Under existing law, several state agencies have prescribed responsibilities relating to homeless persons. Existing law requires the Department of Housing and Community Development to administer the California Emergency Solutions Grants Program and make grants under the program to qualifying recipients to implement activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible.

This bill would establish the New Beginnings California Program in the Department of Community Services and Development and create the New Beginnings California Account for the purpose of providing matching grant funding to cities and local continuum of care programs to implement, expand, or continue employment programs for homeless individuals, as specified. The bill would define city for purposes of the bill to include a city, county, or a city and county. The bill would require qualifying employment programs to, among other things, connect program participants with employment and pay them an hourly wage that is at or above minimum wage. The bill would direct the department to apportion funds in the account, upon appropriation, to cities and local continuum of care programs with eligible employment programs, not to exceed $50,000 annually per city or continuum of care program. The bill would authorize a maximum of 50 grants to be awarded annually and would require cities and local continuum of care programs to match any funds received from the program, as specified. The bill would be operative only to the extent that funding is provided in the annual Budget Act for the purposes of the bill.

Under existing law, several state agencies have prescribed responsibilities relating to homeless persons. Existing law requires the Department of Housing and Community Development to administer the California Emergency Solutions Grants Program and make grants under the program to qualifying recipients to implement activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible.

This bill would establish the New Beginnings California Program in the Department of Community Services and Development and create the New Beginnings California Account for the purpose of providing matching grant funding to cities and local continuum of care programs to implement, expand, or continue employment programs for homeless individuals, as specified. The bill would define city for purposes of the bill to include a city, county, or a city and county. The bill would require qualifying employment programs to, among other things, connect program participants with employment and pay them an hourly wage that is at or above minimum wage. The bill would direct the department to apportion funds in the account, upon appropriation, to cities and local continuum of care programs with eligible employment programs, not to exceed $50,000 annually per city or continuum of care program. The bill would authorize a maximum of 50 grants to be awarded annually and would require cities and local continuum of care programs to match any funds received from the program, as specified. The bill would be operative only to the extent that funding is provided in the annual Budget Act for the purposes of the bill.

Under existing law, several state agencies have prescribed responsibilities relating to homeless persons. Existing law requires the Department of Housing and Community Development to administer the California Emergency Solutions Grants Program and make grants under the program to qualifying recipients to implement activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible.

This bill would establish the New Beginnings California Program in the Department of Community Services and Development and create the New Beginnings California Account for the purpose of providing matching grant funding to cities and local continuum of care programs to implement, expand, or continue employment programs for formerly homeless individuals, as specified. The bill would define city for purposes of the bill to include a city, county, or a city and county. The bill would require qualifying employment programs to, among other things, connect program participants with employment and pay them an hourly wage that is at or above minimum wage. The bill would appropriate an unspecified sum from the General Fund to the New Beginnings California Account and direct the department to apportion those funds in the account, upon appropriation, to cities and local continuum of care programs with eligible employment programs, not to exceed an unspecified sum. The bill would make funds in the account available without regard to fiscal years until the end of the 202324 fiscal year. $50,000 annually per city or continuum of care program. The bill would require cities and local continuum of care programs to match any funds received from the program, as specified. The bill would require the department to submit a report on the program to the Legislature by no later than January 1, 2022, as specified. The bill would be operative only to the extent that funding is provided in the annual Budget Act for the purposes of the bill.

Under existing law, several state agencies have prescribed responsibilities relating to homeless persons. Existing law requires the Department of Housing and Community Development to administer the California Emergency Solutions Grants Program and make grants under the program to qualifying recipients to implement activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible.

This bill would establish the New Beginnings California Program in the Department of Community Services and Development and create the New Beginnings California Account for the purpose of providing grant funding to cities and local continuum of care programs to implement, expand, or continue employment programs for formerly homeless individuals, as specified. The bill would define city for purposes of the bill to include a city, county, or a city and county. The bill would require qualifying employment programs to, among other things, connect program participants with employment and pay them an hourly wage that is at or above minimum wage. The bill would appropriate an unspecified sum from the General Fund to the New Beginnings California Account and direct the department to apportion those funds to cities and local continuum of care programs with eligible employment programs, not to exceed an unspecified sum. The bill would make funds in the account available without regard to fiscal years until the end of the 202324 fiscal year. The bill would require cities and local continuum of care programs to match any funds received from the program, as specified. The bill would require the department to submit a report on the program to the Legislature by no later than January 1, 2022, as specified.

Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports. Existing law requires the department to contract with regional centers to provide these services and supports. Existing law requires a contract between the department and a regional center to be presented for final negotiation to the regional centers governing board at least 90 days prior to the effective date of that contract.

This bill would make technical, nonsubstantive changes to these provisions.

GOVERNOR'S VETO

GV Bill Id:AB 3085

Author:(Calderon)

As Enrolled Ver:September 5, 2018

2/3 vote

Original Committee Reference: H. & C.D.

SUMMARY: Establishes the New Beginnings California Program (Program) to provide for a maximum of 50 matching funds to cities or local continuum of care (CoC) programs to implement, expand, or continue employment programs for homeless individuals. Specifically, this bill:

1. Establishes the Program in the Department of Community Services and Development (CSD) to allocate grants up to $50,000 to city or CoC to implement, expand, or continue employment programs for homeless individuals.
2. Provides that a city or CoC eligible to receive grants from the Program if its homeless employment programs meets all of the following requirements:
3. Connects individuals living in supportive housing with work opportunities. Employment offered through a program may be with the city, a contracted service provider, or a private entity that chooses to participate in the employment program;
4. Program participants are paid an hourly wage that is at or above minimum wage;
5. Connects program participants with shelter and other local services; and
6. Assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as feasible.
7. Authorizes a city or a CoC to contract with a service provider to implement a homeless employment program if the program meets the requirements of 2).
8. Requires a city or CoC to match a grant funded from the Program and allows the match to come from another grant or a charitable contribution.
9. Defines a "city" as a city, county, or city and county.
10. Defines "supportive housing" to mean housing for homeless individuals and families with no limit on length of stay, that is linked to onsite or offsite services that assist the supportive housing 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.
11. Makes the Program operative only to the extent that funding is available in the annual Budget Act for purposes of the Program.

The Senate amendments authorize a maximum of 50 grants annually.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Unknown General Fund (GF) costs to fund the matching grants. The bill caps the grant amount at $50,000. If 50 cities each receive $50,000 in matching grant funds, the program would require a $2.5 million GF appropriation.
2. Estimated costs to CDS of approximately $688,000 (GF) in the first year and annual ongoing costs of $592,000 (GF) to implement and maintain a new grant program, assuming CDS provides matching grants to 40 to 50 cities and counties. These costs include $100,000 onetime information technology (IT) costs as well as personnel and operating expenses necessary to establish the grant program, identify grant recipients, and provide ongoing program support, monitoring, and reporting.

COMMENTS:

Background: California is facing a homelessness crisis. Our state is home to 25% of our nation's homeless population, 42% of our nation's chronically homeless, and 38% of the nation's unaccompanied homeless youth population. On average on any given night, 134,278 people experience homelessness in our state—the vast majority of whom are unsheltered (68%). Already home to the largest homeless population in the country, from 2016 to 2017 California experienced the largest increase in the number of residents experiencing homelessness – over 16,000 individuals.^[1] Virtually every community in the state has been impacted. San Diego and Los Angeles have experienced deadly Hepatitis A outbreaks and the American River has been contaminated with E. coli. Wildfires across the state have exacerbated homelessness.

Housing First approach: Housing First is an evidence-based housing model that centers on providing people experiencing homelessness with housing as quickly as possible and then providing services as needed. A core component of Housing First includes a tenant screening process that promotes accepting applicants regardless of their sobriety or use of substances, completion of treatment, or participation in services. This model recognizes that an individual experiencing homelessness should be provided shelter and stability before underlying issues can be successfully tackled. The Housing First model is contrasted with a model known as “housing readiness,” which is exhibited in some transitional housing models. This model requires homeless people to earn their way into transitional housing and make progress on certain goals; when they are deemed well enough, they can earn their spot in permanent housing. The federal government, through the leadership of the US ICH and HUD, has successfully integrated the Housing First approach into programs at the federal level.

