AB 1386: Veterans housing: tenant referrals.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-10-11
Current Status:
Passed
(2023-10-11: Chaptered by Secretary of State - Chapter 760, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill lets organizations that refer homeless veterans temporarily place other veterans with higher incomes into supportive housing units reserved for extremely low‑income homeless veterans when no eligible extremely low‑income veteran can be found within set time limits, including units funded by tax credits or private activity bonds. Those units must be redesignated to the tenant’s income level and rent adjusted to match that income, the referrer must document good‑faith outreach to find extremely low‑income veterans, and within 12 months the next comparable unit must be offered to an eligible extremely low‑income veteran to restore the unit mix.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to submit a petition to the departments requesting authority to lease the qualified unit to a secondary tenant, as defined, if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit with 60 days of the unit becoming available. The bill would require a qualified unit that is leased to a secondary tenant to be redesignated to an area median income level commensurate with the income level of the secondary tenant and would require the secondary tenant to pay rent commensurate with their household incomes percentage of the area medium income. The bill would, 12 months after a petition is approved, require the next available comparable unit to be rented to a qualified tenant at 30% of the median income. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income before submitting a petition, document these good faith efforts, submit this documentation as a part of the petition, and make this documentation available to the housing sponsor and, upon request, to the departments. The bill would prohibit the departments from approving a petition if it would result in changes that may impact the projects regulatory agreement, as specified.
The bill would require the departments to create a standardized form for the submission of petitions described above. The bill would require the departments, upon receipt of a petition, to (1) review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and (2) provide a written determination approving or denying the petition no later than 30 days after receipt of the petition.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill, for purposes of supportive housing units that are restricted to extremely low income veterans pursuant to a regulatory agreement with the committee, would authorize an entity tasked with making referrals of those units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income that are receiving income as a result of service-connected disability benefits if a qualified tenant is unable to be matched to and accept placement in an available unit within 28 days of the unit becoming available. If a secondary tenant is unable to be matched to and accept placement in an available unit within 14 days, the bill would authorize the entity to match a veteran experiencing homelessness with an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. The bill would require a qualified unit that is leased to a secondary tenant or other veteran experiencing homelessness pursuant to these provisions to be redesignated to an area median income level commensurate with the income level of the tenant and would require the tenant to pay rent commensurate with their household incomes percentage of the area medium income. The bill, 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed, would require the next available comparable unit to be rented to a qualified tenant at 30% of the median income. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the housing sponsor and, upon request, to the departments.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to submit a petition to the departments requesting authority to lease the qualified unit to a secondary tenant, as defined, if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit with 60 days of the unit becoming available. The bill would require a qualified unit that is leased to a secondary tenant to be redesignated to an area median income level commensurate with the income level of the secondary tenant and would require the secondary tenant to pay rent commensurate with their household incomes percentage of the area medium income. The bill would, 12 months after a petition is approved, require the next available comparable unit to be rented to a qualified tenant at 30% of the median income. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income before submitting a petition, document these good faith efforts, submit this documentation as a part of the petition, and make this documentation available to the housing sponsor and, upon request, to the departments. The bill would prohibit the departments from approving a petition if it would result in changes that may impact the projects regulatory agreement, as specified.
The bill would require the departments to create a standardized form for the submission of petitions described above. The bill would require the departments, upon receipt of a petition, to (1) review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and (2) provide a written determination approving or denying the petition no later than 30 days after receipt of the petition.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill, for purposes of supportive housing units that are restricted to extremely low income veterans pursuant to a regulatory agreement with the committee, would authorize an entity tasked with making referrals of those units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income that are receiving income as a result of service-connected disability benefits if a qualified tenant is unable to be matched to and accept placement in an available unit within 28 days of the unit becoming available. If a secondary tenant is unable to be matched to and accept placement in an available unit within 14 days, the bill would authorize the entity to match a veteran experiencing homelessness with an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. The bill would require a qualified unit that is leased to a secondary tenant or other veteran experiencing homelessness pursuant to these provisions to be redesignated to an area median income level commensurate with the income level of the tenant and would require the tenant to pay rent commensurate with their household incomes percentage of the area medium income. The bill, 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed, would require the next available comparable unit to be rented to a qualified tenant at 30% of the median income. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the housing sponsor and, upon request, to the departments.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to submit a petition to the departments requesting authority to lease the qualified unit to a secondary tenant, as defined, if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit with 60 days of the unit becoming available. The bill would prohibit the rate of rent for a qualified unit that is matched with a secondary tenant or other veteran experiencing homelessness pursuant to these provisions from exceeding the rate of rent that would have been charged had the unit been occupied by an extremely low income household. The bill would require a unit that is restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income between 30% and 60% of area median income vacates the unit. require a qualified unit that is leased to a secondary tenant to be redesignated to an area median income level commensurate with the income level of the secondary tenant and would require the secondary tenant to pay rent commensurate with their household incomes percentage of the area medium income. The bill would, 12 months after a petition is approved, require the next available comparable unit to be rented to a qualified tenant at 30% of the median income. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income before submitting a petition, document these good faith efforts, submit this documentation as a part of the petition, and make this documentation available to the housing sponsor and, upon request, to the departments. The bill would prohibit the departments from approving a petition if it would result in changes that may impact the projects regulatory agreement, as specified.
The bill would require the departments to create a standardized form for the submission of petitions described above. The bill would require the departments, upon receipt of a petition, to (1) review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and (2) provide a written determination approving or denying the petition no later than 30 days after receipt of the petition.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill, for purposes of supportive housing units that are restricted to extremely low income veterans pursuant to a regulatory agreement with the committee, would authorize an entity tasked with making referrals of those units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income that are receiving income as a result of service-connected disability benefits if a qualified tenant is unable to be matched to and accept placement in an available unit within 28 days of the unit becoming available. If a secondary tenant is unable to be matched to and accept placement in an available unit within 14 days, the bill would authorize the entity to match a veteran experiencing homelessness with an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. The bill would prohibit the rate of rent for a qualified unit that is matched with a secondary tenant or other veteran experiencing homelessness pursuant to these provisions from exceeding the rate of rent that would have been charged had the unit been occupied by an extremely low income household. The bill would require a unit that is restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income between 30% and 60% of area median income vacates the unit. require a qualified unit that is leased to a secondary tenant or other veteran experiencing homelessness pursuant to these provisions to be redesignated to an area median income level commensurate with the income level of the tenant and would require the tenant to pay rent commensurate with their household incomes percentage of the area medium income. The bill, 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed, would require the next available comparable unit to be rented to a qualified tenant at 30% of the median income. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the housing sponsor and, upon request, to the departments.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income that are receiving income as a result of service-connected disability if a qualified tenant is unable to be matched to and accept placement in an available unit within 28 days of the unit becoming available. If a secondary tenant is unable to be matched to and accept placement in an available unit within 14 days, the bill would authorize the entity to match a veteran experiencing homelessness with an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. submit a petition to the departments requesting authority to lease the qualified unit to a secondary tenant, as defined, if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit with 60 days of the unit becoming available. The bill would prohibit the rate of rent for a qualified unit that is matched with a secondary tenant or other veteran experiencing homelessness pursuant to these provisions from exceeding the rate of rent that would have been charged had the unit been occupied by an extremely low income household. The bill would require a unit that is restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income between 30% and 60% of area median income vacates the unit. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, income before submitting a petition, document these good faith efforts, submit this documentation as a part of the petition, and make this documentation available to the housing sponsor and, upon request, to the departments.
