BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

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|                               |SB 781  (Speier)            |
|-------------------------------+----------------------------|
|                               |                            |
|-------------------------------+----------------------------|
|Hearing Date: 6/8/99           |Amended: 4/26/99            |
|                               |& LCR 15215                 |
|-------------------------------+----------------------------|
|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 proposed amendments to fund the housing subsidy  
program from excess TANF funds and tighten county  
eligibility.  A budget request has been made for $10  
million from TANF.

As proposed to be amended, counties will have to  
demonstrate an urgent need for housing assistance for its  
families receiving CalWORKs assistance.  Counties will  










submit documentation including the number and percentage of  
CalWORKs families paying more than 50% of their income in  
rent, the number and percentage of CalWORKs families living  
in shared housing, the average rents by unit size, the  
vacancy rate among units whose rental cost is at or below  
100% of the HUD fair market rent levels, and the incidence  
of homelessness among CalWORKs families in the county. 

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.

Staff notes that the Department of Social Services may be a  
more appropriate agency to oversee the CalWORKs rental  
housing subsidy program.