Since adopting that model, chronic homelessness decreased by 27% from 2010-2016. In 2015, California embraced a Housing First model. SB 1380 (Mitchell), Chapter 847, Statues of 2016, requires all state agencies or departments that operate programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

Status of California's homelessness efforts: The state has a variety of programs to address homelessness operated by multiple agencies and departments, including the Veterans Housing and Homeless Prevention Program, the CalWorks Housing Program, the Mental Health Services Act, the and Multifamily Housing Program with Supportive Services. In 2016 the Legislature passed No Place Like Home, creating $2 billion in new funding for construction of supportive housing units. No Place Like Home required the court validate the program and will likely not be available until sometime in 2019. On the November 2018 ballot, voters will consider approving a $4 billion bond to fund affordable housing that includes $1.5 billion for affordable housing developments. SB 2 (Atkins), Chapter 364, Statutes of 2017, will generate ongoing funding for affordable housing, including funding in the first year to address homelessness.

Additionally, in 2016, the state created the Homeless Coordinating and Financing Council (SB 1380 (Mitchell), Chapter 847) to better coordinate the state's response to homelessness, oversee implementation of Housing First regulations in all state housing and homelessness programs, and identify resources, benefits, and services for preventing and ending homelessness. The Council is made up of all state departments and agencies that provide housing or housing-based services to people experiencing homelessness or at risk of homelessness.

GOVERNOR'S VETO MESSAGE:

This bill would establish a new grant program at the Department of Community Services and Development to fund local employment programs for homeless individuals.

This year's budget includes approximately $5 billion in funding related to housing and homelessness including $500 million to local governments. Additional funding through a new homelessness grant program should be contemplated in next year's budget process.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0005372

1. Meghan Henry et al., “The 2017 Annual Homeless Assessment Report (AHAR) to Congress” (U.S. Department of Housing and Urban Development, December 2017). ↑

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 3085

Author:(Calderon)

As Amended Ver:August 17, 2018

Majority vote

Original Committee Reference: H. & C.D.

SUMMARY: Establishes the New Beginnings California Program (Program) to provide for a maximum of 50 matching funds to cities or local continuum of care (CoC) programs to implement, expand, or continue employment programs for homeless individuals. Specifically, this bill:

1. Establishes the Program in the Department of Community Services and Development (CSD) to allocate grants up to $50,000 to city or CoC to implement, expand, or continue employment programs for homeless individuals.
2. Provides that a city or CoC eligible to receive grants from the Program if its homeless employment programs meets all of the following requirements:
3. Connects individuals living in supportive housing with work opportunities. Employment offered through a program may be with the city, a contracted service provider, or a private entity that chooses to participate in the employment program;
4. Program participants are paid an hourly wage that is at or above minimum wage;
5. Connects program participants with shelter and other local services; and
6. Assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as feasible.
7. Authorizes a city or a CoC to contract with a service provider to implement a homeless employment program if the program meets the requirements of 2).
8. Requires a city or CoC to match a grant funded from the Program and allows the match to come from another grant or a charitable contribution.
9. Defines a "city" as a city, county, or city and county.
10. Defines "supportive housing" to mean housing for homeless individuals and families with no limit on length of stay, that is linked to onsite or offsite services that assist the supportive housing 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.
11. Makes the Program operative only to the extent that funding is available in the annual Budget Act for purposes of the Program.

The Senate amendments authorize a maximum of 50 grants annually.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Unknown General Fund (GF) costs to fund the matching grants. The bill caps the grant amount at $50,000. If 50 cities each receive $50,000 in matching grant funds, the program would require a $2.5 million GF appropriation.
2. Estimated costs to CDS of approximately $688,000 (GF) in the first year and annual ongoing costs of $592,000 (GF) to implement and maintain a new grant program, assuming CDS provides matching grants to 40 to 50 cities and counties. These costs include $100,000 onetime IT costs as well as personnel and operating expenses necessary to establish the grant program, identify grant recipients, and provide ongoing program support, monitoring, and reporting.

COMMENTS:

Background: California is facing a homelessness crisis. Our state is home to 25% of our nation's homeless population, 42% of our nation's chronically homeless, and 38% of the nation's unaccompanied homeless youth population. On average on any given night, 134,278 people experience homelessness in our state—the vast majority of whom are unsheltered (68%). Already home to the largest homeless population in the country, from 2016 to 2017 California experienced the largest increase in the number of residents experiencing homelessness – over 16,000 individuals.^[1] Virtually every community in the state has been impacted. San Diego and Los Angeles have experienced deadly Hepatitis A outbreaks and the American River has been contaminated with E. coli. Wildfires across the state have exacerbated homelessness.

Housing First approach: Housing First is an evidence-based housing model that centers on providing people experiencing homelessness with housing as quickly as possible and then providing services as needed. A core component of Housing First includes a tenant screening process that promotes accepting applicants regardless of their sobriety or use of substances, completion of treatment, or participation in services. This model recognizes that an individual experiencing homelessness should be provided shelter and stability before underlying issues can be successfully tackled. The Housing First model is contrasted with a model known as “housing readiness,” which is exhibited in some transitional housing models. This model requires homeless people to earn their way into transitional housing and make progress on certain goals; when they are deemed well enough, they can earn their spot in permanent housing. The federal government, through the leadership of the US ICH and HUD, has successfully integrated the Housing First approach into programs at the federal level.

Since adopting that model, chronic homelessness decreased by 27% from 2010-2016. In 2015, California embraced a Housing First model. SB 1380 (Mitchell), Chapter 847 requires all state agencies or departments that operate programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

Status of California's homelessness efforts: The state has a variety of programs to address homelessness operated by multiple agencies and departments, including the Veterans Housing and Homeless Prevention Program, the CalWorks Housing Program, the Mental Health Services Act, the and Multifamily Housing Program with Supportive Services. In 2016 the Legislature passed No Place Like Home, creating $2 billion in new funding for construction of supportive housing units. No Place Like Home required the court validate the program and will likely not be available until sometime in 2019. On the November 2018 ballot, voters will consider approving a $4 billion bond to fund affordable housing that includes $1.5 billion for affordable housing developments. SB 2 (Atkins), Statutes of 2017, Chapter 364, will generate ongoing funding for affordable housing, including funding in the first year to address homelessness.

Additionally, in 2016, the state created the Homeless Coordinating and Financing Council (SB 1380 (Mitchell), Chapter 847, Statues of 2016) to better coordinate the state's response to homelessness, oversee implementation of Housing First regulations in all state housing and homelessness programs, and identify resources, benefits, and services for preventing and ending homelessness. The Council is made up of all state departments and agencies that provide housing or housing-based services to people experiencing homelessness or at risk of homelessness.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0004568

1. Meghan Henry et al., “The 2017 Annual Homeless Assessment Report (AHAR) to Congress” (U.S. Department of Housing and Urban Development, December 2017). ↑

 THIRD READING  

Bill No: AB 3085

Author:

:

Vote:

SENATE HUMAN SERVICES COMMITTEE: 6-0, 6/26/18

AYES: Wiener, Glazer, Leyva, McGuire, Nguyen, Portantino

NO VOTE RECORDED: Berryhill

SENATE APPROPRIATIONS COMMITTEE: 5-1, 8/16/18

AYES: Portantino, Beall, Bradford, Hill, Wiener

NOES: Nielsen

NO VOTE RECORDED: Bates

ASSEMBLY FLOOR: 55-22, 5/30/18 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill establishes the New Beginnings California Program, within the Department of Community Services and Development (CSD), to provide a maximum of 50 grants, to be awarded annually, to cities or local continuums of care (CoC) programs that provide matching funds to implement, expand, or continue employment programs for homeless individuals.

