Existing law, the Veterans Housing and Homeless Prevention Act of 2014 (the act), provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families. Existing law, the Veterans Housing and Homeless Prevention Bond Act of 2014 (bond act), an initiative measure enacted by the voters as Proposition 41 at the June 3, 2014, primary election, authorized $600 million in bonds to provide multifamily housing to low-income veterans and supportive housing for homeless veterans, through the act.

This bill would require, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, for the purpose of housing veterans, that a percentage of the bond act funds to be used for purposes of the act be reserved for housing for underserved veterans, as defined, defined. The bill would require the percentage of the bond act funds to be determined by the Department of Veterans Affairs, the California Housing Finance Agency, and the Department of Housing and Community Development collectively, as specified.

Existing law, the Veterans Housing and Homeless Prevention Act of 2014, (the act) 2014 (the act), provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families. Existing law, the Veterans Housing and Homeless Prevention Bond Act of 2014 (bond act), an initiative measure enacted by the voters as Proposition 41 at the June 3, 2014, primary election, authorized $600 million in bonds to provide multifamily housing to low-income veterans and supportive housing for homeless veterans, through the Veterans Housing and Homeless Prevention Act of 2014. act.

This bill would require, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, for the purpose of housing veterans, that a percentage of the bond act funds to be used for purposes of the act be reserved for housing for underserved veterans, as defined, the percentage of the bond act funds to be determined by the Department of Veterans Affairs, the California Housing Finance Agency, and the Department of Housing and Community Development collectively, as specified.

Existing law provides various programs and bond issuances to provide housing for veterans, as defined, including law, the Veterans Housing and Homeless Prevention Act of 2014, which (the act) provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families. Existing law, the Veterans Housing and Homeless Prevention Bond Act of 2014 (bond act), an initiative measure enacted by the voters as Proposition 41 at the June 3, 2014, primary election, authorized $600 million in bonds to provide multifamily housing to low-income veterans and supportive housing for homeless veterans, through the Veterans Housing and Homeless Prevention Act of 2014.

This bill would require, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, for the purpose of housing veterans, that a percentage of the state bond act funds to be used in for purposes of the act be reserved for housing for underserved veterans, as defined, the percentage of the state bond act funds to be determined by the Department of Veterans Affairs, as specified.

Existing law provides various programs and bond issuances to provide housing for veterans, as defined, including the Veterans Housing and Homeless Prevention Act of 2014, which provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families.

This bill would require, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2016, 2017, for the purpose of housing veterans, that a percentage of the state funds to be used in the project act be reserved for housing for underserved veterans, as defined, the percentage of the state funds to be determined by the Department of Veterans Affairs in consultation with the appropriate local agencies. Affairs, as specified.

Existing law provides various programs and bond issuances to provide housing for veterans, as defined, including the Veterans Housing and Homeless Prevention Act of 2014, which provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families.

This bill would require, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2016, for the purpose of housing veterans, that a percentage of the units be reserved for female veterans with children state funds to be used in the project be reserved for housing for underserved veterans, as defined, the percentage to be determined by the Department of Veterans Affairs based on the population of veterans in the area and the need of female veterans with children in that area for housing. in consultation with the appropriate local agencies.

Existing law provides various programs and bond issuances to provide housing for veterans, as defined, including the Veterans Housing and Homeless Prevention Act of 2014, which provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families.

This bill would require, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2016, for the purpose of housing veterans, that a percentage of the units be reserved for female veterans with children, the percentage to be determined by the Department of Veterans Affairs based on the population of veterans in the area and the need of female veterans with children in that area for housing.

Date of Hearing: August 3, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 384

Author:(Leyva) – As Amended Ver:June 30, 2016

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

SUMMARY:

This bill requires that a percentage of state bond funds allocated annually for purposes of the Veterans Housing and Homeless Prevention (VHHP) Act of 2014, as determined annually by the California Department of Veterans Affairs (CalVet), the California Department of Housing and Community Development (HCD) and the California Housing Finance Agency (CalHFA), be reserved for housing underserved veterans, defined as those veterans either experiencing or at risk of experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent United States Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or other similar sources CalVet, HCD, and CalHFA deem appropriate..

FISCAL EFFECT:

1. Increased annual costs of approximately $200,000 (Special Fund) to CalVet for two staff to establish the program, annually determine the underserved veteran population, consult with local agencies, and determine the percentage to reserve for the purposes specified.
2. Unknown, probably minor, annual cost (Special Fund) to the Department of Housing and Community Development (HCD) and the California Housing Finance Agency (CalHFA) to revise existing VHHP guidelines.
3. Potential delays in the allocation of VHHP bond revenues for projects that qualify for funding under the current program guidelines. This would occur when there are insufficient applicants to fully allocate reserved funds, in which case the funds would revert back to the Housing for Veterans Fund for other authorized VHHP purposes.

COMMENTS:

1. Background. Current law establishes the VHHP, an initiative measure enacted by the voters as Proposition 41 at the June 3, 2014, authorizing $600 million in bonds for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable multifamily transitional housing, or related facilities for veterans and their families

CalVet, HCD, and CalHFA are required to work collaboratively to carry out the duties and functions of the VHHP. HCD released the first VHHP Program Notice of Funding Availability (NOFA) in February 2015, announcing the availability of approximately $75 million in VHHP funding. In June 2015, the administering departments awarded approximately $63 million to 17 approved projects.

The departments solicited public stakeholder input to identify lessons learned during the first round. In October 2015, in response to that feedback, the departments revised their guidelines. The application window for the second NOFA, which announced a funding availability of $75 million and incorporated the revised guidelines, closed in mid-December 2015. In April 2016, the administering departments awarded approximately $116 million to 28 approved projects. As of June 2016, a total of 31% of VHHP funds have been awarded, with $390,718,638 in funding remaining.

According to CalVet, female veterans make up 10% of all veterans nationwide, and 11% of all veterans in California. There are higher rates of physical and mental health problems (such as Military Sexual Trauma (MST) and substance abuse) among female veterans that can be linked to an overall increase in unemployment and homelessness. Female veterans also experience barriers to receiving and utilizing standard veterans benefits.

