BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: sb 1178
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  correa
                                                         VERSION: 4/10/14
          Analysis by:  Mark Stivers                     FISCAL:  yes
          Hearing date:  April 29, 2014



          SUBJECT:

          Housing for persons with developmental disabilities

          DESCRIPTION:

          This bill dedicates savings from redirecting persons with  
          development disabilities from development centers to community  
          housing and revenues from the future lease of developmental  
          center property to an account set aside for the development of  
          housing for persons with developmental disabilities.  

          ANALYSIS:

          Existing law 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 supports.   
          DDS provides services in two ways.  First, it operates  
          developmental centers, which currently house 1300 individuals.   
          Second, it contracts with 21 nonprofit regional centers, which  
          serve as a local resource to help 265,000 individuals with  
          developmental disabilities and their families find and access  
          available community services and supports.

          The Department of Housing and Community Development (HCD)  
          administers the Predevelopment Loan Program (PDLP) and the  
          Multifamily Housing Program (MHP).  Under the PDLP, HCD provides  
          short-term predevelopment loans to finance start-up costs  
          associated with the development of affordable housing projects,  
          including land acquisition, engineering studies, architectural  
          plans, application fees, legal services, permits, bonding, and  
          site preparation.  Under the MHP, HCD offers long-term loans for  
          the development of affordable rental housing.  

           This bill  dedicates savings from redirecting persons with  
          development disabilities from state-operated developmental  
          centers to community housing and revenues from the future lease  




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          of developmental center property to an account set aside for the  
          development of housing for persons with developmental  
          disabilities.  Specifically, the bill:

           Requires the Department of Finance annually to calculate the  
            following amounts for deposit in the newly created California  
            Developmental Disabilities Community Support Housing Fund:

                 The savings associated with individuals transitioned  
               from a developmental center into a community placement  
               during the preceding fiscal year.
                 The savings associated with individuals who are  
               deflected from a development center as a result of  
               community support services during the preceding fiscal  
               year.
                 The savings associated with providing community support  
               services, as opposed to placement in a developmental  
               center, to individuals who are at risk of housing  
               displacement.
                 Revenues from leases of developmental center facilities  
               entered into after January 1, 2015.

           Requires HCD, upon appropriation by the Legislature, to expend  
            monies from the fund for the development of community-based  
            housing for individuals with developmental disabilities  
            through the PDLP and MHP.
          
          COMMENTS:

           1.Purpose of the bill  .  According to the author, 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.  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 capturing savings  
            associated with housing persons with developmental  
            disabilities in the community, as opposed to in state-operated  
            developmental centers.  The state in turn will leverage these  
            savings to create additional community housing opportunities.   
            By redirecting funding from developmental center operational  
            funds as consumers are moved into the community, this bill  
            ensures that resources will follow the consumers.




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           2.The impending crisis  .  As of March 2014, 74 percent of  
            individuals served by California's 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.  As the  
            parents of developmentally disabled children living at home  
            age themselves, their ability to continue caring for disabled  
            children diminishes, making it more likely that the children  
            will require supportive housing in the community.  In  
            addition, as the number of bed spaces in state-operated  
            developmental centers falls, these individuals will also need  
            community housing.  This bill seeks to start addressing the  
            need proactively. 
           
          3.Calculating the savings will be key  .  The author's goal is to  
            capture the savings from redirecting persons with development  
            disabilities from development centers to community housing and  
            use these savings to create additional community housing  
            options, leading to a virtuous cycle of reduced costs and  
            better outcomes.  The ability to achieve this goal depends on  
            identifying and calculating the savings, which may be a  
            difficult task.  

           4.Technical amendments  .  In the Senate Human Services Committee,  
            the author agreed to accept the following technical amendments  
            in this committee:

                 Strike the savings associated with consumers at risk of  
               housing displacement but add language to the findings  
               describing housing displacement situations.
                 On page 5, line 8, strike "Social" and insert  
               "Developmental"

             In addition, the following technical amendments are required:

                 On page 4, line 8, strike "The fund shall consist of"  
               and insert "There shall be paid into the fund"
                 On page 4, line 27, after "institution" insert "in the  
               preceding fiscal year"

          PREVIOUS VOTES:

               Senate Human Services:  4-0




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          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             April 23,  
          2014.)

               SUPPORT:  Association of Regional Center Agencies (sponsor)
                         Autism Society San Francisco
                         Center for Autism and Related Disorders
                         Sunflower Hill
                         1 Individual

               OPPOSED:  None received.