Existing federal law provides for the allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program under which, through a combination of state and county funds and federal funds received through the TANF program, each county provides cash assistance and other benefits to qualified low-income families. Existing law, with certain exceptions, provides eligible families with homeless assistance, including temporary shelter assistance for one period of up to 16 consecutive calendar days.

This bill would eliminate the requirement that the temporary assistance be provided during one period of consecutive days, and instead would limit the temporary assistance to a maximum of 16 calendar days. This bill would require the State Department of Social Services to issue an all-county letter or similar instructions by April 1, 2016, and to adopt regulations to implement the provisions of the bill by July 1, 2017. The bill also would make conforming and technical, nonsubstantive changes. Because this bill would create new administrative duties for counties, it would impose a state-mandated local program.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would, instead, provide that the continuous appropriation would not be made for purposes of implementing the bill.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 702 (Maienschein) - CalWORKs: temporary shelter assistance

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 702 would revise and expand eligibility for both temporary shelter and permanent housing assistance payments under the CalWORKs Homeless Assistance Program, as specified.

Fiscal Impact:

• Potential increase in costs for temporary shelter assistance of about $4.7 million (General Fund) annually, assuming approximately 35 percent of families would return for additional assistance as allowable under the provisions of this bill. Over 31,350 requests for temporary shelter were approved in the last year, with an average of 10 days of assistance provided at an average daily cost of $72. These costs would be offset to some extent by reduced payments to families who choose to retain a portion of the 16-day benefit for future use but do not subsequently use it or no longer qualify.

• Potentially significant costs in the hundreds of thousands to low millions of dollars (General Fund) for additional payments of permanent homeless assistance for cases previously ineligible and/or denied these payments due to existing statute prohibiting payments to families in previous receipt of any amount of temporary shelter assistance. The average permanent housing assistance payment was $900 over the past year, with 1,734 denied requests for assistance in one 12-month period alone. If half of the denials would have been impacted by this bill, costs to provide payments would be nearly $800,000. It is unknown how many requests have been denied over the life of the Homeless Assistance Program due to a family’s previous receipt of temporary shelter assistance payments of less than the maximum 16 days, but it is likely significant. Additionally, it is unknown how many more requests have not been submitted due to recognition of the existing restriction on eligibility.

• Unknown, potentially significant costs for automation modifications required to enable the tracking of this information.

• Ongoing state-reimbursable local costs in the hundreds of thousands of dollars (General Fund) for county agencies to re-evaluate eligibility for temporary and permanent housing assistance payments.

Background:

Existing law, with certain exceptions, provides eligible families with a once-in-a-lifetime payment for homeless assistance, including temporary housing assistance for one period of up to 16 consecutive calendar days and one payment of permanent housing assistance. A homeless assistance payment may be granted for either, or both, temporary shelter or permanent housing.

Existing law provides temporary shelter assistance in the amount of $65 per day for a family of up to four people, with an additional $15 per day provided for each additional family member, subject to an overall maximum amount of $125 per day per family. Assistance can only be used to pay for housing provided in a commercial establishment, a shelter, or an established rental property. In addition to families receiving CalWORKs, the temporary shelter payment is also available to homeless applicants who are technically eligible, but not actually enrolled, in the CalWORKs program.

Existing law provides that any otherwise eligible Assistance Unit (AU) that includes a parent or nonparent caretaker relative living in the home who has previously received temporary shelter assistance or permanent homeless assistance at any time on behalf of an eligible child is not eligible for further homeless assistance.

The exceptions to the once-in-a-lifetime availability of temporary and permanent housing assistance are as follows:

• A family that becomes homeless as a direct and primary result of a state or federally declared natural disaster.

• When homelessness is a direct result of domestic violence by a spouse, partner, or roommate; physical or mental illness, as specified; or the uninhabitability of the former residence caused by sudden and unusual circumstances beyond the control of the family including natural catastrophe, fire, or condemnation.

Homeless assistance payments based on the circumstances above are limited to not more often than once in any 12-month period. If the domestic violence is verified by a sworn statement by the victim, the homeless assistance payments are limited to two periods of not more than 16 consecutive calendar days of temporary assistance and two payments of permanent assistance.

Any AU applying for homeless assistance is required to be informed that these benefits are limited to once-in-a-lifetime, with exceptions. Additionally, any person who applies for homeless assistance benefits must be informed that the temporary shelter benefit of up to 16 consecutive days is available only once in a lifetime, with certain exceptions, and that a break in the consecutive use of the benefit constitutes permanent exhaustion of the temporary benefit. (Welfare and Institutions Code §11450 (f)(2)(E)(i).)

Proposed Law:

This bill would expand the provision of temporary shelter and permanent housing assistance to CalWORKs-eligible families, as follows:

• Eliminates the requirement that the temporary shelter assistance be provided during one period of 16 consecutive days, and instead would limit the temporary shelter assistance to a maximum of 16 calendar days in a lifetime.