ANALYSIS:

Existing law:

1. Establishes the United States Interagency Council on Homelessness to coordinate a federal response to homelessness and create a national partnership at every level of government and with the private sector to end homelessness. (42 USC § 11311)
2. Defines, in federal statute, the word “homeless” for the purpose of housing assistance, to mean an individual or family who lacks a fixed, regular, and adequate nighttime residence, as provided. (42 CFR 91.5)
3. Defines “Housing First” to mean the evidence-based model that uses housing as a tool, rather than a reward, for recovery and that centers on providing or connecting homeless people to permanent housing as quickly as possible. Housing First providers offer services as needed and requested on a voluntary basis and that do not make housing contingent on participation in services. It includes time-limited rental or services assistance, so long as the housing and service provider assists the recipient in accessing permanent housing and in securing longer-term rental assistance, income assistance, or employment. (WIC 8255(d))
4. Defines “supportive housing” as housing with no limit on length of stay, that is occupied by a target population, as defined, and that is linked to onsite or offsite services that assist the supportive housing 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. (HSC 50675.15(b)(2))
5. States legislative findings and declarations about homelessness, the housing shortfall and other related issues including: The Legislature finds and declares that there exist within the urban and rural areas of the state a significant number of persons without decent, safe, and sanitary housing. This shortage is inimical to the health, safety, and welfare of the residents of this state and the sound growth of its communities. Without the assistance contemplated in this division, it is not financially feasible for private enterprise and private investors to provide decent, safe, and sanitary emergency housing for persons who are homeless. (HSC 50003.3)
6. Creates the Homeless Coordinating and Financing Council (Council). (WIC 8255 et seq.)
7. Establishes the California Emergency Solutions Grants Program, administered by the Department of Housing and Community Development (HCD), to fund activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible. (HSC 50899.1 et seq.)

This bill:

1. Makes a series of legislative findings and declarations regarding homelessness.
2. Establishes the New Beginnings California Program, in the CSD, for the purpose of providing matching funds of up to $50,000 annually to cities or local CoC programs to implement, expand, or continue employment programs for homeless individuals.
3. Provides that a maximum of 50 New Beginnings California Program grants annually may be awarded to cities or local CoC programs.
4. Provides that a city or local CoC with a homeless employment program that meets all of the specified requirements, or a city or local CoC that contracts with a service provider to implement a homeless employment program, shall be eligible for grant funding if its homeless employment program meets the following requirements:
   1. The program connects individuals living in supportive housing with work opportunities, which may be offered through programing with the city, a contract service provider, or a private entity that chooses to participate in the employment program;
   2. Program participants are paid an hourly wage that is at or above the minimum wage; and
   3. The program assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as is feasible.
5. Defines “city,” for the purposes of this bill, as meaning a city, county, or a city and county.
6. Requires grant funds awarded pursuant to this bill be matched by the recipient city or CoC, allows these matching funds to be provided by charitable contributions or other grant funding.
7. Establishes in the State Treasury the New Beginnings California Account, and provides that upon appropriation, moneys in the account shall be apportioned by CSD to cities and CoCs with employment programs, as provided, in an amount not to exceed $50,000 annually per a city or CoC.

Background

Homelessness in California. According to the Annual Homeless Assessment Report produced by the U.S. Department of Housing and Urban Development on a single night in 2017, there were 134,278 homeless people in California. Of those, 91,642 were unsheltered. According to this report, California has the nation’s largest homeless population -- 25 percent of the nation’s total. Additionally, California accounted for nearly half, 49 percent, of all unsheltered people in the country in 2017.^[1]

The health, personal, and economic challenges that chronically homeless individuals and families face and the lack of effective, coordinated services to address these problems often lead to a cycle of housing instability and health deterioration. Health conditions of those experiencing long-term homelessness often prevent housing stability, while persistent homelessness impedes access to needed health and employment services. Consequently, people who are chronically homeless cycle through costly emergency-driven public systems – emergency shelters, emergency rooms, detoxification centers, criminal justice facilities – without getting the ongoing care they need to address severe mental illness, substance abuse disorders, or chronic health conditions.

Housing First. Housing First approaches homelessness by providing permanent, affordable housing for families and individuals, and then providing supportive services in order to help people avoid returning to homelessness. Housing First is premised on the idea that housing should not be denied to anyone, even if they are abusing alcohol or other substances. Under Housing First, supportive services are offered to maximize housing stability and prevent returns to homelessness as opposed to addressing predetermined treatment goals prior to providing housing.

In 2016, SB 1830 (Mitchell, Chapter 847, Statues of 2016) required California adopt the Housing First model. SB 1830 required all state agencies or departments that fund, implement, or administer state programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

Housing and Homeless Programs. There are number of state agencies involved in providing housing assistance, serving the homeless, preventing homelessness, and financing the development of affordable housing. In addition, the federal government has its own programs and programs requirements. For a brief description of some of these state agencies and their programs see the Senate Committee on Human Services analysis of this bill.

As a result of SB 1830 (Mitchell, Chapter 847, Statues of 2016), state programs that did not already incorporate the core components of Housing First were required to revise or adopt guidelines and regulations that incorporate the core components of Housing First. Furthermore, programs created after the enactment of SB 1830, such as this bill, are required to adopt guidelines and regulations that incorporate the core components of Housing First.

Employment Programs for Homeless Individuals. Research completed by the California Research Bureau found that there are approximately 16 cities throughout California that have implemented employment programs for homeless individuals. These cities are: Anaheim; Bakersfield; Berkeley; Glendale; Hayward; Moreno Valley; Novato; Palo Alto; Riverside; Sacramento; San Francisco; San Jose; San Rafael; Santa Cruz; Sunnyvale; Visalia; and West Sacramento.

These programs begin in California in 2005, when the Downtown Streets Team began providing work opportunities for homeless individuals in Palo Alto. This particular program does not provide cash payments to participants, but instead offers stipends in the form of gift cards and vouchers for food, clothing and transportation. Downtown Streets Team reports that since beginning in 2005, they have 730 graduates that have been placed in employment for 90 days or more, and that they have helped 567 participants obtain housing.

Each of these existing programs has their own particular administrative and funding structure, but they generally seem to rely on collaborations between city governments and social service nonprofits. This bill would provide matching funds of up to $50,000 per a year, per a city or CoC for existing or new employment programs, as long as the program meets the bill’s eligibility criteria, as provided. A maximum of 50 grants annually may be awarded under this program.

Related/Prior Legislation

SB 918 (Wiener and Assemblymember Rubio, 2018) enacts the Homeless Youth Act of 2018 to provide for the establishment of a state Office of Homeless Youth and to offer grants to providers of housing and services for youth experiencing homelessness. The bill is on the Assembly Floor.

SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2018) provides for over $600 million in funding to various projects aimed at reducing homelessness. As well as move the Council from the HCD to the Business, Consumer Services, and Housing Agency, among other changes.

AB 97 (Ting, Chapter 14, Statutes of 2017) provided $10 million for homeless youth emergency service projects to be administered by OES and required funded grants to establish or expand programs to assess the housing and service needs of homeless youth, as specified.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, the May 25, 2018 version of this bill presents the following costs:

• Ongoing, significant costs of up to $2.5 million per year for grant funding. If all 50 grants are awarded annually at $50,000 per grant, the state would distribute $2.5 million in grant funding. (General Fund [GF])
• Significant ongoing costs to CSD of approximately $590,000 annually for additional personnel and operating expenses to establish the grant program, identify grant recipients, and to maintain and oversee the grant program. (GF)
• One-time costs to CSD of $100,000 for developing and implementing an information technology solution to support grantee reporting of program activity and outcomes. (GF)

SUPPORT: (Verified 8/17/18)

California Coalition for Youth

City of Los Angeles

Monterey County Board of Supervisors

National Association of Social Workers

Orange County United Way

United Way of San Luis Obispo

United Ways of California

OPPOSITION: (Verified 8/17/18)

Department of Finance

ARGUMENTS IN SUPPORT: United Ways of California writes, “cities and counties throughout the state have started pursuing additional strategies to aid those in need, with several implementing programs that provide homeless individuals with work while providing easier access to services. These programs are loosely based on the There’s a Better Way program in the City of Albuquerque, New Mexico, launched in 2015, that connects homeless individuals with work and has been widely lauded as a success. At least 16 California cities have introduced similar homeless employment programs. The particular administrative and funding structures of these programs differ, but they generally rest on collaborations between city governments and social service nonprofits.

