BILL ANALYSIS
SB 781
Page 1
SENATE THIRD READING
SB 781 (Speier)
As Amended September 7, 1999
Majority vote. Appropriation
SENATE VOTE :25-11
HUMAN SERVICES 6-3 APPROPRIATIONS 14-7
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|Ayes:|Aroner, Bock, Ducheny, |Ayes:|Migden, Cedillo, Davis, |
| |Dutra, Floyd, | |Hertzberg, Kuehl, Papan, |
| |Strom-Martin | |Romero, Keeley, |
| | | |Steinberg, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Aroner |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Ashburn, Brewer, |Nays:|Brewer, Ackerman, |
| |Kaloogian | |Ashburn, Campbell, |
| | | |Maldonado, Runner, Zettel |
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SUMMARY : Establishes a rental housing subsidy program for
families participating in the California Work Opportunity and
Responsibility to Kids (CalWORKs) program. Specifically, this
bill :
1)States legislative findings and declarations that:
a) California has the greatest number of low-income renters
facing unaffordable rents and substandard conditions;
b) The average monthly rents in high-cost areas of the
state are as much as 60% or more above the statewide
median;
c) The average rent in high-cost counties is almost double
the maximum CalWORKs benefit;
d) Families in high-cost areas are at risk of homelessness;
e) Research proves that subsidized housing stabilizes
families at risk of homelessness;
f) CalWORKs recipients are required to participate in work
activities a minimum of 32 hours per week and are
ineligible for benefits after five years of assistance;
g) Counties that have housing crises have more difficulty
meeting CalWORKs work participation requirements;
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h) Current subsidized housing programs do not meet housing
needs and the federal fair market rent standards do not
accurately reflect extremely high rents; and,
i) It is the intent of the Legislature to establish a
transitional and time-limited housing program for CalWORKs
recipients living in high-cost counties.
2)Requires the Department of Social Services (DSS) to oversee a
rental housing subsidy program to be administered by counties,
at their option.
3)Limits eligibility for a housing subsidy under this program to
families that are paying 50% or more of their grant and income
for rent, or are homeless or at risk of homelessness due to
living in shared or temporary living conditions, and are:
a) CalWORKs families who are meeting CalWORKs work
participation requirements; or,
b) Former CalWORKs recipients who are receiving employment
retention services within a year of leaving aid, whose
income is less than 150% of the federal poverty level.
4)Permits counties to establish additional eligibility criteria.
5)Limits subsidies to three years and to the fair market rent in
the local area, as defined by an acceptable market study, not
to exceed:
a) 50% of the family's rent in the first year;
b) 40% of the family's rent in the second year; and,
c) 30% of the family's rent in the third year.
6)Requires that rental units subsidized under this program shall
meet acceptable housing quality standards.
7)Requires DSS to establish a competitive county grant
application process to obtain funds under this program and
requires competing counties to meet the requirements of this
bill and any additional requirements DSS may establish which
further the goals of the program.
8)Requires counties to provide a 15% match from CalWORKs
maintenance of effort funds and prohibits the match to be
taken from the CalWORKs single allocation or incentive funds.
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9)Requires DSS and representatives of county welfare departments
to develop an allocation formula that takes into account the
size of the CalWORKs population, the number of CalWORKs
families paying more than 50% of their grant and income in
rent, and the Housing and Urban Development fair market rent
levels.
10)Permits counties to designate a local agency to implement the
program.
11)Requires counties to develop a local plan, which must be
approved by the board of supervisors or chief elected local
official, that outlines program design, amount and source of
matching funds, housing quality standards and evidence of
consultation with local stakeholders.
12)Requires DSS to ensure that each county fulfills its
responsibility under the plan and its application to DSS.
13)Requires each participating county to provide a status report
on the program to DSS by March 1, 2003, and requires DSS to
provide a report to the Legislature by September 1, 2003.
14)Appropriates $5 million from the federal Temporary Assistance
to Needy Families block grant to DSS to fund the program.
15)Beginning in the 2000-2001 fiscal year, requires counties
that elect to implement the housing subsidy program to receive
funds necessary to operate the program within their single
CalWORKs allocation.
FISCAL EFFECT : This bill appropriates $5 million from federal
block grant funds to support the program. The Assembly
Appropriations Committee found actual costs could be
significantly greater than this amount, potentially exceeding
$50 million annually, depending on the number of counties that
participate in the program, and the number of families each
county elects to serve.
COMMENTS : The author reports that a two-bedroom apartment in
San Francisco averages close to $1,600 per month. A recent
study conducted by the San Francisco Department of Human
Services indicates that 40% of CalWORKs families pay over 50% of
their income and grant on rent while 22% pay over 70%. Santa
Clara County reports that the average monthly rent in the San
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Jose area is $1,471 per month and that the average cost for new
tenants seeking unsubsidized apartments increased by 29% over
the past two years, from $935 to $1,208. Santa Clara also
reports that there are approximately 28,000 families on the
Section 8 housing waiting list, of which 5,500 are CalWORKs
recipients. Only 300-500 are expected to receive Section 8
housing.
Supporters argue that the high cost of housing prevents families
from successfully transitioning from welfare to work because
they are constantly at risk of losing their housing. This bill
is intended to assist recipients to focus their efforts on
obtaining and retaining employment.
Analysis Prepared by : Curtis Child / HUM. S. / (916) 319-2247
FN:
0003263