1. Purpose. According to the author, the women veteran population in California is the second largest population of women veterans in the nation, behind Texas. The author states, “A recent report by the Government Accountability Office (GAO) found that women veterans identifying themselves as homeless more than doubled, increasing by more than 140% from 2006 to 2010. During the same time frame, there was a 45% increase in homelessness for male veterans for female veterans, especially those who have suffered from military sexual trauma, living in a housing facility that houses mainly men poses serious safety and health risks. Women do not feel comfortable or safe in these facilities. Most (about 60%) of transitional housing facilities do not allow young children. This limitation, combined with the safety risks of living in male dominated facilities, makes finding housing for female veterans with children nearly impossible.

"SB 384 seeks to eliminate some of these barriers by ensuring that funding is available for housing for underserved veterans – allowing construction of facilities that serve this vulnerable population.”

SB 384 is intended to ensure that sufficient funding is set aside each year to address the needs of underserved vulnerable populations of veterans. The author points to the importance of meeting the needs of underserved veterans, but there is nothing under the current VHHP program guidelines that would prevent the administering agencies from awarding funds to projects that serve these subpopulations, including women veterans. Program guidelines already include scoring criteria to prioritize projects that combine housing and supportive services, such as job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation.

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081

Date of Hearing: June 29, 2016

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

SBPCA Bill Id:SB 384

Author:(Leyva) – As Amended Ver:June 21, 2016

SENATE VOTE: 38-0

SUBJECT: Veteran housing: multifamily units: underserved veterans

SUMMARY: Requires that a percentage of state bond funds allocated annually for purposes of the Veterans Housing and Homeless Prevention (VHHP) Act of 2014 be reserved for housing underserved veterans. Specifically, this bill:

1. Requires that, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, for the purpose of housing veterans, a percentage of VHHP funds must be reserved for housing for underserved veterans.
2. Provides that the percentage reserved for underserved veterans shall be determined annually by the California Department of Veterans Affairs (CalVet), the California Department of Housing and Community Development (HCD) and the California Housing Finance Agency (CalHFA), in consultation with the appropriate local agencies, with the first determination to be made on July 1, 2017, and thereafter each year on July 1.
3. Defines “underserved veterans” as those veterans either experiencing or at risk of experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent United States Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or other similar source CalVet, HCD, and CalHFA deem appropriate.
4. Provides that if there are insufficient applications for proposed housing projects for underserved veterans, as specified, the reserved funding shall revert back to the Housing for Veterans Fund and be available for other purposes authorized by the VHHP.

EXISTING LAW:

1. Establishes the VHHP, an initiative measure enacted by the voters as Proposition 41 at the June 3, 2014, primary election, authorizing $600 million in bonds for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable multifamily transitional housing, or related facilities for veterans and their families (Military and Veterans Code Section 998.540, et seq.).
2. Requires CalVet, HCD, and CalHFA to work collaboratively to carry out the duties and functions of the VHHP (Military and Veterans Code Section 987.002).
3. Requires the VHHP to do the following:
   1. Leverage public, private, and nonprofit funding sources.
   2. Prioritize projects that combine housing and supportive services, including but not limited to: job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation.
   3. Ensure that program guidelines and terms provide requirements or scoring criteria to advance applicants that combine permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers that offer housing or services to veterans.

FISCAL EFFECT: According to the Senate Committee on Appropriations:

1. Estimated CalVet costs of approximately $206,000 annually for two PY of staff to establish the program, annually determine the underserved veteran population, consult with local agencies, and determine the percentage to reserve for these purposes (Housing for Veterans Fund).
   
2. Unknown costs to HCD and CalHFA, likely less than $50,000, to revise existing VHHP guidelines (Housing for Veterans Fund).
   
3. Potential delays in the allocation of VHHP bond revenues for projects that qualify for funding under the current program guidelines. This would occur when there are insufficient applicants to fully allocate reserved funds, in which case the funds would revert back to the Housing for Veterans Fund for other authorized VHHP purposes.

COMMENTS:

The VHHP:

AB 639 (Perez), Chapter 727, Statutes of 2013, established the VHHP, an initiative enacted by the voters as Proposition 41 at the June 3, 2014 primary election. The VHHP restructures $600 million of the $900 million in bonds approved by the voters for the CalVet Home Loan Program in 2008 and uses them instead to fund the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable multifamily transitional housing, or related facilities for veterans and their families.

The VHHP tasks CalVet, CalHFA, and HCD with collaboratively administering the program and explicitly restricts the use of bond proceeds to those housing units designated for veterans and their families. The focus of the program is on housing for veterans who are homeless or at risk for homelessness and in need of services such as mental health counseling, substance abuse treatment, job training, and physical therapy to address injuries. HCD released the first VHHP Program Notice of Funding Availability (NOFA) in February 2015, announcing the availability of approximately $75 million in VHHP funding. In June 2015, the administering departments awarded approximately $63 million to 17 approved projects.

The departments solicited public stakeholder input to identify lessons learned during the first round. In October 2015, in response to that feedback, the departments revised their guidelines. The application window for the second NOFA, which announced a funding availability of $75 million and incorporated the revised guidelines, closed in mid-December 2015. In April 2016, the administering departments awarded approximately $116 million to 28 approved projects. As of June 2016, a total of 31% of VHHP funds have been awarded, with $390,718,638 in funding remaining.

Need for the bill: According to the author:

"California is home to over 1.8 million veterans. Women comprise 10% of the state’s veteran population making it the second largest population of women veterans in the nation, behind Texas. By 2030, the population is expected to be 15%.

"Veterans returning home from military service represent an extremely vulnerable population. Many lack a supportive family network when they return home and have physical/psychological injuries related to their service. The US Department of Veterans Affairs estimates that 1 in 5 women have experienced sexual assault or harassment while serving in the military.

"California’s vulnerable veteran population is more likely to face homelessness due to a significant lack of affordable housing, livable wage and access to necessary health care services. A recent report by the Government Accountability Office (GAO) found that women veterans identifying themselves as homeless more than doubled, increasing by more than 140% from 2006 to 2010. During the same time frame, there was a 45% increase in homelessness for male veterans.