• Expands temporary shelter assistance to any family that includes a parent or nonparent caretaker relative living in the home who has not previously received the maximum allowable temporary shelter assistance (instead of just a portion of the total 16 days) or permanent homeless assistance at any time on behalf of an eligible child.

• In cases of domestic violence, deletes the requirement that homeless assistance be provided no more than twice, in two periods not to exceed 16 consecutive days, and instead permits homeless assistance be provided to eligible families for a total of 32 calendar days in a lifetime.

This bill would require the DSS to implement the provisions of the bill through an all-county letter or similar instructions no later than April 1, 2016, and would require the DSS to adopt regulations no later than July 1, 2017.

Prior Legislation:

AB 264 (Maienschein) 2014 was nearly identical to this measure. This bill was held on the Suspense File of this Committee.

AB 1452 (Stone) 2014 would have increased the daily maximum homeless allowance for a family of four from $65 to $75 per day, and increase the maximum daily assistance for larger families from $125 to $135. This bill was held on the Suspense File of this Committee.

Staff Comments:

By eliminating the requirement that temporary shelter assistance be limited to only one period of up to 16 consecutive days, and instead providing temporary shelter assistance for a maximum of 16 calendar days in a lifetime, this bill could result in significant ongoing costs for additional temporary shelter assistance payments of about $5 million (General Fund) per year, assuming additional temporary shelter assistance is provided to about 35 percent of families estimated to utilize the additional periods of assistance. Based on data from the CA 237HA (CalWORKs Homeless Assistance Program – Monthly Statistical Report) for May 2014 to April 2015, 31,365 requests for temporary shelter were approved. The average number of days of temporary shelter assistance was 10.3 days at an average daily cost of about $72. These costs would be partially offset by reduced payments to families who choose to retain a portion of the 16-day benefit for future use but do not subsequently use it or no longer qualify.

This bill could also result in significant additional costs for increased permanent homeless assistance payments for cases previously ineligible and/or denied these payments due to existing statute prohibiting payments to families in previous receipt of any amount of temporary shelter assistance. According to CA 237HA data for May 2014 to April 2015 the average permanent housing assistance payment was over $900, with over 1,734 denied requests for permanent homeless assistance in one 12-month period alone. It is unknown how many requests have been denied over the life of the Homeless Assistance Program due to a family’s previous receipt of temporary shelter assistance payments of less than the maximum of 16 days, but it is estimated to be significant. Additionally, it is unknown how many more requests have not been submitted due to recognition of the existing restriction on eligibility.

To the extent automation modifications are required to effectuate the changes specified in this measure, the DSS could incur one-time costs of an unknown amount. Additionally, this bill would result in ongoing state-reimbursable local costs (General Fund) for county agencies to re-evaluate eligibility for temporary and permanent housing assistance payments.

Staff notes the Budget Act of 2015 includes $35 million General Fund to be available for housing supports for CalWORKs families for whom homelessness or housing instability is a barrier to self-sufficiency or child well-being. It is unclear at this time how these funds interact with the existing CalWORKs Homeless Assistance Program addressed in this measure or if the appropriation is to provide supplemental funding for these purposes.

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SENATE COMMITTEE ON HUMAN SERVICES

Senator McGuire, Chair

2015 - 2016 Regular

Bill No: AB 702

Subject: CalWORKs: temporary shelter assistance

SUMMARY

This bill would eliminate the requirement that CalWORKs temporary shelter assistance be provided in a consecutive block of days, and instead would allow the existing 16-day lifetime limit to be used in any combination of time that a recipient is both homeless and receiving CalWORKs aid, as specified.

ABSTRACT

Existing law:

1. Establishes in Federal law the Temporary Assistance to Needy Families (TANF) program to provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives, and to end the dependence on government benefits by promoting job preparation, work and marriage. (45 CFR 260.2).

2. Establishes the California Work Opportunity and Responsibility to Kids (CalWORKs) Act, to provide cash benefits, employment training and other supports to low-income families through a combination of state and county funds and federal funds through the TANF block grant. (WIC 11200, et seq)

3. Defines homelessness within the CalWORKs program as:

   1. When a family lacks a fixed and regular nighttime residence

   2. The family has a primary nighttime residence that is a supervised publicly or privately operated shelter designed to provide temporary living accommodations;

   3. The family is residing in a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

   4. The family has received a notice to pay rent or quit. In that instance, the family must demonstrate that the eviction is the result of a verified financial hardship as a result of extraordinary circumstances beyond their control, and not due to lease or rental violations, and that the family is experiencing a financial crisis that could result in homelessness without preventative assistance. (WIC 11450 (f) (2))

4. Provides that additional cash benefits may be granted to individuals for recurring and nonrecurring special needs, as specified, including homeless assistance for families that are homeless and seeking shelter, as defined. (WIC 11450 (e) and (f))

5. Limits lifetime eligibility to one period of up to 16 consecutive calendar days of temporary assistance and one payment of permanent assistance, unless families qualify for an exception, as specified. (WIC 11450 (f)(2)(E))

