Date of Hearing: August 14, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 333

Author:(Wilk) – As Amended Ver:May 17, 2019

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

SUMMARY:

This bill assigns additional duties to the Homeless Coordinating and Financing Council (Council). Specifically, this bill requires the Council, by July 1, 2021, to:

1. Develop and implement a statewide strategic plan for addressing homelessness in California.
2. Implement strategic plans to assist the federal Department of Housing and Urban Development (HUD) Continuum of Care (CoC) lead agencies to better implement HUD recommended activities and better meet HUD requirements, including implementing the Homeless Management Information System.
3. Requires the Council to include among its considerations the establishment of a “balance-of-state CoC area” to help alleviate the administrative burdens imposed on CoC lead agencies especially in rural areas.

FISCAL EFFECT:

The Council would incur first year costs of $500,000 (GF) and ongoing costs of $344,000 (GF) for one limited-term and two permanent positions for developing the strategic planning goals, identifying funding sources and coordinating with the local CoCs.

COMMENTS:

1. Purpose. This bill seeks to better address the statewide issue of homeless by implementing recommendations of the state auditor and requiring the Council to consider if the state should develop a balance of state CoC to improve California’s competitiveness for federal funding.
2. Background. SB 1380 (Mitchell, Chapter 847, Statutes of 2016) created the Council to coordinate the state’s response to homelessness by to overseeing the implementation of “Housing First” policies, guidelines and regulations to reduce the prevalence and duration of homelessness in California. The Council was originally housed within the Department of Housing and Community Development, but later moved to the Business, Consumer Services and Housing Agency (BCSH) under SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2018). By July 1, 2019, agencies and departments administering state programs relating to homelessness are required to collaborate with the Council to revise or adopt guidelines and regulations that incorporate core components of Housing First. The Council is also responsible for the administration of $500 million in Homeless Emergency Aid Program block grant funds, which was created to provide one-time funding to enable local governments to respond to homelessness. Lead agencies in each of the state’s 43 CoC areas are responsible for planning the administration of homeless services within their geographic area.
3. State Auditor’s Report. In April 2018, the State Auditor released the report “Homelessness in California: State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness.” According to the report, lead agencies indicated they lacked funding, staff and other resources to implement HUD-recommended activities such as conducting annual counts of unsheltered homeless, raising funds from nonfederal sources and coordinating with other homeless service agencies. Rural CoC lead agencies also reported difficulties in implementing HUD requirements related to developing a coordinated entry system and administering their Homeless Management Information Systems. According to the audit:

At the moment, lead agencies for each CoC area are responsible for planning and administering homeless services within their geographic area. In contrast to this structure, more than 30 states have a “balance‑of‑state CoC area,” which can consist of multiple rural counties, and thus can maximize the funding potential and take advantage of economies of scale for large geographic areas.

HUD considers information about the CoC’s planning body, governance structure, overall performance, and strategic planning process to determine the order in which CoC areas across the nation are funded. Helping rural CoC areas improve these factors could increase their competitiveness in HUD’s CoC grant program competition for funding.

The Auditor recommended the Council hire permanent staff, including an executive director, providing funding for Continuum of Care (CoC) programs, implement a statewide strategic plan for addressing homelessness in California, implement steps to assist CoC lead agencies in better implementing HUD-recommended activities, and implementing steps to assist CoC lead agencies in better meeting HUD requirements. This bill aims to implement the recommendations made by the State Auditor’s report.

1. Prior Legislation. SB 792 (Wilk), of the 2017-18 Legislative Session, nearly identical this bill, would have required the Council, by July 1, 2020, to develop and implement a statewide strategic plan for addressing homelessness in California and to better implement recommended activities and meet HUD requirements. It was held on this Committee’s Suspense File.

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

Date of Hearing: July 3, 2019

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

SBPCA Bill Id:SB 333

Author:(Wilk) – As Amended Ver:May 17, 2019

SENATE VOTE: 38-0

SUBJECT: Homeless Coordinating and Financing Council

SUMMARY: Assigns additional duties to the Homeless Coordinating and Financing Council (Council). Specifically, this bill:

1. Requires the Council, by July 1, 2021, to develop and implement a statewide strategic plan (plan) for addressing homeless in the state.
2. Requires the plan to include goals and objectives, timelines, and metrics for measuring achievements.
3. Requires the Council to identify additional funding sources that the state and local agencies can use to better address homelessness issues in the state.
4. Requires the Council, by January 1, 2021 to implement strategic plans to assist the federal Department of Housing and Urban Development (HUD) Continuum of Care (CoC) lead agencies to do either or both of the following:
5. Better implement HUD recommended activities including conducting annual counts of the unsheltered homeless population, opportunities to raise nonfederal funding, and coordinating with other agencies.
6. Better meet HUD requirements including implementing Homeless Management Information Systems.
7. Require the Council to include among its considerations the establishment of a balance of state CoC to help alleviate the administrative burdens imposed on CoC lead agencies especially in rural areas.

