BILL NUMBER: SB 781 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 26, 1999
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, 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 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.
The bill would require participating counties to provide a status
report to the department by March 1, 2003, and would require the
department to report to the Legislature by September 1, 2003, on 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. 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) (1) 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.
(2) To be eligible for a subsidy under this section, a family must
be paying 50 percent or more of their income for rent.
(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 50 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.
(h) Each participating county shall provide to the department by
March 1, 2003, a status report on its specific subsidy program to
enable the department to complete its report to the Legislature
required by subdivision (i).
(i) Notwithstanding Section 7550.5 of the Government Code, the
department by September 1, 2003, shall submit to the Legislature a
report on the status of the subsidy program.