6. Prohibits any family from eligibility for further homeless assistance if that family includes a parent or nonparent caretaker relative living in the home who has previously received temporary or permanent homeless assistance at any time on behalf of an eligible child. (WIC 11450 (f)(2)(E))

7. Requires that any person who applies for homeless assistance benefits shall be informed that the temporary shelter benefit of up to 16 consecutive days is available only once in a lifetime, with certain exceptions, and that a break in the consecutive use of the benefit constitutes permanent exhaustion of the temporary benefit. (WIC 11450 (f)(2)(E))

8. Establishes exceptions to the 16-day limit when homelessness is a direct result of a state or federally declared natural disaster, or domestic violence by a spouse, partner, or roommate; physical or mental illness that is medically verified that shall not include a diagnosis of alcoholism, drug addiction, or psychological stress; or, the uninhabitability of the former residence caused by sudden and unusual circumstances beyond the control of the family including natural catastrophe, fire, or condemnation, as defined. Limits homeless assistance payments based on these specific circumstances to not more often than once in any 12-month period. If domestic violence contributes to homelessness, as defined, limits homeless assistance payments to two periods of not more than 16 consecutive calendar days of temporary assistance and two payments of permanent assistance. (WIC 11450 (f)(2)(E)(iii))

This bill:

1. Deletes the requirement that homeless assistance be provided consecutively for up to 16 days and instead permits homeless assistance be provided to eligible families for up to a maximum of 16 calendar days in a lifetime.

2. In cases of domestic violence, deletes the requirement that homeless assistance is provided no more than twice, in two periods not to exceed 16 consecutive days and instead permits homeless assistance be provided to eligible families for a total of 32 calendar days in a lifetime, if certain conditions are met.

3. Requires the California Department of Social Services (CDSS) implement the new statutory requirements by all county letter or similar instructions no later than April 1, 2016 and requires CDSS to adopt regulations not later than July 1, 2017.

FISCAL IMPACT

According to an analysis by the Assembly Appropriations committee, this bill will incur potentially significant ongoing costs, in the range of $2 million (GF), for increased housing benefits. The analysis states that this bill would likely result in additional benefits paid because recipients who would have previously forfeited a portion of their benefits by interrupting the consecutive 16- day period could see their lifetime benefit increase.

The Appropriations analysis also predicted the general fund cost may be partially or completely offset by lower benefits paid to recipients who choose to save a portion of their 16-day benefit for future use and either do not subsequently use it or no longer qualify.

Additionally, the Appropriations analysis identified unknown, likely minor costs to CDSS for automation modifications required to track this information, and ongoing, likely minor, state-reimbursable local costs (General Fund) for county agencies to re-evaluate temporary housing assistance applicants each time they apply for the benefit.

BACKGROUND AND DISCUSSION

Purpose of the bill:

Current law provides temporary housing assistance to homeless families receiving aid through the CalWORKs program for up to 16 consecutive nights in a hotel, motel or commercial establishment. A family is only eligible for this temporary assistance once in a lifetime.

The author writes that because the temporary housing assistance is only available for 16 consecutive days, a break in assistance inadvertently punishes families who, for one reason or another, have to vacate their temporary lodgings for even one day. The author also states that AB 702 will remove the disincentive to refuse or interrupt temporary housing assistance during the 16-consecutive-day period. It does this by simply removing the requirement that the 16 days be consecutive.

Homelessness

California has the highest poverty rate in the nation – just under one-quarter of residents are living at or below the federal poverty level (FPL). These families earn no more than $20,090 per year for a family of three. California is home to 20 percent of the nation’s homeless population and has the highest rate of homeless families in the country, according to data from the 2014 US Housing and Urban Development, which prepares an annual report to Congress on homelessness.

Nationwide, in January 2014, there were more than 216,000 people in families experiencing homelessness, including more than 194,000 homeless children and youth. While year-to-year changes in family homelessness have been uneven since 2010, the number of homeless adults has declined by 21 percent while the number of homeless people in families has declined by 11 percent (or 25,690 people).

Effect on children

Homelessness has particularly damaging effects on children. According to a fact sheet provided by the American Psychological Association,¹ nearly 1 million homeless children were enrolled in public schools during the 2009-2010 school year, a 38 percent increase from the 2006-2007 academic year.

The APA cites a series of adverse effects for children who experience homelessness including disruptions in schooling and decreased academic achievement, increased likelihood of grade repetition, suspension or identification of a learning disability. Homeless children are twice as likely to experience hunger as their non-homeless peers, which has negative effects on the physical, social, emotional and cognitive development of children. One-quarter of homeless children have witnessed violence, 22 percent have been separated from their families, half of homeless children experience problems with depression and anxiety and one in five homeless preschoolers have emotional problems that require professional care.

CalWORKs

One of California’s most essential anti-poverty strategies is the CalWORKs program, which provided cash assistance to approximately 540,000 families in 2014, including more than 1 million children. Federal funding for CalWORKs comes from the TANF block grant. A grant to a family of three in a high-cost California county in 2015 is $704 per month, or approximately 42 percent of the federal poverty level (FPL). In 1989, a similar grant was worth about 81 percent of FPL, and 55 percent in 1997.