"For female veterans, especially those who have suffered from military sexual trauma, living in a housing facility that houses mainly men poses serious safety and health risks. Women do not feel comfortable or safe in these facilities. Most (about 60%) of transitional housing facilities do not allow young children. This limitation, combined with the safety risks of living in male dominated facilities, makes finding housing for female veterans with children nearly impossible.

"SB 384 seeks to eliminate some of these barriers by ensuring that funding is available for housing for underserved veterans – allowing construction of facilities that serve this vulnerable population.

Unique needs of female veterans: According to CalVet, female veterans make up 10% of all veterans nationwide, and 11% of all veterans in California. There are higher rates of physical and mental health problems (such as Military Sexual Trauma (MST) and substance abuse) among female veterans that can be linked to an overall increase in unemployment and homelessness. Female veterans also experience barriers to receiving and utilizing standard veterans benefits.

The 2011 California Women Veteran survey found that a majority of female veterans do not self-identify as veterans, and have a higher rate of underutilizing their veterans benefits or participating in veterans organizations. The survey also found that women veterans were more likely to have children or dependents with them, and were not likely to use the Department of Housing and Urban Development Veterans Affairs Supportive Housing (HUD-VASH) program due to substandard housing conditions and/or a failure to allow dependents.

A 2013 memorandum from the Women's Law Center provides empirical support for sex-segregation in veteran-only housing facilities. It identifies homeless women veterans as a high-risk, special needs group based on their "significant history of multiple traumas" such as MST. Women veterans, especially those who have experienced MST and domestic violence, report feeling safer in a female-only environment. Women veterans with Post-Traumatic Stress Disorder report that "women-centered treatment was the most important factor contributing to their comfort with VA services."

Already allowed under existing law? The author points to the importance of meeting the needs of underserved veterans, but there is nothing under the current VHHP program guidelines that would prevent the administering agencies from awarding funds to projects that serve these subpopulations, including women veterans. Program guidelines already include scoring criteria to prioritize projects that combine housing and supportive services, such as job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation.

While there is no mention of "underserved" populations in the program guidelines, it does address "vulnerable" populations. Section 116 of the guidelines is entitled “Vulnerable Populations Best Practices” and indicates best practices for developers who seek participation in the VHHP. According to the guidelines, "veterans experiencing low income or homelessness are already vulnerable and within this population there are those still more vulnerable than others, such as children, elderly, and/or persons with a history of trauma (e.g. MST, domestic violence)." The guidelines go on to provide best practices for developments that serve these populations.

Definition of "underserved": The bill defines “underserved veterans” as those veterans either experiencing or at risk of experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent United States Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or another similar source CalVet, HCD, and CalHFA deem appropriate. This is a vague definition and provides broad discretion to the agencies to annually set-aside funding for as-yet-unknown veteran subpopulations.

Guideline revision as an option? In October 2015, in response to public stakeholder feedback, the administering departments revised the VHHP guidelines. If clarity on how to best serve underserved veterans is needed, then revising the guidelines could be an option and would likely involve more input from stakeholders.

Related legislation:

AB 639 (Perez), Chapter 727, Statutes of 2013: Established the VHHP, an initiative enacted by the voters as Proposition 41 at the June 3, 2014 primary election.

SB 689 (Huff, 2015): Would require state agencies to prioritize projects under the VHHP that, for the purposes of providing mental health and drug services, either: 1) accept only residents that are prequalified to receive services from the US Department of Veterans Affairs (VA), or 2) if they accept residents who receive services from agencies other than the VA, employ on staff or contract for a qualified mental health professional with at least two years’ full-time relevant experience providing services to veterans. This bill died in the Senate Transportation and Housing Committee.

AB 253 (Hernández): Would require state agencies to give a preference to applicants for funding under the VHHP that demonstrate a multiyear commitment of Mental Health Services Act Funding for the applicant’s project funding plan. This bill is currently in the Senate Transportation and Housing Committee.

SB 866 (Roth): Authorizes a housing developer or service provider that receives bond moneys under the VHHP to provide housing or services to veterans and their children in women-only facilities in limited instances, as specified. This bill is awaiting hearing in the Assembly Committee on Veterans Affairs.

Double-referred: This bill was also referred to the Committee on Veterans Affairs, where it passed 8-0 on June 14, 2016.

Committee amendments: The Committee may wish to consider the following technical, clarifying amendments:

On page 2, in line 9 after "department" add:

,the California Housing Finance Agency, and the Department of Housing and Community Development collectively and

On page 2, lines 16-17, strike:

,November 2015,

On page 2, line 26, strike 998.44 and add 998.544

On page 2, strike lines 29 through 31 and on page 3, strike lines 1-3 and add:

be made using the most recent determination of underserved veterans made pursuant to subdivision (b).

REGISTERED SUPPORT / OPPOSITION:

Support

American Legion, Department of California

AMVETS, Department of California

California Association of County Veterans Service Officers

California State Commanders Veteran Council

California Women's Law Center

Military Officers Association of America - California Council of Chapters

National Association of Social Workers, California Chapter

Veterans of Foreign Wars - Department of California

Vietnam Veterans of America, California State Council

Opposition

None on file

Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (961) 319-2085

Date of Hearing: June 14, 2016

ASSEMBLY COMMITTEE ON VETERANS AFFAIRS

Jacqui Irwin, Chair

SBPCA Bill Id:SB 384

Author:(Leyva) – As Amended Ver:January 6, 2016

SENATE VOTE: 38-0

SUBJECT: Veteran housing: multifamily units: underserved veterans

SUMMARY: Requires, on or after January 1, 2017, that a percentage of the state funds under the Veterans Housing and Homeless Prevention (VHHP) Program be reserved for underserved veterans. Specifically, this bill:

1. Requires that, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, for the purpose of housing veterans, a percentage of the state funds to be used in the act for purposes of the VHHP shall be reserved for housing for underserved veterans. The percentage reserved shall be determined by the California Department of Veterans Affairs (CalVet) in consultation with the appropriate local agencies.
2. Defines “underserved veterans” as those veterans either experiencing or at risk of experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent United States Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or other similar source the department deems appropriate.
3. Mandates that the department shall, as specified, determine the percentage of funds from the Housing for Veterans Fund established pursuant to Military and Veterans Code Section 998.44 to be reserved annually pursuant to subdivision (a), with the first determination to be made on July 1, 2017, and thereafter each year on July 1.
4. Directs that if there are insufficient applications for proposed housing projects meeting the requirements of subdivision (a), the reserved funding shall revert back to the Housing for Veterans Fund and be available for other purposes authorized by the act.

