BILL NUMBER: SB 595 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 21, 2009
INTRODUCED BY Senator Cedillo
FEBRUARY 27, 2009
An act to amend Section 50675.5 of, and to add Part 14 (commencing
with Section 53600) to Division 31 of, the Health and Safety Code,
and to amend Section 980 of the Military and Veterans Code,
relating to housing, by providing the funds necessary therefor
through the issuance and sale of bonds to by
the State of California and by providing the handling and
disposition of those funds, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 595, as amended, Cedillo. Homeless Veterans Housing and
Supportive Services Act of 2010.
(1) Existing law establishes the Multifamily Housing Program under
the administration of the Department of Housing and Community
Development to provide assistance to housing projects in the form of
a deferred payment loan to pay for the eligible costs of specified
developments. Existing law includes as eligible costs, the cost of
developing dwelling units, transitional housing, and child care, and
after school care and social service facilities integrally linked to
the assisted dwelling units.
This bill would include as an eligible cost the cost of supportive
service facilities integrally linked to homeless veteran dwelling
units assisted pursuant to the Homeless Veterans Housing and
Supportive Services Act of 2010.
(2) Under existing law, there are programs providing assistance
for, among other things, multifamily housing, emergency housing,
farmworker housing, home ownership for very low and low-income
households, and downpayment assistance for first-time home buyers.
This bill would enact the Homeless Veterans Housing and Supportive
Services Act of 2010, which, if adopted, would authorize the
issuance of bonds in the amount of $1,500,000,000 pursuant to the
State General Obligation Bond Law. Proceeds from the sale of these
bonds would be used to finance supportive housing projects for
homeless veterans, or veterans at risk of homelessness, with incomes
below limits determined by the Department of Housing and Community
Development.
The bill would provide for submission of the bond act to the
voters at the November 2, 2010, statewide general election in
accordance with specified law.
(3) Existing law defines "veteran" for the purposes of the various
programs bestowing benefits upon veterans.
This bill would make a technical, nonsubstantive change to that
definition.
(3)
(4) This bill would declare that it is to take effect
immediately as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares all of the
following:
(1) Approximately 30,000 to 55,000 veterans are homeless in
California on any given night. Approximately twice that number
experience homelessness in California over the course of a year.
(2) Approximately 2 percent of California's veterans are homeless;
only one state has a larger percentage of homeless veterans.
(3) Veterans are disproportionately represented among the
homeless. Recent statistics show that nationwide, veterans comprise
26 percent of the total homeless population, while representing only
11 percent of the population as a whole. Another recent study found
that female veterans are two to four times more at risk of
homelessness than female nonveterans.
(4) Lack of support and social isolation following discharge are
the greatest risk factors for homelessness among veterans. Other risk
factors include physical disability, mental disability, often
coupled with substance abuse, and the high cost of housing relative
to income, especially for extremely low-income veterans. Recent
veterans of Operation Enduring Freedom (Afghanistan) and Operation
Iraqi Freedom suffer in large numbers from post-traumatic stress
disorder (PTSD) and traumatic brain injury (TBI), both of which may
lead to problems and disabilities that ultimately result in
homelessness.
(5) Supportive housing combines permanent affordable housing with
services, including mental and physical health, employment training,
substance abuse recovery, readjustment counseling, and therapy for
PTSD, TBI, or other service-related trauma. Supportive housing is an
efficient and effective method to reduce chronic homelessness.
(6) The Department of Housing and Community Development, through
the existing Multifamily Housing Program, provides financial
assistance to supportive housing providers. The Department of
Veterans Affairs is the state's point of contact for homeless
veterans, providing outreach and resource referrals for homeless
veterans and agencies.
(7) Since the end of World War I, the people of the state have
acknowledged the sacrifices made by our veterans, and manifested its
appreciation for those sacrifices through various home and farm
purchase programs. Veterans who are not in a position to purchase a
home also deserve the appreciation and recognition of the people for
their sacrifices.
(8) There is currently an urgent need to provide affordable
housing with supportive services for California's extremely
low-income homeless veterans.
(9) There is a critical need to provide financial assistance to
build permanent supportive housing for homeless veterans, maintain
that housing in a decent and safe condition at an affordable level to
extremely low-income veterans, and ensure the long-term provision of
appropriate supportive services.
SEC. 2. Section 50675.5 of the Health and Safety Code is amended
to read:
50675.5. (a) Eligible costs shall include all of the following:
(a) The cost of developing dwelling units, transitional housing,
and child care.
(b) The cost of after school care and social service facilities
integrally linked to the assisted dwelling units.