The bill would require the departments to create a standardized form for the submission of petitions described above. The bill would require the departments, upon receipt of a petition, to (1) review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and (2) provide a written determination approving or denying the petition no later than 30 days after receipt of the petition.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill, for purposes of supportive housing units that are restricted to extremely low income veterans pursuant to a regulatory agreement with the committee, would authorize an entity tasked with making referrals of those units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income that are receiving income as a result of service-connected disability benefits if a qualified tenant is unable to be matched to and accept placement in an available unit within 28 days of the unit becoming available. If a secondary tenant is unable to be matched to and accept placement in an available unit within 14 days, the bill would authorize the entity to match a veteran experiencing homelessness with an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. The bill would prohibit the rate of rent for a qualified unit that is matched with a secondary tenant or other veteran experiencing homelessness pursuant to these provisions from exceeding the rate of rent that would have been charged had the unit been occupied by an extremely low income household. The bill would require a unit that is restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income between 30% and 60% of area median income vacates the unit. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the housing sponsor and, upon request, to the departments.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income, if the source of the income is service-connected in the event that an eligible income that are receiving income as a result of service-connected disability if a qualified tenant is unable to be matched to and accept placement in an available unit within 21 28 days of the unit becoming available. The bill would provide the entity 21 days to match and place a tenant meeting this criteria in an available unit. If an eligible If a secondary tenant is unable to be matched to and accept placement in an available unit within 21 14 days, this the bill would authorize the entity to match prospective tenants a veteran experiencing homelessness with incomes an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. This The bill would prohibit the rate of rent for a qualified unit that is matched with a secondary tenant or other veteran experiencing homelessness pursuant to these provisions from exceeding the rate of rent that would have been charged had the unit been occupied by an extremely low income household. The bill would require a unit originally that is restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income at or below between 30% and 60% of area median income vacates the unit. The bill would require an a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the departments upon request. housing sponsor and, upon request, to the departments.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill would authorize an entity that is responsible for making referrals of extremely low income veteran tenants to qualified units, as defined, to submit a petition to the California Tax Credit Allocation Committee for purposes of requesting authority to allow veterans who have an income of up to 60% of the area median income to be located, matched to, or otherwise placed in a qualified unit, if the entity is unable to locate, match, or otherwise place extremely low income veterans in a qualified unit within 21 days of the qualified unit becoming available. The bill would require the committee to create or otherwise establish by July 1, 2024, a standardized form for the petition, an online portal for the submission of the petition, and rules and regulations for the review of and determination on the petition. The bill would also require the committee to review and make a determination on the petition, as described, and provide a written determination to the entity that made the petition within 30 days of receiving a petition.This bill, for purposes of supportive housing units that are restricted to extremely low income veterans pursuant to a regulatory agreement with the committee, would authorize an entity tasked with making referrals of those units targeted to extremely low income households to match prospective secondary tenants with incomes at or below 60% of the area median income that are receiving income as a result of service-connected disability benefits if a qualified tenant is unable to be matched to and accept placement in an available unit within 28 days of the unit becoming available. If a secondary tenant is unable to be matched to and accept placement in an available unit within 14 days, the bill would authorize the entity to match a veteran experiencing homelessness with an income at or below 60% of the area median income, regardless of the source of the income, in an available unit. The bill would prohibit the rate of rent for a qualified unit that is matched with a secondary tenant or other veteran experiencing homelessness pursuant to these provisions from exceeding the rate of rent that would have been charged had the unit been occupied by an extremely low income household. The bill would require a unit that is restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income between 30% and 60% of area median income vacates the unit. The bill would require a qualified entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the housing sponsor and, upon request, to the departments.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to match prospective tenants with incomes at or below 60% of the area median income, as defined, if the source of the income is service-connected in the event that an eligible tenant is unable to be matched to and accept placement in an available unit. unit within 21 days of the unit becoming available. The bill would provide the entity 21 days to match and place a tenant meeting this criteria in an available unit. If an eligible tenant is unable to be matched to and accept placement in an available unit within 21 days, this bill would authorize the entity to match prospective tenants with incomes at or below 60% of the area median income, regardless of the source of the income, in an available unit. This bill would require a unit originally restricted to a tenant with an extremely low income to revert back to its initial eligibility criteria once a tenant with an income at or below 60% of area median income vacates the unit. The bill would require an entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the departments upon request.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill would authorize an entity that is responsible for making referrals of extremely low income veteran tenants to qualified units, as defined, to submit a petition to the California Tax Credit Allocation Committee for purposes of requesting authority to allow veterans who have an income of up to 60% of the area median income to be located, matched to, or otherwise placed in a qualified unit, if the entity is unable to locate, match, or otherwise place extremely low income veterans in a qualified unit within 14 21 days of the qualified unit becoming available. The bill would require the committee to create or otherwise establish by July 1, 2024, a standardized form for the petition, an online portal for the submission of the petition, and rules and regulations for the review of and determination on the petition. The bill would also require the committee to review and make a determination on the petition, as described, and provide a written determination to the entity that made the petition within 30 days of receiving a petition.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to match prospective tenants with incomes at 60% of the area median income, as defined, in the event that an eligible tenant is unable to be matched to and accept placement in an available unit. The bill would require an entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the departments upon request.
Existing law establishes the California Tax Credit Allocation Committee, composed of specified members, and requires that the California Tax Credit Allocation Committee, among other things, allocate specified federal low-income housing tax credits, as provided.
This bill would authorize an entity that is responsible for making referrals of extremely low income veteran tenants to qualified units, as defined, to submit a petition to the California Tax Credit Allocation Committee for purposes of requesting authority to allow veterans who have an income of up to 60% of the area median income to be located, matched to, or otherwise placed in a qualified unit, if the entity is unable to locate, match, or otherwise place extremely low income veterans in a qualified unit within 14 days of the qualified unit becoming available. The bill would require the committee to create or otherwise establish by July 1, 2024, a standardized form for the petition, an online portal for the submission of the petition, and rules and regulations for the review of and determination on the petition. The bill would also require the committee to review and make a determination on the petition, as described, and provide a written determination to the entity that made the petition within 30 days of receiving a petition.
Existing law, the Veterans Housing and Homeless Prevention Act of 2014, requires the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs (referred to collectively as the departments) to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified. In this regard, existing law requires the departments to establish and implement programs that, among other things, ensure projects combine housing and supportive services. Existing law requires the departments to ensure at least 50% of funds awarded for capital development are used to provide housing to veterans with extremely low incomes, and requires that at least 60% of units funded targeting extremely low income households are supportive housing.
This bill would authorize an entity tasked with making referrals of units targeted to extremely low income households to match prospective tenants with incomes at 60% of the area median income, as defined, in the event that an eligible tenant is unable to be matched to and accept placement in an available unit. The bill would require an entity tasked with making referrals to these units to make a good faith effort to match a tenant with an extremely low income, document these good faith efforts, and make this documentation available to the departments upon request.
As used in this article:
(a)Affordable rental housing shall mean a rental housing development, as defined in subdivision (d) of Section 50675.2 of the Health and Safety Code, with affordable rents, as defined in subdivision (a) of Section 50675.2 of the Health and Safety Code, but neither definition is restrictive to only projects with five or more units.
(b)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(c)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(d)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(e)Qualified tenant means an extremely low income veteran who is homeless.
(f)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to this article.
(g)Secondary tenants means a veteran who is homeless who has an income of up to 50 percent of the area median income and is receiving income as a result of service-connected disability benefits, or a veteran who is homeless and has an income of up to 60 percent of the area median income, but would otherwise have an income below 50 percent of area median income if not for their income as a result of service-connected disability.
(h)Supportive housing has the same meaning as defined in paragraph (2) of subdivision (b) of Section 50675.14 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(i)Transitional housing has the same meaning as defined in subdivision (h) of Section 50675.2 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(j)Veteran means any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
SEC. 2.Section 987.005 of the Military and Veterans Code is amended to read:987.005.(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes.
(2)Except as provided in paragraph (5), in determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)A qualified entity tasked with making referrals to qualified units targeted to extremely low income households may submit a petition to the departments pursuant to subdivision (c) for the purposes of requesting authority to lease the qualified unit to secondary tenants if the qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 60 days of the unit becoming available. The qualified entity may submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition. The departments may not approve a petition if it would result in any changes other than tenant income eligibility criteria, as described in this section, that may impact the projects regulatory agreement.
(B)This shall include circumstances in which approving a petition for a qualified entity to house tenants with incomes up to 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes.
(C)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), that unit shall be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomes percentage of the area medium income.
(D)Beginning 12 months after the petition has been approved, if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.
(6)The qualified entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income before submitting a petition to the departments, document these good faith efforts, submit this documentation as part of the petition, and make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the departments. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(c)The departments shall create a standardized form for the submission of petitions described in paragraph (5) of subdivision (b).
(1)Upon receiving a petition pursuant to this section, the departments shall do both of the following:
(A)Review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and other laws established by the Internal Revenue Service and the departments.
(B)Provide a written determination approving or denying the petition. The written determination shall be provided to the qualified entity as soon as possible, but no later than 30 days after the departments receive the petition.
(2)If necessary, the departments may create written rules for the review of and determination on the petitions that are consistent with the requirements of this section, including, but not limited to, additional rules related to projects seeking approval before permanent loan conversion.
(d)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(e)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(f)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(g)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 3.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing for Veterans Funded by Tax Credits and Private Activity Bonds987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available, the qualified entity shall be eligible to match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat secondary tenants as eligible for the qualified unit.
(b)If, subsequent to the 14 days of the unit becoming available to secondary tenants, the qualified entity is unable to locate, match, or otherwise place either a qualified tenant or a secondary tenant in a qualified unit, the qualified entity shall be eligible to match a veteran experiencing homelessness with an income at or below 60 percent of area median income to the qualified unit and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat the tenants as eligible for the qualified unit.
(c)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), that unit shall be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomes percentage of the area medium income.
(d)Beginning 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed pursuant to subdivision (a) or (b), if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income pursuant to subdivisions (a) or (b), the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.
(e)(1)The qualified entity tasked with making referrals to qualified units shall make a good faith effort to match a qualified tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(2)The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
(f)If a qualified entity has submitted a petition to the department pursuant to Section 987.005 for a unit that is a qualified unit under both this section and Section 987.003, the outcome of the petition submitted pursuant to Section 987.005 shall determine whether the qualified entity is able to refer secondary tenants.
(g)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(3)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(4)Qualified tenant means an extremely low income veteran who is homeless.
(5)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to a regulatory agreement with the California Tax Credit Allocation Committee or with a bond issuer under the private activity bonds program administered by the California Debt Limit Allocation Committee.
(6)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income and is receiving income as a result of service-connected disability benefits.
(7)Supportive housing unit has the same meaning as defined in Section 987.003.
(8)Veteran has the same meaning as defined in Section 987.003.
As used in this article:
(a)Affordable rental housing shall mean a rental housing development, as defined in subdivision (d) of Section 50675.2 of the Health and Safety Code, with affordable rents, as defined in subdivision (a) of Section 50675.2 of the Health and Safety Code, but neither definition is restrictive to only projects with five or more units.
(b)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(c)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(d)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(e)Qualified tenant means an extremely low income veteran who is homeless.
(f)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to this article.
(g)Secondary tenants means a veteran who is homeless who has an income of up to 50 percent of the area median income and is receiving income as a result of service-connected disability benefits, or a veteran who is homeless and has an income of up to 60 percent of the area median income, but would otherwise have an income below 50 percent of area median income if not for their income as a result of service-connected disability.
(h)Supportive housing has the same meaning as defined in paragraph (2) of subdivision (b) of Section 50675.14 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(i)Transitional housing has the same meaning as defined in subdivision (h) of Section 50675.2 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(j)Veteran means any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
SEC. 2.Section 987.005 of the Military and Veterans Code is amended to read:987.005.(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes.
(2)Except as provided in paragraph (5), in determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)A qualified entity tasked with making referrals to qualified units targeted to extremely low income households may submit a petition to the departments pursuant to subdivision (c) for the purposes of requesting authority to lease the qualified unit to secondary tenants if the qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 60 days of the unit becoming available. The qualified entity may submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition. The departments may not approve a petition if it would result in any changes other than tenant income eligibility criteria, as described in this section, that may impact the projects regulatory agreement.
(B)This shall include circumstances in which approving a petition for a qualified entity to house tenants with incomes up to 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes.