EXISTING LAW: AB 639 (Perez, 2014) and Proposition 41 (2014) established the VHHP. Military and Veterans Code section 987.002 (c) states that:

The California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs, herein after “departments,” shall work collaboratively pursuant to the memorandum of understanding, as specified in Section 987.006, to carry out the duties and functions of this article.

FISCAL EFFECT:

According to the Senate Appropriations Committee:

1. Estimated CalVet costs of approximately $206,000 annually for two PY of staff to establish the program, annually determine the underserved veteran population, consult with local agencies, and determine the percentage to reserve for these purposes. (Housing for Veterans Fund)
2. Unknown costs to the HCD and the CalHFA, likely less than $50,000, to revise existing VHHP guidelines. (Housing for Veterans Fund)
3. Potential delays in the allocation of VHHP bond revenues for projects that qualify for funding under the current program guidelines. This would occur when there are insufficient applicants to fully allocate reserved funds, in which case the funds would revert back to the Housing for Veterans Fund for other authorized VHHP purposes.

COMMENTS:

Unilateral Determination of Reserve Percentage

Determination of the percentage of funds to be reserved annually is essentially to be done by CalVet alone. This is in contrast to Military and Veterans Code section 987.002 (c) which indicates a Legislative intent that the program be run collaboratively by three state agencies, CalVet, CalHFA, and CalHCD. Instead of a collaboration with CalHFA and HCD, the bill requires CalVet to consult with “appropriate local agencies.”

Unclear Standard for Determining Reserve Percentage

The bill states:

For purposes of this section, “underserved veterans” means those veterans either experiencing or at risk of experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent United States Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or other similar source the department deems appropriate.

Disproportionate rate is not a clear term, nor is it clear what geographic and/or time frame should be considered. CalVet is not required to use the AHAR, but may use any similar source it deems appropriate.

Does the VHHP currently lack the authority to focus on subpopulations and is there evidence that VHHP is not considering the needs of subpopulations?

The current VHHP Program Guidelines have multiple mentions of directing efforts to those homeless veterans most in need and include scoring criteria to prioritise subpopulations. Also, section 116 of the Guidelines is entitled, “Vulnerable Populations Best Practices” and indicates best practices for developers who seek participation in VHHP. The Guidelines have been amended once since VHHP’s inception, could they not be amended again to effectuate the author’s intent?

REGISTERED SUPPORT / OPPOSITION:

Support

American Legion - Department of California

AMVETS - Department of California

California Women’s Law Center

Military Officers Association of America - California Council of Chapters

Veterans of Foreign Wars - Department of California

Vietnam Veterans of American - California State Council

Opposition

None on File

Analysis Prepared by: Jenny Callison / V.A. / (916) 319-3550

 THIRD READING  

Bill No: SB 384

Author:

:

Vote:

SENATE VETERANS AFFAIRS COMMITTEE: 5-0, 4/14/15

AYES: Nielsen, Hueso, Allen, Nguyen, Roth

SENATE TRANS. & HOUSING COMMITTEE: 9-0, 1/12/16

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, McGuire, Mendoza, Roth

NO VOTE RECORDED: Leyva, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 6-0, 1/21/16

AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza

NO VOTE RECORDED: Nielsen

SUBJECT:

SOURCE: Author

DIGEST: This bill requires, on or after January 1, 2017, that a percentage of the state funds under the Veterans Housing and Homeless Prevention (VHHP) Program be reserved for underserved veterans.

ANALYSIS:

Existing law:

1. Provides $600 million in general obligation bonds to fund the VHHP, which is intended to provide multifamily housing to veterans, focusing on those at risk of homelessness or experiencing temporary or chronic homelessness.
2. Requires the California Housing Finance Agency (CalHFA), California Department of Housing and Community Development (HCD), and California Department of Veterans Affairs (CalVet) to establish and implement the VHHP program to fund the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for the target population and their families to provide access and maintain housing stability.
3. Requires the program to do the following:
4. Leverage public, private, and nonprofit funding sources.
5. Prioritize projects that combine housing and supportive services, including but not limited to: job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation.
6. Ensure that program guidelines and terms provide requirements or scoring criteria to advance applicants that combine permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers that offer housing or services to veterans.
7. Defines “supportive housing” as housing occupied by the target population and that is linked to on- or off-site services that assist the resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. The intent is to enable residents to maintain stable lives and places no limit on the length of stay.
8. Defines “transitional housing” and “transitional housing development” as rental housing that operates under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at a predetermined future point in time, but not less than six months.

This bill:

1. Requires a percentage of state funds used in accordance with the VHHP, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, to be reserved for housing for underserved veterans. This percentage shall be determined by CalVet, in consultation with the appropriate local agencies.
2. Defines “underserved veterans” as those experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent U.S. Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or similar source the department deems appropriate.
3. Requires CalVet to determine the percentage of funds to be reserved annually, with the first determination to be made on July 1, 2017 and each year thereafter on July 1. The determination shall be made using the most recent AHAR that includes an assessment of veteran homelessness, or other similar source that the department deems appropriate.
4. Requires, when insufficient applications for proposed housing projects meet the requirements of this bill, the reserved funding to revert back to the Housing for Veterans Fund and be available for other authorized purposes.

Background

According to a federal agency report to the Congress:

• A veteran is 50 percent more likely to be homeless than a nonveteran. Although only eight percent of adults in the United States are veterans, federal surveys suggest that veterans represent up to 16 percent of America’s homeless population.
• According to one major point-in-time survey, on a given night nearly half of homeless veterans were concentrated in just four states: California, Florida, Texas, and New York – even though only 28 percent of all veterans were located in those same four states.