The innovative partnerships that AB 3085 will support would create opportunities for dignity and jobs that pay at least minimum wage for populations that are often forgotten or deeply disenfranchised. For many individuals experiencing homelessness there is a notable disconnect from the services they need to survive and programs that build self-sufficiency. The establishment of a day work program as AB 3085 envisions creates another tool that local communities, including public and private partners, can use to connect those experiencing homelessness to services and housing. United Way’s across California work tirelessly to engage on the issue of housing and employment and knows the powerful effect that a day’s wages and a trusted community resources can have on an individual, a family, and a community.

ARGUMENTS IN OPPOSITION: The Department of Finance is opposed to the May 25, 2018 version of this bill because, “it creates an annual General Fund cost pressure of at least $590,000, and likely in the low millions of dollars annually. Also, this bill does not leverage existing administrative resources that are used to oversee employment services to homeless individuals. For example, the Employment Development Department operates the Youth Employment Opportunity Program, which assists youth, including homeless youth, in achieving their employment goals through supportive services. Providing additional funding to existing state programs targeting employment among homeless individuals may be a more cost-effective approach.

Additionally, the 2018 Budget Act already contains approximately $5 billion related to affordable housing and homelessness across multiple departments and programs, including $500 million to assist local governments in their immediate efforts to address homelessness, $255 million from a fee on real estate transactions, and $277 million from a $4 billion general obligation bond, contingent upon voter approval in November 2018. The 2018 Budget Act also anticipates placing the $2 billion No Place Like Home bond on the November ballot to accelerate the delivery of housing projects to serve individuals with mental illness.”

ASSEMBLY FLOOR: 55-22, 5/30/18

AYES: Acosta, Arambula, Berman, Bloom, Bonta, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chiu, Chu, Cooley, Cooper, Daly, Eggman, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Waldron, Weber, Wood, Rendon

NOES: Travis Allen, Baker, Bigelow, Brough, Chávez, Chen, Choi, Cunningham, Dahle, Flora, Fong, Gallagher, Harper, Kiley, Lackey, Mathis, Mayes, Melendez, Obernolte, Patterson, Steinorth, Voepel

NO VOTE RECORDED: Aguiar-Curry

Prepared by:

8/20/18 9:55:44

**** END ****

1. The 2017 Annual Homeless Assessment Report to Congress, The U.S. Department of Housing and Urban Development (December 2017) < https://www.hudexchange.info/resources/documents/2017-AHAR-Part-1.pdf> (as of June 19, 2018). ↑

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 3085 (Calderon) - New Beginnings California Program

Bill Summary:

AB 3085 would establish the New Beginnings California Program, with the Department of Community Services Development (CSD), to provide matching funds to cities or local continuum of care (CoC) programs to implement, expand, or continue employment programs for homeless individuals.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on August 16, 2018

Fiscal Impact:

• Ongoing, significant costs of up to $2.5 million per year for grant funding. If all 50 grants are awarded annually at $50,000 per grant, the state would distribute $2.5 million in grant funding. (GF)
• Significant ongoing costs to CSD of approximately $590,000 annually for additional personnel and operating expenses to establish the grant program, identify grant recipients, and to maintain and oversee the grant program. (GF)
• One-time costs to CSD of $100,000 for developing and implementing an IT solution to support grantee reporting of program activity and outcomes. (GF)

Committee Amendments:

Establish a limit of 50 total grants annually awarded for cities or local CoC programs.

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 3085 (Calderon) - New Beginnings California Program

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

Bill Summary:

AB 3085 would establish the New Beginnings California Program, with the Department of Community Services Development (CSD), to provide matching funds to cities or local continuum of care (CoC) programs to implement, expand, or continue employment programs for homeless individuals.

Fiscal Impact:

• Unknown, ongoing, significant costs for grant funding. This bill does not specify the total number of grants to be awarded nor the total value of funds that will be appropriated to establish and fund the program. Assuming 50 grants awarded annually at $50,000 per grant, the state would distribute $2.5 million in grant funding. The actual costs could be higher or lower depending on the number of grants awarded and the amount appropriated for funding grants. (GF)
• Significant ongoing costs to CSD of approximately $590,000 annually for additional personnel and operating expenses to establish the grant program, identify grant recipients, and to maintain and oversee the grant program. (GF)
• One-time costs to CSD of $100,000 for developing and implementing an IT solution to support grantee reporting of program activity and outcomes. (GF)

Background:

According to the Annual Homeless Assessment Report produced by the U.S. Department of Housing and Urban Development on a single night in 2017, there were 134,278 homeless people in California; of those, 91,642 were unsheltered. According to this report, California has the nation’s largest homeless population – 25% of the nation’s total.

The Housing First model approaches homelessness by providing permanent, affordable housing for families and individuals, and then providing supportive services in order to help people avoid returning to homelessness. Under Housing First, supportive services are offered to maximize housing stability and prevent returns to homelessness as opposed to addressing predetermined treatment goals prior to providing housing. In 2016, SB 1830 (Mitchell, Chapter 847, Statues of 2016) required California to adopt the Housing First model. SB 1830 required all state agencies or departments that fund, implement, or administer state programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

There are number of state agencies involved in providing housing assistance, serving the homeless, preventing homelessness, and financing the development of affordable housing as well as programs and program requirements from the federal government.

Research completed by the California Research Bureau found that there are approximately 16 cities throughout California that have implemented employment programs for homeless individuals: Anaheim, Bakersfield, Berkeley, Glendale, Hayward, Moreno Valley, Novato, Palo Alto, Riverside, Sacramento, San Francisco, San Jose, San Rafael, Santa Cruz, Sunnyvale, Visalia, and West Sacramento. Each of these existing programs has their own particular administrative and funding structure, but they generally seem to rely on collaborations between city governments and social service nonprofits.

Proposed Law:

This bill would establish the New Beginnings California Program within CSD for the purpose of providing matching funds of up to $50,000 annually to cities or local CoC programs to implement, expand, or continue employment programs for homeless individuals. Specifically, this bill would:

• Provide that a city or local CoC (including ones that contract with a service provider) shall be eligible to receive program grant funding if its homeless employment program connects individuals living in supportive housing with work opportunities, if program participants are paid an hourly wage that is at or above minimum wage, and if it provides individuals who are not yet ready for employment with services and resources that will enable them to be prepared;
• Require that grant funding be matched by the recipient city or CoC program, as specified;
• Establish in the State Treasury the New Beginnings California Account and provide that upon appropriation, moneys in the account shall be apportioned by CSD to cities and local CoC programs, as specified;
• Provide that these provisions are subject to funding being provided by express reference in the annual Budget Act.

Related Legislation:

SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2018) among other things, provided for over $600 million in funding to various projects aimed at reducing homelessness, as well as moved the Council from the HCD to the Business, Consumer Services, and Housing Agency.

SB 918 (Wiener and Assemblymember Rubio, 2018) would enact the Homeless Youth Act of 2018 to provide for the establishment of a state Office of Homeless Youth and to offer grants to providers of housing and services for youth experiencing homelessness. It is pending in the Assembly Appropriations Committee.

SB 1206 (De Leon, 2018) would establish the No Place Like Home Act of 2018, which amends the Mental Health Services Act (MHSA) to, among other things, permit the Legislature to appropriate funds from the Mental Health Services Fund (MHSF), as specified, and provide for voter approval at the November 6, 2018, statewide general election. This bill contains an urgency clause that will make this bill effective upon enactment. This bill is pending in the Assembly Committee on Health.

AB 97 (Ting, Chapter 14, Statutes of 2017) provided $10 million for homeless youth emergency service projects to be administered by Cal OES and required funded grants to establish or expand programs to assess the housing and service needs of homeless youth, as specified.

SB 1380 (Mitchell, Chapter 847, Statues of 2016) established the Council to oversee implementation of the Housing First regulations and, among other things, identify resources, benefits, and services that can be accessed to prevent and end homelessness in California. As well as required state agencies or departments that fund, implement, or administer state housing or housing-related services programs to adopt guidelines and regulations to include Housing First policies.