(C)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), that unit shall be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomes percentage of the area medium income.
(D)Beginning 12 months after the petition has been approved, if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.
(6)The qualified entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income before submitting a petition to the departments, document these good faith efforts, submit this documentation as part of the petition, and make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the departments. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(c)The departments shall create a standardized form for the submission of petitions described in paragraph (5) of subdivision (b).
(1)Upon receiving a petition pursuant to this section, the departments shall do both of the following:
(A)Review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and other laws established by the Internal Revenue Service and the departments.
(B)Provide a written determination approving or denying the petition. The written determination shall be provided to the qualified entity as soon as possible, but no later than 30 days after the departments receive the petition.
(2)If necessary, the departments may create written rules for the review of and determination on the petitions that are consistent with the requirements of this section, including, but not limited to, additional rules related to projects seeking approval before permanent loan conversion.
(d)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(e)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(f)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(g)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 3.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing for Veterans Funded by Tax Credits and Private Activity Bonds987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available, the qualified entity shall be eligible to match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat secondary tenants as eligible for the qualified unit.
(b)If, subsequent to the 14 days of the unit becoming available to secondary tenants, the qualified entity is unable to locate, match, or otherwise place either a qualified tenant or a secondary tenant in a qualified unit, the qualified entity shall be eligible to match a veteran experiencing homelessness with an income at or below 60 percent of area median income to the qualified unit and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat the tenants as eligible for the qualified unit.
(c)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), that unit shall be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomes percentage of the area medium income.
(d)Beginning 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed pursuant to subdivision (a) or (b), if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income pursuant to subdivisions (a) or (b), the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.
(e)(1)The qualified entity tasked with making referrals to qualified units shall make a good faith effort to match a qualified tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(2)The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
(f)If a qualified entity has submitted a petition to the department pursuant to Section 987.005 for a unit that is a qualified unit under both this section and Section 987.003, the outcome of the petition submitted pursuant to Section 987.005 shall determine whether the qualified entity is able to refer secondary tenants.
(g)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(3)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(4)Qualified tenant means an extremely low income veteran who is homeless.
(5)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to a regulatory agreement with the California Tax Credit Allocation Committee or with a bond issuer under the private activity bonds program administered by the California Debt Limit Allocation Committee.
(6)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income and is receiving income as a result of service-connected disability benefits.
(7)Supportive housing unit has the same meaning as defined in Section 987.003.
(8)Veteran has the same meaning as defined in Section 987.003.
As used in this article:
(a)Affordable rental housing shall mean a rental housing development, as defined in subdivision (d) of Section 50675.2 of the Health and Safety Code, with affordable rents, as defined in subdivision (a) of Section 50675.2 of the Health and Safety Code, but neither definition is restrictive to only projects with five or more units.
(b)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(c)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(d)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(e)Qualified tenant means an extremely low income veteran who is homeless.
(f)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to this article.
(g)Secondary tenants means a veteran who is homeless who has an income of up to 50 percent of the area median income and is receiving income as a result of service-connected disability benefits, or a veteran who is homeless and has an income of up to 60 percent of the area median income, but would otherwise have an income below 50 percent of area median income if not for their income as a result of service-connected disability.
(h)Supportive housing has the same meaning as defined in paragraph (2) of subdivision (b) of Section 50675.14 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(i)Transitional housing has the same meaning as defined in subdivision (h) of Section 50675.2 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(j)Veteran means any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
SEC. 2.Section 987.005 of the Military and Veterans Code is amended to read:987.005.(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes.
(2)Except as provided in paragraph (5), in determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)A qualified entity tasked with making referrals to qualified units targeted to extremely low income households may submit a petition to the departments pursuant to subdivision (c) for the purposes of requesting authority to lease the qualified unit to secondary tenants if the qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 60 days of the unit becoming available. The qualified entity may submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition. The departments may not approve a petition if it would result in any changes other than tenant income eligibility criteria, as described in this section, that may impact the projects regulatory agreement.
(B)This shall include circumstances in which approving a petition for a qualified entity to house tenants with incomes up to 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes.
(C)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), the rate of rent shall not exceed the rate that would be charged had the unit been placed with a qualified tenant with an extremely low income. that unit shall be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomes percentage of the area medium income.
(D)If Beginning 12 months after the petition has been approved, if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), and the tenant vacates the unit, that qualified unit shall return to its initial eligibility criteria for qualified tenants with extremely low incomes. the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.
(6)The qualified entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income before submitting a petition to the departments, document these good faith efforts, submit this documentation as part of the petition, and make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the departments. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(c)The departments shall create a standardized form for the submission of petitions described in paragraph (5) of subdivision (b).
(1)Upon receiving a petition pursuant to this section, the departments shall do both of the following:
(A)Review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and other laws established by the Internal Revenue Service and the departments.
(B)Provide a written determination approving or denying the petition. The written determination shall be provided to the qualified entity as soon as possible, but no later than 30 days after the departments receive the petition.
(2)If necessary, the departments may create written rules for the review of and determination on the petitions that are consistent with the requirements of this section, including, but not limited to, additional rules related to projects seeking approval before permanent loan conversion.
(d)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(e)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(f)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(g)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 3.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing for Veterans Funded by Tax Credits and Private Activity Bonds987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available, the qualified entity shall be eligible to match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat secondary tenants as eligible for the qualified unit.
(b)If, subsequent to the 14 days of the unit becoming available to secondary tenants, the qualified entity is unable to locate, match, or otherwise place either a qualified tenant or a secondary tenant in a qualified unit, the qualified entity shall be eligible to match a veteran experiencing homelessness with an income at or below 60 percent of area median income to the qualified unit and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat the tenants as eligible for the qualified unit.
(c)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), the rate of rent shall not exceed the rate that would be charged had the unit been placed with a qualified tenant with an extremely low income. that unit shall be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomes percentage of the area medium income.
(d)If Beginning 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed pursuant to subdivision (a) or (b), if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income pursuant to subdivisions (a) or (b), and the tenant vacates the unit, that qualified unit shall return to its initial eligibility criteria for qualified tenants with extremely low incomes. the next available comparable unit shall then be rented to a qualified tenant at 30 percent of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.
(e)(1)The qualified entity tasked with making referrals to qualified units shall make a good faith effort to match a qualified tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(2)The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
(f)If a qualified entity has submitted a petition to the department pursuant to Section 987.005 for a unit that is a qualified unit under both this section and Section 987.003, the outcome of the petition submitted pursuant to Section 987.005 shall determine whether the qualified entity is able to refer secondary tenants.
(g)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(3)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(4)Qualified tenant means an extremely low income veteran who is homeless.
(5)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to a regulatory agreement with the California Tax Credit Allocation Committee or with a bond issuer under the private activity bonds program administered by the California Debt Limit Allocation Committee.
(6)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income and is receiving income as a result of service-connected disability benefits.
(7)Supportive housing unit has the same meaning as defined in Section 987.003.
(8)Veteran has the same meaning as defined in Section 987.003.
As used in this article:
(a)Affordable rental housing shall mean a rental housing development, as defined in subdivision (d) of Section 50675.2 of the Health and Safety Code, with affordable rents, as defined in subdivision (a) of Section 50675.2 of the Health and Safety Code, but neither definition is restrictive to only projects with five or more units.
(b)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(c)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(d)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(e)Qualified tenant means an extremely low income veteran who is homeless.
(f)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to this article.
(g)Secondary tenants means a veteran who is homeless who has an income of up to 60 50 percent of the area median income and is receiving income as a result of service-connected disability benefits. benefits, or a veteran who is homeless and has an income of up to 60 percent of the area median income, but would otherwise have an income below 50 percent of area median income if not for their income as a result of service-connected disability.
(h)Supportive housing has the same meaning as defined in paragraph (2) of subdivision (b) of Section 50675.14 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(i)Transitional housing has the same meaning as defined in subdivision (h) of Section 50675.2 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(j)Veteran means any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
SEC. 2.Section 987.005 of the Military and Veterans Code is amended to read:987.005.(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes.
(2)Except as provided in paragraph (5), in determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)A qualified entity tasked with making referrals to qualified units targeted to extremely low income households may match prospective secondary tenants if, after 28 days of a qualified unit becoming available, a qualified tenant is unable to be matched to and accept placement in the available unit. submit a petition to the departments pursuant to subdivision (c) for the purposes of requesting authority to lease the qualified unit to secondary tenants if the qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 60 days of the unit becoming available. The qualified entity may submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition.
(B)If, after 14 days of a qualified unit becoming available to prospective secondary tenants under subparagraph (A), a qualified tenant or secondary tenant is unable to be matched and accept placement in the available qualified unit, an entity tasked with making referrals may match a tenant who is a veteran experiencing homelessness with an income at or below 60 percent of the area median income. (C)(B)This shall include circumstances in which housing approving a petition for a qualified entity to house tenants with incomes up to 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes.
(D)(C)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), the rate of rent shall not exceed the rate that would be charged had the unit been placed with a qualified tenant with an extremely low income.
(E)(D)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), and the tenant vacates the unit, that qualified unit shall return to its initial eligibility criteria for qualified tenants with extremely low incomes.
(6)The qualified entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income, shall income before submitting a petition to the departments, document these good faith efforts, submit this documentation as part of the petition, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the departments. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(c)The departments shall create a standardized form for the submission of petitions described in paragraph (5) of subdivision (b).
(1)Upon receiving a petition pursuant to this section, the departments shall do both of the following:
(A)Review the petition and decide if the qualified unit is eligible to accept secondary tenants under all applicable guidelines, rules, and regulations, and other laws established by the Internal Revenue Service and the departments.
(B)Provide a written determination approving or denying the petition. The written determination shall be provided to the qualified entity as soon as possible, but no later than 30 days after the departments receive the petition.
(2)If necessary, the departments may create written rules for the review of and determination on the petitions that are consistent with the requirements of this section, including, but not limited to, additional rules related to projects seeking approval before permanent loan conversion.