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:
5. Identifying mainstream resources, benefits, and services that can be assessed to prevent and end homelessness in California;
6. 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;
7. Promoting systems integration to increase efficiency and effectiveness;
8. Coordinating existing funding and applications for competitive funding. Any action taken shall not restructure or change any existing allocations or allocation formula;
9. Making policy and procedural recommendations to legislators and other government entities;
10. 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;
11. 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;
12. Serving as a statewide homelessness planning and policy development resource;
13. Reporting to the Governor, federal Cabinet members, and the Legislature on homelessness and work to reduce homelessness; and
14. Ensuring accountability and results in meeting the strategies and goals of the council.
15. Requires the Governor, within 180 days of enacting this bill, to appoint up to 15 members to the Coordinating Council as follows:
16. A representative from the Department of Housing and Community Development (HCD);
17. A representative of the Department of Social Services;
18. A representative of the California Housing Finance Agency;
19. A representative of the Department of Health Care Services;
20. A representative of the Department of Veterans Affairs;
21. A representative of the Department of Corrections and Rehabilitation;
22. A representative of the Tax Credit Allocation Committee in the State Treasurer’s office;
23. A formerly homeless person who lives in California to the extent funding is available to pay for travel;
24. Two representatives of local agencies or organizations that participate in the HUD Continuum of Care Program;
25. State advocates or other members of the public or state agencies, according to the Governor's discretion.
26. Two representatives from different stakeholder groups. One selected by the Senate Committee on Rules and the other by the Speaker of the Assembly; and
27. The council may, at its discretion, invite stakeholders, individuals who have experienced homelessness, members of philanthropic communities, and experts to participate in meetings or provide information to the council.

FISCAL EFFECT: Unknown.

COMMENTS:

Homelessness in California: California is facing an affordable housing and homelessness crisis. In 2017, based on local point in time counts (PIT), 134,000 people are homeless in California on any given night. 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 nationwide – over 16,000 individuals. California accounted for nearly half of all unsheltered people in the country in 2017 (49% or 91,642 people). The City and County of Los Angeles have the highest number of homeless people in the state with 55,188 people. Nearly one of every four people experiencing homelessness did so in New York City or Los Angeles. Of those experiencing homelessness in Los Angeles, only 25% were sheltered in 2017.

Nationwide, the number of people experiencing homelessness increased in major cities and decreased elsewhere between 2016 and 2017. The number of people experiencing homelessness in major cities increased by just over 5% between 2016 and 2017, driving the increase in homelessness nationwide. More specifically, increases in unsheltered homelessness in major cities drove the national increase with 17,139 more unsheltered people.

Housing First and the Homeless Coordinating and Financing Council: 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. Housing First has been shown to reduce the overall local costs incurred when localities provide social services to people where they are, rather than allowing them to continue to cycle through emergency rooms, jails, and treatment centers.

The federal government has moved to a Housing First model over the last decade that prioritizes permanent supportive housing. Chronic homelessness in the nation decreased by 27% between 2010-2016 after our federal response adopted the Housing First model. California embraced a Housing First model in 2015. SB 1380 (Mitchell), Chapter 847, which created the Homeless Coordinating and Financing Council (Council) to coordinate the state's response to homelessness, 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. The Council was tasked with a list of goals including:

The 2018-19 budget moved the Council under the Business, Consumer Services, and Housing Agency, authorized the creation of an Executive Director to oversee the Council as well as several staff members. The Council was responsible for distributing approximately $500 million to local CoCs and cities to address homelessness in last year’s budget and $650 million in the 2019-20 budget.

State Auditor report: In April 2018, the State Auditor released Homelessness in California: State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness and made several recommendations to improve the state's response to homelessness. Recommendations include:

• Provide statewide leadership to agencies at all levels to improve coordination of efforts to address homelessness and provide funding for CoCs and the state homeless council.
• Require the state homeless council to implement a statewide strategic plan, and implement steps to assist CoC lead agencies to meet federal requirements and recommended activities.

Purpose of this bill: This bill would implement the recommendations of the State Auditor and would require the Council to develop a strategic plan and determine if the state should develop a balance of state CoC.

Balance of state CoC: To address homelessness at a local level, California currently has 43 CoC areas that cover the entire state. The auditor surveyed the lead agencies for the CoC areas to obtain some perspective related to best practices of homeless services across the State. Lead agencies in each CoC area are responsible for planning the administration of homeless services. The CoC lead agencies indicated a need for additional resources and direction from the State. Specifically, lead agencies reported that they lacked funding, staff, and other resources to implement HUD‑recommended activities such as conducting annual counts of unsheltered homeless, raising funds from nonfederal sources, and coordinating with other homeless service agencies. Rural CoC lead agencies also reported difficulties in implementing HUD requirements related to developing a coordinated entry system (entry system) and administering their Homeless Management Information Systems (HMIS).

This bill proposes the creation of a balance of state CoC. According to the audit, "at the moment, lead agencies for each CoC area are responsible for planning and administering homeless services within their geographic area. In contrast to this structure, more than 30 states have a balance‑of‑state CoC area, which can consist of multiple rural counties, and thus can maximize the funding potential and take advantage of economies of scale for large geographic areas. For instance, Nevada has a balance‑of‑state CoC area for those parts of the state outside of the Las Vegas/Clark County and Reno/Sparks/Washoe County CoC areas. For 2016 HUD awarded the Nevada balance‑of‑state CoC area about $575,000, or $2,861 per homeless person in its area. In contrast, 13 of California’s 17 rural CoC areas received HUD awards amounting to less than $1,000 per homeless person, and two of these received no HUD CoC awards. For the other 11 California rural CoC areas the average HUD award per homeless person was about $533. As noted earlier, HUD considers information about the CoC’s planning body, governance structure, overall performance, and strategic planning process to determine the order in which CoC areas across the nation are funded. Helping rural CoC areas improve these factors could increase their competitiveness in HUD’s CoC grant program competition for funding."

