BILL ANALYSIS �
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: SB 1178
S
AUTHOR: Correa
B
VERSION: April 10, 2014
HEARING DATE: April 22, 2014
1
FISCAL: Yes
1
7
CONSULTANT: Mareva Brown
8
SUBJECT
Developmental disabilities: housing
SUMMARY
This bill establishes the California Developmental
Disabilities Community Support Housing Fund, to be
administered by the Department of Developmental Services
(DDS). The fund will consist of moneys saved by
transitioning individuals with developmental disabilities
from an institution to housing in the community, as well as
any savings from diverting individuals from institutions
into the community. The bill requires DDS to expend money
in the fund to develop housing through specified existing
programs.
ABSTRACT
Existing law:
1)Establishes the California Department of Developmental
Services (DDS) to administer the Lanterman Developmental
Disabilities Act, which entitles individuals with
developmental disabilities to community services and
Continued---
STAFF ANALYSIS OF SENATE BILL 1178 (Correa)
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supports. (WIC 4500)
2)Establishes in California law that DDS contracts with
private non-profit regional centers to provide fixed
points of contact in the community for persons with
developmental disabilities and their families, so that
these persons may have access to the services and
supports best suited to them throughout their lifetime.
(WIC 4620)
3)Establishes in California law that it is the intent of
the legislature that an array of services and supports
are provided to sufficiently meet the needs and choices
of each person with developmental disabilities,
regardless of age or degree of disability, and at each
stage of life and to support their integration into the
mainstream life of the community. To the maximum extent
feasible, services and supports should be available
throughout the state to prevent the dislocation of
persons with developmental disabilities from their home
communities. (WIC 4501)
4)Requires regional centers to be responsible for expanding
opportunities for the full and equal participation of
persons with developmental disabilities in their local
communities, and specifies activities that may be
included, such as:
a) Providing assistance to case managers and family
members on expanding community integration options for
consumers in the areas of work, recreation, social,
community service, education, and public services.
b) Providing technical assistance to, and coordinating
with, community support facilitators who will be used
to provide supports to individual consumers for
community participation, as needed. (WIC 4688)
5)Permits DDS to approve proposals by three Bay Area
regional centers to provide for, secure, and assure the
full payment of a lease or leases on housing, as
specified, as part of a plan to move residents of Agnews
Developmental Center to the community. (WIC 4688.5)
6)Creates the Multifamily Housing Program (HSC 50675), and
the Predevelopment Loan Program (HSC 50530) to alleviate
STAFF ANALYSIS OF SENATE BILL 1178 (Correa)
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the difficulty many California's face in finding
affordable housing.
This bill:
1) States various Legislative findings and
declarations related to the need to establish housing
opportunities for individuals with developmental
disabilities.
2) Defines various terms including that "institution"
means a developmental center, a skilled nursing
facility, and a mental health facility, including, but
not limited to, a facility that provides acute
inpatient psychiatric care and an institution for
mental disease.
3) Establishes the California Developmental
Disabilities Community Support Housing Fund within the
State Treasury and defines its contents as:
a. Moneys saved from transitioning
individuals with developmental disabilities from
an institution to housing in the community,
b. Moneys saved by preventing the
institutionalization of individuals with
developmental disabilities,
c. Moneys earned from leases of
developmental center facilities entered into
after the effective date of this section,
d. Interest and dividends on moneys
deposited in the fund, as specified,
e. Any other moneys transferred to the fund.
4) Directs the Department of Finance, or another state
entity designated by the Department of Finance, to
annually determine the amount of the moneys to be
deposited into the fund by calculating the sum of the
following:
a. 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
STAFF ANALYSIS OF SENATE BILL 1178 (Correa)
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transitioned from an institution to housing in
the community in the preceding fiscal year.
b. 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.
c. 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.
5) Defines deflection from admission to an institution
to mean that a consumer's individual program plan
(IPP) 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.
6) Defines "at risk of housing displacement" to mean
that a consumer's IPP identifies that he or she is at
risk of housing displacement including, but not
limited to, a consumer who resides in jail, is placed
in an inappropriate level of care, resides in
substandard housing, or who can no longer afford the
cost of his or her current housing.
7) Requires the Department of Finance, or the other
state agency designated by the Department of Finance,
to work with the Department of Social Services,
regional centers, and other entities, as appropriate,
to obtain the data necessary to determine the moneys
to be deposited into the fund, as specified.
8) Requires the fund be administered by the Department
of Housing and Community Development.
9) Requires the Department of Housing and Community
Development expend moneys in the fund, upon
STAFF ANALYSIS OF SENATE BILL 1178 (Correa)
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appropriation by the Legislature, to develop housing
through the Multifamily Housing Program, as specified,
and the Predevelopment Loan Program, as specified, for
individuals with developmental disabilities.
FISCAL IMPACT
This bill has not been analyzed by a fiscal committee.
BACKGROUND AND DISCUSSION
Purpose of the bill
The author states that this bill is necessary to address an
impending crisis of consumers with developmental
disabilities who cannot find affordable housing. When
family caregivers are no longer able to support an adult
child with a developmental disability at home, alternative
living arrangements are difficult to locate, according to
the author. The author states that California lacks housing
opportunities that are safe, affordable and integrated for
persons with developmental disabilities as well as families
with children who have developmental disabilities.
This bill establishes a new methodology for regional center
housing development funds that will be leveraged through
existing available resources, according to the author. By
redirecting funding from developmental center operational
funds as consumers are moved into the community, SB 1178
ensures that the resources will follow the consumers, he
states.