(c)(d)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(d)(e)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(e)(f)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(f)(g)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 3.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing for Veterans Funded by Tax Credits and Private Activity Bonds987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available, the qualified entity shall be eligible to match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat secondary tenants as eligible for the qualified unit.
(b)If, subsequent to the 14 days of the unit becoming available to secondary tenants, the qualified entity is unable to locate, match, or otherwise place either a qualified tenant or a secondary tenant in a qualified unit, the qualified entity shall be eligible to match a veteran experiencing homelessness with an income at or below 60 percent of area median income to the qualified unit and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat the tenants as eligible for the qualified unit.
(c)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), the rate of rent shall not exceed the rate that would be charged had the unit been placed with a qualified tenant with an extremely low income.
(d)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income pursuant to subdivisions (a) or (b), and the tenant vacates the unit, that qualified unit shall return to its initial eligibility criteria for qualified tenants with extremely low incomes.
(e)(1)The qualified entity tasked with making referrals to qualified units shall make a good faith effort to match a qualified tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(2)The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
(f)If a qualified entity has submitted a petition to the department pursuant to Section 987.005 for a unit that is a qualified unit under both this section and Section 987.003, the outcome of the petition submitted pursuant to Section 987.005 shall determine whether the qualified entity is able to refer secondary tenants.
(f)(g)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(3)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(4)Qualified tenant means an extremely low income veteran who is homeless.
(5)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to a regulatory agreement with the California Tax Credit Allocation Committee or with a bond issuer under the private activity bonds program administered by the California Debt Limit Allocation Committee.
(6)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income and is receiving income as a result of service-connected disability benefits.
(7)Supportive housing unit has the same meaning as defined in Section 987.003.
(8)Veteran has the same meaning as defined in Section 987.003.
As used in this article:
(a)Affordable rental housing shall mean a rental housing development, as defined in subdivision (d) of Section 50675.2 of the Health and Safety Code, with affordable rents, as defined in subdivision (a) of Section 50675.2 of the Health and Safety Code, but neither definition is restrictive to only projects with five or more units.
(b)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(c)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(d)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(e)Qualified tenant means an extremely low income veteran who is homeless.
(f)Qualified unit means a supportive housing unit restricted to extremely low income veterans pursuant to this article.
(g)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income and is receiving income as a result of service-connected disability benefits.
(a)(h)Supportive housing has the same meaning as defined in paragraph (2) of subdivision (b) of Section 50675.14 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(b)(i)Transitional housing has the same meaning as defined in subdivision (h) of Section 50675.2 of the Health and Safety Code, but is not restrictive to only projects with five or more units.
(c)Affordable rental housing shall mean a rental housing development, as defined in subdivision (d) of Section 50675.2 of the Health and Safety Code, with affordable rents, as defined in subdivision (a) of Section 50675.2 of the Health and Safety Code, but neither definition is restrictive to only projects with five or more units.(d)(j)Veteran means any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
SECTION 1.SEC. 2.Section 987.005 of the Military and Veterans Code is amended to read:987.005.(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes, as defined in Section 50106 of the Health and Safety Code. incomes.
(2)In Except as provided in paragraph (5), in determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)An A qualified entity tasked with making referrals of to qualified units targeted to extremely low income households may match prospective tenants with incomes at or below 60 percent of the area median income, if the income is above 30 percent of the area median income as a result of the prospective tenant receiving service-connected disability benefits, as defined in Section 50105 of the Health and Safety Code, secondary tenants if, after 21 28 days of a qualified unit becoming available, an eligible a qualified tenant is unable to be matched to and accept placement in the available unit.
(B)If, after 21 14 days of a qualified unit becoming available to a prospective tenant secondary tenants under subparagraph (A), a qualified tenant or secondary tenant is unable to be matched and accept placement in the available qualified unit, an entity tasked with making referrals may match prospective tenants a tenant who is a veteran experiencing homelessness with incomes an income at or below 60 percent of the area median income.
(C)This shall include circumstances in which housing tenants with incomes at up to 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes.
(D)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), the rate of rent shall not exceed the rate that would be charged had the unit been placed with a qualified tenant with an extremely low income.
(D)(E)If a qualified unit that was originally is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income, income pursuant to subparagraph (A) or (B), and the tenant vacates the unit, that qualified unit shall return to its initial eligibility criteria for qualified tenants with extremely low incomes.
(6)The qualified entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the departments upon request. housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the departments. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(c)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(d)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(e)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(f)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 2.SEC. 3.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing Unit Petitions for Veterans Funded by Tax Credits and Private Activity Bonds987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 21 28 days of the qualified unit becoming available, the qualified entity shall be eligible to submit, pursuant to this section, a petition to the California Tax Credit Allocation Committee for purposes of requesting authority to allow secondary tenants to be located, matched to, or otherwise placed in the qualified units. match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat secondary tenants as eligible for the qualified unit.
(b)The committee shall create or otherwise establish all of the following by July 1, 2024:(1)A standardized form for petitions that a qualified entity may submit for the purpose described in subdivision (a).(2)An online portal for the submission of the petition.(3)If necessary, rules and regulations for the review of and determination on the petitions that are consistent with the requirements of this section.(c)Within 30 days of receiving a petition pursuant to this section, the committee shall do both of the following:(1)Review the petition and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to all applicable federal Internal Revenue Service and committee guidelines, rules, and regulations, and other law.(2)Provide a written determination to the qualified entity that made the petition.(b)If, subsequent to the 14 days of the unit becoming available to secondary tenants, the qualified entity is unable to locate, match, or otherwise place either a qualified tenant or a secondary tenant in a qualified unit, the qualified entity shall be eligible to match a veteran experiencing homelessness with an income at or below 60 percent of area median income to the qualified unit and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee shall treat the tenants as eligible for the qualified unit.
(c)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subdivision (a) or (b), the rate of rent shall not exceed the rate that would be charged had the unit been placed with a qualified tenant with an extremely low income.
(d)If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income pursuant to subdivisions (a) or (b), and the tenant vacates the unit, that qualified unit shall return to its initial eligibility criteria for qualified tenants with extremely low incomes.
(e)(1)The qualified entity tasked with making referrals to qualified units shall make a good faith effort to match a qualified tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the housing sponsor, who shall include the documentation in the tenant file, and, upon request, to the California Housing Finance Agency, the Department of Housing and Community Development, and the Department of Veterans Affairs. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(2)The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
(d)(f)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(3)Project-based voucher means a project-based voucher issued under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), including project-based federal Department of Housing and Urban Development Veterans Supportive Housing vouchers, as authorized by that federal act.(4)(3)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(5)(4)Qualified tenant means an extremely low income veteran who is homeless.
(6)(5)Qualified unit means a supportive housing unit restricted to extremely low income veterans that is funded or otherwise supported at least in part by a project-based voucher. pursuant to a regulatory agreement with the California Tax Credit Allocation Committee or with a bond issuer under the private activity bonds program administered by the California Debt Limit Allocation Committee.
(7)(6)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income. income and is receiving income as a result of service-connected disability benefits.
(8)(7)Supportive housing unit has the same meaning as defined in Section 987.003.
(9)(8)Veteran has the same meaning as defined in Section 987.003.
(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes, as defined in Section 50106 of the Health and Safety Code.
(2)In determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)An entity tasked with making referrals of units targeted to extremely low income households may match prospective tenants with incomes at or below 60 percent of the area median income, if the income is above 30 percent of the area median income as a result of the prospective tenant receiving service-connected disability benefits, as defined in Section 50105 of the Health and Safety Code, if, after 14 21 days of a unit becoming available, an eligible tenant is unable to be matched to and accept placement in the available unit.
(B)If, after 21 days of a unit becoming available to a prospective tenant under subparagraph (A), a tenant is unable to be matched and accept placement in the available unit, an entity tasked with making referrals may match prospective tenants with incomes at or below 60 percent of the area median income.
(B)(C)This shall include circumstances in which housing tenants with incomes at 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes.
(D)If a unit that was originally restricted to a tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income, and the tenant vacates the unit, that unit shall return to its initial eligibility criteria for tenants with extremely low incomes.
(6)The entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the departments upon request. Documentation of these good faith efforts shall include, but not be limited to, the following:
(A)Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
(B)Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
(C)Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
(D)Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
(E)Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
(c)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(d)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(e)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(f)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 2.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing Unit Petitions987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 14 21 days of the qualified unit becoming available, the qualified entity shall be eligible to submit, pursuant to this section, a petition to the California Tax Credit Allocation Committee for purposes of requesting authority to allow secondary tenants to be located, matched to, or otherwise placed in the qualified units.
(b)The committee shall create or otherwise establish all of the following by July 1, 2024:
(1)A standardized form for petitions that a qualified entity may submit for the purpose described in subdivision (a).
(2)An online portal for the submission of the petition.
(3)If necessary, rules and regulations for the review of and determination on the petitions that are consistent with the requirements of this section.
(c)Within 30 days of receiving a petition pursuant to this section, the committee shall do both of the following:
(1)Review the petition and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to all applicable federal Internal Revenue Service and committee guidelines, rules, and regulations, and other law.
(2)Provide a written determination to the qualified entity that made the petition.
(d)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Homeless has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
(2)(3)Project-based voucher means a project-based voucher issued under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), including project-based federal Department of Housing and Urban Development Veterans Supportive Housing vouchers, as authorized by that federal act.
(3)(4)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(4)(5)Qualified tenant means an extremely low income veteran. veteran who is homeless.
(5)(6)Qualified unit means a supportive housing unit restricted to extremely low income veterans that is funded or otherwise supported at least in part by a project-based voucher.
(6)(7)Secondary tenants means a veteran who is homeless who has an income of up to 60 percent of the area median income.
(7)(8)Supportive housing unit has the same meaning as defined in Section 987.003.
(8)(9)Veteran has the same meaning as defined in Section 987.003.
REVISIONS: HeadingLine 2.(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes, as defined in Section 50106 of the Health and Safety Code.
