BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 781|
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THIRD READING
Bill No: SB 781
Author: Speier (D)
Amended: 6/9/99
Vote: 21
SENATE HOUSING & COMM. DEV. COMMITTEE : 7-0, 4/19/99
AYES: Alarcon, Bowen, Costa, Escutia, Johannessen,
Monteith, Vasconcellos
SENATE APPROPRIATIONS COMMITTEE : 8-5, 6/8/99
AYES: Alpert, Bowen, Burton, Escutia, Karnette, McPherson,
Perata, Vasconcellos
NOES: Johnston, Johnson, Kelley, Leslie, Mountjoy
SUBJECT : Housing subsidies: counties
SOURCE : Author
DIGEST : This bill requires the State Department of
Housing and Community Development to oversee a rental
housing subsidy program for families participating in the
CalWORKs program.
ANALYSIS : At the state level, three state agencies
administer various housing programs to encourage the
construction of affordable housing: California Housing
Finance Agency, the State Department of Housing and
Community Development, and Treasurer's Office. State
housing programs target housing for low to moderate
individuals and families.
CONTINUED
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After Congress enacted the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, the state enacted
the Welfare to Work Act of 1997 (AB 1542, Thompson et al,
1997). Under the 1997 Act, the CalWORKs program requires
families on welfare to participate in welfare-to-work
activities.
In high cost housing areas, it is difficult for families to
move from welfare to work because they have to pay so much
for housing. San Francisco officials want to develop a
housing subsidy program to help CalWORKs families live in
the community that they work in.
This bill requires the HCD to implement a housing subsidy
program that may be administered by counties at their
option. The program must include the following:
1. Subsides to families who are successfully meeting
participation requirements under the welfare-to-work
component of the CalWORKs program or former CalWORKs
recipients who are receiving retention services within
one year of receipt of aid and whose income level is
less than 150% of the federal poverty level.
2. To be eligible for a subsidy, a family must be paying
50% or more of its grant and income for rent. Counties
may establish additional eligibility criteria, at their
option.
3. Subsides shall be limited to fair market rents in the
local area, as defined by an acceptable market study,
and shall apply for no longer than three years: 50%
first year; 40% second year; and 30% third year.
4. 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
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the county.
5. Participating counties provide a 15% match.
6. 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 families paying more
than 50% of their grant and income in rent, and the HUD
fair market rent levels. The formula shall be
determined by a work group consisting of representative
from the county welfare department and HCD.
7. Counties may designate a local agency, including a
county welfare department, or the local public housing
agency, or a community-based organization to implement
the program.
8. Participating counties must develop a CalWORKs housing
stabilization plan that outlines the program design and
includes the criteria for family selection, local
matching funds, housing quality standards, and evidence
of consultation with local stakeholders.
9. The County CalWORKs Housing Stabilization Plan must be
approved by the county board of supervisors, 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.
10. Rental units must meet acceptable housing quality
standards.
11. Participating counties shall provide a status report
to HCD by March 1, 2003, and HCD shall report to the
Legislature by September 1, 2003 on the status of the
subsidy program.
12. Provides that funding for the rental housing subsidy
program shall be provided from reserve Temporary
Assistance for Needy Families (TANF) funds only during
fiscal years in which the Legislature has appropriated
funds for that purpose (a budget request has been made
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for $10 million from TANF).
This bill includes legislative findings and declarations.
Comments
Welfare-to-Work Participants . According to San Francisco
officials, more than 60 percent of CalWORKs families have
to pay more than 50% of their income and grant moneys on
rent. High housing costs prevent families from being truly
self-sufficient because they are constantly at risk of
losing their housing. In some cases, families are forced
to move to lower cost areas away from jobs in order to
obtain housing. This bill provides housing assistance to
CalWORKs families in high cost areas.
Only High-Cost Counties . This bill gives high-cost
counties (where a family is paying 50% or more of their
income for rent) the option of participating in a housing
subsidy program. Nine counties are eligible for the
program: Marin, San Francisco, San Mateo, Santa Clara,
Santa Cruz, Orange, Santa Barbara, Alameda, and Contra
Costa Counties. Each participating county must provide a
15% match in funds.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major provisions 1999-2000
2000-01 2001-02 Fund
HCD admin $140 $140 $140 General
Program costs ---------$25 million---------
General
Counties -----unknown significant costs
At local operation-----Local
SUPPORT : (Verified 6/9/99)
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Association of Bay Area Governments
Cabrillo Economic Development Corporation
Californians for Justice
California Interfaith Coalition
California Rural Legal Assistance Foundation
Catholic Charities of San Bernardino/Riverside counties
City and County of San Francisco
Coachella Valley Housing Coalition
Coalition for Ethical Welfare Reform
Community Action Board of Santa Cruz County
Counties of Alameda, Santa Clara, and San Mateo
County Welfare Directors Association of California
Emergency Services Network of Alameda County
Friends Committee on Legislation
Gubb & Barshap, LLP
Homebase/The Center for Common Concerns
Housing California
Lake County Community Action Agency
Los Angeles Coalition to End Hunger & Homelessness
Lutheran Office of Public Policy-California
National Center for Youth Law
Ocean Park Community Center
Orange County Homeless Issues Task Force
Rural California Housing Corporation
SRO Housing Corporation
Shelter for the Homeless (Orange County)
Sonoma County Interfaith Shelter Network
Southern California Association of Non Profit Housing
The California Immigrant Welfare Collaborative
The California Reinvestment Committee
The Homeless Prenatal Program
The Public Interest Law Project
Western Center on Law and Poverty
NC:cm 6/9/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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