Previous legislation:

SB 792 (Wilk) was identical this bill. It was held in the Assembly Appropriations Committee on suspense.

REGISTERED SUPPORT / OPPOSITION:

Support

California Apartment Association

California Coalition for Youth

California YIMBY

City Of Santa Clarita

Corporation for Supportive Housing

County Welfare Directors Association of California

Housing California

Opposition

None on file

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

 THIRD READING  

Bill No: SB 333

Author: Wilk (R), et al.

Amended: 5/17/19

Vote: 21

SENATE HUMAN SERVICES COMMITTEE: 6-0, 3/25/19

AYES: Hurtado, Stone, Beall, Jackson, Pan, Wiener

SENATE HOUSING COMMITTEE: 11-0, 4/2/19

AYES: Wiener, Morrell, Bates, Caballero, Durazo, McGuire, Moorlach, Roth, Skinner, Umberg, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SUBJECT: Homeless Coordinating and Financing Council

SOURCE: Author

DIGEST:

This bill requires the Homeless Coordinating and Financing Council (Council), by July 1, 2021, to develop and implement a statewide strategic plan for addressing homelessness in the state. This bill also requires the Council, by January 1, 2021, to implement strategic plans to assist United States Department of Housing and Urban Development (HUD) Continuum of Care (CoC) lead agencies to better implement HUD recommended activities and/or better meet federal HUD requirements.

ANALYSIS:

Existing law:

1. Establishes the United States Interagency Council on Homelessness (US ICH) 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. 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 existing law, 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)
4. Creates the 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 HUD CoC Program, federal agencies, the 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.)
5. 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: engaging homeless individuals and families living on the street; operating homeless shelters and providing essential services to shelter residents; Rapid rehousing programs; and prevention efforts for families and individuals at risk of homelessness. (HSC 50899.1 et seq.)

This bill:

1. Requires the Council, by July 1, 2021, to develop and implement a statewide strategic plan for addressing homelessness in the state.
2. Requires the Council, by January 1, 2021, to implement strategic plans to assist HUD CoC lead agencies to better implement HUD recommended activities and/or better meet federal HUD requirements.

Comments

According to the author, “California’s homelessness crisis is at a breaking point. [California] has the highest homeless population in the United States, and as of a year ago, roughly one-fifth of the nation’s homeless lived in California, according to statistics from HUD.” A 2018 investigation by the California State Auditor (Auditor), requested by the author, found a lack of coordination between state and federal agencies, as well as other deficiencies in funding for homelessness programs. To help solve these problems, the Auditor recommended the Council develop and then implement a strategic plan to address homelessness across the state, along with several other recommendations. “SB 333 implements the policy recommendations of the State Auditor and ensures a strong, stable plan on homelessness for the future of California,” per the author.

Homelessness in California. According to the Annual Homeless Assessment Report produced by the HUD on a single night in 2018, there were 129,972 homeless people in California. Of those, 89,543 were unsheltered. According to this report, California has the nation’s largest homeless population - 24 percent of the nation’s total. Additionally, California accounted for nearly half, 47 percent, of all unsheltered people in the country in 2018.^[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.

Homeless Coordinating and Financing Council. SB 1380 (Mitchell, Chapter 847, Statutes of 2016) created the Council to coordinate the state’s response to homelessness. As created by SB 1380, the Council was housed within the HCD, which was further responsible for providing staff for the council. SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statues of 2018) moved the Council from HCD to the Business, Consumer Services and Housing Agency. SB 850 also authorized the creation of an Executive Director to oversee the Council, as well as the allocation of several staff members.

The Council was created in part to oversee the state’s implementation of “Housing First.” By July 1, 2019, agencies and departments administering state programs relating to homelessness are required to collaborate with the Council to revise or adopt guidelines and regulations that incorporate core components of Housing First. To that end, the Council had adopted a Housing First Checklist to be used by state agencies to assess their homelessness-related programs and make recommendations on any changes required to bring their programs into alignment with Housing First statute. The Council has also drafted, but not yet adopted, criteria for Housing First requirements and a proposed 2019 Action Plan is under consideration.

The Council is also responsible for the administration of $500 million in Homeless Emergency Aid Program block grant funds, which was created to provide one time funding to enable local governments to respond to homelessness. Those funds have been awarded to 43 CoCs and 11 large cities. Grant awardees have committed to allocating these funds to the following categories: 38 percent services; 34 percent capital improvements; 14 percent rental assistance; seven percent homeless youth; four percent administration; and three percent other.

Continuums of Care Program. The CoC Program is a federal program, under the purview of HUD, with the goal of promoting communitywide commitment to ending homelessness, by encouraging community-wide planning and strategic use of resources to address homelessness. According to HUD, the CoC Program was designed to “provide funding for efforts by nonprofit providers, and state and local governments to quickly rehouse homeless individuals and families while minimizing the trauma and dislocation caused to homeless individuals, families, and communities by homelessness.”