(2)In determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)An entity tasked with making referrals of units targeted to extremely low income households may match prospective tenants with incomes at 60 percent of the area median income, as defined in Section 50105 of the Health and Safety Code, if, after 14 days of a unit becoming available, an eligible tenant is unable to be matched to and accept placement in the available unit.
(B)This shall include circumstances in which housing tenants with incomes at 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes.
(6)The entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the departments upon request.
(c)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(d)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(e)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(f)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
SEC. 2.Article 3.3 (commencing with Section 987.300) is added to Chapter 6 of Division 4 of the Military and Veterans Code, to read:3.3.Supportive Housing Unit Petitions987.300.(a)If a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 14 days of the qualified unit becoming available, the qualified entity shall be eligible to submit, pursuant to this section, a petition to the California Tax Credit Allocation Committee for purposes of requesting authority to allow secondary tenants to be located, matched to, or otherwise placed in the qualified units.
(b)The committee shall create or otherwise establish all of the following by July 1, 2024:
(1)A standardized form for petitions that a qualified entity may submit for the purpose described in subdivision (a).
(2)An online portal for the submission of the petition.
(3)If necessary, rules and regulations for the review of and determination on the petitions that are consistent with the requirements of this section.
(c)Within 30 days of receiving a petition pursuant to this section, the committee shall do both of the following:
(1)Review the petition and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to all applicable federal Internal Revenue Service and committee guidelines, rules, and regulations, and other law.
(2)Provide a written determination to the qualified entity that made the petition.
(d)For purposes of this section, the following definitions apply:
(1)Extremely low income has the same meaning as defined in Section 50106 of the Health and Safety Code.
(2)Project-based voucher means a project-based voucher issued under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), including project-based federal Department of Housing and Urban Development Veterans Supportive Housing vouchers, as authorized by that federal act.
(3)Qualified entity means an entity that is responsible for making referrals of qualified tenants to qualified units.
(4)Qualified tenant means an extremely low income veteran.
(5)Qualified unit means a supportive housing unit restricted to extremely low income veterans that is funded or otherwise supported at least in part by a project-based voucher.
(6)Secondary tenants means a veteran who has an income of up to 60 percent of the area median income.
(7)Supportive housing unit has the same meaning as defined in Section 987.003.
(8)Veteran has the same meaning as defined in Section 987.003.
(a)The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following:
(1)Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources.
(2)Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation.
(3)Promote public and private partnerships.
(4)Foster innovative financing opportunities.
(5)Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans.
(b)(1)The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes, as defined in Section 50106 of the Health and Safety Code.
(1)(2)In determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a households income sources upon initial tenancy.
(2)(3)At least 60 percent of units funded targeting extremely low income households shall be supportive housing.
(3)(4)This section shall not deter the departments from funding projects serving mixed-income populations.
(5)(A)An entity tasked with making referrals of units targeted to extremely low income households may match prospective tenants with incomes at 60 percent of the area median income, as defined in Section 50105 of the Health and Safety Code, if, after 14 days of a unit becoming available, an eligible tenant is unable to be matched to and accept placement in the available unit.
(B)This shall include circumstances in which housing tenants with incomes at 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes.
(6)The entity tasked with making referrals to these units shall make a good faith effort to match a tenant with an extremely low income, shall document these good faith efforts, and shall make this documentation available to the departments upon request.
(c)The departments may review, adopt, amend, and repeal guidelines or terms, or both, to implement this article. Any guidelines or terms adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(d)Nothing in this article permits the departments or the board to purchase, operate, or manage properties except in the event of a foreclosure on a borrower or grantee.
(e)(1)Notwithstanding any other law, a housing developer or service provider that provides housing or services pursuant to this article may provide housing or services to female veterans and their children in women-only facilities in limited instances in which a female veteran (A) has suffered any form of sexual abuse, trauma, or intimidation or harassment while serving in the military and is seeking treatment for that sexual abuse, trauma, or intimidation or harassment, or (B) is seeking the housing or services as a result of being a victim of sexual abuse or domestic violence.
(2)A housing developer or service provider that provides housing or services to female veterans in women-only facilities pursuant to paragraph (1) shall ensure that the housing or services shall provide supportive housing or services with a focus on, among others, treating the effects of military sexual abuse, trauma, or intimidation in a gender-specific manner.
(3)For purposes of this subdivision, women-only facilities means the facilities may house and provide services to female veterans only and their children, and shall not house or provide services to any adult who is not a dependent of a female veteran.
(f)In administering the programs established under this article, the departments shall do all of the following:
(1)Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(2)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this article in addition to those used in the Multifamily Housing Program.
(3)Administer funds subject to this article in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code).
(4)Only applications serving veterans and meeting any additional threshold requirements established by the departments, shall be eligible to receive funds pursuant to this article.
(g)This section shall become operative on January 1, 2022.|
Date
|
Status
|
|---|---|
| Oct 11, 2023 | Chaptered by Secretary of State - Chapter 760, Statutes of 2023. |
| Oct 11, 2023 | Approved by the Governor. |
| Sep 21, 2023 | Enrolled and presented to the Governor at 3:30 p.m. |
| Sep 13, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3376.). |
| Sep 12, 2023 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 12, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 0. Page 2636.). |
| Sep 11, 2023 | Read second time. Ordered to third reading. |
| Sep 7, 2023 | Read third time and amended. Ordered to second reading. |
| Sep 5, 2023 | Read second time. Ordered to third reading. |
| Sep 1, 2023 | Read second time and amended. Ordered returned to second reading. |
| Sep 1, 2023 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 0.) (September 1). |
| Aug 14, 2023 | In committee: Referred to APPR suspense file. |
| Jul 11, 2023 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (July 10). Re-referred to Com. on APPR. |
| Jun 21, 2023 | From committee: Do pass and re-refer to Com. on M. & V.A. with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (June 20). Re-referred to Com. on M. & V.A. |
| Jun 13, 2023 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HOUSING. |
| Jun 7, 2023 | Referred to Coms. on HOUSING and M. & V.A. |
| May 31, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0. Page 1907.) |
| May 18, 2023 | Read second time. Ordered to third reading. |
| May 18, 2023 | Joint Rule 62(a), file notice suspended. (Page 1580.) |
| May 18, 2023 | From committee: Do pass. (Ayes 15. Noes 0.) (May 18). |
| May 17, 2023 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 19, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 18). Re-referred to Com. on APPR. |
| Apr 19, 2023 | Coauthors revised. |
| Apr 12, 2023 | Re-referred to Com. on M. & V.A. |
| Apr 11, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on M. & V.A. Read second time and amended. |
| Mar 29, 2023 | From committee: Do pass and re-refer to Com. on M. & V.A. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (March 29). Re-referred to Com. on M. & V.A. |
| Mar 22, 2023 | Re-referred to Com. on H. & C.D. |
| Mar 21, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Mar 9, 2023 | Referred to Coms. on H. & C.D. and M. & V.A. |
| Feb 18, 2023 | From printer. May be heard in committee March 20. |
| Feb 17, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 13, 2023 | AB 1386 Gabriel Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 12, 2023 | Assembly 3rd Reading AB1386 Gabriel et al. By Roth | Senate Floor |
Passed |
|
| Sep 1, 2023 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 14, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Military and Veterans Affairs |
Passed |
|
| Jun 20, 2023 | Do pass, but first be re-referred to the Committee on [Military and Veterans Affairs] with the recommendation: To Consent Calendar | Senate Standing Committee on Housing |
Passed |
|
| May 30, 2023 | AB 1386 Gabriel Assembly Third Reading | Assembly Floor |
Passed |
|
| May 18, 2023 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Military and Veterans Affairs |
Passed |
|
| Mar 29, 2023 | Do pass and be re-referred to the Committee on [Military and Veterans Affairs] with recommendation: To Consent Calendar | Assembly Standing Committee on Housing and Community Development |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Affirmed Housing | ** Support | |
| American Legion, Department Of California | ** Support | |
| Building Industry Association of Southern California, Inc. | ** Support | |
| California Apartment Association | ** Support | |
| California Association Of County Veterans Service Officers | ** Support | |
| California Association of Veteran Service Agencies | ** Support | |
| California Housing Consortium | ** Support | |
| California Housing Partnership Corporation | ** Support | |
| City Of Los Angeles | ** Support | |
| Corporation For Supportive Housing | ** Support | |
| County of Los Angeles Board of Supervisors | ** Support | |
| Enterprise Community Partners Inc | ** Support | |
| Hope the Mission | ** Support | |
| Hope the MissionHousing California | ** Support | |
| Housing California | ** Support | |
| los angeles homeless services authority | ** Support | |
| National Alliance to End Homelessness | ** Support | |
| Path | ** Support | |
| San Diego Regional Task Force on Homelessness | ** Support | |
| Supportive Housing Alliance | ** Support | |
| The People Concern | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1386
Author:(Gabriel)
As Amended Ver:September 7, 2023
Majority vote
SUMMARY
Authorizes entities referring veterans to deeply affordable housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or tax credits and private activity bonds to refer veterans at higher income levels if units are unable to be filled at a lower income threshold for specified time periods.
Senate Amendments:
- Revise the definition of "secondary tenant" to mean a homeless veteran who either has an income of up to 50% of the area median income (AMI) and receives income from service-related disability benefits, or an income of up to 60% of the AMI, but would otherwise have an income below 50% of the AMI if not for income from a service-connected disability.
- Delete the 21-day waiting period before authorizing a referring entity to match a secondary tenant to a qualified unit, and instead require a referring entity to submit a petition to the Department of Housing and Community Development (HCD) and the California Department of Veterans Affairs (CalVet) requesting to lease the unit to a secondary tenant, if the entity is unable to match or place a qualified tenant in the unit within 60 days of it becoming available. A referring entity may submit an application to HCD and CalVet 30 days after the unit becomes available, as long as the unit is vacant for at least 60 days.
- Require HCD and CalVet to create a standardized application form for secondary tenants to submit a petition for placement in a qualified unit and prescribe a process for HCD and CalVet to review petitions and provide a written determination of whether a qualified unit is available to accept secondary tenants, as specified.
