Amended in Senate April 10, 2014

Amended in Senate March 25, 2014

Senate Bill No. 1178

Introduced by Senator Correa

February 20, 2014

An act to add Section 4688.7 to the Welfare and Institutions Code, relating to developmental begin delete disabilities, and making an appropriation therefor. end delete begin insert disabilities. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1178, as amended, Correa. Developmental disabilities: housing.

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Under existing law, the State Department of Developmental Services contracts with private nonprofit regional centers to provide services and supports to persons with developmental disabilities. Existing law authorizes the department to receive and approve proposals from regional centers to provide, secure, or ensure the full payment of a lease on housing, excluding adult residential facilities for persons with special health care needs.

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Existing law establishes the Multifamily Housing Program, under the administration of the Department of Housing and Community Development, to provide financial assistance in the form of a deferred payment loan to fund projects for, among other things, the development and construction of new transitional or rental housing developments.

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Existing law establishes the Predevelopment Loan Program, under the administration of the Department of Housing and Community Development, to make predevelopment loans and land purchase loans to eligible sponsors for use in developing assisted housing for occupancy primarily by persons of low income.

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This bill would establish the California Developmental Disabilities Community Support Housing Fund, to be administered by the begin delete department, and would continuously appropriate all moneys in that fund to the department, thereby making an appropriation. end delete begin insert department and to consist of, among other things, moneys saved from transitioning individuals with developmental disabilities from an institution to housing in the community. end insert The bill would require the department to begin delete distribute moneys in the fund to the Department of Housing and Community Development and to regional centers, to be used for specified purposes, including to create community-based housing options for individuals with developmental disabilities and to establish housing opportunities for individuals with developmental disabilities who are at risk of housing displacement. The bill would require the department to develop guidelines to assist the Department of Housing and Community Development and regional centers in use of moneys received from the fund. end delete begin insert expend moneys in the fund, upon appropriation by the Legislature, to develop housing through the Multifamily Housing Program and the Predevelopment Loan Program for individuals with developmental disabilities. end insert

Vote:  begin delete ²⁄₃ end delete begin insert majority end insert . Appropriation:  begin delete yes end delete begin insert no end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert The Legislature finds and declares that the
purpose of this act is to develop and provide community-based
housing for individuals with developmental disabilities by
accomplishing the following: end insert

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(a) Creating community-based housing options, including shared
housing, for individuals with developmental disabilities.

end insert begin insert

(b) Expanding and leveraging existing resources for affordable
housing and integrated community placement of individuals with
developmental disabilities.

end insert begin insert

(c) Establishing housing opportunities for individuals with
developmental disabilities who are at risk of housing displacement.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 4688.7 is added to the Welfare and Institutions
Code, to read:

4688.7.  

(a) For the purposes of this section, the following
terms have the following meanings:

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(1) “Bridge funding” means temporary rental assistance used
to help individuals with developmental disabilities afford integrated
housing in the community while waiting for permanent assistance,
including, but not limited to, assistance from the Housing Choice
Voucher program or wages earned by the individual through
competitive employment that allows him or her to pay unsubsidized
rent.

(2) “Community residence” means a group home, supervised
apartment, or other type of individual or shared living environment
that provides housing and treatment or specialized services needed
to assist individuals with developmental disabilities live in a
community setting.

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(1) “Community support services” means the services and
supports identified in subdivision (b) of Section 4512.

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(3)

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begin insert (2) end insert  “Department” means the Department of begin delete Developmental
Services. end delete begin insert Housing and Community Development. end insert

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(4)

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begin insert (3) end insert  “Fund” means the California Developmental Disabilities
Community Support Housing Fund.

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(5) “Permanent supportive housing” means a range of permanent
housing options, including, but not limited to, apartments,
condominiums, townhouses, single- and multi-family homes,
single-room occupancy housing, shared living, and supportive
living arrangements that provide access to on- or off-site supportive
services for individuals with developmental disabilities.

end delete begin delete

(6) “Project sponsor” means an individual, partnership,
corporation, limited liability company, association, or governmental
entity to which the Department of Housing and Community
Development has made, or proposes to make, a loan or a grant to
finance a special needs housing project.

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(7) “Special needs housing project” means a housing
development, or portion of a housing development, that is used as
permanent supportive housing or a community residence.

end delete begin delete

(8) “Transition funding” means the payment of limited,
nonrecurring costs that may be incurred as part of a rental
agreement, including, but not limited to, rental deposits, storage
or transportation costs, and utility fees.

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(4) “Institution” means a developmental center, a mental health
facility, including, but not limited to, a facility that provides acute
inpatient psychiatric care and an institution for mental disease,
and a skilled nursing facility.