Each local CoC consists of representatives from organizations within specified geographic areas, also known as the CoC’s service area, and each has a lead agency who is responsible for planning the administration of homelessness services. HUD classifies these service areas into three geographic categories: major city CoC areas that cover the 50 largest cities in the United States; balance-of-state or statewide CoC areas that are typically composed of multiple rural communities or cover an entire state; and smaller city, county, and regional CoC areas which cover jurisdictions that are neither one of the 50 largest cities nor a balance-of-state/statewide CoC. Every CoC must also adopt and follow written procedures to establish a board that acts on the CoC’s behalf. Finally, each CoC is required to designate and operate a Homeless Management Information System (HMIS), as well as develop and use a coordinated entry system.

According to a 2017 survey conducted by the Auditor, California has 43 CoC service areas that cover the entire state.

California State Auditor’s Report on Homelessness in California. The author of this bill, along with Assemblymember Tom Lackey, requested the Auditor conduct an audit of the Los Angeles Homeless Services Authority’s distribution of funding through a June 2017 request to the Joint Legislative Audit Committee. This request was approved, ultimately resulting in Report Number 2017-112, which was released in April of 2018. In that report, the Auditor presents their findings concerning homelessness in California and the Los Angeles Homeless Services Authority’s administration of public funds. According to the author’s office, this bill is intended to put the Auditor’s recommendations into statute.

The Auditor’s report suggested that California do more to address homelessness. To better serve the needs of homeless Californians, the Auditor’s report recommended that the “Legislature should enact legislation and include funding within the Budget Act of 2018 that will allow for the following actions:

• The state homeless Council to hire permanent staff, including the appointment of an executive director; and
• California’s CoCs to obtain the state funding necessary to better implement HUD‑recommended activities, including annually counting the unsheltered homeless population, improving efforts to raise nonfederal funding, and improving their coordination with other agencies; and to more fully meet HUD requirements, including implementation and administration of the HMIS and entry systems.”^[2]

Through SB 850, the Legislature authorized the creation of an Executive Director to oversee the Council, as well as the allocation of several staff members.

The Auditor’s report also recommended that the Legislature should require the Council to take the following actions:

• “By April 1, 2019, develop and implement a statewide strategic plan for addressing homelessness in California, including goals and objectives and timelines for achieving them, and metrics for measuring their achievements. Included among the goals and objectives should be the identification of additional funding sources that state and local agencies can use to better address California’s homelessness issues;
• By January 1, 2019, implement steps to assist CoC lead agencies in better implementing HUD‑recommended activities, including conducting annual counts of the unsheltered homeless population, raising nonfederal funding, and coordinating with other agencies; and
• By January 1, 2019, implement steps to assist CoC lead agencies in better meeting HUD requirements, including implementation of the HMIS and entry systems. The state homeless council should include among its considerations the establishment of a balance‑of‑state CoC area to help alleviate the administrative burdens imposed on CoC lead agencies, especially in rural areas.”^[3]

These suggestions stemmed in part from a survey, conducted by the Auditor, which specifically targeted each CoC’s lead agency, the responses to which suggested a need for “increased resources and direction from the State.” Specifically, CoC lead agencies reported lacking “funding, staff, and other resources needed to implement HUD-recommended activities.” The survey further found that rural CoC lead agencies, in particular, reported difficulties with implementing HUD requirements, particularly those related to developing a coordinated entry system and administering their HMIS.^[4]

This bill reflects these challenges and the report’s recommendations by requiring the Council develop and implement a statewide strategic plan for addressing homelessness. Furthermore, this bill requires the Council to implement strategic plans to assist HUD CoC lead agencies do either or both of the following: better implement HUD-recommended activities; and/or better met HUD requirements, including the consideration of whether the establishment of a balance of state CoC would help CoCs, particularly those in rural areas, better meet HUD requirements.

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

According to the Senate Appropriations Committee, significant ongoing costs of up to $350,000 for increased workload. The Council would need additional personnel for developing the strategic planning goals, identifying funding sources, and coordinating with the local CoCs. (GF)

SUPPORT: (Verified 5/16/19)

California Apartment Association

California Yimby

Corporation for Supportive Housing

OPPOSITION: (Verified 5/16/19)

None received

Prepared by: Marisa Shea / HUMAN S. /

5/20/19 13:34:20

**** END ****

1. The 2018 Annual Homeless Assessment Report to Congress, The U.S. Department of Housing and Urban Development (December 2018) <https://www.hudexchange.info/resources/documents/2018-AHAR-Part-1.pdf> (as of March 11, 2019). ↑

2. California State Auditor, Homelessness in California: State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness, Report 2017-112 (April 2018) <https://www.auditor.ca.gov/pdfs/reports/2017-112.pdf>. ↑

3. Id. ↑

4. Id. ↑

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 333 (Wilk) - Homeless Coordinating and Financing Council

Bill Summary:

SB 333 would require the Homeless Coordinating and Financing Council (Council), by July 1, 2021, to develop and implement a statewide strategic plan for addressing homelessness and to better implement recommended activities and meet requirements by the U.S. Department of Housing and Urban Development (HUD).

