BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

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|                               |SB 781  (Speier)            |
|-------------------------------+----------------------------|
|                               |                            |
|-------------------------------+----------------------------|
|Hearing Date: 5/27/99          |Amended: 4/26/99            |
|-------------------------------+----------------------------|
|Consultant: Maureen Brooks     |Policy Vote: H. & C. D. 7-0 |
|                               |                            |
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____________________________________________________________ 

BILL SUMMARY:    SB 781 requires the Department of Housing  
and Community Development (HCD) to implement a housing  
subsidy program for families participating in the CalWORKS  
program, as specified, to be administered by counties at  
their option.

The bill will allow for rental subsidies for up to three  
years, require counties to provide a 15% match and  
authorize counties to develop eligibility criteria.
SB 781 requires participating counties to report to HCD by  
March 1, 2003 and HCD to report to the Legislature by  
September 1, 2003.
                         Fiscal Impact (in thousands)
  
Major Provisions           1999-2000    2000-01    2001-02   Fund  

HCD admin          $140     $140               $140General

Program costs   ---------$25 million-----------General

Counties      -----unknown significant costs
                           At local option------Local

STAFF COMMENTS:  SUSPENSE FILE.

Staff notes that the author has submitted a budget request  
for the $25 million, however, they will also be trying to  
obtain money from excess TANF funds.

Funds to counties will be allocated in an amount based on a  
formula determined by a working group consisting of  
representatives from the county welfare department and HCD.  










 The formula will consider the number of the CalWORKS  
population, rent levels, etc.

The subsidies will decrease as follows: 50% first year, 40%  
during the second year and 30% in the third year.