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(b) The California Developmental Disabilities Community
Support Housing Fund is hereby established within the State
Treasury. begin delete Notwithstanding Section 13340 of the Government Code,
the fund is hereby continuously appropriated to the department for
the purposes set forth in this section. end delete

(c) The fund shall consist of all of the following:

(1)  begin insert (A) end insert begin insert   end insert Moneys saved from transitioning individuals with
developmental disabilities from an institution to housing in the
community and from preventing the institutionalization of
individuals with developmental disabilities.

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(B) The Department of Finance, or another state entity
designated by the Department of Finance, shall annually determine
the amount of the moneys identified in subparagraph (A) by
calculating the sum of the following:

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(i) The average annual cost of providing services to a consumer
who resides in a developmental center, less the average annual
cost of providing community support services to a consumer who
is placed in the community, multiplied by the number of consumers
who have transitioned from an institution to housing in the
community in the preceding fiscal year.

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(ii) (I) The average annual cost of providing services to a
consumer who resides in an institution, less the average annual
cost of providing community support services to a consumer who
is placed in the community, multiplied by the number of consumers
who are deflected from admission to an institution.

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(II) For the purposes of this clause, a consumer is deflected
from admission to an institution if his or her individual program
plan establishes that he or she has complex service needs and
requires additional community support services to remain housed
in the community and avoid admission to an institution or
placement with an out-of-state service.

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(iii) (I) The average annual cost of providing services to a
consumer who resides in an institution, less the average annual
cost of providing community support services to a consumer who
is placed in the community, multiplied by the number of consumers
who are at risk of housing displacement.

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(II) For the purposes of this clause, a consumer is at risk of
housing displacement if his or her individual program plan
identifies that he or she is at risk of housing displacement and may
include, but is not limited to, a consumer who resides in jail, who
is placed in an inappropriate level of care, who resides in
substandard housing, or who can no longer afford the cost of his
or her current housing.

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(C) The Department of Finance, or the other state agency
designated by the Department of Finance, shall work with the
Department of Social Services, regional centers, and other entities,
as appropriate, to obtain the data necessary to make the
determination identified in subparagraph (B).

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(2) Moneys earned from begin delete the lease end delete begin insert leases end insert of developmental center
begin delete facilities. end delete begin insert facilities entered into after the effective date of this
section. end insert

(3) Notwithstanding Section 16305.7 of the Government Code,
interest and dividends on moneys deposited in the fund pursuant
to this section.

(4) Any other moneys transferred to the fund.

(d) The fund shall be administered by the department.

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(e) The department shall distribute moneys in the fund, in its
discretion, to the Department of Housing and Community
Development and to regional centers to be expended for the
following purposes:

(1) To fund capital costs for community residences, special
needs housing projects, permanent supportive housing, and other
types of licensed and unlicensed housing models, including, but
not limited to, shared housing, in order to provide appropriate and
affordable housing opportunities for individuals with
developmental disabilities.

(2) To create community-based housing options for individuals
with developmental disabilities.

(3) To expand and leverage existing resources for affordable
housing and integrated community placement of individuals with
developmental disabilities.

(4) To establish housing opportunities for individuals with
developmental disabilities who are at risk of housing displacement.

(f) (1) The department shall develop guidelines to assist the
Department of Housing and Community Development do the
following:

(A) Establish community residences, special needs housing
projects, permanent supportive housing, and other types of housing
models for individuals with developmental disabilities through
new construction and rehabilitation and preservation of existing
permanent and transitional housing.

(B) Loan or grant moneys for expenses reasonably incurred by
a project sponsor in connection with the acquisition, construction,
improvement, or rehabilitation of property that is or will be used
for a special needs housing project, including, but not limited to,
the costs and expenses of engineering, inspection, planning, legal,
financial, or other professional services; the funding of appropriate
reserves to address the anticipated future capital needs of a special
needs housing project; and the administrative, organizational, or
other expenses incidental to the finance, completion, and placement
into service of any special needs housing project.

(2) The department shall develop guidelines to assist regional
centers in providing rental subsidies to individuals with
developmental disabilities, including, but not limited to, bridge
funding and transition funding.

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(e) The department shall expend moneys in the fund, upon
appropriation by the Legislature, to develop housing through the
Multifamily Housing Program (Chapter 6.7 (commencing with
Section 50675) of Part 2 of Division 31 of the Health and Safety
Code) and the Predevelopment Loan Program (Chapter 3.5
(commencing with Section 50530) of Part 2 of Division 31 of the
Health and Safety Code) for individuals with developmental
disabilities.

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