Part of the reason for this decline has been a series of changes over the past five years including significant grant cuts, the elimination of a Cost of Living Adjustment, and a major restructuring of the Welfare to Work activities, requirements and time limits. Adults in the program have gone from a 60-month lifetime limit on CalWORKs aid to a 48-month limit, with strict requirements on work participation to remain in the program after 24 months.

Temporary Shelter Assistance

In California each month, county CalWORKs offices receive an average of 4,400 requests for homeless assistance, according to data compiled by the County Welfare Directors Association (CWDA) and Housing California. Despite the state’s economic recovery, the number of homeless families who receive CalWORKs benefits continues to grow substantially: In Los Angeles County, the CalWORKs caseload has risen by 11 percent since July 2006, but homelessness among families on the program increased by 188 percent. Homeless CalWORKs parents say the lack of housing makes it substantially more difficult to find work, as required through the Welfare to Work portion of the CalWORKs program, because they have no address, no place to prepare for work or to ready their children for school.

The CalWORKs temporary shelter assistance program provides $65 per day towards housing for a family of up to four people, plus $15 per day for each additional family member to a maximum of $125 per day for up to 16 consecutive days of shelter in a lifetime. State law provides an exemption for domestic violence, a medically verified physical or mental illness, or a fire or other natural catastrophe.

Housing Support Program

In 2014, the Legislature established a limited Housing Support Program to permit counties to provide housing and related support to CalWORKs recipients for whom homelessness or housing instability was a barrier to employment or child well-being. Initially, 52 counties applied for grants requesting more than $52 million in funding, but the grants were limited to 20 counties and the initial allocation of $20 million. The program’s potential to help families find self-sufficiency, which were highlighted in a joint Senate Human Services and Budget and Fiscal Review hearing in February, have prompted additional budget allocations this year. Currently, 3,800 families are participating in the program.

Related legislation:

AB 264 (Maienschein, 2014) was nearly identical to this bill. It was held in the Senate Appropriations Committee.

AB 1452 (Stone, 2014) would have increased the daily maximum homeless allowance for a family of four from $65 to $75 per day, and increased the maximum daily assistance for larger families from $125 to $135. It was held in the Senate Appropriations Committee

AB 1808 (Committee on Budget, Chapter 75, Statutes of 2006) increased the daily homeless allowance from $40 to $65 and added criteria for eligibility that permitted assistance to avoid eviction.

ARGUMENTS IN OPPOSITION

The Department of Finance writes that it opposes this bill because it would increase General Fund costs by several million dollars annually. “By repealing the requirement that recipient’s homeless assistance be used consecutively, this bill would also be expanding CalWORKs services to the extent recipients utilize additional homeless assistance days that would not otherwise have been available.”

ARGUMENTS IN SUPPORT

The California State Association of Counties disputes the additional costs and argues this bill would “allow homeless families to access temporary shelter assistance when they need it without increasing current costs. Specifically, AB 702 simply deletes the current requirement that the 16 days of housing assistance provided to homeless families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program be used consecutively. AB 702 will allow counties to better target the intermittent cycle of homelessness by increasing flexibility for the receipt of temporary housing assistance – at no additional cost to the state.”

COMMENTS

The need for housing assistance for CalWORKs families is underscored by the emerging successes stories in the Housing Support Program (HSP). However, demand for the HSP substantially exceeds the supply of shelter and is only available in a limited number of counties. Meanwhile, homelessness among this population continues to grow.

According to Western Center on Law and Poverty, a co-sponsor of this bill, “The requirement that the 16 days be consecutive imposes a hardship on families who must interrupt their 16-day stay due to out-of-area job opportunities, childcare obligations or medical-related travel. A family may vacate a hotel or motel because it is unsuitable for children or they have a temporary offer to stay with a friend or family member. The requirement that the 16 days be consecutive also proves a disincentive to find alternative arrangements, seek prospective employment opportunities or tend to health or family obligations during this time period.”

PRIOR VOTES

POSITIONS

Support:

Western Center on Law and Poverty (Sponsor)

California Alternative Payment Program

California Catholic Conference of Bishops

California State Association of Counties

City of San Jose

Coalition of California Welfare Rights Organizations

Courage Campaign

Hunger Advocacy Network

National Association of Social Workers, California Chapter

Santa Clara County Board of Supervisors

Oppose:

Department of Finance

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ASSEMBLY THIRD READING

ATR Bill Id:AB 702

Author:(Maienschein)

As Introduced Ver:February 25, 2015

Majority vote

SUMMARY: Deletes the requirement that the 16 days of temporary shelter assistance provided to homeless families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program be used consecutively.

Specifically, this bill:

1. Allows an eligible CalWORKs recipient to receive temporary shelter assistance for 16 days, which can be used at any time while the recipient is receiving CalWORKs aid and is homeless.