Rates of homelessness among veterans living in poverty are particularly high for veterans identifying as Hispanic/Latino (1:4) or African-American (1:4).

A recent report by the Government Accountability Office found that women veterans identifying themselves as homeless more than doubled, increasing by more than 140% from 2006 to 2010. During the same time frame, there was a 45% increase in homelessness for male veterans.

For female veterans, especially those who have suffered from military sexual trauma, living in a housing facility that houses mainly men poses serious safety and health risks. Women do not feel comfortable or safe in these facilities. Most (about 60%) of transitional housing facilities do not allow young children. This limitation, combined with the safety risks of living in male dominated facilities, makes finding housing for female veterans with children nearly impossible. SB 384 seeks to eliminate some of these barriers by ensuring that funding is available for housing for underserved veterans — allowing construction of facilities that serve this vulnerable population.

Comments

Applicant learning curves. Typically, grant applicants require at least two funding rounds to fully understand a new program’s requirements. In early 2015 the VHHP program’s initial Notice of Funding Availability was released for the first $75 million of bond money. Thirty-two applications were received, requesting approximately $125 million. In June 2015, the administering departments awarded approximately $63 million to 17 approved projects.

The departments solicited public stakeholder input to identify lessons learned during the first round. In October 2015, in response to that feedback, the departments revised their guidelines. The application window for the second round (under the revised guidelines) closed in mid-December, and program administrators are expected to make the awards during the second quarter of 2016.

On January 5, 2016, during a joint Senate oversight hearing reviewing the program’s progress, some developers stated that they have delayed submitting their applications until the third round so as to fully understand all requirements in the current guidelines. Making additional changes to the statute might require additional guideline changes, which could lead to further uncertainty and delays for those seeking funding.

Related/Prior Legislation

SB 689 (Huff, 2015), regarding the Veterans Housing and Homelessness Prevention Act, requires prioritization given to applications for proposed housing projects that would maintain a qualified mental health professional, as defined, on staff or on contract for services. (The bill is currently in the Committee on Senate Transportation and Housing)

AB 253 (Hernandez, 2015) requires state agencies to give a preference to VHHP applicants that demonstrate a multiyear commitment of Mental Health Services Act Funding for the applicant’s project funding plan. (The bill is currently in the Committee on Senate Transportation and Housing.)

AB 639 (J. Pérez, Chapter 727, Statutes of 2013) establishes the Veterans Housing and Homeless Prevention Bond Act of 2014, authorizing issuance of $600 million in general obligation bonds to fund acquisition, construction, rehabilitation, and preservation of multifamily supportive housing, affordable transitional housing, affordable rental housing, and related facilities for veterans and their families, if approved by the voters statewide in June, 2014. (Approved by the voters in June 2014 as Proposition 41.)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• Estimated CalVet costs of approximately $206,000 annually for two PY of staff to establish the program, annually determine the underserved veteran population, consult with local agencies, and determine the percentage to reserve for these purposes. (Housing for Veterans Fund)
• Unknown costs to the HCD and the CalHFA, likely less than $50,000, to revise existing VHHP guidelines. (Housing for Veterans Fund)
• Potential delays in the allocation of VHHP bond revenues for projects that qualify for funding under the current program guidelines. This would occur when there are insufficient applicants to fully allocate reserved funds, in which case the funds would revert back to the Housing for Veterans Fund for other authorized VHHP purposes.

SUPPORT: (Verified 1/22/16)

American Legion - Department of California

AMVETS - Department of California

California Women’s Law Center

Military Officers Association of America - California Council of Chapters

Veterans of Foreign Wars - Department of California

Vietnam Veterans of American - California State Council

OPPOSITION: (Verified 1/22/16)

None received

Prepared by:

1/25/16 16:05:00

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SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 384 (Leyva) - Veteran housing: multifamily units: underserved veterans

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

Bill Summary:

SB 384 would require that a percentage of state bond funds allocated annually for purposes of the Veterans Housing and Homeless Prevention (VHHP) Act of 2014 be reserved for housing underserved veterans. The Department of Veterans Affairs (CalVet) to annually determine the percentage of reserved funds in consultation with appropriate local agencies, beginning July 1, 2017.

Fiscal Impact:

• Estimated CalVet costs of approximately $206,000 annually for two PY of staff to establish the program, annually determine the underserved veteran population, consult with local agencies, and determine the percentage to reserve for these purposes. (Housing for Veterans Fund)
  
• Unknown costs to the Department of Housing and Community Development (HCD) and the California Housing Finance Agency (CalHFA), likely less than $50,000, to revise existing VHHP guidelines. (Housing for Veterans Fund)
  
• Potential delays in the allocation of VHHP bond revenues for projects that qualify for funding under the current program guidelines. This would occur when there are insufficient applicants to fully allocate reserved funds, in which case the funds would revert back to the Housing for Veterans Fund for other authorized VHHP purposes.

Background:

Existing law, the Veterans Housing and Homeless Prevention Bond Act of 2014 (approved by the voters at Proposition 41 in June of 2014), authorizes the issuance of $600 million in general obligation bonds to provide multifamily housing to veterans. The VHHP requires CalHFA, HCD, and CalVet to establish and implement a program that focuses on veterans at risk of homelessness or experiencing temporary or chronic homelessness. The program funds the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability. The VHHP Act specifies that up to five percent of bond funds may be used for administrative purposes.

Existing law requires the administering departments to establish and implement programs that focus on veterans at risk of homelessness or experiencing temporary or chronic homelessness, and do the following:

• Leverage public, private, and nonprofit funding sources.
• Prioritize projects that combine housing and supportive services, as specified.
• Promote public and private partnerships.
• Foster innovative financing opportunities
• Ensure that program guidelines and terms provide requirements or scoring criteria to advance applicants that combine permanent and/or transitional housing with supportive services for veterans, or for partnering with developers or service providers with experience offering housing or services to veterans.