AB 1618 (Assembly Committee on Budget, Chapter 43, Statutes of 2016) established the No Place Like Home Program to further the development of permanent supportive housing for persons who are in need of mental health services and are homeless, chronically homeless, or at risk of homelessness.

Staff Comments:

Staff notes that there are existing state resources and efforts that address the needs of homeless populations in the state. This bill does not take advantage of these existing resources. For instance, the Employment Development Department already operates the Youth Employment Opportunity Program, which assists youth, including homeless youth, in achieving their employment goals through supportive services. Additionally, the 2018 Budget Act already contains approximately $5 billion related to affordable housing and homelessness across multiple departments and programs, including $500 million to assist local governments in their immediate efforts to address homelessness, $255 million from a fee on real estate transactions, and $277 million from a $4 billion general obligation bond, contingent upon voter approval in November 2018.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Wiener, Chair

2017 - 2018 Regular

Bill No: AB 3085

Subject: New Beginnings California Program

SUMMARY

This bill establishes the New Beginnings California Program, within the Department of Community Services and Development (CSD), to provide matching funds to cities or local continuum of care (CoC) programs to implement, expand, or continue employment programs for homeless individuals.

ABSTRACT

Existing law:

1. Establishes the United States Interagency Council on Homelessness to coordinate a federal response to homelessness and create a national partnership at every level of government and with the private sector to end homelessness. (42 USC § 11311)
2. Defines, in federal statute, the word “homeless” for the purpose of housing assistance, to mean an individual or family who lacks a fixed, regular, and adequate nighttime residence, such as:
   1. A primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground;
   2. A supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); or
   3. Exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution (42 CFR 91.5)
3. Defines “Housing First” to mean the evidence-based model that uses housing as a tool, rather than a reward, for recovery and that centers on providing or connecting homeless people to permanent housing as quickly as possible. Housing First providers offer services as needed and requested on a voluntary basis and that do not make housing contingent on participation in services. It includes time-limited rental or services assistance, so long as the housing and service provider assists the recipient in accessing permanent housing and in securing longer-term rental assistance, income assistance, or employment. (WIC 8255(d))
4. Defines “supportive housing” as housing with no limit on length of stay, that is occupied by a target population, as defined, and that is linked to onsite or offsite services that assist the supportive housing 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. (HSC 50675.15(b)(2))
5. States Legislative findings and declarations about homelessness, the housing shortfall and other related issues including: The Legislature finds and declares that there exists within the urban and rural areas of the state a significant number of persons without decent, safe, and sanitary housing. This shortage is inimical to the health, safety, and welfare of the residents of this state and the sound growth of its communities. Without the assistance contemplated in this division, it is not financially feasible for private enterprise and private investors to provide decent, safe, and sanitary emergency housing for persons who are homeless. (HSC 50003.3)
6. Creates the Homeless Coordinating and Financing Council (Council), with the goals of:
   1. Identifying mainstream resources, benefits, and services that can be assessed to prevent and end homelessness in California;
   2. Creating partnerships among state agencies and departments, local government agencies, participants in the U.S Department of Housing and Urban Development (HUD) CoC Program, federal agencies, the U.S. Interagency Council on Homelessness (US ICH), nonprofit entities working to end homelessness, and the private sector, for purposes of arriving at specific strategies to end homelessness;
   3. Promoting systems integration to increase efficiency and effectiveness;
   4. Coordinating existing funding and applications for competitive funding;
   5. Making policy and procedural recommendations to legislators and other government entities;
   6. Identifying and seeking funding opportunities for state entities that have programs to end homelessness and facilitate and coordinate those state entities’ efforts to obtain funding;
   7. Brokering agreements between state agencies, departments and local jurisdictions to align and coordinate resources, reduce administrative burdens of accessing existing resources, and foster common applications to services, operating, and capital funding;
   8. Serving as a statewide homelessness planning and policy development resource;
   9. Reporting to the Governor, federal Cabinet members, and the Legislature on homelessness and work to reduce homelessness; and
   10. Ensuring accountability and results in meeting the strategies and goals of the council. (WIC 8255 et seq.)
7. Establishes the California Emergency Solutions Grants Program, administered by the Department of Housing and Community Development (HCD), to fund activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible. Permissible uses of funding include:
   1. Engaging homeless individuals and families living on the street;
   2. Operating homeless shelters and providing essential services to shelter residents;
   3. Rapid rehousing programs; and
   4. Prevention efforts for families and individuals at risk of homelessness. (HSC 50899.1 et seq.)

This bill:

1. Makes a series of legislative findings and declarations regarding homelessness.
2. Establishes the New Beginnings California Program, in the CSD, for the purpose of providing matching funds of up to $50,000 annually to cities or local CoC programs to implement, expand, or continue employment programs for homeless individuals.
3. Provides that a city or local CoC with a homeless employment program that meets all of the specified requirements, or a city or local CoC that contracts with a service provider to implement a homeless employment program, shall be eligible for grant funding if its homeless employment program meets the following requirements:
   1. The program connects individuals living in supportive housing with work opportunities, which may be offered through programing with the city, a contract service provider, or a private entity that chooses to participate in the employment program;
   2. Program participants are paid an hourly wage that is at or above the minimum wage; and
   3. The program assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as is feasible.
4. Defines “city,” for the purposes of this bill, as meaning a city, county, or a city and county.
5. Defines “supportive housing” as housing with no limit on length of stay, that is occupied by a target population, as defined, and that is linked to onsite or offsite services that assist the supportive housing 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.
6. Requires grant funds awarded pursuant to this bill be matched by the recipient city or CoC, allows these matching funds to be provided by charitable contributions or other grant funding.
7. Establishes in the State Treasury the New Beginnings California Account, and provides that upon appropriation, moneys in the account shall be apportioned by CSD to cities and CoCs with employment programs, as provided, in an amount not to exceed $50,000 annually per a city or CoC.

FISCAL IMPACT

According to the Assembly Committee on Appropriations on May 16, 2018, this bill may result in the following costs:

1. Unknown General Fund (GF) costs to fund the matching grants. The bill caps the grant amount at $50,000. If 50 cities each receive $50,000 in matching grant funds, the program would require a $2.5 million GF appropriation.
2. Estimated costs to CDS of approximately $688,000 (GF) in the first year and annual ongoing costs of $592,000 (GF) to implement and maintain a new grant program, assuming CDS provides matching grants to 40 to 50 cities and counties. These costs include $100,000 onetime information technology costs as well as personnel and operating expenses necessary to establish the grant program, identify grant recipients, and provide ongoing program support, monitoring, and reporting.

BACKGROUND AND DISCUSSION

Purpose of the bill:

According to the author, “dozens of city and county governments in California have declared homelessness an emergency. These localities have been pursuing additional and creative strategies to address homelessness in their communities. AB 3085 will incentivize local governments to either pursue a homeless employment program of their own, or expand on an existing one. AB 3085 will build off of the success that these employment programs have found in cities throughout the country, while not taking away from other necessary services and evidence-based models currently utilized to help our homeless population.”

Homelessness in California

According to the Annual Homeless Assessment Report produced by the U.S. Department of Housing and Urban Development on a single night in 2017, there were 134,278 homeless people in California. Of those, 91,642 were unsheltered. According to this report, California has the nation’s largest homeless population -- 25 percent of the nation’s total. Additionally, California accounted for nearly half, 49 percent, of all unsheltered people in the country in 2017.^[1]

The health, personal, and economic challenges that chronically homeless individuals and families face and the lack of effective, coordinated services to address these problems often lead to a cycle of housing instability and health deterioration. Health conditions of those experiencing long-term homelessness often prevent housing stability, while persistent homelessness impedes access to needed health and employment services. Consequently, people who are chronically homeless cycle through costly emergency-driven public systems – emergency shelters, emergency rooms, detoxification centers, criminal justice facilities – without getting the ongoing care they need to address severe mental illness, substance abuse disorders, or chronic health conditions.

