BILL NUMBER: SB 781 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 12, 1999
INTRODUCED BY Senator Speier
FEBRUARY 25, 1999
An act to add Chapter 18 (commencing with Section 50898) to Part 2
of Division 31 of the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 781, as amended, Speier. Housing subsidies: high-cost
counties.
Existing law sets forth the duties of the Department of Housing
and Community Development in administering various housing programs
in the state.
This bill would require the department to implement a housing
subsidy program to be administered by high-cost counties, as defined,
at their option, pursuant to which families who are successfully
meeting participation requirements under the welfare-to-work
component of the CalWORKs program and , or
who are certain former CalWORKs recipients whose income is less
than 150% of the federal poverty level , would receive
subsidies for rent for up to 3 years, at specified levels. It would
require a county applying to provide subsidies to provide a
10% 15% match, and would authorize the county to
develop criteria for eligibility for the program in addition to that
set forth in the bill, and to designate a local agency or
community-based organization to implement the program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares the following:
(a) According to nationwide research, California has the greatest
number of low-income renters facing unaffordable rents, substandard
conditions, or both.
(b) The average monthly rents in high-cost areas of the state are
as much as 60 percent or more above the statewide median.
(c) The average rents in high-cost counties are almost double the
maximum aid payment for CalWORKs families.
(d) Families in high-cost areas are increasingly at risk of
homelessness as they struggle month-to-month to meet their basic
needs.
(e) Research studies have proven that subsidized housing
stabilizes families at risk of homelessness and helps families move
toward self-sufficiency.
(f) Thousands of low-income California families will be required
to participate in work activities for a minimum of 32 hours per week
beginning July 1999 and must find self-sustaining employment within
five years or face losing their CalWORKs benefits.
(g) Counties are finding that families who face housing crises
have more difficulty meeting the CalWORKs participation requirements
and progressing toward self-sufficiency.
(h) High housing costs and long waiting lists are rendering
current federal housing programs ineffective. Section 8 waiting
lists in high-cost counties are either closed or are so long that it
takes a family more than five years to move to the top of the list to
receive a subsidy. Low-income families in high-cost counties have
extreme difficulty using Section 8 certificates because the HUD fair
market rents (FMRs) on which federal Section 8 certificates are based
do not accurately reflect the extremely high rents.
(i) It is therefore the intent of the Legislature to establish a
transitional and time-limited housing subsidy program for CalWORKs
families living in high-cost counties that encourages work and
provides CalWORKs families with a cash rental subsidy to help them
meet their basic needs and progress toward self-sufficiency.
SEC. 2. Chapter 18 (commencing with Section 50898) is added
to Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER 18. HOUSING SUBSIDIES FOR HIGH-COST COUNTIES
50898. (a) (1) The Department of Housing and Community
Development shall implement a housing subsidy program to be
administered by high-cost counties, at their option.
(2) For purposes of this section, a "high-cost county" is a county
in which the United States Department of Housing and Urban
Development Fair Market Rent (FMR) for a two bedroom apartment is 50
percent or higher above the statewide median for regions defined by
the federal department.
(b) The subsidy provided under this section shall be applied for
the benefit of families who are successfully meeting participation
requirements under the welfare-to-work component of the CalWORKs
program pursuant to Article 3.2 (commencing with Section 11320) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, and whose income level is less than 150 percent of the federal
poverty level.
(c) Individual subsidies under this section shall be limited to
rents totaling no more than 20 percent above the 1998 United States
Department of Housing and Urban Development Fair Market Rent (FMR)
for the region, and shall be applied for no longer than a total of
three years, as follows:
(1) In the first year, 50 percent of the family's rent shall be
subsidized.
(2) In the second year, 40 percent of the family's rent shall be
subsidized.
(3) In the third year, 30 percent of the family's rent shall be
subsidized.
(d) A county applying to provide subsidies through this section
shall provide a 10-percent match, which may include Temporary
Assistance for Needy Families block grant funds, or maintenance of
effort funds under the CalWORKs program, to the extent not in
conflict with federal law.
(e) A county providing subsidies through this section may develop
criteria for eligibility for the program in addition to that set
forth in this section, and may designate a local agency or
community-based organization to implement the program.
the federal department. The definition of "high-cost county" should
be reexamined annually to ensure that counties who experience
housing shortages for low-income families are included in this
program.
(b) The subsidy provided under this section shall be applied for
the benefit of families who are successfully meeting participation
requirements under the welfare-to-work component of the CalWORKs
program pursuant to Article 3.2 (commencing with Section 11320) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, or former CalWORKs recipients who are receiving retention
services within one year of receipt of aid and whose income level is
less than 150 percent of the federal poverty level.
(c) Individual subsidies under this section shall be limited to
the fair market rents in the local area, as defined by an acceptable
market study, and shall be applied for no longer than a total of
three years, as follows:
(1) In the first year, 50 percent of the family's rent shall be
subsidized.
(2) In the second year, 40 percent of the family's rent shall be
subsidized.
(3) In the third year, 30 percent of the family's rent shall be
subsidized.
(d) Rental units subsidized under this program shall meet
acceptable housing quality standards.
(e) A county applying to provide subsidies pursuant to this
section shall provide a 15 percent match, which may include funds
from the county's CalWORKs single allocation or county maintenance of
effort funds under the CalWORKs program, or other county funds to
the extent not in conflict with federal law. County funds expended
on housing case management linked to this program shall count toward
the required match. County funds currently being expended on housing
assistance programs for needy adults may also be counted toward the
15 percent match requirement.
(f) Eligible counties shall be allocated a dollar amount based on
a formula that takes into account the size of the county CalWORKs
population, the number of CalWORKs families paying more than 60
percent of their grant and income in rent, and the HUD Fair Market
Rent levels. The formula shall be determined by a work group
comprised of representatives from the county welfare department and
the Department of Housing and Community Development.
(g) A county providing subsidies pursuant to this section may
develop criteria for eligibility for the program in addition to that
set forth in this section, and may designate a local agency,
including the county welfare department, or community-based
organization to implement the program. All counties that choose to
participate in the program shall develop a county CalWORKs housing
stabilization plan that outlines the program design and includes
details about the population to be served, the amount and source of
the local matching funds, a description of how housing quality
standards will be met, and evidence of consultation with local
stakeholders. If the local agency designated to implement the
program is not the county welfare department, the county welfare
department shall participate in the development of the plan. The
County CalWORKs Housing Stabilization Plan shall be approved by the
board of supervisors in each county.