The administering departments must also ensure that at least 50 percent of funds awarded for capital development be used to provide housing to veteran households with extremely low incomes. The VHHP Act provides flexibility for the administering departments to review, adopt, amend, and repeal guidelines or terms related to the program.

HCD adopted initial VHHP program guidelines in February 2015, and has issued two rounds of funding to date.

Proposed Law:

SB 384 would require that a percentage of VHHP funds be reserved each year for housing “underserved veterans.” Specifically, this bill would:

• Define “underserved veterans” as those veterans either experiencing or at risk of experiencing homelessness at a disproportionate rate to their veteran or nonveteran counterparts, as determined by the most recent federal Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness.
• Require a percentage of state funds used for housing veterans in multifamily housing units pursuant to the VHHP to be reserved for housing underserved veterans.
• Require CalVet to determine the percentage of funds to be reserved annually, beginning July 1, 2017, in consultation with appropriate local agencies using the most recently released AHAR, or other similar source CalVet deems appropriate.
• Require reserved funding to revert to the Housing for Veterans Fund if there are insufficient applications for proposed housing projects intended for underserved veterans. The funds would then be made available for other VHHP purposes.

Related Legislation:

AB 639 (Perez), Chap 727/2013, established the VHHP and authorizes the issuance of $600 million in general obligation bonds to be used for housing homeless and low-income veterans, upon approval by the voters.

SB 689 (Huff), which is currently in the Senate Transportation and Housing Committee, requires state agencies to prioritize projects under the VHHP that, for the purposes of providing mental health and drug services, either: 1) accept only residents that are prequalified to receive services from the U.S. Department of Veterans Affairs (VA), or 2) if they accept residents who receive services from agencies other than the VA, employ on staff or contract for a qualified mental health professional with at least two years’ full-time relevant experience providing services to veterans.

AB 253 (Hernandez), which is currently in the Senate Transportation and Housing Committee, requires state agencies to give a preference to applicants for funding under the VHHP that demonstrate a multiyear commitment of Mental Health Services Act Funding for the applicant’s project funding plan.

Staff Comments:

SB 384 is intended to ensure that sufficient funding is set aside each year to address the needs of underserved vulnerable populations of veterans. The bill provides broad discretion to CalVet to determine the amount of funding needed each year, based upon a specified federal report or any similar document it deems appropriate. Staff notes that there does not appear to be provisions of the current VHHP law that would preclude a project specifically designed to assist underserved veterans from receiving an allocation of funding. In addition, the administering entities have not received any applications for such a project in the initial rounds of funding.

CalVet indicates that it would require an additional two positions of staff, at an annual cost of approximately $206,000, to set up the program specific to underserved veterans, conduct annual outreach and coordination to determine the underserved populations, and establish a percentage of reserved funding each year. Current law allows up to five percent of bond revenues to be used for administrative purposes. Staff assumes these new positions could be funded from bond proceeds.

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SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 1/12/2016

SUBJECT:

DIGEST: This bill requires on or after January 1, 2017, that a percentage of the state funds under the Veterans Housing and Homeless Prevention (VHHP) Program be reserved for underserved veterans.

ANALYSIS:

Existing law:

1. Enacts the Veterans Housing and Homeless Prevention Bond Act of 2014 (VHHP or “the Act”), also known as Proposition 41, which authorized the issuance of $600 million in general obligation bonds to provide multifamily housing to veterans pursuant to the VHHP. The VHHP required the California Housing Finance Agency (CalHFA), California Department of Housing and Community Development (HCD), and California Department of Veterans Affairs (CalVet) to establish and implement a program that focuses on veterans at risk of homelessness or experiencing temporary or chronic homelessness. This program will fund the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability.
2. Requires, pursuant to the VHHP, the program to do the following:
3. Leverage public, private, and nonprofit funding sources.
4. Prioritize projects that combine housing and supportive services, including but not limited to: job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation.
5. Ensure that program guidelines and terms provide requirements or scoring criteria to advance applicants that combine permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers that offer housing or services to veterans.
6. Defines “supportive housing” as housing occupied by the target population and that is linked to on- or off-site services that assist the resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. The intent is to enable residents to maintain stable lives and places no limit on the length of stay.
7. Defines “transitional housing” and “transitional housing development” as a rental housing development that operates under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at a predetermined future point in time, but not less than six months.

This bill:

1. Requires a percentage of state funds used in accordance with the VHHP, for all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2017, to be reserved for housing for underserved veterans. This percentage shall be determined by CalVet, in consultation with the appropriate local agencies.
2. Defines “underserved veterans” as those veterans either experiencing homelessness at a disproportionate rate to their veteran or non-veteran counterparts, as determined by the most recent U.S. Department of Housing and Urban Development Annual Homeless Assessment Report (AHAR) that includes an assessment of veteran homelessness, or other similar source the department deems appropriate.
3. Requires CalVet to determine the percentage of funds to be reserved annually, with the first determination to be made on July 1, 2017 and each year thereafter on July 1. The determination shall be made using the most recent AHAR that includes an assessment of veteran homelessness, or other similar source that the department deems appropriate.
4. Requires, when insufficient applications for proposed housing projects meet the requirements of this bill, the reserved funding to revert back to the Housing for Veterans Fund and be available for other purposes authorized by the Act.

COMMENTS:

1. Purpose of the bill. According to the author, California’s vulnerable veteran population is more likely to face homelessness due to a significant lack of affordable housing, livable wages, and access to necessary health care services. A recent report by the Government Accountability Office (GAO) found that women veterans identifying themselves as homeless more than doubled, increasing by more than 140% from 2006 to 2010. During the same time frame, there was a 45% increase in homelessness for male veterans.

For female veterans, especially those who have suffered from military sexual trauma, living in a housing facility that houses mainly men poses serious safety and health risks. Women do not feel comfortable or safe in these facilities. Most (about 60%) of transitional housing facilities do not allow young children. This limitation, combined with the safety risks of living in male dominated facilities, makes finding housing for female veterans with children nearly impossible. SB 384 seeks to eliminate some of these barriers by ensuring that funding is available for housing for underserved veterans — allowing construction of facilities that serve this vulnerable population.