Housing First

Housing First approaches homelessness by providing permanent, affordable housing for families and individuals, and then providing supportive services in order to help people avoid returning to homelessness. Housing First is premised on the idea that housing should not be denied to anyone, even if they are abusing alcohol or other substances. Under Housing First, supportive services are offered to maximize housing stability and prevent returns to homelessness as opposed to addressing predetermined treatment goals prior to providing housing.

In 2016, SB 1830 (Mitchell, Chapter 847, Statues of 2016) required California adopt the Housing First model. SB 1830 required all state agencies or departments that fund, implement, or administer state programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

Housing and Homeless Programs

There are number of state agencies involved in providing housing assistance, serving the homeless, preventing homelessness, and financing the development of affordable housing. In addition, the federal government has its own programs and programs requirements. Below is a brief description of some of these state agencies and their programs:

• Homeless Coordinating and Financing Council, established by SB 1830, this Council oversees implementation of Housing First regulations and, among other things, identifies recourses, benefits, and services that can be accessed to prevent and end homelessness in California.
• HCD administers a variety of programs to meet a large range of housing needs, including emergency shelters and transitional housing, affordable rental housing, and affordable homeownership.
• The California Housing Finance Agency is the state’s affordable-housing bank and administers a number of programs that support affordable housing, including issuing tax-exempt revenue bonds and providing down-payment assistance.

• Tax Credit Allocation Committee within the State Treasurer’s Office allocates tax credits to developers of affordable rental housing.
• CalWORKs Housing Support Program is an evidence-based rapid rehousing support program for CalWORKs families that are experiencing homelessness or housing instability. Included in the Program are rental assistance and security costs, caseworker engagement with the clients’ landlord, home finding, credit repair, and financial literacy. This program contains core components of Housing First.

• CalWORKs Homeless Assistance Program offers temporary shelter assistance and permanent housing assistance to homeless families under the CalWORKs program.
• Transitional Housing Program-Plus (THP-Plus) is a transitional housing program for young adults who exited from foster care (including those supervised by probation) on or after their 18th birthday who are not yet 24 years of age.

As a result of SB 1830 (Mitchell, Chapter 847, Statues of 2016), state programs that did not already incorporate the core components of Housing First were required to revise or adopt guidelines and regulations that incorporate the core components of Housing First. Furthermore, programs created after the enactment of SB 1830, such as this bill, are required to adopt guidelines and regulations that incorporate the core components of Housing First.

Employment Programs for Homeless Individuals

Research completed by the California Research Bureau found that there are approximately 16 cities throughout California that have implemented employment programs for homeless individuals. These cities are: Anaheim; Bakersfield; Berkeley; Glendale; Hayward; Moreno Valley; Novato; Palo Alto; Riverside; Sacramento; San Francisco; San Jose; San Rafael; Santa Cruz; Sunnyvale; Visalia; and West Sacramento.

These programs begin in California in 2005, when the Downtown Streets Team began providing work opportunities for homeless individuals in Palo Alto. This particular program does not provide cash payments to participants, but instead offers stipends in the form of gift cards and vouchers for food, clothing and transportation. Downtown Streets Team reports that since beginning in 2005, they have 730 graduates that have been placed in employment for 90 days or more, and that they have helped 567 participants obtain housing.

Each of these existing programs has their own particular administrative and funding structure, but they generally seem to rely on collaborations between city governments and social service nonprofits. This bill would provide matching funds of up to $50,000 per a year, per a city or CoC for existing or new employment programs, as long as the program meets the following requirements:

• Connects individuals living in supportive housing with work opportunities, which may be offered through programing with the city, a contract service provider, or a private entity that chooses to participate in the employment program;
• Pays participants an hourly wage that is at or above the minimum wage; and
• Assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as is feasible.

Related legislation:

SB 850 (Senate Committee on Budget and Fiscal Review, 2018) would provide for over $600 million in funding to various projects aimed at reducing homelessness. As well as move the Council from the HCD to the Business, Consumer Services, and Housing Agency, among other changes. This bill is at the Governor’s desk.

SB 918 (Wiener and Assemblymember Rubio, 2018) would enact the Homeless Youth Act of 2018 to provide for the establishment of a state Office of Homeless Youth and to offer grants to providers of housing and services for youth experiencing homelessness. It is currently scheduled to be heard in the Assembly Human Services Committee on June 26, 2018.

SB 1206 (De Leon, 2018) establishes the No Place Like Home Act of 2018, which amends the Mental Health Services Act (MHSA) to, among other things, permit the Legislature to appropriate funds from the Mental Health Services Fund (MHSF), as specified, and provides for voter approval at the November 6, 2018, statewide general election. This bill contains an urgency clause that will make this bill effective upon enactment. This bill is waiting to be heard in the Assembly Committee on Health.

AB 97 (Ting, Chapter 14, Statutes of 2017) provided $10 million for homeless youth emergency service projects to be administered by OES and required funded grants to establish or expand programs to assess the housing and service needs of homeless youth, as specified.

SB 1380 (Mitchell, Chapter 847, Statues of 2016) established the Council to oversee implementation of the Housing First regulations and, among other things, identify resources, benefits, and services that can be accessed to prevent and end homelessness in California. As well as required state agencies or departments that fund, implement, or administer state housing or housing-related services programs to adopt guidelines and regulations to include Housing First policies.

AB 1618 (Assembly Committee on Budget, Chapter 43, Statutes of 2016) established the No Place Like Home Program to further the development of permanent supportive housing for persons who are in need of mental health services and are homeless, chronically homeless, or at risk of homelessness.

AB 2821 (Chiu, 2016) would have created the Housing for a Healthy California Program to provide rental assistance to individuals who are homeless and receive services from the Whole Person Care pilot program, Health Homes, or another locally controlled funding source. The bill was vetoed by the Governor.

COMMENTS

Beginning in early 2018, the Los Angeles Times ran a series exploring the many sides of Los Angeles County’s homelessness crisis. Their investigation found that homelessness in Los Angeles alone has surged 75 percent in the last six years. This issue has not just been gathering attention in Los Angeles, but rather is seen by many as a statewide issue of critical importance. The needs of this population have been highlighted through numerous pieces of legislation over the course of this legislative session and efforts in past legislative sessions to reduce homelessness and improve the services available.

These efforts cumulated in over $600 million being allocated to programs that reduce homelessness through the 2018-19 state budget (SB 850, Senate Committee on Budget and Fiscal Review, 2018). That funding has been allocated to: the Housing for Healthy California program, the Emergency Solutions and Housing Program; Emergency Aid Block Grants; and provides for specified homelessness projects in Orange County and Merced County.

This bill presents an additional tool for local cities, counties, and CoCs to utilize when working to end homelessness in their local communities.

PRIOR VOTES

POSITIONS

Support:

California Coalition for Youth

Monterey County Board of Supervisors

Orange County United Way

The City of Los Angeles

The National Association of Social Workers

United Way of San Luis Obispo

United Ways of California

Oppose:

None received

-- END --

1. The 2017 Annual Homeless Assessment Report to Congress, The U.S. Department of Housing and Urban Development (December 2017) < https://www.hudexchange.info/resources/documents/2017-AHAR-Part-1.pdf> (as of June 19, 2018). ↑

ASSEMBLY THIRD READING

ATR Bill Id:

Author:(Calderon)

As Amended Ver:May 25, 2018

Majority vote

SUMMARY: Establishes the New Beginnings California Program (Program) to provide matching funds to cities or local continuum of care (CoC) programs to implement, expand, or continue employment programs for homeless individuals. Specifically, this bill:

1. Establishes the Program in the Department of Community Services and Development (CSD) to allocate grants up to $50,000 to city or CoC to implement, expand, or continue employment programs for homeless individuals.
2. Provides that a city or CoC eligible to receive grants from the Program if its homeless employment programs meets all of the following requirements:
3. Connects individuals living in supportive housing with work opportunities. Employment offered through a program may be with the city, a contracted service provider, or a private entity that chooses to participate in the employment program;
4. Program participants are paid an hourly wage that is at or above minimum wage;
5. Connects program participants with shelter and other local services; and
6. Assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as feasible.
7. Authorizes a city or a CoC to contract with a service provider to implement a homeless employment program if the program meets the requirements of 2).
8. Requires a city or CoC to match a grant funded from the Program and allows the match to come from another grant or a charitable contribution.
9. Defines a "city" as a city, county, or city and county.
10. Defines "supportive housing" to mean housing for homeless individuals and families with no limit on length of stay, that is linked to onsite or offsite services that assist the supportive housing 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.
11. Makes the Program operative only to the extent that funding is available in the annual Budget Act for purposes of the Program.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Unknown General Fund (GF) costs to fund the matching grants. The bill caps the grant amount at $50,000. If 50 cities each receive $50,000 in matching grant funds, the program would require a $2.5 million GF appropriation.
2. Estimated costs to CDS of approximately $688,000 (GF) in the first year and annual ongoing costs of $592,000 (GF) to implement and maintain a new grant program, assuming CDS provides matching grants to 40 to 50 cities and counties. These costs include $100,000 onetime information technology (IT) costs as well as personnel and operating expenses necessary to establish the grant program, identify grant recipients, and provide ongoing program support, monitoring, and reporting.

