BILL NUMBER: SB 633 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Sher
FEBRUARY 24, 1999
An act to add Sections 50800.7 and 50800.9 to the Health and
Safety Code, relating to housing, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 633, as introduced, Sher. Emergency housing.
Existing law establishes the Emergency Housing and Assistance
Program administered by the Department of Housing and Community
Development utilizing money appropriated to the Emergency Housing and
Assistance Fund.
This bill would appropriate $5,000,000 to the Controller for
allocation to that fund for loans for the acquisition, conversion,
rehabilitation, or construction of permanent homeless shelter
facilities.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50800.7 is added to the Health and Safety Code,
to read:
50800.7. The Legislature finds and declares all of the following:
(a) It is in the best interest of the state to provide adequate
shelter and services for homeless individuals.
(b) Local governments are finding that, in addition to providing a
bed and a meal, a shelter should also provide necessary programs
such as mental health and vocational services.
(c) The temporary nature of the armory shelter program makes it
extremely difficult to implement those programs, while a permanently
located shelter, operating year round, is better suited to establish
onsite services that can aid homeless individuals in eventually
finding permanent shelter and employment.
(d) High capital costs continue to be a significant barrier that
is preventing the local development of permanent homeless shelter
facilities.
(e) Additional funding for the Emergency Housing and Assistance
Program authorized by this chapter would assist local governments in
finding long-term solutions for providing essential assistance to the
homeless population.
SEC. 2. Section 50800.9 is added to the Health and Safety Code, to
read:
50800.9. Funds allocated to the Emergency Housing and Assistance
Fund pursuant to the act enacting this section for the acquisition,
conversion, rehabilitation, or construction of permanent homeless
shelter facilities are subject to all provisions of this chapter, and
the implementing regulations, except as to requirements added or
modified by this section that shall prevail over any conflicting
provisions. The department shall distribute funds appropriated for
purposes of this section as deferred loans, subject to the following
provisions:
(a) Funding shall be made available to each project as a loan with
a 10-year term, secured by a deed of trust and promissory note, with
a simple interest rate of 3 percent per annum. Repayment of
principal and interest shall be deferred as long as the project is
used as an emergency shelter. At the completion of the full 10-year
term, both principal and interest shall be forgiven. However, if a
transfer or conveyance of the project property occurs prior to that
time that results in the property no longer being used as an
emergency shelter, the department may terminate the loan and require
the principal and interest to be paid in full.
(b) Applications for funding shall be made pursuant to
department-issued statewide "Notices of Funding Availability" without
the need for additional regulations.
(c) The department shall set forth the criteria for evaluating
applications in the "Notice of Funding Availability" and shall make
deferred loans based on those applications that best meet the
criteria. The criteria shall provide priority for projects that
replace cold weather programs that have been operating in National
Guard armories. Deferred loans may only be used for the creation of
additional shelter floor space as necessary to serve more homeless
persons or to replace cold weather programs that have been operating
in National Guard armories.
(d) Deferred loan amounts shall not be less than one hundred
thousand dollars ($100,000). The department shall not award more
than one million dollars ($1,000,000) to any applicant, including any
subsidiary or affiliate of an applicant, regardless of the number of
projects or applications submitted by that applicant.
(e) Deferred loans shall be allocated to urban areas on at least a
one-to-one matching basis with eligible organizations for projects
that will begin construction within 12 months after the effective
date of the state contract. Organizations located in nonurban areas
shall only be required to provide a one-to-three match. All matching
funds shall be utilized for acquisition, conversion, rehabilitation,
or new construction. Contracts for projects that have not begun
construction within the 12-month period shall be terminated and the
funds reallocated. However, the department may extend this period by
a period not exceeding 12 months.
(f) The department shall use not more than 6 percent of the amount
available pursuant to this section to defray its administrative
costs.
(g) Twenty percent of the total allocation shall be set aside for
nonurban counties until 75 percent of the total allocation has been
awarded, or until one year has elapsed from the date of the initial
"Notice of Funding Availability," whichever is later.
SEC. 3. The sum of five million dollars ($5,000,000) is hereby
appropriated from the General Fund to the Controller for allocation
to the Emergency Housing and Assistance Fund authorized by Chapter
11.5 (commencing with Section 50800) of Part 2 of Division 31 of the
Health and Safety Code, to be used for the acquisition, conversion,
rehabilitation, or construction of permanent homeless shelter
facilities pursuant to Section 2 of this act.