- Delete the requirement for a unit housing a secondary tenant to return to its initial eligibility criteria for extremely low-income (ELI) tenants if the secondary tenant vacates the unit, and instead require the next available comparable unit to be rented to an ELI tenant beginning 12 months after the petition in 2), above, has been approved.
- Require a secondary tenant placed in an ELI unit to pay rent commensurate with their household income rather than the ELI rent level.
- Expand the types of non-VHHP units to which the bill would apply from those supported by a project-based housing voucher to supportive housing for veterans broadly funded by tax credits and private activity bonds, remove the requirement for an entity to submit a petition to the California Tax Credit Allocation Committee to request authority to place secondary tenants in those units, and extend the waiting period from 21 to 28 days before an entity is eligible to match secondary tenants to those units.
- Provide that if an entity has submitted a petition under 2) for a unit that is funded by both VHHP and tax credits or bonds, then the outcome of that petition shall determine whether the qualified entity is able to refer secondary tenants.
- Require HCD and CalVet to create a standardized application form for secondary tenants to submit a petition for placement in a qualified unit and prescribe a process for HCD and CalVet to review petitions and provide a written determination of whether a qualified unit is available to accept secondary tenants, as specified.
- Make other technical changes.
COMMENTS
Veterans and Housing Needs: A majority of California's veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
In 2014, Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date the VHHP Program has provided six rounds of funding administered by HCD in collaboration with CalHFA and CalVet, plus one round via the state's first "Super NOFA" or "Super Notice of Funding Availability" consolidated application round pursuant to AB 434 (Daly), Chapter 192, Statutes of 2020. The latest award information shows that $478 million in VHHP awards have been made cumulatively over the six rounds of the program. This is expected to result in a total of 3,058 VHHP housing units for veterans and their families with 66% reserved for ELI veterans, 27% for very low-income veterans, and the remainder for low-income veterans. Additionally, 80% of the housing units developed with VHHP funds are restricted to veterans experiencing homelessness. While the VHHP funds are helping to create much-needed affordable housing, transitional housing, and supportive housing for California's veterans, it is important to note the program will run out of funding unless additional resources are allocated.
VHHP Income Limits: Currently, at least 50% of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30% or less of AMI. The United States Department of Housing and Urban Development (HUD) publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes. The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for deeply income-restricted VHHP units.
Issues Related to Veteran Unit Vacancy Rates in Certain Regions: According to the Los Angeles Housing Department's (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city's Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30% AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e. non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75% lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing.
The memo requested, and the City Council approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50% of AMI. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations.
According to the memo:
A critical challenge facing projects with VASH assistance is receiving sufficient referrals of veterans whose income does not exceed the 30% AMI requirements. The VA has indicated that leasing VASH units targeting extremely low-income veterans is a significant challenge because veterans eligible for VA benefits have incomes that exceed 30% AMI at the time of lease-up. According to current veterans disability compensation rates, a veteran with no dependents who is 100% 'service connected' (meaning they receive healthcare, disability and other benefits) receives $3,621.95 monthly, which is an annual income of $43,463.40. This is above the 30% AMI income limit of $25,050 for a one-person household.
People Assisting the Homeless (PATH), a nonprofit homeless service provider and affordable housing developer with a number of projects in the LA region, notes that many of their supportive housing developments have struggled to fill VHHP units, which they contend puts them at risk of penalties from the IRS, complicates their efforts to successfully put together financing for future developments, and delays veterans from exiting homelessness.
This bill proposes to allow housing providers who are making referrals to VHHP units to petition HCD and CalVet for authority to refer tenants with incomes up to 50% AMI who are receiving service-connected disability benefits (or tenants up to 60% AMI who would otherwise have an income of less than 50% AMI if not for their disability benefits) only if they are unable to find tenants at 30% AMI for at least 60 days after a unit becomes available. This bill would also allow a VHHP development to dip below the statutorily mandated 50% ELI unit threshold if no ELI tenants can be found in that period, but overall at least 30% of the development must still house ELI tenants. Additionally, beginning 12 months after a higher income tenant is placed in an ELI unit, the next available unit must be rented to an ELI tenant, so that the building does not gradually convert to higher income thresholds over time.
TCAC-Monitored Housing Units: This bill also creates a process for a referring entity to place a secondary tenant in a TCAC-regulated unit if no tenant at 30% of AMI can be located for at least 28 days after a unit becomes available. If 14 additional days pass with no secondary tenant presenting for placement, then the bill allows the entity to place a veteran experiencing homelessness up to 60% AMI. TCAC has the ability to permit this substitution so long as the overall affordability level of the building does not exceed certain income thresholds under federal IRS rules.
According to the Author
"California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California's homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed. The existing eligibility criteria for some supportive housing developments that serve homeless Veterans can leave many Veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the units even though they would otherwise qualify for the program. This leaves some developments with high vacancy rates and struggling to fill units while many Veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive."
Arguments in Support
According to the California Association of Veteran Service Agencies, "AB 1386 makes necessary updates to the Veterans Housing and Homeless Prevention (VHHP) Program; this bill would allow local homeless systems to match a Veteran experiencing homelessness with an income at or below 60% area median income (AMI) in cases when a veteran with a lower income cannot be located. Additionally, the bill focuses on accepting Veterans into the VHHP program through a lens of equity, and ensures that Veterans with the lowest-income are prioritized before Veterans of higher incomes are accepted. We believe this legislation is critical in addressing the needs and obstacles of veterans."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Senate Appropriations Committee:
- The Department of Housing and Community Development (HCD) estimates ongoing annual costs of approximately $195,000 and 1.0 personnel year (PY) of staff to conduct ongoing compliance monitoring of VHHP projects, including requesting and reviewing good faith efforts to match extremely low income tenants with restricted units before offering the unit to a secondary tenant with a higher income. These staffing needs are likely to increase over time, to the extent additional properties are added to the portfolio of VHHP projects. (Housing for Veterans Fund)
- The State Treasurer's Office estimates ongoing annual costs of approximately $174,000 for 1.0 PY of staff to conduct compliance monitoring of projects subject to regulatory agreements with the California Tax Credit Allocation Committee (TCACO and the California Debt Limit Advisory Committee (CDLAC). (Tax Credit Allocation Fee Account and the California Debt Limit Allocation Committee Fund
- The Department of Veterans Affairs (CalVet) indicates that any costs would be minor and absorbable. (Housing for Veterans Fund)
- The California Housing Finance Agency (CalHFA) does not anticipate a fiscal impact. (Housing for Veterans Fund)
VOTES:
ASM HOUSING AND COMMUNITY DEVELOPMENT: 8-0-0
YES: Wicks, Joe Patterson, Wendy Carrillo, Gabriel, Juan Carrillo, Quirk-Silva, Sanchez, Ward
ASM MILITARY AND VETERANS AFFAIRS: 11-0-0
YES: Soria, Davies, Addis, Alvarez, Boerner Horvath, Juan Carrillo, Mathis, Muratsuchi, Petrie-Norris, Ta, Valencia
ASM APPROPRIATIONS: 15-0-1
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega
ABS, ABST OR NV: Robert Rivas
ASSEMBLY FLOOR: 80-0-0
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones‑Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
UPDATED
VERSION: September 7, 2023
CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0002340
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1386 |
THIRD READING
Bill No: AB 1386
Author: Gabriel (D), et al.
Amended: 9/7/23 in Senate
Vote: 21
SENATE HOUSING COMMITTEE: 11-0, 6/20/23
AYES: Wiener, Ochoa Bogh, Blakespear, Caballero, Cortese, McGuire, Padilla, Seyarto, Skinner, Umberg, Wahab
SENATE MILITARY & VETERANS COMMITTEE: 5-0, 7/10/23
AYES: Archuleta, Grove, Alvarado-Gil, Menjivar, Umberg
SENATE APPROPRIATIONS COMMITTEE: 5-0, 9/1/23
AYES: Portantino, Ashby, Bradford, Wahab, Wiener
ASSEMBLY FLOOR: 80-0, 5/30/23 - See last page for vote
SUBJECT: Veterans housing: tenant referrals
SOURCE: Author
DIGEST:
This bill authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at higher income levels if units are unable to be filled, as specified.
Senate Floor Amendments of 9/7/23 authorize a qualified entity to submit a petition, as specified, to the Department of Housing and Community Development (HCD), California Department of Veterans Affairs (CalVet), and California Housing Finance Authority (CalHFA) to request authority to lease the qualified unit to secondary tenants if the qualified entity is unable to place a qualified tenant in a qualified unit within 60 days of the unit becoming available. They also allow the qualified entity to submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition.
ANALYSIS:
Existing law:
- Defines veteran as any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
- Defines “extremely low-income” (ELI) as persons and families whose income does not exceed 30% of the area median income (AMI).
- Enacts the Veterans Housing and Homeless Prevention Act of 2014 (VHHPA), the purpose of which is to provide the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability.
- Requires the CalHFA, the HCD, and the CalVet to work collaboratively pursuant to a memorandum of understanding to carry out the duties and functions of the VHHPA.
- Requires CalHFA, HCD, and CalVet to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified.
- Requires departments to ensure at least 50% of awarded VHHPA funds for capital development are used to provide housing to ELI veteran households.
- Requires eligibility to take into consideration all of a household’s income sources upon initial tenancy in determining whether a potential tenant is eligible for supportive, affordable, or transition housing targeted to ELI households.
- Requires at least 60% of units funded targeting ELI households to be supportive housing units. Clarifies that this shall not deter the departments from funding projects serving mixed-income populations.
- Authorizes, pursuant to federal rules and regulations, public housing authorities (PHAs) to project-base up to 20% of their allocation of Housing Choice Vouchers, including Department of Housing and Urban Development (HUD)-Veterans Affairs Supportive Housing (VASH) vouchers without additional approval by HUD. PHAs may raise the limit an additional 10% for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use.