2. Deletes the requirement that a break in the consecutive use of the temporary shelter assistance benefit constitute a permanent exhaustion of the temporary benefit.

3. Replaces the maximum of two periods of 16 consecutive calendar days of temporary shelter assistance for victims of domestic violence, as specified, with a lifetime maximum of 32 calendar days of temporary assistance.

EXISTING LAW:

1. Establishes under federal law the Temporary Assistance for Needy Families (TANF) program to provide aid and welfare-to-work services to eligible families and, in California, provides that TANF funds for welfare-to-work services are administered through the CalWORKs program. (42 United State Code 601 et seq. and Welfare and Institutions Code (WIC) Section 11200 et seq.)

2. Establishes income, asset and real property limits used to determine eligibility for the program, including net income below the Maximum Aid Payment (MAP), based on family size and county of residence, which is around 40% of the Federal Poverty Level. (WIC Sections 11450 and 11150 et seq.)

3. Provides temporary shelter assistance to homeless families receiving CalWORKs for one period of 16 consecutive days, except as specified, and counts a break in the consecutive use of the assistance as permanent exhaustion of the benefit. (WIC Section 11450(f)(2))

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Potentially significant ongoing costs, in the range of $2 million (General Fund (GF)), for increased housing benefits.

2. Unknown, likely minor costs to the Department of Social Services for automation modifications required to track this information.

3. Ongoing, likely minor, state-reimbursable local costs (GF) for county agencies to re-evaluate eligibility for temporary housing assistance payments.

COMMENTS:

CalWORKs: The CalWORKs program provides monthly income assistance and employment-related services aimed at moving children out of poverty and helping families meet basic needs. Federal funding for CalWORKs comes from the Temporary Assistance for Needy Families (TANF) block grant. The average 2015-16 monthly cash grant for a family of three on CalWORKs (one parent and two children) is $506.55, and the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $704. According to recent data from the California Department of Social Services, over 540,000 families rely on CalWORKs, including over one million children. Nearly 80% of the children are under age 12 and almost 40% are under age five.

Maximum grant amounts in high-cost counties of $704 per month for a family of three with no other income means $23.46 per day, per family, or $7.82 per family member, per day to meet basic needs, including rent, clothing, utility bills, food, and anything else a family needs to ensure children can be cared for at home and safely remain with their families. This grant amount puts the annual household income at $8,448 per year, or 42% of poverty. Federal Poverty Guidelines for 2015 show that 100% of poverty for a family of three is $20,090 per year.

Homelessness in California: Point in time data from the Annual Homeless Assessment Report (AHAR) produced by the United States Department of Housing and Urban Development (HUD) reveals that on a single night in January 2014, there were 578,424 homeless people counted in the United States, 216,261 of which were people who were part of homeless families. That same report reveals that 113,952 (nearly 20%) of those homeless people were counted in California, 71,437 of which were unsheltered. It is important to note that this number is for a single night and is neither exhaustive of the number of Californians experiencing homelessness on a daily basis nor the number of Californians who experience homelessness each year.

Homelessness has particularly damaging effects on children. According to the National Center on Family Homelessness, nearly 2.5 million children in the United States will experience homelessness over the course of a year. The AHAR revealed that on that same night in January 2014, 135,701 homeless individuals were children under age 18. The effects of homelessness on children span from hunger and related physical, cognitive and developmental issues to lowered academic achievement and increases in stress, depression, emotional instability and overall poor mental health.

CalWORKs homeless assistance: For purposes of identifying families eligible for CalWORKs homeless assistance, a family is considered homeless if the family lacks a fixed and regular nighttime residence, if the family's primary nighttime residence is a shelter, or if the family is residing in a public or private place that is not an appropriate sleeping place for human beings. Additionally, a family can be considered homeless for CalWORKs purposes if the family has received an eviction notice and the cause of eviction is the result of a verified financial hardship.

Temporary shelter assistance and permanent housing assistance are two types of housing assistance provided to homeless families under the CalWORKs program. Whereas permanent housing assistance can be provided to help secure or maintain permanent housing and help prevent eviction for a family, temporary shelter assistance is provided to homeless families for up to 16 consecutive days. Temporary shelter assistance for a family of up to four people is $65 per day, and $15 is provided for each additional family member. The maximum amount of temporary shelter assistance any family can receive is $125 per day, and the assistance can only be used to pay for housing provided in a commercial establishment, a shelter, or an established rental property. Additionally, CalWORKs recipients must provide proof to the county that they are searching for permanent housing while they are receiving this benefit and proof that the shelter assistance was used to pay for allowable housing. Any break in the use of the assistance, including one night spent with a friend or relative, automatically terminates a family's ability to receive shelter assistance for any days remaining within the 16 consecutive day limit.