(c) The cost of supportive services integrally linked to units
assisted pursuant to Part 14 (commencing with Section 53600).
(d) Eligible cost categories shall include all of the following:
(1) Real property acquisition, including refinancing of existing
debt to the extent necessary to reduce debt service to a level
consistent with the provision of affordable rents and the fiscal
integrity of the project.
(2) New construction or rehabilitation, including the conversion
of nonresidential structures to residential use.
(3) General property improvements that are necessary to correct
unsafe, unhealthy, or unsanitary conditions, including renovations
and remodeling, including, but not limited to, remodeling of kitchens
and bathrooms, installation of new appliances, landscaping, and
purchase or installation of central air-conditioning.
(4) Necessary and related onsite and offsite improvements.
(5) Reasonable developer fees.
(6) Reasonable consulting costs.
(7) Initial operating costs for housing units.
(8) Capitalized reserves for replacement and operation. The
department may allow capitalized operating reserves to be used for
rent subsidies for assisted units reserved for occupancy by
households with incomes below limits determined by the department.
The department may also allow capitalized operating reserves to be
used for supportive services for units assisted pursuant to Part 14
(commencing with Section 53600).
(9) Any other costs of rehabilitation or new construction
authorized by the department.
SEC. 3. Part 14 (commencing with Section 53600) is added to
Division 31 of the Health and Safety Code, to read:
PART 14. Homeless Veterans Housing and Supportive Services Act
of 2010
CHAPTER 1. GENERAL PROVISIONS
53600. This part shall be known and may be cited as the Homeless
Veterans Housing and Supportive Services Act of 2010.
53601. As used in this part, the following terms have the
following meanings:
(a) "Committee" means the Veterans Supportive Housing Trust Fund
Finance Committee created pursuant Section 53624.
(b) "Fund" mean the Veterans Supportive Housing Trust Fund created
pursuant to Section 53620.
(c) "Veteran" has the same meaning as defined in Section 980 of
the Military and Veterans Code.
CHAPTER 2. HOMELESS VETERANS TRUST FUND
53620. The Veterans Supportive Housing Trust Fund is hereby
created. The proceeds of bonds issued and sold pursuant to this part
shall be deposited in the fund. Proceeds of bonds deposited in the
fund shall be allocated and utilized in accordance with Chapter 4
(commencing with Section 53633).
CHAPTER 3. FISCAL PROVISIONS
53621. Bonds in the total amount of one billion five hundred
million dollars ($1,500,000,000) exclusive of refunding bonds, or the
amount that is determined necessary and feasible by the committee in
order to effectuate this part or to conduct an effective sale, may
be issued and sold to provide a fund to be used for carrying out the
purposes expressed in this part and to be used to reimburse the
General Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code. The bonds shall, when sold, be and
constitute a valid legally and binding obligation of the state, and
the full faith and credit of the state is hereby pledged for the
punctual payment of both principal of, and interest on, the bonds as
the principal and interest become due and payable.
53622. Any bonds issued and sold pursuant to this part may be
refunded by the issuance of refunding bonds in accordance with
Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 4 of Title 2 of the Government Code. Approval by the
electors of the state for the issuance of bonds described in this
chapter shall include the approval of the issuance of any bonds
issued to refund any bonds originally issued or any previously issued
refunding bonds.
53623. (a) The bonds authorized by this part shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
except subdivision (a) of Section 16727 to the extent that it is
inconsistent with this part, and all of the other provisions of that
law apply to the bonds and to this part and are hereby incorporated
in this part as though set forth in full in this part.
(b) Pursuant to the State General Obligation Bond Law, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
chapter.
53624. (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the
bonds authorized by this part, the Veterans Supportive Housing Trust
Fund Finance Committee is hereby created. For purposes of this part,
the Veterans Supportive Housing Trust Fund Finance Committee is "the
committee" as that term is used in the State General Obligation Bond
Law. The committee consists of the Controller, the Treasurer, the
Director of Finance, the Director of Veterans Affairs, and the
Director of Housing and Community Development, or their designated
representatives. The Treasurer shall serve as the chairperson of the
committee. A majority of the committee may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
Department of Housing and Community Development is designated the
"board."
53625. Upon request of the board stating that funds are needed
for the purposes of this chapter, the committee shall determine
whether or not it is necessary or desirable to issue bonds authorized
pursuant to this part in order to carry out the actions specified in
Chapter 4 (commencing with Section 53633) and, if so, the amount of
bonds to be issued and sold. Successive issues of bonds may be
authorized and sold to carry out those actions progressively, and it
is not necessary that all of the bonds authorized to be issued be
sold at any one time.