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

The following information is revised to reflect amendments

adopted by the committee on May 16, 2019

Fiscal Impact:

Significant ongoing costs of up to $350,000 for increased workload. The Council would need additional personnel for developing the strategic planning goals, identifying funding sources, and coordinating with the local CoCs. (GF)

Author Amendments:

Add a coauthor.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 333 (Wilk) - Homeless Coordinating and Financing Council

Bill Summary:

SB 333 would require the Homeless Coordinating and Financing Council (Council), by July 1, 2021, to develop and implement a statewide strategic plan for addressing homelessness and to better implement recommended activities and meet requirements by the U.S. Department of Housing and Urban Development (HUD).

Fiscal Impact:

Significant ongoing costs of up to $350,000 for increased workload. The Council would need additional personnel for developing the strategic planning goals, identifying funding sources, and coordinating with the local CoCs. (GF)

Background:

Homeless Coordinating and Financing Council

SB 1380 (Mitchell, Chapter 847, Statutes of 2016) created the Council to coordinate the state’s response to homelessness by to overseeing the implementation of “Housing First” policies, guidelines, and regulations to reduce the prevalence and duration of homelessness in California. The Council was originally housed within the Department of Housing and Community Development, but later moved to the Business, Consumer Services and Housing Agency (BCSH) under SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2018). By July 1, 2019, agencies and departments administering state programs relating to homelessness are required to collaborate with the Council to revise or adopt guidelines and regulations that incorporate core components of Housing First. The Council is also responsible for the administration of $500 million in Homeless Emergency Aid Program block grant funds, which was created to provide one time funding to enable local governments to respond to homelessness.

State Auditor’s Report

In April 2018, the State Auditor released the report Homelessness in California: State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness. According to the report, lead agencies reported that they lacked funding, staff, and other resources to implement HUD-recommended activities. The Auditor recommended the Council hire permanent staff, including an Executive Director, providing funding for Continuum of Care (CoC) programs, implement a statewide strategic plan for addressing homelessness in California, implement steps to assist CoC lead agencies in better implementing HUD-recommended activities, and implementing steps to assist CoC lead agencies in better meeting HUD requirements. This bill aims to implement the recommendations made by the State Auditor’s report.

Proposed Law:

This bill would require the Council, by July 1, 2021, to develop and implement a statewide strategic plan for addressing homelessness in the state, as specified. This bill would also require the Council, by July 1, 2021, to implement strategic plans to assist HUD CoC lead agencies to better implement HUD recommended activities and to better meet HUD requirements.

Related Legislation:

SB 792 (Wilk, 2018), nearly identical to SB 333, would have required the Council, by July 1, 2020, to develop and implement a statewide strategic plan for addressing homelessness in California and to better implement recommended activities and meet HUD requirements. The measure was held on suspense in the Assembly Appropriations Committee.

SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2018) provided for over $500 million in funding to various projects aimed at reducing homelessness. The measure also moved the Council from HCD to the Business, Consumer Services, and Housing Agency and authorized the creation of an Executive Director to oversee the Council and provided for the allocation of several staff members.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Hurtado, Chair

2019 - 2020 Regular

Bill No: SB 333

Subject: Homeless Coordinating and Financing Council

SUMMARY

This bill requires the Homeless Coordinating and Financing Council (Council), by July 1, 2021, to develop and implement a statewide strategic plan for addressing homelessness in the state. This bill would also require the Council, by January 1, 2021, to implement strategic plans to assist United States Department of Housing and Urban Development (HUD) Continuum of Care (CoC) lead agencies to better implement HUD recommended activities and/or better meet federal HUD requirements.

ABSTRACT

Existing Law:

1. Establishes the United States Interagency Council on Homelessness (US ICH) 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 existing law, 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 HUD CoC Program, federal agencies, the 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. Requires the Council do all of the following:
   1. Develop and implement a statewide strategic plan, by July 1, 2021, for addressing homelessness in the state. The plan shall include: goals and objectives, including the identification of additional funding sources for state and local agencies; timelines for achieving the set goals and objectives; and metrics, for measuring their achievements.
   2. Implement, by January 1, 2021, strategic plans to assist HUD CoC lead agencies to do either or both of the following:
      1. Better implement federal HUD recommended activities, including conducting annual counts of the unsheltered homeless population, raising nonfederal funding, and coordinating with other agencies;
      2. Better meet federal HUD requirements, including implementation of the Homeless Management Information System (HMIS) and entry system. As well as consider the establishment of a balance of state CoC areas to help alleviate the administrative burdens imposed on CoC lead agencies, especially those in rural areas.

FISCAL IMPACT

This bill has not yet been analyzed by a fiscal committee.

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, “California’s homelessness crisis is at a breaking point. [California] has the highest homeless population in the United States, and as of a year ago, roughly one-fifth of the nation’s homeless lived in California, according to statistics from HUD.” A 2018 investigation by the California State Auditor, requested by the author, found a lack of coordination between state and federal agencies, as well as other deficiencies in funding for homelessness programs. To help solve these problems, the auditor recommended the Homeless Coordinating and Financing Council develop and then implement a strategic plan to address homelessness across the state, along with several other recommendations. “SB 333 implements the policy recommendations of the State Auditor and ensures a strong, stable plan on homelessness for the future of California,” per the author.