COMMENTS:

Background: California is facing a homelessness crisis. Our state is home to 25% of our nation's homeless population, 42% of our nation's chronically homeless, and 38% of the nation's unaccompanied homeless youth population. On average on any given night, 134,278 people experience homelessness in our state—the vast majority of whom are unsheltered (68%). Already home to the largest homeless population in the country, from 2016 to 2017 California experienced the largest increase in the number of residents experiencing homelessness – over 16,000 individuals. Virtually every community in the state has been impacted. San Diego and Los Angeles have experienced deadly Hepatitis A outbreaks and the American River has been contaminated with E. coli. Wildfires across the state have exacerbated homelessness.

Housing First approach: Housing First is an evidence-based housing model that centers on providing people experiencing homelessness with housing as quickly as possible and then providing services as needed. A core component of Housing First includes a tenant screening process that promotes accepting applicants regardless of their sobriety or use of substances, completion of treatment, or participation in services. This model recognizes that an individual experiencing homelessness should be provided shelter and stability before underlying issues can be successfully tackled. The Housing First model is contrasted with a model known as "housing readiness," which is exhibited in some transitional housing models. This model requires homeless people to earn their way into transitional housing and make progress on certain goals; when they are deemed well enough, they can earn their spot in permanent housing. The federal government, through the leadership of the US ICH and HUD, has successfully integrated the Housing First approach into programs at the federal level.

Since adopting that model, chronic homelessness decreased by 27% from 2010-2016. In 2015, California embraced a Housing First model. SB 1380 (Mitchell) Chapter 847 requires all state agencies or departments that operate programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

Status of California's homelessness efforts: The state has a variety of programs to address homelessness operated by multiple agencies and departments, including the Veterans Housing and Homeless Prevention Program, the CalWorks Housing Program, the Mental Health Services Act, the and Multifamily Housing Program with Supportive Services. In 2016 the Legislature passed No Place Like Home, creating $2 billion in new funding for construction of supportive housing units. No Place Like Home required the court validate the program and will likely not be available until sometime in 2019. On the November 2018 ballot, voters will consider approving a $4 billion bond to fund affordable housing that includes $1.5 billion for affordable housing developments. SB 2 (Atkins, Statutes of 2017, Chapter 364) will generate ongoing funding for affordable housing, including funding in the first year to address homelessness.

Additionally, in 2016, the state created the Homeless Coordinating and Financing Council (SB 1380, Mitchell, Chapter 847, Statues of 2016) to better coordinate the state's response to homelessness, oversee implementation of Housing First regulations in all state housing and homelessness programs, and identify resources, benefits, and services for preventing and ending homelessness. The Council is made up of all state departments and agencies that provide housing or housing-based services to people experiencing homelessness or at risk of homelessness.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0003355

Date of Hearing: May 16, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 3085

Author:(Calderon) – As Amended Ver:May 1, 2018

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

SUMMARY:

This bill establishes the New Beginnings California Program (Program) in the Department of Community Services and Development (CSD) to allocate matching grants to cities, counties, and local continuum of care programs to implement, expand, or continue employment programs for formerly homeless individuals. Specifically, this bill:

1. Provides that a city, county, or local continuum of care is eligible to receive grants from the Program if its homeless employment programs meets specified requirements, including connecting individuals living in supportive housing with work opportunities, paying participants at least minimum wage, and assisting those who are not yet ready for employment with services to help them prepare.
2. Authorizes a grant recipient to contract with a service provider to implement a homeless employment program if the program meets the requirements of 1).
3. Requires a grant recipient to match a grant funded from the Program and allows the match to come from another grant or a charitable contribution.
4. Appropriates an unspecified amount from the General Fund to the New Beginnings California Account and sets an unspecified maximum amount that each local recipient can receive from the Program.
5. Makes funds available for the Program until fiscal year 2023-24.
6. Requires CSD to submit a report to the Legislature on the status of the grant program by January 1, 2022, that includes, at a minimum, information regarding the implementation of the grant program and recommendations for improvements.

FISCAL EFFECT:

1. Unknown GF costs to fund the matching grants. The bill appropriates an unspecified amount and also contains an unspecified cap on the grant amounts. If 50 cities each receive $50,000 in matching grant funds, the program would require a $2.5 million GF appropriation.
2. Estimated costs to CDS of approximately $688,000 (GF) in the first year and annual ongoing costs of $592,000 (GF) to implement and maintain a new grant program, assuming CDS provides matching grants to 40 to 50 cities and counties. These costs include $100,000 onetime IT costs as well as personnel and operating expenses necessary to establish the grant program, identify grant recipients, and provide ongoing program support, monitoring, and reporting.

COMMENTS:

1. Purpose. This bill seeks to provide incentives to cities and counties to aid recently homeless individuals with employment opportunities by providing matching grant funds for appropriate programs.
2. Background. The state has a variety of programs to address homelessness operated by multiple agencies and departments, including the Veterans Housing and Homeless Prevention Program, the CalWorks Housing Program, the Mental Health Services Act, the and Multifamily Housing Program with Supportive Services. In 2016 the Legislature passed No Place Like Home, creating $2 billion in new funding for construction of supportive housing units. No Place Like Home required the court validate the program and will likely not be available until sometime in 2019. On the November 2018 ballot, voters will consider approving a $4 billion bond to fund affordable housing that includes $1.5 billion for affordable housing developments. SB 2 (Atkins, Statutes of 2017, Chapter 364) will generate ongoing funding for affordable housing, including funding in the first year to address homelessness.

Additionally, in 2016, the state created the Homeless Coordinating and Financing Council (SB 1380, Mitchell, Chapter 847, Statues of 2016) to better coordinate the state’s response to homelessness, oversee implementation of Housing First regulations in all state housing and homelessness programs, and identify resources, benefits, and services for preventing and ending homelessness. The council is made up of all state departments and agencies that provide housing or housing-based services to people experiencing homelessness or at risk of homelessness.

SB 1380 also contained California’s Housing First model. Housing First is an evidence-based housing model that centers on providing people experiencing homelessness with housing as quickly as possible and then providing services as needed.  SB 1380 requires all state agencies or departments that operate programs providing housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies. With its most recent amendments, AB 3085 aligns with the Housing First model.

California is home to 25% of the nation's homeless population, 42% of the nation’s chronically homeless, and 38% of the nation's unaccompanied homeless youth population. On average on any given night, 134,278 people experience homelessness in the state—the vast majority of whom are unsheltered (68%). Already home to the largest homeless population in the country, from 2016 to 2017 California experienced the largest increase in the number of residents experiencing homelessness – over 16,000 individuals.

