SENATE THIRD READING

STR Bill Id:SB 623

Author:(Jackson)

As Amended Ver:April 10, 2019

Majority vote

SUMMARY:

Provides that the Department of Housing and Community Development (HCD), in determining the proportion of the funds available for senior citizens in the Multifamily Housing Program (MHP), use the American Community Survey (ACS), instead of the decennial census, from the US Census Bureau (Bureau)

Major Provisions

Provides that the Department of Housing and Community Development (HCD), in determining the proportion of the funds available for senior citizens in the Multifamily Housing Program (MHP), use the American Community Survey (ACS), instead of the decennial census, from the US Census Bureau (Bureau)

COMMENTS:

MHP. MHP, HCD's flagship program, which finances the new construction, rehabilitation, or acquisition and rehabilitation of permanent or transitional rental housing, and the conversion of nonresidential structures to rental housing for lower-income households. Eligible applicants include local public entities, for-profit and nonprofit corporations, Indian reservations and Rancherias. Last year, the voters approved the passage of Proposition 1, which provided $1.5 billion for MHP. HCD released draft guidelines for MHP in January and is on track to release the first notice of funding availability this spring.

ACS Data. According to the Bureau web site, the ACS "collects data on an ongoing basis, January through December, to provide every community with the information they need to make important decisions. We release new data every year, in the form of estimates, in a variety of tables, tools, and analytical reports." The Decennial Census, as the name suggests, is conducted every 10 years, and determines the number of people living in the United States.

This bill would clarify that, in order to determine the proportion of funds that are available for senior citizens, HCD shall use the most recent ACS or successor survey conducted by the United States Census Bureau, instead of the decennial census. HCD is already using the data from the ACS; this bill would codify practice.

According to the Author:

According to the author, "Over the next two decades, California's senior population is expected to nearly double. This means it will be 87% higher in 2030 than it was in 2012, or an increase of more than four million people. As these seniors will be living longer, the need for housing suitable for the elderly will be even more necessary. [This bill] will help address the housing needs of seniors by codifying the current practice of the Department of Housing and Community Development of using updated census data (the American Community Survey) to determine the amount of assistance the Department provides for the building of housing for senior citizens through its Multifamily Housing Program. Because the senior population is increasing relative to the rest of the population, using updated data will assure that the needs of seniors are more adequately met."

Arguments in Support:

Supporters argue that SB 623 will ensure that senior will get a fair portion of MHP funding by requiring that the determination for the number of seniors in the state is based on the most accurate data.

Arguments in Opposition:

None on file

FISCAL COMMENTS:

According to the Assembly Appropriations Committee, negligible state costs. HCD already uses data from the ACS; this bill codifies existing practice.

VOTES:

SENATE FLOOR: 38-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASM HOUSING AND COMMUNITY DEVELOPMENT: 8-0-0

YES: Chiu, Diep, Gabriel, Gloria, Kiley, Limón, Maienschein, Quirk-Silva

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: April 10, 2019

CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0001333

Date of Hearing: August 14, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 623

Author:(Jackson) – As Amended Ver:April 10, 2019

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

SUMMARY:

This bill requires the Department of Housing and Community Development (HCD), in determining the proportion of the funds available for senior citizens in the Multifamily Housing Program (MHP), use the American Community Survey (ACS), instead of the decennial census, from the US Census Bureau (Bureau).

FISCAL EFFECT:

Negligible state costs. HCD already uses data from the ACS; this bill codifies existing practice.

COMMENTS:

1. Purpose. According to the author:

Over the next two decades, California’s senior population is expected to nearly double. This means it will be 87% higher in 2030 than it was in 2012, or an increase of more than four million people. [This bill] will help address the housing needs of seniors by codifying the current practice of [HCD] of using updated census data (the American Community Survey) to determine the amount of assistance [HCD] provides for the building of housing for senior citizens through its [MHP].

1. Background. The MHP finances the new construction, rehabilitation or acquisition and rehabilitation of permanent or transitional rental housing, and the conversion of nonresidential structures to rental housing, for lower-income households.  Eligible applicants include local public entities, for-profit and nonprofit corporations, Indian reservations and Rancherias.  In 2018 voters approved Proposition 1, which provided $1.5 billion for MHP.

According to the Bureau’s web site, the ACS “collects data on an ongoing basis, January through December, to provide every community with the information they need to make important decisions. We release new data every year.” The decennial census is conducted every 10 years and determines the number of people living in the United States. 

This bill clarifies, in order to determine the proportion of funds available for senior citizens, HCD must use the most recent ACS conducted by the Bureau instead of the decennial census. HCD is already using the data from the ACS; this bill codifies that practice.