- Requires, pursuant to federal regulations, no less than 75% of the families admitted to a PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the PHA waiting list to be ELI families.
- Permits, pursuant to federal regulations, a property that receives a federal low-income housing tax credit to change the designated income limitation of a unit in a property according to certain rules, so long as the overall average income of the property does not exceed certain thresholds.
This bill:
- Defines “qualified entity” as an entity that is responsible for making referrals of qualified tenants to qualified units.
- Defines “qualified tenant” as an ELI veteran who is homeless.
- Defines “qualified unit” as a supportive housing unit restricted to ELI veterans, as specified.
- Defines “secondary tenant” as a veteran who is homeless who either has an income of up to 50% of the AMI and receives income from service-related disability benefits, or an income of up to 60% of the AMI, but would otherwise have an income below 50% of the AMI if not for income from a service-connected disability.
- Authorizes a qualified entity to submit a petition, as specified, to HCD, CalVet, and CalHFA (the departments) to request authority to lease the qualified unit to secondary tenants if the qualified entity is unable to place a qualified tenant in a qualified unit within 60 days of the unit becoming available. The qualified entity may submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition.
- Requires the departments to create a standardized form for the submission of petitions and provide a written determination approving or denying the petition no later than 30 days after receipt of the petition, as specified.
- Requires the rate of rent for a secondary or other tenant who is a veteran experiencing homelessness with an income between 30 and 50% AMI to not exceed the rate that would be charged had the unit been placed with a qualified ELI tenant.
- Requires the supportive development to have 30% or more of its units be occupied by ELI tenants.
- Requires a qualified unit to return to its initial eligibility criteria for ELI tenants after a tenant vacates the unit.
- Requires the qualified entity to make and document a good faith effort to match an ELI tenant to the qualified unit, to be included in their petition to the departments. The documentation shall include, but not be limited to, the following:
- Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
- Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
- Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
- Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
- Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
- Allows TCAC and CDLAC to adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
Background
A majority of California’s veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
Comments
- Author’s statement. “California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California’s homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed. The existing eligibility criteria for some supportive housing developments that serve homeless Veterans can leave many Veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the units even though they would otherwise qualify for the program. This leaves some developments with high vacancy rates and struggling to fill units while many Veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.”
- VHHP income limits. Proposition 41 created the VHHP and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. Currently, at least 50% of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30% or less of AMI. HUD publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes. The author and supporters of this bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for deeply income-restricted VHHP units.
- HUD-VASH and project-based vouchers (PBVs). Through a cooperative partnership, the HUD-VASH Program provides long-term case management, supportive services and permanent housing support to qualified veterans experiencing homelessness. HUD provides Housing Choice Vouchers (Section 8 vouchers) designated for HUD-VASH to participating PHAs to assist with rent payments. To be eligible for this program, veterans must be VA Health Care-eligible, homeless, and must participate in case management services in order to obtain and sustain permanent independent community housing. PHAs can choose to “project-base” or dedicate up to 20% (in some cases up to 30%) of their vouchers to specific units in an affordable or supportive housing development. Because these vouchers represent a stable, medium-term rental assistance payment stream, affordable and supportive housing developers often use PBVs to help subsidize deeply affordable ELI units in a development. PHAs are required to conduct their HUD-VASH programs in conjunction with their nearby Veterans Affairs Medical Center (VAMC), which must make supportive services available to individuals receiving HUD-VASH assistance. When a PHA chooses to project-based their HUD-VASH vouchers, they must ensure they have the support of their partnering VAMC.
- Issues related to veteran unit vacancy rates in certain regions. According to the Los Angeles Housing Department’s (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city’s Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30% AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e., non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75% lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing. The memo requested, and the Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50% AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations. This bill authorizes a qualified entity to submit a petition, as specified, the departments to request authority to lease the qualified unit to secondary tenants if the qualified entity is unable to place a qualified tenant in a qualified unit within 60 days of the unit becoming available. This bill also allows the qualified entity to submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition. This bill requires the departments to create a standardized form for the submission of petitions and provide a written determination approving or denying the petition no later than 30 days after receipt of the petition, as specified.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- The Department of Housing and Community Development (HCD) estimates ongoing annual costs of approximately $195,000 and 1.0 PY of staff to conduct ongoing compliance monitoring of VHHP projects, including requesting and reviewing good faith efforts to match extremely low income tenants with restricted units before offering the unit to a secondary tenant with a higher income. These staffing needs are likely to increase over time, to the extent additional properties are added to the portfolio of VHHP projects. (Housing for Veterans Fund)
- The State Treasurer’s Office estimates ongoing annual costs of approximately $174,000 for 1.0 PY of staff to conduct compliance monitoring of projects subject to regulatory agreements with the California Tax Credit Allocation Committee (TCACO and the California Debt Limit Advisory Committee (CDLAC). (Tax Credit Allocation Fee Account and the California Debt Limit Allocation Committee Fund)
- The Department of Veterans Affairs (CalVet) indicates that any costs would be minor and absorbable. (Housing for Veterans Fund)
- The California Housing Finance Agency (CalHFA) does not anticipate a fiscal impact. (Housing for Veterans Fund)
SUPPORT: (Verified 9/6/23)
Affirmed Housing
American Legion, Department of California
Building Industry Association of Southern California, Inc.
California Apartment Association
California Association of County Veterans Service Officers
California Association of Veteran Service Agencies
California Housing Consortium
California Housing Partnership Corporation
City of Los Angeles
Corporation for Supportive Housing
County of Los Angeles Board of Supervisors
Enterprise Community Partners, Inc.
Hope the Mission
Housing California
Los Angeles Homeless Services Authority
National Alliance to End Homelessness
PATH
San Diego Regional Task Force on Homelessness
Supportive Housing Alliance
The People Concern
OPPOSITION: (Verified 9/6/23)
None received
ASSEMBLY FLOOR: 80-0, 5/30/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
Prepared by: Aiyana Cortez / HOUSING / (916) 651-4124
9/8/23 16:31:49
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1386 |
THIRD READING
Bill No: AB 1386
Author: Gabriel (D), et al.
Amended: 9/1/23 in Senate
Vote: 21
SENATE HOUSING COMMITTEE: 11-0, 6/20/23
AYES: Wiener, Ochoa Bogh, Blakespear, Caballero, Cortese, McGuire, Padilla, Seyarto, Skinner, Umberg, Wahab
SENATE MILITARY & VETERANS COMMITTEE: 5-0, 7/10/23
AYES: Archuleta, Grove, Alvarado-Gil, Menjivar, Umberg
SENATE APPROPRIATIONS COMMITTEE: 5-0, 9/1/23
AYES: Portantino, Ashby, Bradford, Wahab, Wiener
ASSEMBLY FLOOR: 80-0, 5/30/23 - See last page for vote
SUBJECT: Veterans housing: tenant referrals
SOURCE: Author
DIGEST:
This bill authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at higher income levels if units are unable to be filled after 28 days at a lower-income threshold.
ANALYSIS:
Existing law:
- Defines veteran as any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
- Defines “extremely low-income” as persons and families whose income does not exceed 30% AMI.
- Enacts the Veterans Housing and Homeless Prevention Act of 2014 (VHHPA), the purpose of which is to provide the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability.
- Requires the California Housing Finance Authority (CalHFA), the Department of Housing and Community Development (HCD), and the California Department of Veterans Affairs (CalVet) to work collaboratively pursuant to a memorandum of understanding to carry out the duties and functions of the VHHPA.
- Requires CalHFA, HCD, and CalVet to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, as specified.
- Requires departments to ensure at least 50% of awarded VHHPA funds for capital development are used to provide housing to ELI veteran households.
- Requires eligibility to take into consideration all of a household’s income sources upon initial tenancy in determining whether a potential tenant is eligible for supportive, affordable, or transition housing targeted to ELI households.
- Requires at least 60% of units funded targeting ELI households to be supportive housing units. Clarifies that this shall not deter the departments from funding projects serving mixed-income populations.
- Authorizes, pursuant to federal rules and regulations, public housing authorities (PHAs) to project-base up to 20% of their allocation of Housing Choice Vouchers, including HUD-VASH vouchers without additional approval by HUD. PHAs may raise the limit an additional 10% for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use.
- Requires, pursuant to federal regulations, no less than 75% of the families admitted to a PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the PHA waiting list to be ELI families.
- Permits, pursuant to federal regulations, a property that receives a federal low-income housing tax credit to change the designated income limitation of a unit in a property according to certain rules, so long as the overall average income of the property does not exceed certain thresholds.
This bill:
- Defines “qualified entity” as an entity that is responsible for making referrals of qualified tenants to qualified units.
- Defines “qualified tenant” as an ELI veteran who is homeless.
- Defines qualified unit as a supportive housing unit restricted to ELI veterans.
- Defines secondary tenants as a veteran who is homeless who has an income of up to 60% area median income (AMI) and is receiving income as a result of service-connected disability benefits.
- Authorizes a qualified entity to match secondary tenants to qualified units funded through VHHP if after 28 days of a qualified unit becoming available, a qualified tenant is unable to be matched to and accept placement in the available unit.
- Authorizes a qualified entity to match a tenant who is a veteran experiencing homelessness with income at or below 60% AMI to qualified units if after 14 days of a qualified unit becoming available to prospective secondary tenants a qualified tenant or secondary tenant is unable to be matched and accept placement in the available unit.
- Requires the rate of rent for a secondary or other tenant who is a veteran experiencing homelessness with an income between 30 and 60% AMI to not exceed the rate that would be charged had the unit been placed with a qualified ELI tenant.
- Requires the supportive development to have 30% or more of its units be occupied by ELI tenants.
- Requires a qualified unit to return to its initial eligibility criteria for ELI tenants after a tenant vacates the unit.
- Requires the qualified entity to make and document a good faith effort to match an ELI tenant to the qualified unit. The documentation shall be made available to the housing sponsor and included in the tenant file. The documentation shall include, but not be limited to, the following:
- Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
- Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
- Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
- Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
- Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
- Requires TCAC and CDLAC to treat secondary tenants as eligible for the qualified unit if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available.