The 16 consecutive day limit is a lifetime limit for temporary shelter assistance, provided that a family doesn’t meet criteria for an exception. A family may receive temporary shelter assistance more than once in a lifetime if the family's homelessness is the direct result of domestic violence, a medically verified physical or mental illness, excluding diagnoses that include substance abuse, or a fire or other natural catastrophe beyond the family's control. Still, a family cannot receive the 16 consecutive days of homeless assistance more than once in a 12-month period, and families can only receive shelter assistance for domestic violence twice in a lifetime.

Housing Support Program: Established through the Budget Act of 2014, the CalWORKs Housing Support Program (HSP) is an evidence-based program that allows counties to provide housing and related supports to CalWORKs families that are experiencing homelessness or housing instability that is a barrier to self-sufficiency or child well-being. The HSP was established as a means of expanding the minimal housing assistance that was previously available to homeless families in the CalWORKs program with the understanding that safe, affordable and stable housing is a key element in facilitating family stability and self-sufficiency. Forty-two counties expressed an interest in implementing or expanding an existing housing support program, requesting over $52 million in funding. However, only 20 counties were awarded funds from the $20 million dollar budget amount available for the HSP to be spent by June 30, 2015. Budget conversations are ongoing with respect to whether the state will augment and continue the HSP.

Need for this bill: Despite the positive outcomes reported for families served through the Housing Support Program in 20 counties, 38 counties have had to continue to work within the constraints of the temporary shelter assistance and permanent housing assistance programs. Without additional resources to house and provide wraparound supports to homeless CalWORKs families, and with no indication yet as to whether those counties will be able to access HSP funding in the future, restructuring of the temporary shelter assistance program will remain essential for many families in need. In January 2015, counties throughout California received 2,918 requests for temporary shelter assistance, 259 of which accompanied requests for permanent housing assistance. Of the 3,402 total requests received in January for temporary and/or permanent shelter assistance, 614 were received from new shelter assistance applicants. Six counties received over 80 requests for temporary shelter assistance in January, including 245 in San Bernardino County, 82 in Alameda, and 160 in Sacramento.

According to the author, "Because the temporary housing assistance is only available for 16 consecutive days, a break in assistance inadvertently punishes families who, for one reason or another, have to vacate their temporary lodgings for even one day. Out-of-area travel for job opportunities, childcare obligations or medical related travel can interrupt a 16-day consecutive hotel stay. Sometimes the interruptions in the 16-day consecutive stay come when a family vacates a hotel or motel because it is unsuited for children or they have a temporary offer to stay with a family or friend. Whether or not the family has a choice to stop aid before the 16th day, the rule itself establishes a disincentive to find alternative arrangements, seek prospective opportunities for employment or to tend to pressing health or family obligations during this time period. This bill increases options for our state’s poorest families with children while improving program administration. The purpose of the CalWORKs temporary housing assistance is to enable homeless families with children to stay off of the street and more quickly secure permanent housing. This bill strengthens the ability of the program to achieve that goal."

Analysis Prepared by: Myesha Jackson / HUM. S. / (916) 319-2089 FN: 0000631

Date of Hearing: April 22, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 702

Author:(Maienschein) – As Introduced Ver:February 25, 2015

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY: This bill deletes the requirement that the 16 days of temporary housing assistance provided to homeless families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program be used consecutively. Instead, this bill allows an eligible CalWORKs recipient to receive temporary shelter assistance up to a total of 16 days, which may be used at any time while the recipient is receiving CalWORKs aid and is homeless.

FISCAL EFFECT:

1. Potentially significant ongoing costs, in the range of $2 million (GF), for increased housing benefits. This bill would likely result in additional benefits paid because recipients who would have previously forfeited a portion of their benefits by interrupting the consecutive 16-day period could see their lifetime benefit increase. However, this may be partially or completely offset by lower benefits paid to recipients who choose to save a portion of their 16-day benefit for future use and either do not subsequently use it or no longer qualify.

2. Unknown, likely minor costs to the Department of Social Services for automation modifications required to track this information.

3. Ongoing, likely minor, state-reimbursable local costs (General Fund) for county agencies to re-evaluate temporary housing assistance applicants each time they apply for the benefit.

COMMENTS:

Purpose. The author contends that because temporary housing assistance is only available for 16 consecutive days, a break in assistance unduly punishes families who vacate their temporary lodgings at any point during the 16 day period. In order to avoid forfeiting the remainder of the one-time benefit, the current rule serves as a disincentive for families to find alternative arrangements, seek prospective opportunities for employment, or tend to other health or family obligations during the 16-day period.

Background. In January 2015, counties throughout California received 2,918 requests for temporary shelter assistance, 259 of which accompanied requests for permanent housing assistance. Of the 3,402 total requests received in January for temporary and/or permanent shelter assistance, 614 were received from new shelter assistance applicants. Six counties received over 80 requests for temporary shelter assistance in January, including 245 in San Bernardino County, 82 in Alameda, and 160 in Sacramento.

CalWORKs temporary shelter assistance is provided to homeless families for up to 16 consecutive days. Temporary shelter assistance for a family of up to four people is $65 per day, plus $15 for each additional family member. The maximum amount of assistance any family can receive is $125 per day, and the assistance can only be used to pay for housing provided in a commercial establishment, a shelter, or an established rental property.