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 623

Author:(Jackson) – As Amended Ver:April 10, 2019

SENATE VOTE: 38-0

SUBJECT: Multifamily Housing Program: total assistance calculation

SUMMARY: Provides that the Department of Housing and Community Development (HCD), in determining the proportion of the funds available for senior citizens in the Multifamily Housing Program (MHP), use the American Community Survey (ACS), instead of the decennial census, from the US Census Bureau (Bureau) Specifically, this bill:

EXISTING LAW:

1. Creates the MHP under HCD, which finances the construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households.
2. Requires that of the total assistance provided under the MHP, a specified percentage that is proportional to the percentage of lower-income renter households in the state that are lower-income elderly renter households, as reported by the United States Department of Housing and Urban Development (HUD) on the basis of the most recent decennial census conducted by the Bureau, be awarded to units restricted to senior citizens. That calculation, known as the total assistance calculation, excludes assistance for certain projects related to housing for the homeless, homeless youth, and persons with disabilities.

FISCAL EFFECT: Unknown

COMMENTS:

Purpose of the bill. According to the author, “Over the next two decades, California’s senior population is expected to nearly double. This means it will be 87% higher in 2030 than it was in 2012, or an increase of more than four million people. As these seniors will be living longer, the need for housing suitable for the elderly will be even more necessary. [This bill] will help address the housing needs of seniors by codifying the current practice of the Department of Housing and Community Development of using updated census data (the American Community Survey) to determine the amount of assistance the Department provides for the building of housing for senior citizens through its Multifamily Housing Program. Because the senior population is increasing relative to the rest of the population, using updated data will assure that the needs of seniors are more adequately met.”

MHP. MHP, HCD’s flagship program, which finances the new construction, rehabilitation, or acquisition and rehabilitation of permanent or transitional rental housing, and the conversion of nonresidential structures to rental housing for lower-income households.  Eligible applicants include local public entities, for-profit and nonprofit corporations, Indian reservations and Rancherias.  Last year, the voters approved the passage of Proposition 1, which provided $1.5 billion for MHP. HCD released draft guidelines for MHP in January and is on track to release the first notice of funding availability this spring.

ACS Data. According to the USCB web site, the ACS “collects data on an ongoing basis, January through December, to provide every community with the information they need to make important decisions. We release new data every year, in the form of estimates, in a variety of tables, tools, and analytical reports.” The Decennial Census, as the name suggests, is conducted every 10 years, and determines the number of people living in the United States. 

This bill would clarify that, in order to determine the proportion of funds that are available for senior citizens, HCD shall use the most recent ACS or successor survey conducted by the United States Census Bureau, instead of the decennial census. HCD is already using the data from the ACS; this bill would codify practice.

REGISTERED SUPPORT / OPPOSITION:

Support

AARP California

California Commission 0n Aging

Christian Church Homes

Episcopal Communities & Services

Human Good

LeadingAge California

Pep Housing

Retirement Housing Foundation

Santa Clara Methodist Retirement Foundation

TELACU

Opposition

None on file.

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

 CONSENT  

Bill No: SB 623

Author: Jackson (D)

Amended: 4/10/19

Vote: 21

SENATE HOUSING COMMITTEE: 11-0, 4/22/19

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

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Multifamily Housing Program: total assistance calculation

SOURCE: Author

DIGEST:

This bill provides that the Department of Housing and Community Development (HCD), in determining the proportion of the funds available for senior citizens in the Multifamily Housing Program (MHP), use the American Community Survey (ACS), instead of the decennial census, from the US Census Bureau (Bureau).

ANALYSIS:

Existing law:

1. Creates the MHP under HCD, which finances the construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households.
2. Requires that of the total assistance provided under the MHP, a specified percentage that is proportional to the percentage of lower-income renter households in the state that are lower-income elderly renter households, as reported by the United States Department of Housing and Urban Development (HUD) on the basis of the most recent decennial census conducted by the Bureau, be awarded to units restricted to senior citizens. That calculation, known as the total assistance calculation, excludes assistance for certain projects related to housing for the homeless, homeless youth, and persons with disabilities.

This bill:

1. Requires the total assistance calculation described above use data as reported by HUD on the basis of the most recent ACS or successor survey conducted by the Bureau.
2. Makes changes to correct outdated code references.

Comments

1. Purpose of the bill. According to the author, “Over the next two decades, California’s senior population is expected to nearly double. This means it will be 87% higher in 2030 than it was in 2012, or an increase of more than four million people. As these seniors will be living longer, the need for housing suitable for the elderly will be even more necessary. [This bill] will help address the housing needs of seniors by codifying the current practice of the Department of Housing and Community Development of using updated census data (the American Community Survey) to determine the amount of assistance the Department provides for the building of housing for senior citizens through its Multifamily Housing Program. Because the senior population is increasing relative to the rest of the population, using updated data will assure that the needs of seniors are more adequately met.”