Homelessness in California

According to the Annual Homeless Assessment Report produced by the HUD on a single night in 2018, there were 129,972 homeless people in California. Of those, 89,543 were unsheltered. According to this report, California has the nation’s largest homeless population - 24 percent of the nation’s total. Additionally, California accounted for nearly half, 47 percent, of all unsheltered people in the country in 2018.^[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.

Homeless Coordinating and Financing Council (Council)

SB 1380 (Mitchell, Chapter 847, Statutes of 2016) created the Council to coordinate the state’s response to homelessness. The Council was created with the following goals:

• Identification of mainstream resources, benefits, and services that can be accessed to prevent and end homelessness in California, as well as other funding opportunities;
• Creation of partnerships among state agencies and departments, local government agencies, participants in HUD’s CoC program, federal agencies, the U.S. Interagency Council on Homelessness, nonprofit agencies working to end homelessness, homeless services providers and the private sector, for the purpose of arriving at specific strategies to end homelessness;
• Promotion of systems integration to increase efficiency and effectiveness while focusing on designing systems to address the needs of people experiencing homelessness;
• Coordination of existing funding and applications for competitive funding;
• Making policy and procedural recommendations to legislators and other governmental entities;
• Brokering agreements between state agencies and departments and between state agencies and departments and local jurisdictions to align and coordinate resources, reduce administrative burdens of accessing existing resources, and foster common applications for services, operating, and capital funding;
• Serving as a statewide facilitator, coordinator, and policy development resource on ending homelessness in California;
• Reporting to the Governor, federal Cabinet members, and the Legislature on homelessness and work to reduce homelessness;
• Ensuring accountability and results in meeting the strategies and goals of the Council;
• Identifying and implementing strategies to fight homelessness in small communities and rural areas; and
• Creating a statewide data system or warehouse that collects local data through HMIS, with the ultimate goal of matching data on homelessness to programs impacting homeless recipients of state programs.

As created by SB 1380, the Council was housed within the Department of Housing and Community Development (HCD), which was further responsible for providing staff for the council.

SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statues of 2018) moved the Council from HCD to the Business, Consumer Services and Housing Agency. SB 850 also authorized the creation of an Executive Director to oversee the Council, as well as the allocation of several staff members.

The Council was created in part to oversee the state’s implementation of “Housing First.” By July 1, 2019, agencies and departments administering state programs relating to homelessness are required to collaborate with the Council to revise or adopt guidelines and regulations that incorporate core components of Housing First. To that end, the Council had adopted a Housing First Checklist to be used by state agencies to assess their homelessness-related programs and make recommendations on any changes required to bring their programs into alignment with Housing First statute. The council has also drafted, but not yet adopted, criteria for Housing First requirements and a proposed 2019 Action Plan is under consideration.

The Council is also responsible for the administration of $500 million in Homeless Emergency Aid Program block grant funds, which was created to provide one time funding to enable local governments to respond to homelessness. Those funds have been awarded to 43 CoCs and 11 large cities. Grant awardees have committed to allocating these funds to the following categories:

• 38 percent services;
• 34 percent capital improvements;
• 14 percent rental assistance;
• 7 percent homeless youth;
• 4 percent administration; and
• 3 percent other.

Continuums of Care (CoC) Program

The CoC Program is a federal program, under the purview of HUD, with the goal of promoting communitywide commitment to ending homelessness, by encouraging community-wide planning and strategic use of resources to address homelessness. According to HUD, the CoC Program was designed to “provide funding for efforts by nonprofit providers, and state and local governments to quickly rehouse homeless individuals and families while minimizing the trauma and dislocation caused to homeless individuals, families, and communities by homelessness.”

Each local CoC consists of representatives from organizations within specified geographic areas, also known as the CoC’s service area, and each has a lead agency who is responsible for planning the administration of homelessness services. HUD classifies these service areas into three geographic categories: major city CoC areas that cover the 50 largest cities in the United States; balance-of-state or statewide CoC areas that are typically composed of multiple rural communities or cover an entire state; and smaller city, county, and regional CoC areas which cover jurisdictions that are neither one of the 50 largest cities nor a balance-of-state/statewide CoC. Every CoC must also adopt and follow written procedures to establish a board that acts on the CoC’s behalf. Finally, each CoC is required to designate and operate a HMIS, as well as develop and use a coordinated entry system.

According to a 2017 survey conducted by the California State Auditor, California has 43 CoC service areas that cover the entire state.

California State Auditor’s Report on Homelessness in California

The author of this bill, along with Assemblymember Tom Lackey, requested the California State Auditor conduct an audit of the Los Angeles Homeless Services Authority’s distribution of funding through a June 2017 request to the Joint Legislative Audit Committee. This request was approved, ultimately resulting in Report Number 2017-112, which was released in April of 2018. In that report, Auditor presents their findings concerning homelessness in California and the Los Angeles Homeless Services Authority’s administration of public funds. According to the author’s office, this bill is intended to put the California State Auditor’s recommendations into statute.

The Auditor’s report suggested that California do more to address homelessness. To better serve the needs of homeless Californians, the Auditor’s report recommended that the “Legislature should enact legislation and include funding within the Budget Act of 2018 that will allow for the following actions:

• The state homeless Council to hire permanent staff, including the appointment of an executive director; and
• California’s CoCs to obtain the state funding necessary to better implement HUD‑recommended activities, including annually counting the unsheltered homeless population, improving efforts to raise nonfederal funding, and improving their coordination with other agencies; and to more fully meet HUD requirements, including implementation and administration of the HMIS and entry systems.”^[2]

Through SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statues of 2018) the Legislature authorized the creation of an Executive Director to oversee the Council, as well as the allocation of several staff members.

