Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education located throughout the state.

This bill would establish the Emergency Student Housing Loan Program, commencing with the 201920 academic year, at 3 campuses of the California State University, contingent upon the enactment of an appropriation of state funds for this purpose. This bill would define homeless and homelessness homeless, homelessness, and rapid rehousing for the purposes of this article. Under the program, the 3 participating campuses of the university, as designated by the trustees, would establish an Emergency Student Housing Loan Program pursuant to which the participating campus would design a program enabling students at their campus who are experiencing an individual housing emergency, as specified, to receive a loan to pay for their housing that would either be short term, up to 3 months, or medium term, from 3 months to a maximum of 24 months. for up to 12 months. The bill would establish eligibility requirements and priorities for the selection of participating students.

The bill would require the trustees to submit a report, including specified information about the program, to the appropriate policy and fiscal committees of the Legislature no later than June 30, 2022.

This bill would make these provisions inoperative on July 1, 2022, and would repeal them as of January 1, 2023.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education located throughout the state.

This bill would establish the Emergency Student Housing Loan Program, commencing with the 201920 academic year, at 3 campuses of the California State University, contingent upon the enactment of an appropriation of state funds for this purpose. This bill would define homeless and homelessness for the purposes of this article. Under the program, the 3 participating campuses of the university, as designated by the trustees, would establish an Emergency Student Housing Loan Program pursuant to which the participating campus would design a program enabling students at their campus who are experiencing an individual housing emergency, as specified, to receive a loan to pay for their housing for no less than one semester, and no more than 2 semesters. that would either be short term, up to 3 months, or medium term, from 3 months to a maximum of 24 months. The bill would establish eligibility requirements and priorities for the selection of participating students.

The bill would require the trustees to submit a report, including specified information about the program, to the appropriate policy and fiscal committees of the Legislature no later than June 30, 2022.

This bill would make these provisions inoperative on July 1, 2022, and would repeal them as of January 1, 2023.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. The California State University comprises 23 institutions of higher education located throughout the state.

This bill would establish the Emergency Student Housing Loan Program, commencing with the 201920 academic year, at 3 campuses of the California State University, contingent upon the enactment of an appropriation of state funds for this purpose. Under the program, the 3 participating campuses of the university, as designated by the trustees, would establish an Emergency Student Housing Loan Program pursuant to which the participating campus would design a program enabling students at their campus who are experiencing an individual housing emergency, as specified, to receive a loan to pay for their housing for no less than one semester, and no more than 2 semesters. The bill would establish eligibility requirements and priorities for the selection of participating students.

The bill would require the trustees to submit a report, including specified information about the program, to the appropriate policy and fiscal committees of the Legislature no later than June 30, 2022.

This bill would make these provisions inoperative on July 1, 2022, and would repeal them as of January 1, 2023.

Date of Hearing: May 2, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2784

Author:(Caballero) – As Amended Ver:April 9, 2018

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

SUMMARY: This bill creates a pilot program beginning in the 2019-20 school year and sunsetting on January 1, 2023, at three California State University (CSU) campuses. This program is to provide funding for housing expenses up to 12 months to low-income students experiencing a housing crisis, subject to an appropriation. Campuses will be required to use a “rapid rehousing” approach to assist students in finding housing, after consulting with the U.S. Department of Housing and Urban Development (HUD), and meet monthly with pilot participants. The bill also requires CSU to submit a report to the Legislature.

FISCAL EFFECT:

1. Potential annual General Fund costs in the tens of millions of dollars. Estimate assumes 10% of full-time equivalent students experience a housing crisis at least once a year (as reported by CSU) at three campuses with average full-time enrollment. Estimate also assumes the program pays for between six and 12 months of housing at about $800 per participant per month.
2. One-time General Fund costs to CSU campuses participating in the pilot of about $50,000 total to hire part-time staff to administer the loan program, consult with HUD, and meet with program participants.
3. One-time General Fund cost pressures to the CSU chancellor’s office of between $107,000 to $180,000 to collect data and produce a report.