2) MHP. MHP, HCD’s flagship program, finances the new construction, rehabilitation, or acquisition and rehabilitation of permanent or transitional rental housing, and the conversion of nonresidential structures to rental housing for lower-income households.  Eligible applicants include local public entities, for-profit and nonprofit corporations, Indian reservations and Rancherias.  Last year, the voters approved the passage of Proposition 1, which provided $1.5 billion for MHP. HCD released draft guidelines for MHP in January and is on track to release the first notice of funding availability this spring.

3) ACS Data. According to the Bureau’s Web site, the ACS “collects data on an ongoing basis, January through December, to provide every community with the information they need to make important decisions. We release new data every year, in the form of estimates, in a variety of tables, tools, and analytical reports.” The Decennial Census, as the name suggests, is conducted every 10 years, and determines the number of people living in the United States. 

This bill clarifies that, in order to determine the proportion of funds that are available for senior citizens, HCD shall use the most recent ACS or successor survey conducted by the United States Census Bureau, instead of the decennial census. HCD is already using the data from the ACS; this bill codifies the practice.

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

SUPPORT: (Verified 5/6/19)

LeadingAge California

OPPOSITION: (Verified 5/6/19)

None received

Prepared by: Alison Hughes / HOUSING / (916) 651-4124

5/8/19 10:56:20

**** END ****

SENATE COMMITTEE ON HOUSING

Senator Scott Wiener, Chair

2019 - 2020 Regular

Bill No: SB 623 Hearing Date: 4/22/2019

SUBJECT: Multifamily Housing Program: total assistance calculation

DIGEST: This bill provides that the Department of Housing and Community Development (HCD), in determining the proportion of the funds available for senior citizens in the Multifamily Housing Program (MHP), use the American Community Survey (ACS), instead of the decennial census, from the US Census Bureau (Bureau),

ANALYSIS:

Existing law:

1. Creates the MHP under HCD, which finances the construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households.
2. Requires that of the total assistance provided under the MHP, a specified percentage that is proportional to the percentage of lower-income renter households in the state that are lower-income elderly renter households, as reported by the United States Department of Housing and Urban Development (HUD) on the basis of the most recent decennial census conducted by the Bureau, be awarded to units restricted to senior citizens. That calculation, known as the total assistance calculation, excludes assistance for certain projects related to housing for the homeless, homeless youth, and persons with disabilities.

This bill:

1. Requires the total assistance calculation described above use data as reported by HUD on the basis of the most recent ACS or successor survey conducted by the Bureau.
2. Makes changes to correct outdated code references.

COMMENTS

1. Purpose of the bill. According to the author, “Over the next two decades, California’s senior population is expected to nearly double. This means it will be 87% higher in 2030 than it was in 2012, or an increase of more than four million people. As these seniors will be living longer, the need for housing suitable for the elderly will be even more necessary. [This bill] will help address the housing needs of seniors by codifying the current practice of the Department of Housing and Community Development of using updated census data (the American Community Survey) to determine the amount of assistance the Department provides for the building of housing for senior citizens through its Multifamily Housing Program. Because the senior population is increasing relative to the rest of the population, using updated data will assure that the needs of seniors are more adequately met.”

2) MHP. MHP, HCD’s flagship program, which finances the new construction, rehabilitation, or acquisition and rehabilitation of permanent or transitional rental housing, and the conversion of nonresidential structures to rental housing for lower-income households.  Eligible applicants include local public entities, for-profit and nonprofit corporations, Indian reservations and Rancherias.  Last year, the voters approved the passage of Proposition 1, which provided $1.5 billion for MHP. HCD released draft guidelines for MHP in January and is on track to release the first notice of funding availability this spring.

3) ACS Data. According to the USCB web site, the ACS “collects data on an ongoing basis, January through December, to provide every community with the information they need to make important decisions. We release new data every year, in the form of estimates, in a variety of tables, tools, and analytical reports.” The Decennial Census, as the name suggests, is conducted every 10 years, and determines the number of people living in the United States. 

This bill would clarify that, in order to determine the proportion of funds that are available for senior citizens, HCD shall use the most recent ACS or successor survey conducted by the United States Census Bureau, instead of the decennial census. HCD is already using the data from the ACS; this bill would codify practice.

Related Legislation:

SB 3 (Beall, Chapter 365, Statutes of 2017) — enacted the Veterans and Affordable Housing Bond Act of 2018 and authorized the issuance of $4 billion in general obligation (GO) bonds for affordable housing programs and a veteran’s home ownership program, subject to approval by the voters in the November 6, 2018 election as Proposition 1, including $1.5 billion for MHP. Proposition 1 was approved by the voters on the November 2018 ballot.

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

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

April 17, 2019.)

SUPPORT:

LeadingAge California

OPPOSITION:

None received.

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