The current 16 consecutive day limit is a lifetime limit for temporary shelter assistance, provided that a family doesn't meet criteria for an exception (domestic violence, a medically verified physical or mental illness, or a fire or other natural catastrophe.) Any break in the use of the assistance, including one night spent with a friend or relative, automatically terminates a family's ability to receive shelter assistance for any days remaining within the 16 consecutive day limit.

Housing Support Program: Established through the Budget Act of 2014, the CalWORKs Housing Support Program (HSP) allows counties to provide housing and related supports to CalWORKs families that are experiencing homelessness or housing instability that is a barrier to self-sufficiency or child well-being. The HSP was established as a means of expanding the minimal housing assistance that was previously available to homeless families in the CalWORKs program with the understanding that safe, affordable and stable housing is a key element in facilitating family stability and self-sufficiency. Forty-two counties expressed an interest in implementing or expanding an existing housing support program, requesting over $52 million in funding. However, only 20 counties were awarded funds from the $20 million dollar budget amount available for the HSP to be spent by June 30, 2015. It is not yet known how this program interacts with temporary shelter assistance, i.e. whether they overlap or meet different needs within the CalWORKs population. Budget conversations are ongoing with respect to whether the state will augment and continue the HSP.

Prior Legislation. AB 246 (Maienschein), 2014, is substantially similar to this bill. It was held on the Senate Appropriations Committee’s Suspense File.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 14, 2015

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Kansen Chu, Chair

ABPCA Bill Id:AB 702

Author:(Maienschein) – As Introduced Ver:February 25, 2015

SUBJECT: CalWORKs: temporary shelter assistance

SUMMARY: Deletes the requirement that the 16 days of temporary shelter assistance provided to homeless families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program be used consecutively.

Specifically, this bill:

1. Allows an eligible CalWORKs recipient to receive temporary shelter assistance for 16 days, which can be used at any time while the recipient is receiving CalWORKs aid and is homeless.

2. Deletes the requirement that a break in the consecutive use of the temporary shelter assistance benefit constitute a permanent exhaustion of the temporary benefit.

3. Replaces the maximum of two periods of 16 consecutive calendar days of temporary shelter assistance for victims of domestic violence, as specified, with a lifetime maximum of 32 calendar days of temporary assistance.

EXISTING LAW:

1. Establishes under federal law the Temporary Assistance for Needy Families (TANF) program to provide aid and welfare-to-work services to eligible families and, in California, provides that TANF funds for welfare-to-work services are administered through the CalWORKs program. (42 U.S.C. 601 et seq., WIC 11200 et seq.)

2. Establishes income, asset and real property limits used to determine eligibility for the program, including net income below the Maximum Aid Payment (MAP), based on family size and county of residence, which is around 40% of the Federal Poverty Level. (WIC 11450, 11150 et seq.)

3. Provides temporary shelter assistance to homeless families receiving CalWORKs for one period of 16 consecutive days, except as specified, and counts a break in the consecutive use of the assistance as permanent exhaustion of the benefit. (WIC 11450(f)(2))

FISCAL EFFECT: Unknown

COMMENTS:

CalWORKs: The California Work Opportunity and Responsibility to Kids (CalWORKs) program provides monthly income assistance and employment-related services aimed at moving children out of poverty and helping families meet basic needs. Federal funding for CalWORKs comes from the Temporary Assistance for Needy Families (TANF) block grant. The average 2015-16 monthly cash grant for a family of three on CalWORKs (one parent and two children) is $506.55. According to recent data from the California Department of Social Services, over 540,000 families rely on CalWORKs, including over one million children. Nearly 80% of the children are under age twelve and 40% are under age five.

Average grant amounts of $506.55 per month for a family of three means $16.88 per day, per family, or $5.62 per family member, per day to meet basic needs, including rent, clothing, utility bills, food, and anything else a family needs to ensure children can be cared for at home and safely remain with their families. This grant amount puts the annual household income at $6,078 per year. Federal Poverty Guidelines for 2015 show that 100% of poverty for a family of three is over three times that at $20,090 per year.

Homelessness in California: Point in time data from the Annual Homeless Assessment Report (AHAR) produced by the US Department of Housing and Urban Development (HUD) reveals that on a single night in January 2014, there were 578,424 homeless people counted in the United States, 216,261 of which were people who were part of homeless families. That same report reveals that 113,952 (nearly 20%) of those homeless people were counted in California, 71,437 of which were unsheltered. It is important to note that this number is for a single night and is neither exhaustive of the number of Californians experiencing homelessness on a daily basis nor the number of Californians who experience homelessness each year.

Homelessness has particularly damaging effects on children. According to the National Center on Family Homelessness, nearly 2.5 million children in the US will experience homelessness over the course of a year. The AHAR revealed that on that same night in January 2014, 135,701 homeless individuals were children under age 18. The effects of homelessness on children span from hunger and related physical, cognitive and developmental issues to lowered academic achievement and increases in stress, depression, emotional instability and overall poor mental health.