COMMENTS:

1. Current Law. CSU campuses maintaining student housing are required to give housing priority to current and former foster youth and to current and former homeless youth.
2. Rapid Re-Housing. Rapid re-housing is an intervention model to help families and individuals experiencing homelessness quickly identify permanent housing while connecting to resources to address other needs. Initial research suggests the program reduces homelessness.
3. Financial Aid for CSU Students. CSU students may qualify for federal, state, and institutional aid programs. At the federal level, need-based aid is available for up to six years through Pell Grants, which awards grants of up to $5,600 annually to help students cover tuition and nontuition expenses (such as housing). All students may also apply for federal student loans, which generally have more favorable repayment and loan terms than private loans. At the state level, need-based grants are available for up to four years through the Cal Grant program, which covers full tuition and some nontuition expenses for students. At the institutional level, CSU provides need-based grants for full tuition coverage.
4. UC Grants. The UC provides need-based grants to students for tuition and nontuition costs, including housing.
5. Pilot Forgives Housing Loan. Assistance provided to a student through this pilot program is a loan, which would be forgiven once the student completes any semesters or quarters during which they receive the loan. In cases where a student is unable to complete the semester due to unforeseen circumstances, such as a health issue, the bill allows the campus or the chancellor's office to make a determination to forgive a loan.
6. Cost of Attendance and Access to Aid. Students may not receive grant aid or federal student loans that exceed their institution’s annual “cost of attendance.” (Cost of attendance includes tuition, fees, housing, food, and other costs to attend college.) The CSU calculates its cost of attendance by adjusting a 2011 cost-of-attendance survey annually by inflation. (Prior to 2011, the California Student Aid Commission conducted annual surveys of the costs to attend postsecondary institutions.) Costs of attendance in California have risen more quickly than inflation, especially with regard to housing. Therefore, the CSU’s cost-of-attendance calculation likely is lower than the actual cost of attendance, especially in areas of the state with exceptionally high housing costs.

According to the author, the proposal provides a loan instead of a grant because providing a grant could lower the students’ ability to access financial aid. This is because CSU’s cost of attendance calculation is lower than the actual cost of attendance for students, and were the CSU to provide a grant for housing, it would appear the CSU student had less need when applying for additional aid or loans—therefore potentially lowering their ability to access aid.

1. Student Expenses and Resources Survey (SEARS). Prior to the 2006-07 fiscal year, the California Student Aid Commission (CSAC) conducted a survey known as SEARS to determine cost of attendance for all of California’s postsecondary institutions. CSAC intends to begin administering the survey again in the early months of 2018, with cost-of-attendance data available to students applying to college in fall 2018.
2. Staff Comments. This bill does not include an appropriation for its purpose and presumably would require funding in the Budget Act or another statute for implementation.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: April 17, 2018

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 2784 (

Author:Caballero) – As Amended Ver:April 9, 2018

SUBJECT: California State University: Emergency Student Housing Loan Program

SUMMARY: Establishes a program to provide loans for housing expenses to students experiencing homelessness at three California State University (CSU) campuses, subject to an appropriation for this purpose. Specifically, this bill:

1. Requires the CSU trustees, commencing in 2019-20 and contingent on a state appropriation, to designate three CSU campuses to establish an Emergency Student Housing Loan Program, which will provide loans for up to 12 months to students experiencing a housing crisis in order to pay for the students' housing during that time.
2. Requires participating campuses to assist students using a "rapid rehousing" approach, which is defined as a process to offer students immediate, temporary assistance to help the student return to permanent housing. The assistance may include housing search assistance, one-time assistance for move-in costs, ongoing financial assistance to bridge the gap between family income and housing cost, and other supportive services or linkages to community resources to help the student realize housing stability.
3. Requires a campus, in order to be eligible for selection to participate in the program, to first consult with the U.S. Department of Housing and Urban Development regarding its Continuum of Care Program.
4. Requires the campus to pay the housing costs to an entity constituting an identified housing solution for a student participating in the program. In this context, a housing solution would not include a homeless shelter or a hotel in general, but could include a residential hotel.
5. Stipulates that a CSU student qualifies to participate in the program if the student is currently enrolled at a participating campus and is able to demonstrate that they are undergoing an individual housing emergency.
6. Establishes a priority for participating in the program for a student eligible to receive a federal Pell Grant who has one of the following housing emergencies, in priority order:
   1. Currently experiencing homelessness.
   2. Experiencing a loss of housing due to natural disaster at the student's place of residence while enrolled at a participating campus.
   3. Faces a formal eviction action due to failure of payment, or for other financial reasons.
7. Defines "homeless" individual, for purposes of this act, as any of the following:
   1. Someone lacking fixed, regular, and adequate nighttime residence.
   2. Someone who will imminently lose their primary nighttime residence.
   3. Someone fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions related to violence against the individual or family member.
8. Requires an appropriate campus professional staff member to meet monthly with each participating student.
9. Stipulates that a loan awarded to a participating student shall be forgiven upon the student's completion of any academic semester during which the student receives loan assistance, or at the discretion of the individual campus or the CSU Chancellor's Office.
10. Requires the campus, in the event a loan is not forgiven, to determine the terms of loan repayment.
11. Requires the trustees to report to the Legislature by June 30, 2022, regarding the number of students participating in the program: in total, by campus, and disaggregated by a variety of specified factors.
12. Sunsets all of the above on January 1, 2023.