53626. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year, and it
is the duty of all officers charged by law with any duty in regard
to the collection of the revenue to do and perform each and every act
that is necessary to collect that additional sum.
53627. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund, for the purposes
of this part, an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.
(b) The sum necessary to carry out the provisions of Section
53628, appropriated without regard to fiscal years.
53628. For the purposes of this part, the Director of Finance may
authorize the withdrawal from the General Fund of an amount or
amounts not to exceed the amount of the unsold bonds that have been
authorized by the committee to be sold for the purpose of carrying
out this part. Any amounts withdrawn shall be deposited in the fund.
Any money made available under this section shall be returned to the
General Fund from money received from the sale of bonds for the
purpose of carrying out this part.
53629. Notwithstanding any other provision of this part, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this part that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes under designated conditions, the Treasurer
may maintain separate accounts for the bond proceeds invested and the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law, or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the tax
exempt status of those bonds and to obtain any other advantage under
federal law on behalf of the funds of this state.
53630. The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code, for the purposes of
carrying out this part. The amount of the request shall not exceed
the amount of unsold bonds that the committee has by resolution
authorized to be sold for the purpose of carrying out this part. The
board shall execute any documents that are required by the Pooled
Money Investment Board to obtain and repay the loan. Any amounts
loaned shall be deposited in the fund to be allocated by the board in
accordance with this part.
53631. All money deposited in the fund that is derived from
premiums and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
53632. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this part are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
CHAPTER 4. ALLOCATION OF VETERANS SUPPORTIVE HOUSING BOND
REVENUES
53633. (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be transferred to the Housing
Rehabilitation Loan Fund to be expended for the Multifamily Housing
Program authorized by Chapter 6.7 (commencing with Section 50675) of
Part 2, to be used for supportive housing projects for homeless
veterans, or veterans at risk of homelessness, with incomes below
limits determined by the department, which shall not exceed the
income limit for extremely low income households. The department may
provide for higher per-unit loan limits as reasonably necessary to
provide and maintain rents affordable to those individuals and
households. For purposes of this subdivision, "supportive housing"
means housing with no limit on length of stay, that is occupied by
veterans as described above, and that is linked to onsite or offsite
services that assist the tenant to retain the housing, improve his or
her health status, including treatment for military service-related
needs, readjustment counseling, therapy for post-traumatic stress
disorder, traumatic brain injury, and other trauma, and maximize his
or her ability to live, and, when possible, work in the community.
Units assisted under the program may be combined in residential and
mixed use projects with other assisted and nonassisted units. The
department shall adopt guidelines for the program that, among other
things, shall maximize the number of units assisted, promote the
long-term availability of supportive services, limit the expenditure
of funds for administrative costs, and maximize the leverage of
public and private financing sources. The guidelines adopted by the
department shall not be subject to the requirements of Chapter 6.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
(b) No portion of the money allocated pursuant to this section may
be expended for project operating costs; however, this section does
not preclude expenditures for capitalized operating or service costs.
(c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
(d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
SEC. 4. Section 980 of the Military and
Veterans Code is amended to read:
980. (a) As used in this chapter, "veteran" means any of the
following:
(1) Any citizen of the United States who served in the
active military, naval, or air service as an active
duty soldier, sailor, marine, or airman of the United States on
or after April 6, 1917, and prior to November 12, 1918, and who
received an honorable discharge or was released from active duty
under honorable conditions.
(2) Any person who did all of the following:
(A) Served in the active military, naval, or air service
of as an active duty soldier, sailor, marine, or
airman of the United States for a period of not less than 90
consecutive days or was discharged from the service due to a
service-connected disability within that 90-day period.
(B) Received an honorable discharge or was released from active
duty under honorable conditions.
(C) Performed any portion of that service during any of the
following periods:
(i) On or after December 7, 1941, and prior to January 1, 1947,
including, but not limited to, members of the Philippine Commonwealth
Army, the Regular Scouts ("Old Scouts"), and the Special Philippine
Scouts ("New Scouts").
(ii) On or after June 27, 1950, and prior to February 1, 1955.
(iii) On or after February 28, 1961, and prior to August 5, 1964,
in the case of a veteran who served in the Republic of Vietnam during
that period.
(iv) On or after August 5, 1964, and prior to May 8, 1975.