Regional Centers
California's 21 nonprofit regional centers are part of a
system of care for individuals with developmental
disabilities that is overseen by DDS. DDS is responsible
for coordinating care and providing services for more than
265,000 people who receive services and supports to live in
their communities, as well as approximately 1,300 people
who reside in developmental centers. California statute
defines a developmental disability as a substantial
disability that originates before the age of 18 and
continues, or can be expected to continue, indefinitely,
such as intellectual disabilities, cerebral palsy,
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epilepsy, and autism.
Affordable Housing
Affordable housing in California remains difficult to find,
exacerbated by the Great Recession and a traditionally
higher cost of living than in other states, according to
several recent reports. "The State of Housing in California
2012: Affordability Worsens, Supply Problems Remain" notes
that despite six years of decline in housing prices,
California still lacks an adequate supply and mix of
housing, in the right locations, and affordable to
families, the workforce and special needs populations.<1>
Furthermore, it says, the affordability of rental housing
in many markets has gradually deteriorated due to falling
incomes and rising rents.
This assessment is echoed on a national level by a 2012
study by the Joint Center for Housing Studies at Harvard
University.<2> That study found that there was increasing
demand for rental properties because of the recession and
continuing population growth, which was resulting in
increased rental prices. It also found that the recent
economic turmoil underscored the many advantages of renting
and raised the barriers to homeownership, sparking a surge
in demand that has buoyed rental markets across the
country. At the same time, significant erosion in renter
incomes over the past decade has pushed the number of
people paying excessive shares of income for housing to
record levels. Assistance efforts have failed to keep pace
with this escalating need, undermining the nation's
longstanding goal of ensuring decent and affordable housing
for all.
According to the Harvard report, between the onset of the
Great Recession in 2007 and 2011, the number of very
low-income renters soared by 3.3 million while the number
able to obtain housing assistance expanded by just 225,000.
-------------------------
<1>
http://www.hcd.ca.gov/hcd_state_of_housing_ca2012update0812.
pdf
<2>
http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ahr
2013_01-intro.pdf
STAFF ANALYSIS OF SENATE BILL 1178 (Correa)
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As a result, the share of eligible households receiving
assistance shrank from 27.4 percent to 23.8 percent.
Housing for Individuals With Developmental Disabilities
As of March 2014, 74 percent of individuals served by
California's 21 regional centers were living in the homes
of their parents or guardians. Another 11 percent were in
community care facilities, while about 10 percent were
supported by independent living services. Just 4.5 percent
of all residents were residing in a developmental center,
nursing home or intermediate care facility.
According to a white paper issued by the Association of
Regional Center Agencies (ARCA) in 2009, there are multiple
issues that could force many of those people into the
housing market. "The high cost of housing in California and
the extremely low incomes of people with developmental
disabilities have forced people out of the housing market,"
according to the ARCA report,<3> which predicted that
thousands of people need and want affordable, safe living
options in the community. In March, the California Budget
Project released a report illustrating the gap between the
SSI/SSP grant for an individual and the fair market rent
for a studio apartment. In every county, the grant exceeds
50 percent of the benefit; in 13 counties it exceeds 100
percent.
(Chart removed due to technical issues.)
Double referral
This bill is double-referred to the Senate Transportation
and Housing Committee.
Related Legislation
SB 812 (Ashburn) Chapter 507, Statutes of 2010, requires
local governments to include in the special housing needs
analysis associated with their general plans, the needs of
-------------------------
<3> Association of Regional Center Agencies, "Providing
Housing for People with Developmental Disabilities: An
Analysis of Current Practices and Programs, Guiding
Principles, Challenges and Recommendations," March 20,
2009.
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individuals with a developmental disability within the
community.
Comments:
1. The calculation of savings from individuals who are
moved from, or diverted from, a developmental center
or institution includes the subtraction of the average
cost of providing community support to a consumer.
Since consumers who transition from developmental
centers and institutions are typically at the higher
end of the service cost scale, it might be more
appropriate to subtract the average cost of services
for individuals who have moved from a developmental
center, or similar institution.
2. This bill defines being at risk of housing
displacement to include 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.
Additionally, the author's statement indicates a
concern about individuals who are displaced when their
aging parents no longer can care for them. It is not
clear that this would result in savings, but could be
included as an explanation in the findings and
declarations section.
The author may want to consider adding this language
to the findings and declarations section beginning on
page 2, line 10:
(c) Establishing housing opportunities for individuals
with developmental disabilities who are at risk of
housing displacement , including consumers whose
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, whose family members
can no longer care for them at home, or who can no
longer afford the cost of his or her current housing.
And deleting this language from the calculation of
savings section, beginning on page 4, line 34:
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4688.7. (c) (1) (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.
(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.
3. This bill inadvertently directs the Department of
Social Services instead of DDS to work with the
Department of Finance to calculate moneys to be
deposited into the fund.
Staff recommends the following amendment commencing on
page 5, line 6.
4688.7. (c) (1) (C) The Department of Finance, or the
other state agency designated by the Department of
Finance, shall work with the Department of Social
Developmental Services, regional centers, and other
entities, as appropriate, to obtain the data necessary
to make the determination identified in subparagraph
(B).
4. Staff also recommends the following clarifying
amendment:
4688.7 (c)(1)(B) The Department of Finance, or another
state entity designated by the Department of Finance,
shall annually determine and deposit the amount of the
moneys identified in subparagraph (A) by calculating
the sum of the following.
STAFF ANALYSIS OF SENATE BILL 1178 (Correa)
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POSITIONS
Support: Association of Regional Center Agencies
(sponsor)
Autism Society San Francisco
Center for Autism and Related Disorders
Sunflower Hill
1 Individual
Oppose: None received.
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