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

Date of Hearing: April 25, 2018

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

ABPCA Bill Id:AB 3085 (

Author:Calderon) – As Amended Ver:March 19, 2018

SUBJECT: Homelessness: New Beginnings California Program

SUMMARY: Establishes the New Beginnings California Program (Program) to provide matching funds to cities to implement, expand, or continue employment programs for homeless individuals. Specifically, this bill:

1. Establishes the Program in the Department of Community Services and Development (CSD) to allocate an unspecified amount of funds to cities to implement, expand, or continue employment programs for homeless individuals.
2. Provides that a city is eligible to receive grants from the Program if its homeless employment programs meets all of the following requirements:
3. Connects homeless individuals with work opportunities. Employment offered through a program may be with the city, a contracted service provider, or a private entity that chooses to participate in the employment program;
4. Program participants are paid an hourly wage that is at or above minimum wage;
5. Connects program participants with shelter and other local services; and
6. Assists individuals who are not yet ready for employment with services and resources that will enable them to be prepared to work as soon as feasible.
7. Authorizes a city to contract with a service provider to implement a homeless employment program if the program meets the requirements of 2).
8. Requires a city to match a grant funded from the Program and allows the match to come from another grant or a charitable contribution.
9. Requires CSD to submit a report to the Legislature on the status of the grant program by no later than January 1, 2022 that includes, at a minimum, information regarding the implementation of the grant program and recommendations regarding how to improve the program.
10. Appropriates an unspecified amount from the General Fund to the New Beginnings California Account.
11. Sets a maximum amount that each city can receive from the Program, the amount of which is unspecified.
12. Makes funds available for the Program until the 2023-24 fiscal year.

EXISTING LAW:

1. Defines, in federal statute, the word “homeless” for the purpose of housing assistance, to mean an individual or family who lacks a fixed, regular, and adequate nighttime residence, as specified.
2. Defines “Housing First” as the evidence-based model that uses housing as a tool, rather than a reward for recovery. It connects homeless people to housing as quickly as possible and does not make housing contingent on participation in services. Housing First includes time-limited rental or services assistance, so long as the housing and service provider assists the recipient in accessing permanent housing and in securing longer-term rental assistance, income assistance, or employment.
3. Defines “supportive housing” as housing with no limit on length of stay, that is occupied by a target population, as defined, and that is linked to onsite or offsite services that assist the supportive housing 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.
4. Creates the Homeless Coordinating and Financing Council (Council), with the goals of:

1. Identifying mainstream resources, benefits, and services that can be assessed to prevent and end homelessness in California;
2. Creating partnerships among state agencies and departments, local government agencies, participants in the U.S Department of Housing and Urban Development (HUD) Continuum of Care Program, federal agencies, the U.S. Interagency Council on Homelessness (US ICH), nonprofit entities working to end homelessness, and the private sector, for purposes of arriving at specific strategies to end homelessness;
3. Promoting systems integration to increase efficiency and effectiveness;
4. Coordinating existing funding and applications for competitive funding. Any action taken shall not restructure or change any existing allocations or allocation formula;
5. Making policy and procedural recommendations to legislators and other government entities;
6. Identifying and seek funding opportunities for state entities that have programs to end homelessness and facilitate and coordinate those state entities’ efforts to obtain funding;
7. Brokering agreements between state agencies, departments and local jurisdictions to align and coordinate resources, reduce administrative burdens of accessing existing resources, and foster common applications to services, operating, and capital funding;
8. Serving as a statewide homelessness planning and policy development resource;
9. Reporting to the Governor, federal Cabinet members, and the Legislature on homelessness and work to reduce homelessness; and
10. Ensuring accountability and results in meeting the strategies and goals of the council.
11. Establishes the California Emergency Solutions Grants Program, administered by the Department of Housing and Community Development (HCD), to fund activities that address the needs of homeless individuals and families and assist them to regain stability in permanent housing as quickly as possible. Permissible uses of funding include:
    1. Engaging homeless individuals and families living on the street;
    2. Operating homeless shelters and providing essential services to shelter residents;
    3. Rapid rehousing programs; and
    4. Prevention efforts for families and individuals at risk of homelessness.

FISCAL EFFECT: Unknown.

COMMENTS:

Background: California is facing a homelessness crisis. Our state is home to 25% of our nation's homeless population, 42% of our nation’s chronically homeless, and 38% of the nation's unaccompanied homeless youth population. On average on any given night, 134,278 people experience homelessness in our state—the vast majority of whom are unsheltered (68%). Already home to the largest homeless population in the country, from 2016 to 2017 California experienced the largest increase in the number of residents experiencing homelessness – over 16,000 individuals.^[1] Virtually every community in the state has been impacted. San Diego and Los Angeles have experienced deadly Hepatitis A outbreaks and the American River has been contaminated with E. coli. Wildfires across the state have exacerbated homelessness.

Housing First approach: Housing First is an evidence-based housing model that centers on providing people experiencing homelessness with housing as quickly as possible and then providing services as needed. A core component of Housing First includes a tenant screening process that promotes accepting applicants regardless of their sobriety or use of substances, completion of treatment, or participation in services. This model recognizes that an individual experiencing homelessness should be provided shelter and stability before underlying issues can be successfully tackled. The Housing First model is contrasted with a model known as “housing readiness,” which is exhibited in some transitional housing models. This model requires homeless people to earn their way into transitional housing and make progress on certain goals; when they are deemed well enough, they can earn their spot in permanent housing. The federal government, through the leadership of the US ICH and HUD, has successfully integrated the Housing First approach into programs at the federal level.

Since adopting that model, chronic homelessness decreased by 27% from 2010-2016. In 2015, California embraced a Housing First model. SB 1380 (Mitchell) Chapter 847 requires all state agencies or departments that operate programs that provide housing or housing-related services to people experiencing homelessness or at risk of homelessness to adopt guidelines and regulations to include Housing First policies.

Status of California’s homelessness efforts: The state has a variety of programs to address homelessness operated by multiple agencies and departments, including the Veterans Housing and Homeless Prevention Program, the CalWorks Housing Program, the Mental Health Services Act, the and Multifamily Housing Program with Supportive Services. In 2016 the Legislature passed No Place Like Home, creating $2 billion in new funding for construction of supportive housing units. No Place Like Home required the court validate the program and will likely not be available until sometime in 2019. On the November 2018 ballot, voters will consider approving a $4 billion bond to fund affordable housing that includes $1.5 billion for affordable housing developments. SB 2 (Atkins, Statutes of 2017, Chapter 364) will generate ongoing funding for affordable housing, including funding in the first year to address homelessness.

Additionally, in 2016, the state created the Homeless Coordinating and Financing Council (SB 1380, Mitchell, Chapter 847, Statues of 2016) to better coordinate the state’s response to homelessness, oversee implementation of Housing First regulations in all state housing and homelessness programs, and identify resources, benefits, and services for preventing and ending homelessness. The Council is made up of all state departments and agencies that provide housing or housing-based services to people experiencing homelessness or at risk of homelessness.

Support if amended: Groups representing counties request that the author include counties as well as cities as eligible recipients of the funding. Counties provide core services needed to address homelessness, including food benefits, housing assistance, behavioral health services, shelter and health care to people experiencing homelessness. Further, under the Continuum of Care (CoC) Program many of the allocations are shared between cities and counties.

Committee amendment:

• To ensure that this program reflects the state's commitment to the Housing First model, the committee may wish to consider requiring participants in the Program to be living in supportive housing in order to receive employment assistance.
• The committee may wish to clarify that the match required from this program cannot come from any source already available to the city to address homelessness, including, but not limited to, all local, federal, and state funding sources.
• Allow a city, a county, or a CoC to apply for the Program.

REGISTERED SUPPORT / OPPOSITION:

Support

California State Association of Counties (support if amended)

California State Association of Public Administrators, Public Guardians and Public Conservators (support if amended)

County Behavioral Health Directors Association (support if amended)

County Health Executives Association of California (support if amended)

National Association of Social Workers, California Chapter

Northern Santa Barbara County United Way

Orange County United Way

Rural County Representatives of California (support if amended)

United Way of San Luis Obispo County

United Ways of California

Urban Counties of California (support if amended)

Opposition

None on file

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085

1. Meghan Henry et al., “The 2017 Annual Homeless Assessment Report (AHAR) to Congress” (U.S. Department of Housing and Urban Development, December 2017). ↑