been substantial but not sufficient to use all of the
available funds within 30 months. In addition, the current
freeze on application and commitment activity for
bond-funded programs is effectively truncating the 30 month
period, and the turmoil in the financial markets is slowing
development activity in general. As a result,
approximately $24 million of Homeless Youth funding is
scheduled to revert to MHP on July 31, 2009. Similarly,
$40 million is scheduled to revert from BEGIN to CalHome on
August 17, 2009. Roughly $7.5 million of this BEGIN amount
represents pending applications that cannot be funded until
the current freeze on award commitments is lifted.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Tom
Berryhill, Blakeslee, Blumenfield, Brownley, Buchanan,
Caballero, Charles Calderon, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,
Nestande, Niello, Nielsen, John A. Perez, V. Manuel
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Perez, Portantino, Price, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Bill Berryhill, Block
JA:nl 7/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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