(v) On or after August 2, 1990, to and including the date on which
the territories in and around the Arabian Peninsula cease to be
designated as a place where the armed forces of the United States are
engaged in combat, as described in Executive Order 12744 of the
President of the United States. It is the intent of the Legislature,
in enacting this clause, that the benefits provided by this chapter
shall be available to all veterans who were on active duty in the
armed forces of the United States or who were called to active duty
in the reserves or National Guard during the pendency of the
deployment of forces for Operation Desert Shield or Desert Storm,
which resulted in Executive Order 12744, irrespective of whether
these veterans served overseas or in the United States.
(vi) At any time, in a campaign or expedition for service in which
a medal has been authorized by the government of the United States,
regardless of the number of days served on active duty.
(vii) At any time in Somalia, or in direct support of the troops
in Somalia, including, but not limited to, persons stationed on ships
of the United States armed forces conducting support activities
offshore in the vicinity of Somalia, during Operation Restore Hope,
regardless of the number of days served.
(3) Any member of the reserves or National Guard who does all the
following:
(A) Is called to, and released from, active duty or active
service, regardless of the number of days served.
(B) Is called during any period when a presidential executive
order specifies the United States is engaged in combat or homeland
defense.
(C) Has received an honorable discharge or was released from
active duty or active service under honorable conditions.
(4) Any person who did all of the following:
(A) Served in the Merchant Marine Service of the United States.
(B) Has been granted veteran status by the United States Secretary
of Defense under Title IV of the GI Improvement Act of 1977 (Public
Law 95-202, as amended).
(5) Any person who qualifies under federal laws for revenue bond
or unrestricted funds (26 U.S.C. Sec. 143) and did all of the
following:
(A) Served in the active military, naval, or air service
as an active duty soldier, sailor, marine, or airman
of the United States for a period of not less than 90
consecutive days.
(B) Received an honorable discharge or was released from active
duty or active service under honorable conditions.
(6) Any person who qualifies for funds made available from a
qualified mortgage revenue bond issued pursuant to 26 U.S.C. Section
143 and is, at the time of application for Cal-Vet benefits, a member
of the California National Guard or a reserve component of any
branch of the United States armed forces who has enlisted or been
commissioned in that service for a period of not less that six years
and has completed a minimum of one year of satisfactory service.
(b) For purposes of this chapter "veteran" does not include any of
the following:
(1) A person who was separated from the armed forces under other
than honorable conditions.
(2) A person who was separated from the armed forces on account of
alienage.
(3) A person who performed no military duty whatever or refused to
wear the uniform.
(4) A person who served only in an auxiliary or reserve component
of the armed forces whose service therein did not provide an
exemption from the operation of the Selective Training and Service
Act of 1940 (54 Stat. 885, as amended).
(5) A person whose service with the armed forces was due to
temporary active duty orders for the sole purpose of training duty,
processing, or a physical examination, except as provided for in
paragraph (6) of subdivision (a).
(6) A person whose only service was as a student at a military
academy and who, for any reason, failed to complete the course of
study and subsequently did not serve on active duty.
(c) For purposes of this section, "active duty" or "active service"
is defined as provided in 10 U.S.C. Section 101(d).
SEC. 4. SEC. 5. Section 3 of this
act shall become operative upon the adoption by the voters of the
Homeless Veterans Housing and Supportive Services Act of 2010, as set
forth in Section 3 of this act.
SEC. 5. SEC. 6. Section 3 of this
act shall be submitted to the voters at the November 2, 2010,
statewide general election in accordance with provisions of the
Government Code and the Elections Code governing the submission of
statewide measures to the voters.
SEC. 6. SEC. 7. (a) Notwithstanding
any other provision of law, all ballots of the election shall have
printed thereon and in a square thereof, the words: "Homeless
Veterans Housing and Supportive Services Act of 2010," and in the
same square under those words, the following in 8-point type: "This
act provides for a bond issue of one billion five hundred million
dollars ($1,500,000,000) to provide funds for supportive housing
projects for homeless veterans or veterans at risk of homelessness,
with incomes below limits determined by the Department of Housing and
Community Development." Opposite the square, there shall be left
spaces in which the voters may place a cross in the manner required
by law to indicate whether they vote for or against the act.
(b) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters' choice by means thereof are in compliance with this
section.
SEC. 7. SEC. 8. It is the intent of
the Legislature that, to the extent funds authorized by this act are
available to local governmental entities, federally recognized
California Indian tribes shall also be eligible to apply for those
funds, be considered on the merits of the application, and receive
and expend those funds.
SEC. 8. SEC. 9. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to provide for the submission of Section 3 of this act to
the voters at the November 2, 2010, statewide general election, and
to implement other housing and related programs in a timely manner,
it is necessary that this act take effect immediately.