1. Targeting funding to underserved homeless veteran populations. The intent of this bill is to require funding to meet the needs of underserved populations of homeless veterans, including female veterans, children, and others that may have special needs. While the bill requires the departments to reserve money for projects that serve underserved populations, the departments have no control over those projects that apply for funding. For this reason, if the departments receive insufficient applications for funding to meet the requirements of this bill, any reserved funding shall revert back to the Housing for Veterans Fund and be available for other purposes authorized by the Act.

The intent of the VHHP program is to serve homeless veterans and in particular, the chronically homeless. The legislation is written broadly to include all homeless veterans, including underserved populations such as women and children. Arguably, there is nothing in the legislation that precludes the departments from funding projects that serve underserved populations. The author argues, however, that this legislation will ensure, to the extent possible, that state funds will be specifically reserved to meet the special needs of underserved populations, if such projects apply.

1. Too soon? The VHHP program recently received applications for the second round of funding and likely will not make the awards until the second quarter of this year. This second round of funding followed a public process of receiving input from stakeholders on experience from the first round. Generally, with new programs such as this, it takes applicants a couple of funding rounds to fully understand the requirements that a state agency or agencies puts in place. This program in particular places novel requirements that applicants have not seen or experienced before. On January 5, 2016, during a joint Senate oversight hearing covering the progress of the program, Senators of this committee heard from some stakeholders that they were holding off applying until the third round to fully understand the requirements in the current guidelines. Making changes to the statute will require the departments to make changes to the guidelines and undergo the public review process, which could lead to uncertainty for those seeking funding and further delay the awarding of funding.
2. Double-referral. This bill was heard in Senate Veterans Affairs Committee on April 14, 2015 and approved 5-0.

Related Legislation:

SB 689 (Huff) — requires state agencies to prioritize projects under the VHHP that, for the purposes of providing mental health and drug services, either: 1) accept only residents that are prequalified to receive services from the U.S. Department of Veterans Affairs (VA), or 2) if they accept residents who receive services from agencies other than the VA, employ on staff or contract for a qualified mental health professional with at least two years’ full-time relevant experience providing services to veterans. This bill is currently in this Committee.

AB 253 (Hernandez) — requires state agencies to give a preference to applicants for funding under the VHHP that demonstrate a multiyear commitment of Mental Health Services Act Funding for the applicant’s project funding plan. This bill is currently in this Committee.

AB 639 (Perez, Chapter 727, Statutes of 2013) — created the VHHP and allows for $600 million in bonds to be used for housing homeless and low-income veterans.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

January 6, 2016.)

SUPPORT:

American Legion — Department of California

AMVETS — Department of California

Military Officers Association of America, California Council of Chapters

VFW — Department of California

Vietnam Veterans of America — California State Council

OPPOSITION:

None received

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SENATE COMMITTEE ON VETERANS AFFAIRS

Senator Jim Nielsen, Chair

2015 - 2016 Regular

Bill No: SB 384 Hearing Date: 4/14/15

Subject: Veteran housing: multifamily units: underserved veterans

DESCRIPTION

Summary:

To help meet the specific housing needs of underserved veterans, this bill sets aside a percentage of any state funds being used to acquire, construct, rehabilitate or preserve multifamily housing units for veterans, in general.

Existing law:

1. Provides for various programs and bond issuances to provide housing for veterans.

2. Includes the Veterans Housing and Homeless Prevention Act of 2014, (VHHP), which provides for the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families.

This bill:

1. For all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2016, for the purpose of housing veterans, a percentage of the state funds to be used shall be reserved to provide housing for underserved veterans.

2. Requires the California Department of Veterans Affairs (CalVet) to determine the functional definition of “underserved veterans” based on the needs of veterans at the time funding is awarded.

3. Requires CalVet, in consultation with the appropriate local agencies, to determine the percentage of housing funds set aside for underserved veterans.
   
   

BACKGROUND

State Housing Programs - General

Housing Programs - General

In most years, about 150,000 houses and apartments are built in California. Most of these housing units are built entirely with private dollars. Some, however, receive financial help from federal, state, or local governments. For example, the state provides local governments, nonprofits, and private developers with low-cost loans to fund a portion of the housing units’ construction costs. Typically, housing built with these funds must be sold or rented to Californians with low incomes. A portion of housing units built with state funds is set aside for homeless Californians. These include homeless shelters, short-term housing, and supportive housing. A January 2013 federal government survey identified 137,000 homeless Californians, including about 15,000 veterans. (Source: LAO Analysis, Proposition 41, June 2014 statewide ballot pamphlet).

Supportive housing is permanent rental housing linked to a range of onsite or offsite support services, including mental and physical health care, drug and alcohol abuse counseling, and job training programs, designed to enable residents to maintain stable lives. There is no limit on length of stay.

Transitional housing is a type of supportive housing used to facilitate the movement of homeless individuals and families to permanent housing. A homeless person may live in a transitional apartment for a specified period of time, while receiving supportive services that enable independent living. These are buildings configured and operated as rental housing developments, but are operated under program requirements that call for the termination of assistance and recirculation of the housing unit to another eligible program participant at some predetermined future point in time – which shall be no less than six months and often capped at two years. The intent is to provide extended shelter and supportive services for homeless individuals and/or families with the goal of helping them live independently and transition into permanent housing.

A relatively recent innovation in serving homeless populations, “Housing First” provides an alternative to progressive systems based on the emergency shelter/transitional housing model. Rather than moving homeless individuals or households through different "levels" of housing and eventually to "independent housing," the Housing First approach immediately moves the homeless from the streets or shelters into their own apartments.

Veterans’ nontraditional housing needs

According to a federal agency report to the Congress:

• A veteran is 50 percent more likely to be homeless than a non-veteran. Although only eight percent of adults in the United States are veterans, federal surveys suggest that veterans represent up to 16 percent of America’s homeless population.

• Rates of homelessness among veterans living in poverty are particularly high for veterans identifying as Hispanic/Latino (1:4) or African-American (1:4).

• Two groups of homeless veterans – women and people between ages 18 and 30 – are small in number. However, female veterans and young veterans are at high risk of becoming homeless, and both groups are growing within the overall veteran population.

