BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1167
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 1167 (Fong) - As Amended:  April 4, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            6 - 0 
                        Housing and Community Development        7 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill creates a California Interagency Council on 
          Homelessness. Specifically, this bill: 

          1)Creates a council on homelessness with a mission to construct 
            cross-agency and community cooperation in responding to 
            homelessness, to use a more efficient and supportive method in 
            implementing evidence-based approaches to address homelessness 
            and, to the extent possible, a plan to end homelessness in the 
            state. 

          2)Establishes specified membership for the council.

          3)Requires the council to seek federal funding to fund the 
            council and its activities.

          4)Requires the council to hold public meetings once every 
            quarter.

          5)Requires the council to operate within the current budget of 
            each participating department.

           FISCAL EFFECT  

          Cost pressure for the lead agency in the range of $350,000 per 
          year.  Once the council is established and operates as a 
          continuum of care or establishes a continuum of care for the 
          state, federal funds may be available to offset the costs of the 
          council. 









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           COMMENTS  

           1)Rationale  . According to the author's office, the state has a 
            fragmented approach to homelessness.  California has the 
            largest homeless population in the nation, but is the only 
            large state without an interagency council on homelessness.  
            More than 10 California agencies administer programs affecting 
            homelessness, but there is no official coordination to ensure 
            efficiencies.  The state lacks basic coordination between 
            state agencies, local government, and non-profit 
            organizations.  

            AB 1167 will establish an Interagency Council on Homelessness 
            in the state consisting of representatives from multiple 
            jurisdictions in an attempt to draw down federal resources to 
            help the homeless and to ensure that the state takes a 
            coordinated approach to providing assistance for people who 
            are homeless.

           2)Homelessness in California  . It is difficult to quantify the 
            number of homeless in California.  In 2005, the governor 
            estimated that the state has the highest ratio of homeless 
            people per capita in the nation, with 360,000 people sleeping 
            on the streets or in shelters on any given night. Housing 
            prices and growing income inequality are the two primary 
            factors in the growth of homelessness in California, rather 
            than personal disabilities within the homeless population. 

            According to the National Alliance to End Homelessness, 27% of 
            homeless men, women and children in California are chronically 
            homeless, 26% of them have families, and 70% of them do not 
            have shelter.  

           3)The Governor's Homeless Initiative  . In November 2005, Governor 
            Schwarzenegger created the Governor's Homeless Initiative, 
            which included plans to form an interagency coordinating 
            council to reduce homelessness. The Business, Transportation 
            and Housing Agency's 2005-10 Consolidated Plan further 
            indicates the importance of an interagency council on 
            homelessness. Despite these intentions, a council has not met 
            regularly or publicly since the governor adopted the 
            initiative.

           4)McKinney-Vento Homeless Assistance Grant Funds  . The 
            McKinney-Vento Homeless Assistance program is the largest 








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            federal homeless assistance program, allocating $1.6 billion 
            in homeless assistance to states and local jurisdictions this 
            last year. To qualify for a grant under this program, a 
            jurisdiction must establish a "Continuum of Care," which is a 
            collaborative body that helps a community plan for a range of 
            responses to homelessness. It generally includes government, 
            stakeholder, and consumer representatives. The Continuum of 
            Care (CoC) does not create housing or provide services; 
            rather, it chooses projects within the jurisdiction that are 
            eligible for grant awards, then disburses and administers the 
            awards. 

            States are eligible to apply. In fact, only 12 states 
            (including California) do not receive these grant funds 
            directly. Though 42 local California CoC's received funding in 
            2008, the state could receive additional resources if the 
            state applied for CoC grants. Without an existing CoC, it is 
            difficult to estimate how much money California would receive. 
            However, to provide some context, the State of Rhode Island 
            received $3.7 million and Oregon received over $1.6 million in 
            2008. Michigan and Ohio, which, like California, have multiple 
            local CoC's, received $6.2 and $13.7 million, respectively, in 
            last year's funding round. All of these states have 
            significantly fewer homeless people than California. Since 
            funding is based on need, California is poised to receive 
            significant additional funding to assist communities that do 
            not now receive direct allocations of CoC funding.

            To apply, California would be required to undertake the 
            following new activities:

             a)   Form a Continuum of Care (which in this case could be 
               the council on homelessness created by this legislation);
             b)   Call for applications of project sponsors to receive 
               funding from the state; 
             c)   Determine need based on existing data (federal funding 
               may be available through the Community Development 
               Technical Assistance fund to build a statewide data 
               warehouse to collect the required information); and
             d)   Apply for the federal funding.

           5)Related Legislation  . In this session, AB 597 (J. Perez) 
            Creates the California Interagency Council on Veteran Services 
            and Programs. That bill is currently pending in this 
            committee.








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             In this session, AB 823 (Dickinson) creates an interagency 
            California Children's Cabinet. That bill is currently pending 
            in this committee. 

            In 2010, AB 1177 (Fong), a similar bill, was held on the 
            Senate Appropriations Committee suspense file. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081