CalWORKs homeless assistance: For purposes of identifying families eligible for CalWORKs homeless assistance, a family is considered homeless if the family lacks a fixed and regular nighttime residence, if the family's primary nighttime residence is a shelter, or if the family is residing in a public or private place that is not an appropriate sleeping place for human beings. Additionally, a family can be considered homeless for CalWORKs purposes if the family has received an eviction notice and the cause of eviction is the result of a verified financial hardship.

Temporary shelter assistance and permanent housing assistance are two types of housing assistance provided to homeless families under the CalWORKs program. Whereas permanent housing assistance can be provided to help secure or maintain permanent housing and help prevent eviction for a family, temporary shelter assistance is provided to homeless families for up to 16 consecutive days. Temporary shelter assistance for a family of up to four people is $65 per day, and $15 is provided for each additional family member. The maximum amount of temporary shelter assistance any family can receive is $125 per day, and the assistance can only be used to pay for housing provided in a commercial establishment, a shelter, or an established rental property. Additionally, CalWORKs recipients must provide proof to the county that they are searching for permanent housing while they are receiving this benefit and proof that the shelter assistance was used to pay for allowable housing. Any break in the use of the assistance, including one night spent with a friend or relative, automatically terminates a family's ability to receive shelter assistance for any days remaining within the 16 consecutive day limit.

The 16 consecutive day limit is a lifetime limit for temporary shelter assistance, provided that a family doesn’t meet criteria for an exception. A family may receive temporary shelter assistance more than once in a lifetime if the family’s homelessness is the direct result of domestic violence, a medically verified physical or mental illness, excluding diagnoses that include substance abuse, or a fire or other natural catastrophe beyond the family’s control. Still, a family cannot receive the 16 consecutive days of homeless assistance more than once in a 12-month period, and families can only receive shelter assistance for domestic violence twice in a lifetime.

Housing Support Program: Established through the Budget Act of 2014, the CalWORKs Housing Support Program (HSP) is an evidence-based program that allows counties to provide housing and related supports to CalWORKs families that are experiencing homelessness or housing instability that is a barrier to self-sufficiency or child well-being. The HSP was established as a means of expanding the minimal housing assistance that was previously available to homeless families in the CalWORKs program with the understanding that safe, affordable and stable housing is a key element in facilitating family stability and self-sufficiency. Forty-two counties expressed an interest in implementing or expanding an existing housing support program, requesting over $52 million in funding. However, only 20 counties were awarded funds from the $20 million dollar budget amount available for the HSP to be spent by June 30, 2015. Budget conversations are ongoing with respect to whether the state will augment and continue the HSP.

Need for this bill: Despite the positive outcomes reported for families served through the Housing Support Program in 20 counties, 38 counties have had to continue to work within the constraints of the temporary shelter assistance and permanent housing assistance programs. Without additional resources to house and provide wraparound supports to homeless CalWORKs families, and with no indication yet as to whether those counties will be able to access HSP funding in the future, restructuring of the temporary shelter assistance program will remain essential for many families in need. In January 2015, counties throughout California received 2,918 requests for temporary shelter assistance, 259 of which accompanied requests for permanent housing assistance. Of the 3,402 total requests received in January for temporary and/or permanent shelter assistance, 614 were received from new shelter assistance applicants. Six counties received over 80 requests for temporary shelter assistance in January, including 245 in San Bernardino County, 82 in Alameda, and 160 in Sacramento.

According to the author, “Because the temporary housing assistance is only available for 16 consecutive days, a break in assistance inadvertently punishes families who, for one reason or another, have to vacate their temporary lodgings for even one day. Out-of-area travel for job opportunities, childcare obligations or medical related travel can interrupt a 16-day consecutive hotel stay. Sometimes the interruptions in the 16-day consecutive stay come when a family vacates a hotel or motel because it is unsuited for children or they have a temporary offer to stay with a family or friend. Whether or not the family has a choice to stop aid before the 16th day, the rule itself establishes a disincentive to find alternative arrangements, seek prospective opportunities for employment or to tend to pressing health or family obligations during this time period. This bill increases options for our state’s poorest families with children while improving program administration. The purpose of the CalWORKs temporary housing assistance is to enable homeless families with children to stay off of the street and more quickly secure permanent housing. This bill strengthens the ability of the program to achieve that goal.”

REGISTERED SUPPORT / OPPOSITION:

Support

Western Center on Law and Poverty (sponsor)

Alameda County Community Food Bank

California Alternative Payment Program Association (CAPPA)

California Association of Food Banks

California Catholic Conference of Bishops

California Communities United Institute

California State Association of Counties (CSAC)

Community Food and Justice Coalition

Courage Campaign

Housing California

National Association of Social Workers, CA Chapter (NASW-CA)

San Diego Hunger Coalition

Opposition

None on file.

Analysis Prepared by: Myesha Jackson / HUM. S. / (916) 319-2089