• According to major point-in-time survey, nearly half of homeless veterans on a given night were located in four states: California, Florida, Texas, and New York. Only 28 percent of all veterans were located in those same four states.

(Source: “Veteran Homelessness: A Supplemental Report to the 2009 Annual Homeless Assessment Report to Congress,” U.S. Dept of Housing and Urban Development/U.S. Department of Veterans Affairs.)

In reviewing AB 639 (J. Pérez, 2013), the Assembly Committee on Housing and Development observed:

Despite California's high number of homeless veterans, the state does not have any programs that are directly targeted at serving this population, or at serving lower-income veterans who are at risk of homelessness. HCD offers various programs that support the development of multifamily rental housing for low income Californians, including supportive and transitional housing, but none are veteran-specific.

AB 639 (J. Pérez, 2013) became Proposition 41 on the June 2014 statewide ballot and received voter approval. In enacting the VHHP, the measure authorizes issuance of $600 million in general obligation bonds to fund the acquisition, construction, rehabilitation, and preservation of multifamily supportive housing, affordable transitional housing, affordable rental housing, and related facilities for veterans and their families.

The law requires CalVet, the Department of Housing and Community Development (HCD), and California Housing Finance Agency (CHFA) to jointly design the program, which then will be implemented by HCD. Affordable housing developers then partner with veterans service providers to build affordable housing dwellings, including supportive housing, which will provide housing and services to veterans who are homeless or who have extremely low income to assist the veterans to achieve housing stability and improve self-sufficiency. In February 2015, HCD adopted its initial program guidelines and issued a notice of funds available.

Per the Legislative Analyst, Proposition 41 provides:

• Housing for Low-Income Veterans:

• Funds construction, renovation, and acquisition of affordable multifamily housing, such as apartment complexes.

• Provides local governments, nonprofit organizations, and private developers with financial assistance, such as low-interest loans, to fund part of a project’s costs.

• Housing built with these funds would be rented to low-income veterans and their families –those who earn less than 80 percent of average family income, as adjusted by family size and county. (For example, the average statewide amount for a single person to be considered low-income for this program is about $38,000. State law requires these units to be affordable, meaning rent payments made by veterans cannot exceed 30 percent of the income limit for the program.)

• Housing for Homeless Veterans:

• Gives funding priority to projects that would house homeless veterans and veterans who are at risk of becoming homeless.

• In particular, at least one-half of the funds would be used to construct housing for extremely low-income veterans. These veterans earn less than 30 percent of the amount earned by the average family in the county where they live. (The average statewide amount for a single person to be considered extremely low-income is about $14,000.) A portion of the funding for extremely low-income veterans would be used to build supportive housing for homeless veterans.

Federal Housing Assistance/Supportive Services for Veterans

The U.S. Department of Housing and Urban Development (HUD) partners with the U.S. Department of Veterans Affairs’ (USDVA) Supportive Housing Program to manage the HUD-VASH program, which serves the most vulnerable veterans, and provides special services for women veterans, those recently returning from combat zones, and veterans with disabilities.

As of September 30, 2013, HUD had allocated more than 58,000 Housing Choice vouchers across the country, which allows veterans and their families to live in market-rate rental housing, while receiving USDVA-provided case management for clinical and supportive services. A housing subsidy is paid to the landlord directly by the local public housing authority on behalf of the participating veteran. The veteran then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.

COMMENT

1. Committee Staff Comments:

1. This bill adds §980.7 to the Military and Veterans Code (MVC) and would apply to “all multifamily housing units acquired, constructed, rehabilitated, or preserved on or after January 1, 2016, for the purpose of housing veterans.” The scope of this proposed language would include, but likely extend beyond the VHHP Act enacted via Proposition 41 (2014).

2. The Prop 41 program is still in its infancy. In mid-February 2015, HCD adopted implementing regulations, including the application process and selection criteria. Shortly thereafter, HCD published a Notice of Funding Availability announcing that $75 million was available for applications to be filed by April 27, 2015.

3. Although Proposition 41 and the HCD regulations address the needs of low-income and homeless veterans, neither mentions “underserved veterans” nor provides any language helpful to program analysts in determining which demographic cohorts of veterans may be underserved.

4. Suggested Amendments for Consideration

1. Per the author’s office, the intent is that CalVet and local agencies collaborate in identifying the inadequately met needs of discrete populations of “underserved veterans” as they vary by community. The author might consider amending subdivision (b) of the proposed MVC §980.7 to make it consistent with the collaboration requirement contained in subdivision (a):

(b) For purposes of this section, “underserved veterans” shall have the meaning determined by the department, in consultation with the appropriate local agencies, based on the needs of veterans at the time funding is awarded.

2. In addition, the term “underserved” should be defined more functionally so that it includes one or more criteria, which may be applied by CalVet and local agencies in analyzing a given community’s veteran demographics and the unique, unmet housing needs of local veterans.

2. Related Legislation

SB 689 (Huff, pending Senate Vet Affairs, 2015): Regarding the Veterans Housing and Homelessness Prevention Act, this bill requires prioritization given to applications for proposed housing projects that would maintain a qualified mental health professional, as defined, on staff or on contract for services.

AB 639 (J. Pérez, Ch. 727, Stats. 2013): Establishes the Veterans Housing and Homeless Prevention Bond Act of 2014, which authorizes issuance of $600 million in general obligation (GO) bonds to fund the acquisition, construction, rehabilitation, and preservation of multifamily supportive housing, affordable transitional housing, affordable rental housing, and related facilities for veterans and their families, if approved by the voters at the June, 2014, statewide election. (As Proposition 41, the measure was approved by the voters 65.4% to 34.6%.)

POSITIONS

Sponsor: Author

Support:

American Legion - Department of CA

AMVETS - Department of CA

CA Association of County Veterans Service Officers (CACVSO)

CA State Commanders Veteran Council

Military Officers Association of America - CA Council of Chapters

Veterans of Foreign Wars - Department of CA

Vietnam Veterans of American - CA State Council

Oppose: None on file

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