The Auditor’s report also recommended that the Legislature should require the Council to take the following actions:

• “By April 1, 2019, develop and implement a statewide strategic plan for addressing homelessness in California, including goals and objectives and timelines for achieving them, and metrics for measuring their achievements. Included among the goals and objectives should be the identification of additional funding sources that state and local agencies can use to better address California’s homelessness issues;
• By January 1, 2019, implement steps to assist CoC lead agencies in better implementing HUD‑recommended activities, including conducting annual counts of the unsheltered homeless population, raising nonfederal funding, and coordinating with other agencies; and
• By January 1, 2019, implement steps to assist CoC lead agencies in better meeting HUD requirements, including implementation of the HMIS and entry systems. The state homeless council should include among its considerations the establishment of a balance‑of‑state CoC area to help alleviate the administrative burdens imposed on CoC lead agencies, especially in rural areas.”^[3]

These suggestions stemmed in part from a survey, conducted by the Auditor, which specifically targeted each CoC’s lead agency, the responses to which suggested a need for “increased resources and direction from the State.” Specifically, CoC lead agencies reported lacking “funding, staff, and other resources needed to implement HUD-recommended activities.” The survey further found that rural CoC lead agencies, in particular, reported difficulties with implementing HUD requirements, particularly those related to developing a coordinated entry system and administering their HMIS.^[4]

This bill reflects these challenges and the report’s recommendations by requiring the Council develop and implement a statewide strategic plan for addressing homelessness. Furthermore, the bill requires the Council to implement strategic plans to assist HUD CoC lead agencies do either or both of the following: better implement HUD-recommended activities; and/or better met HUD requirements, including the consideration of whether the establishment of a balance of state CoC would help CoCs, particularly those in rural areas, better meet HUD requirements.

Related/Prior Legislation:

SB 850 (Senate Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2018) provided for over $600 million in funding to various projects aimed at reducing homelessness. As well as moved the Council from HCD to the Business, Consumer Services, and Housing Agency. SB 850 also authorized the creation of an Executive Director to oversee the Council and provided for the allocation of several staff members.

AB 3085 (Calderon, 2018) would have established the New Beginnings California Program, with the Department of Community Services and Development, to provide matching funds to cities or local CoC programs to implement, expand, or continue employment programs for homeless individuals. This bill was vetoed by the Governor, with his veto message suggesting that additional funding for a new homelessness grant program should be considered through the budget process.

SB 918 (Wiener and Assemblymember Rubio, Chapter 841, Statutes of 2018) enacted 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.

AB 97 (Ting, Chapter 14, Statutes of 2017) provided $10 million for homeless youth emergency service projects to be administered by Office of Emergency Services 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. Also 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.

COMMENTS

This bill has been double referred. Should the bill move out of this committee, it will be heard by the Senate Housing Committee.

POSITIONS

Support:

California Yimby

Corporation for Supportive Housing

Oppose:

None received

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1. The 2018 Annual Homeless Assessment Report to Congress, The U.S. Department of Housing and Urban Development (December 2018) <https://www.hudexchange.info/resources/documents/2018-AHAR-Part-1.pdf> (as of March 11, 2019). ↑

2. California State Auditor, Homelessness in California: State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness, Report 2017-112 (April 2018) <https://www.auditor.ca.gov/pdfs/reports/2017-112.pdf>. ↑

3. Id. ↑

4. Id. ↑

SENATE COMMITTEE ON HOUSING

Senator Scott Wiener, Chair

2019 - 2020 Regular

Bill No: SB 333 Hearing Date: 4/2/2019

SUBJECT: Homeless Coordinating and Financing Council

DIGEST: This bill requires the Homeless Coordinating and Financing Council (Council), under the Business, Consumer Services and Housing Agency (BCSH), to develop and implement a statewide strategic plan for addressing homelessness and to better implement recommended activities and meet requirements by the US Department of Housing and Urban Development (HUD).

ANALYSIS:

Existing law:

1. Establishes the Council, with the purpose of coordinating the state’s response to homelessness by utilizing Housing First practices.
2. Requires agencies and departments administering state programs created on or after July 1, 2017 to incorporate the core components of Housing First.
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.

This bill:

1. Requires the Council to develop and implement a statewide strategic plan for addressing homelessness in the state by July 1, 2021. The plan shall include the following:
   1. Goals and objectives, including the identification of additional funding sources that state and local agencies can use to better address homelessness issued in the state.
   2. Timelines for achieving the plan’s goals and objectives, and metrics for measuring the achievements.
2. Requires the Council to implement strategic plans to assist HUD Continuum of Care (CoC) lead agencies to do either or both of the following by January 1, 2021:
   1. Better implement federal HUD recommended activities, including conducting annual point-in-time counts, raising nonfederal funding and coordinating with other agencies.
   2. Efficiently meet federal HUD requirements including the implementation of the Homeless Management Information System (HMIS) and entry systems.
3. Requires the Council to consider establishing balance-of-state CoC areas to help alleviate the administrative burdens imposed on CoC lead agencies, especially in rural areas.

