BILL NUMBER: SB 781 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 10, 1999
PASSED THE ASSEMBLY SEPTEMBER 9, 1999
AMENDED IN ASSEMBLY SEPTEMBER 7, 1999
AMENDED IN ASSEMBLY SEPTEMBER 3, 1999
AMENDED IN ASSEMBLY AUGUST 23, 1999
AMENDED IN ASSEMBLY JULY 8, 1999
AMENDED IN SENATE JUNE 15, 1999
AMENDED IN SENATE JUNE 9, 1999
AMENDED IN SENATE APRIL 26, 1999
AMENDED IN SENATE APRIL 12, 1999
INTRODUCED BY Senator Speier
(Coauthors: Assembly Members Bock and Shelley)
FEBRUARY 25, 1999
An act to add Chapter 16 (commencing with Section 18998) to Part 6
of Division 9 of the Welfare and Institutions Code, relating to
housing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 781, Speier. Housing subsidies: counties.
Existing law sets forth the duties of the State Department of
Social Services in administering various public assistance programs
in the state.
This bill would require the department to oversee a rental housing
subsidy program to be administered by counties, 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 participating county to apply for subsidies according to a
competitive grant process established by the State Department of
Social Services. It would require a county receiving 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. It would provide that
counties implementing the program and meeting its requirements would
receive funds necessary to operate the program within their CalWORKs
single allocation.
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.
The bill would appropriate $5,000,000 from federal Temporary
Assistance for Needy Families (TANF) block grant funds to the
department for funding the rental housing subsidy program.
Appropriation: yes.
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 United
States Department of Housing and Urban Development 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 16 (commencing with Section 18998) is added to
Part 6 of Division 9 of the Welfare and Institutions Code, to read:
CHAPTER 16. Housing Subsidies for Counties
18998. (a) The State Department of Social Services shall oversee
a rental housing subsidy program to be administered by counties, at
their option.
(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 its grant and income for rent or be
homeless or at risk of homelessness due to shared or temporary living
conditions. Counties may establish additional eligibility criteria,
at their option.
(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) In order to receive funds under this section, a county shall
demonstrate an urgent need for housing assistance for its families
receiving CalWORKs assistance. Counties shall submit to the
department documentation that includes the number and percentage of
CalWORKs families paying more than 50 percent of their grant and
income in rent, the number and percentage of CalWORKs families living
in shared housing, the average rents by unit size broken down by
subcounty region, the vacancy rate among units whose rental cost is
at or below 100 percent of the United States Department of Housing
and Urban Development (HUD) fair market rent levels for the county,
and the incidence of homelessness among CalWORKs families in the
county.
(f) A county that receives funds pursuant to this section shall
provide a 15-percent match, which may not include funds from the
county's CalWORKs single allocation, or county CalWORKs incentive
funds. The match may include 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.
(g) Counties shall apply for funds under this section according to
a competitive grant process established by the State Department of
Social Services. To be awarded funds, a county shall meet the
minimum requirements of this chapter and any additional requirements
that the department may establish to further the goals of this
chapter.
(h) A county may designate a local agency, including the county
welfare department or the local public housing agency, or a
community-based organization to implement the program. All counties
that choose to participate in the program shall develop, as an
addendum to the CalWORKs county plan, a county CalWORKs housing
stabilization plan that outlines the program design and includes the
criteria for family selection, 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 or
chief local elected official in each county and shall be submitted to
the department for certification. In overseeing the county operated
programs, the department shall ensure that each county fulfills its
responsibilities as outlined in its housing stabilization plan and
its application to the department.
(i) Beginning in the 2000-01 fiscal year, counties that elect to
implement this program and that meet all of the requirements under
this section shall receive funds necessary to operate the program
within their CalWORKs single allocation provided under Section
15204.2 and as prescribed by Section 15204.3.
(j) 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 (k).
(k) 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.
SEC. 3. The sum of five million dollars ($5,000,000) is hereby
appropriated from federal Temporary Assistance for Needy Families
(TANF) block grant funds to the State Department of Social Services
for funding the rental housing subsidy program established pursuant
to Chapter 16 (commencing with Section 18998) of Part 6 of Division 9
of the Welfare and Institutions Code, as added by Section 2 of this
act.