BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 264
                                                                  Page  1

          Date of Hearing:   January 23, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 264 (Maienschein) - As Amended:  January 6, 2014 

          Policy Committee:                              Human  
          ServicesVote:5-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill deletes the requirement that the 16 days of temporary  
          housing assistance provided to homeless families through the  
          California Work Opportunity and Responsibility to Kids  
          (CalWORKs) program be used consecutively.  Instead, this bill  
          allows an eligible CalWORKs recipient to receive temporary  
          shelter assistance up to a total of 16 days, which may be used  
          at any time while the recipient is receiving CalWORKs aid and is  
          homeless.

           FISCAL EFFECT  

          1)Potentially significant costs, in excess of $2 million, for  
            increased housing benefits.

            It is unknown whether this bill would result in additional  
            benefits paid.  Recipients who would have previously forfeited  
            a portion of their benefits by interrupting the consecutive  
            16-day period could see their lifetime benefit increase.  This  
            may be partially or completely offset by lower benefits paid  
            to recipients who choose to save a portion of their 16-day  
            benefit for future use and either do not subsequently use it  
            or no longer qualify.

            From December 2012 to November 2013, there were 30,214  
            approved requests for temporary housing statewide, and on  
            average 10.25 days were used per approved request.  Total net  
            expenses for temporary housing incurred during that period was  
            $22,167,228, an average of $71.58 per day of temporary housing  
            used.  If the average days used per approved request increased  
            by one, the additional net expenses to Temporary Assistance  








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            for Needy Families (TANF) grant funds and/or General Fund over  
            that period would have been $2,163,351.

          2)The bill may result in minor, absorbable costs for changes to  
            Department of Social Services IT systems to track benefits.

          3)This bill may also result in minor, absorbable costs to  
            counties for re-evaluating temporary shelter assistance  
            applicants each time they apply for the benefit.

           COMMENTS 

          1)  Purpose.   The author contends that because temporary housing  
            assistance is only available for 16 consecutive days, a break  
            in assistance unduly punishes families who vacate their  
            temporary lodgings at any point during the 16 day period.  In  
            order to avoid forfeiting the remainder of the one-time  
            benefit, the current rule also serves as a disincentive for  
            families to find alternative arrangements, seek prospective  
            opportunities for employment, or tend to other health or  
            family obligations during the 16-day period.

            The bill's author its sponsor, the Western Center on Law and  
            Poverty, contend the removal of the consecutive day rule would  
            further the underlying purpose of the CalWORKs temporary  
            housing assistance and enhance its effectiveness.

          2)  Background.   The current 16 consecutive day limit is a  
            lifetime limit for temporary shelter assistance, provided that  
            a family doesn't meet criteria for an exception.  A family may  
            receive temporary shelter assistance more than once in a  
            lifetime if the family's homelessness is the direct result of  
            domestic violence, a medically verified physical or mental  
            illness, excluding diagnoses that include substance abuse, or  
            a fire or other natural catastrophe beyond the family's  
            control.  However, a family cannot receive the 16 consecutive  
            days of homeless assistance more than once in a 12-month  
            period, and families can only receive shelter assistance for  
            domestic violence twice in a lifetime.

          3)  Technical amendment.  

            Delete the provision relating to "one period" of temporary  
            shelter assistance and clarify that the benefit is no longer  
            subject to any consecutive use requirement or other temporal  








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            limitation.

          4)  Existing Law.
           
             a)   Provides temporary shelter assistance to homeless  
               families receiving CalWORKs for one period of 16  
               consecutive days, except as specified, and counts a break  
               in the consecutive use of this assistance as permanent  
               exhaustion of the benefit.

             b)   Provides temporary shelter assistance in the amount of  
               $65 per day for a family of up to four people, with an  
               additional $15 per day provided for each additional family  
               member, subject to an overall maximum amount of temporary  
               shelter assistance of $125 per day per family.  The  
               assistance can only be used to pay for housing provided in  
               a commercial establishment, a shelter, or an established  
               rental property.

           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081