EXISTING LAW: Requires each CSU campus that maintains student housing to give priority to current and former foster youth and to current and former homeless youth and to also give such priority to student housing facilities that are open during school breaks or on a year-round basis. (Education Code Section 90001.5.)

FISCAL EFFECT: Unknown.

COMMENTS: Background. According to the author, while California has maintained an elaborate portfolio to help low-income students attend college, the state's financial aid programs focus primarily on offsetting tuition and fees, and not on the other costs of attending college. For most students, housing is their largest college expense. Average annual CSU tuition and fees total just over $7,000, while the average annual cost for room and board exceeds $13,000. The author asserts that high housing costs have effectively become a critical impediment to students’ success and timely graduation.

The high cost of living in California has pushed many working individuals and families into homelessness, something college students are increasingly experiencing as well. CSU's recent "Study of Basic Student Needs" (January 2018), found that 10.9% of CSU students experienced homelessness one or more times within the prior 12 months. First-generation African American students face the highest rates of housing insecurity with 18 percent. The report noted that, as affordable housing becomes less available across California, students have little to compete with against high market value rental environments. Students who are housing insecure report higher incidences of physical and mental health issues and are more likely to discontinue their education and drop out of college, leading to a higher risk of becoming chronically homeless.

Purpose. AB 2784 would utilize an existing best practice in the field of homelessness,

Rapid Re-housing, and tailor it to the CSU system through a pilot program to assist students who are homeless or are at risk of becoming homeless. Eligible students at three participating campuses would submit proof of a housing emergency to the appropriate staff on campus. Staff would then identify a housing option for the student, and the campus would help the student pay for that housing option.

Why a Loan? This assistance provided under the pilot program would be a loan to the student, which would be forgiven upon the student completing any semesters or quarters during which they receive loan assistance. The purpose of providing a loan instead of a grant is that providing grant assistance could complicate the recipient student's eligibility for other financial aid. The intent of the program is not to saddle homeless students with any additional loan debt, thus generally the only criterion for loan forgiveness is the completion of a semester or quarter. In cases where a student is unable to complete the semester due to unforeseen circumstances, such as a health issue, the bill allows the campus or the Chancellor's Office to make a determination to forgive a loan.

Rapid Re-housing. To tackle the issue of growing national homelessness, the federal government in 2009 implemented the Homelessness Prevention and Rapid Re-housing Program (HPRP). Rapid re-housing is an intervention model to rapidly connect families and individuals experiencing homelessness to permanent housing while connecting them to resources to address their other needs. Initial research shows the program is effective. According to report by the Urban Institute, under the program, housing placements were high and the rates of return to homelessness were low.

Prior Legislation. Chapter 571/Statutes of 2015, (AB 1228, Gipson), expanded then-existing law to require each CSU campus that maintains student housing to give priority to current and former homeless youth, in addition to current and former foster youth, and to also give such priority to student housing facilities that are open during school breaks on a year-round basis.

REGISTERED SUPPORT / OPPOSITION:

Support

California State Student Association (sponsor)

Housing California

Opposition

None on file.

Analysis Prepared by: Chuck Nicol / HIGHER ED. / (916) 319-3960