COMMENTS

1. Purpose. The author states that “California’s homelessness crisis is only getting worse. As people all over the state are reduced to living in the most inhumane conditions, it is well past time for us to take effective action. This bill the state’s Homeless Coordinating and Financing Council to create a long-term, strategic plan to address and eventually defeat homelessness across the state. This bill will allow for a better flow of funding for local and federal housing agencies across the state, as well as help establish an efficient outline and strategy for using that money to address homelessness in each community. This measure will ensure that taxpayer dollars are used as effectively as possible – that they actually go toward getting homeless individuals back on their feet.”
2. Homelessness in California. According to the HUD 2018 Annual Homeless Assessment Report to Congress, in January 2018 California had 24% of the nation’s homeless population (about 129,972 individuals). California also contains 47% of the nation’s unsheltered homeless population (89,543), including people living in vehicles, abandoned buildings, parks, or on the street. Los Angeles contains the highest number of homeless people in the state, at 49,955, where 75% of those are unsheltered. People experiencing homelessness face a variety of challenges including food and income insecurity, as well as health problems; the homeless population faces a higher risk of exposure to communicable diseases such as influenza, strep throat, sexually transmitted diseases, Hepatitis C, HIV/AIDS and tuberculosis among others. According to the Public Policy Institute of California (PPIC), reducing homelessness requires collaboration across sectors such as housing, health and social services, as well as coordinated investments, policies, and programs at the federal, state, and local levels.
3. Housing First. Housing First approaches homelessness by providing permanent, affordable housing for families and individuals as quickly as possible, then providing supportive services to prevent their return to homelessness. This strategy is an evidence-based model that focuses on the idea that homeless individuals should be provided shelter and stability before underlying issues can be successfully addressed. Housing First utilizes a tenant screening process that promotes accepting applicants regardless of their sobriety, use of substances, or participation in services. This approach contrasts to the “housing readiness” model where people are required to address predetermined goals before obtaining housing. The federal government has shifted its focus to Housing First over the last decade, and housing programs under HUD utilize core components of this strategy. Since the implementation of the Housing First model, chronic homelessness in the U.S. experienced a 27% decrease between 2010 and 2016. Housing First was embraced by California in 2015 through SB 1380 (Mitchell), which required housing programs in the state to adopt this model.
4. The Homeless Coordinating and Financing Council. The Council was created through SB 1380 (Mitchell, 2017). Among its many responsibilities, the Council is tasked with identifying resources, benefits, and services that can be utilized to combat homelessness, as well as creating partnerships among state agencies and departments, local government agencies and federal agencies and departments, for the purpose of strategizing to end homelessness. Last year’s budget added approximately $500 million to local Continuum of Care (CoC) programs through the Homeless Emergency Aid Program, which the Council is responsible for distributing, and moved the Council from the Department of Housing and Community Development (HCD) to BCSH while adding several staff members and an Executive Director.
5. Auditor’s Report. In April 2018, the State Auditor released, Homelessness in California: State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness. According to the report, lead agencies reported that they lacked funding, staff, and other resources to implement HUD‑recommended activities such as conducting annual counts of unsheltered homeless, raising funds from nonfederal sources, and coordinating with other homeless service agencies. Rural CoC lead agencies also reported difficulties in implementing HUD requirements related to developing a coordinated entry system and administering their Homeless Management Information Systems (HMIS). The Auditor recommended providing statewide leadership to agencies at all levels to improve coordination of efforts to address homelessness and providing funding for CoCs and the Council. The Auditor also recommended requiring the Council to implement a statewide strategic plan and implement steps to assist CoC lead agencies in meeting federal requirements and recommended activities.
6. Next steps. This bill aims to implement the recommendations made by the State Auditor’s report by creating balance-of-state CoC areas. The Auditor’s report notes that more than 30 states have such areas, which can consist of multiple rural counties and thus can maximize the funding potential and take advantage of economies of scale for large geographic areas. For instance, Nevada has a balance‑of‑state CoC area for those parts of the state outside of the Las Vegas/Clark County and Reno/Sparks/Washoe County CoC areas. For 2016 HUD awarded the Nevada balance‑of‑state CoC area about $575,000, or $2,861 per homeless person in its area. In contrast, 13 of California’s 17 rural CoC areas received HUD awards amounting to less than $1,000 per homeless person, and two of these received no HUD CoC awards. For the other 11 California rural CoC areas, the average HUD award per homeless person was about $533. Helping rural CoC areas improve these factors could increase their competitiveness in HUD’s CoC grant program competition for funding.

Related Legislation:

SB 792 (Wilk, 2018) — would have required the Council to develop and implement a statewide strategic plan for addressing homelessness in California and to better implement recommended activities and meet HUD requirements, by July 1, 2020. This bill was held on suspense in the Assembly Appropriations Committee.

SB 850 (Budget Committee, Chapter 48, Statutes of 2018) — provided $500 million and additional staff for the Council, including an Executive Director.

SB 1380 (Mitchel, Chapter 847, Statutes of 2016) — established the Council and requires housing programs in the state to adopt the Housing First model.

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

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

March 27, 2019.)

SUPPORT:

California Apartment Association
California YIMBY
Corporation For Supportive Housing
Housing California

OPPOSITION:

None received.

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