- Requires TCAC and CDLAC to treat veterans experiencing homelessness at or below 60% AMI as eligible for the qualified unit if a qualified entity unable to locate, match, or otherwise place a qualified tenant or secondary tenant in a qualified unit within 14 days of the qualified unit becoming available to secondary tenants.
- Allows TCAC and CDLAC to adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
Background
Veterans and housing needs. A majority of California’s veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
Comments
- Author’s statement. “California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California’s homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed. The existing eligibility criteria for some supportive housing developments that serve homeless Veterans can leave many Veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the units even though they would otherwise qualify for the program. This leaves some developments with high vacancy rates and struggling to fill units while many Veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.”
- VHHP income limits. Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. Currently, at least 50% of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30% or less of AMI. HUD publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes. The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for deeply income-restricted VHHP units.
- HUD-VASH and project-based vouchers (PBVs). Through a cooperative partnership, the HUD-VASH Program provides long-term case management, supportive services and permanent housing support to qualified veterans experiencing homelessness. HUD provides Housing Choice Vouchers (Section 8 vouchers) designated for HUD-VASH to participating PHAs to assist with rent payments. To be eligible for this program, veterans must be VA Health Care-eligible, homeless, and must participate in case management services in order to obtain and sustain permanent independent community housing. PHAs can choose to “project-base” or dedicate up to 20% (in some cases up to 30%) of their vouchers to specific units in an affordable or supportive housing development. Because these vouchers represent a stable, medium-term rental assistance payment stream, affordable and supportive housing developers often use PBVs to help subsidize deeply affordable ELI units in a development. PHAs are required to conduct their HUD-VASH programs in conjunction with their nearby Veterans Affairs Medical Center (VAMC), which must make supportive services available to individuals receiving HUD-VASH assistance. When a PHA chooses to project-based their HUD-VASH vouchers, they must ensure they have the support of their partnering VAMC.
- Issues related to veteran unit vacancy rates in certain regions. According to the Los Angeles Housing Department’s (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city’s Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30% AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e., non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75% lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing. The memo requested, and the Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50% AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations. This bill proposes to allow housing providers who are making referrals to VHHP and TCAC units to refer tenants with incomes up to 60% AMI only if they are unable to find tenants at 30% AMI for 28 days after a unit becomes available. This bill would also allow a development to dip below the statutorily mandated 50% ELI unit threshold if no tenants at 30% AMI can be found in the specified time period.
- Appropriations Amendments. Amendments taken in the Senate Appropriations Committee revise the definition of “secondary tenant” to mean a homeless veteran who either has an income of up to 50% of the area median income (AMI) and receives income from service-related disability benefits, or an income of up to 60% of the AMI, but would otherwise have an income below 50% of the AMI if not for income from a service-connected disability. Additionally, they delete the specified 28 day waiting period before authorizing a referring entity to match a secondary tenant to a qualified unit, and instead require a referring entity to submit a petition to HCD and CalVet requesting to lease the unit to a secondary tenant, if the entity is unable to match or place a qualified tenant in the unit within 60 days of it becoming available. A referring entity may submit an application to HCD and CalVet 30 days after the unit becomes available, as long as the unit is vacant for at least 60 days. They also require HCD and CalVet to create a standardized application form for secondary tenants to submit a petition for placement in a qualified unit and prescribe a process for HCD and CalVet to review petitions and provide a written determination of whether a qualified unit is available to accept secondary tenants, as specified.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
- The Department of Housing and Community Development (HCD) estimates ongoing annual costs of approximately $195,000 and 1.0 PY of staff to conduct ongoing compliance monitoring of VHHP projects, including requesting and reviewing good faith efforts to match extremely low income tenants with restricted units before offering the unit to a secondary tenant with a higher income. These staffing needs are likely to increase over time, to the extent additional properties are added to the portfolio of VHHP projects. (Housing for Veterans Fund)
- The State Treasurer’s Office estimates ongoing annual costs of approximately $174,000 for 1.0 PY of staff to conduct compliance monitoring of projects subject to regulatory agreements with the California Tax Credit Allocation Committee (TCACO and the California Debt Limit Advisory Committee (CDLAC). (Tax Credit Allocation Fee Account and the California Debt Limit Allocation Committee Fund)
- The Department of Veterans Affairs (CalVet) indicates that any costs would be minor and absorbable. (Housing for Veterans Fund)
- The California Housing Finance Agency (CalHFA) does not anticipate a fiscal impact. (Housing for Veterans Fund)
SUPPORT: (Verified 9/1/23)
Affirmed Housing
American Legion, Department of California
Building Industry Association of Southern California, Inc.
California Apartment Association
California Association of County Veterans Service Officers
California Association of Veteran Service Agencies
California Housing Consortium
California Housing Partnership Corporation
City of Los Angeles
Corporation for Supportive Housing
County of Los Angeles Board of Supervisors
Enterprise Community Partners, Inc.
Hope the MissionHousing California
Los Angeles Homeless Services Authority
National Alliance to End Homelessness
PATH
San Diego Regional Task Force on Homelessness
Supportive Housing Alliance
The People Concern
OPPOSITION: (Verified 9/1/23)
None received
ASSEMBLY FLOOR: 80-0, 5/30/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting,
Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
Prepared by: Aiyana Cortez / HOUSING / (916) 651-4124
9/2/23 14:07:43
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 1386 (Gabriel) - Veterans housing: tenant referrals
Version: June 13, 2023 | Policy Vote: HOUSING 11 - 0, M.&V.A. 5 - 0 |
Urgency: No | Mandate: No |
Hearing Date: September 1, 2023 | Consultant: Mark McKenzie |
Bill Summary:
AB 1386 would authorize entities referring veterans to specified income-restricted housing units that are funded by the Veterans Housing and Homeless Prevention Program (VHHP Program), or funded by low-income housing tax credits or specified private activity bonds, to refer a veteran with higher income levels if the referring entity cannot place an extremely low income homeless veteran tenant in a restricted unit within 28 days, as specified.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on September 1, 2023
Fiscal Impact:
- The Department of Housing and Community Development (HCD) estimates ongoing annual costs of approximately $195,000 and 1.0 PY of staff to conduct ongoing compliance monitoring of VHHP projects, including requesting and reviewing good faith efforts to match extremely low income tenants with restricted units before offering the unit to a secondary tenant with a higher income. These staffing needs are likely to increase over time, to the extent additional properties are added to the portfolio of VHHP projects. (Housing for Veterans Fund)
- The State Treasurer’s Office estimates ongoing annual costs of approximately $174,000 for 1.0 PY of staff to conduct compliance monitoring of projects subject to regulatory agreements with the California Tax Credit Allocation Committee (TCACO and the California Debt Limit Advisory Committee (CDLAC). (Tax Credit Allocation Fee Account and the California Debt Limit Allocation Committee Fund)
- The Department of Veterans Affairs (CalVet) indicates that any costs would be minor and absorbable. (Housing for Veterans Fund)
- The California Housing Finance Agency (CalHFA) does not anticipate a fiscal impact. (Housing for Veterans Fund)
Author Amendments:
- Revise the definition of “secondary tenant” to mean a homeless veteran who either has an income of up to 50% of the area median income (AMI) and receives income from service-related disability benefits, or an income of up to 60% of the AMI, but would otherwise have an income below 50% of the AMI if not for income from a service-connected disability.
- Delete the specified 28 day waiting period before authorizing a referring entity to match a secondary tenant to a qualified unit, and instead require a referring entity to submit a petition to HCD and CalVet requesting to lease the unit to a secondary tenant, if the entity is unable to match or place a qualified tenant in the unit within 60 days of it becoming available. A referring entity may submit an application to HCD and CalVet 30 days after the unit becomes available, as long as the unit is vacant for at least 60 days.
- Require HCD and CalVet to create a standardized application form for secondary tenants to submit a petition for placement in a qualified unit.
- Prescribe a process for HCD and CalVet to review petitions and provide a written determination of whether a qualified unit is available to accept secondary tenants, as specified.
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SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 1386 (Gabriel) - Veterans housing: tenant referrals
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 1386 would authorize entities referring veterans to specified income-restricted housing units that are funded by the Veterans Housing and Homeless Prevention Program (VHHP Program), or funded by low-income housing tax credits or specified private activity bonds, to refer a veteran with higher income levels if the referring entity cannot place an extremely low income homeless veteran tenant in a restricted unit within 28 days, as specified.
Fiscal Impact:
- The Department of Housing and Community Development (HCD) estimates ongoing annual costs of approximately $195,000 and 1.0 PY of staff to conduct ongoing compliance monitoring of VHHP projects, including requesting and reviewing good faith efforts to match extremely low income tenants with restricted units before offering the unit to a secondary tenant with a higher income. These staffing needs are likely to increase over time, to the extent additional properties are added to the portfolio of VHHP projects. (Housing for Veterans Fund)
- The State Treasurer’s Office estimates ongoing annual costs of approximately $174,000 for 1.0 PY of staff to conduct compliance monitoring of projects subject to regulatory agreements with the California Tax Credit Allocation Committee (TCACO and the California Debt Limit Advisory Committee (CDLAC). (Tax Credit Allocation Fee Account and the California Debt Limit Allocation Committee Fund)
- The Department of Veterans Affairs (CalVet) indicates that any costs would be minor and absorbable. (Housing for Veterans Fund)
- The California Housing Finance Agency (CalHFA) does not anticipate a fiscal impact. (Housing for Veterans Fund)
Background:
Existing law, the Veterans Housing and Homeless Prevention (VHHP) Bond Act of 2014 (approved by the voters at Proposition 41 in June of 2014), authorizes the issuance of $600 million in general obligation bonds to provide multifamily housing to veterans. The VHHP requires CalHFA, HCD, and CalVet to establish and implement a program that focuses on veterans at risk of homelessness or experiencing temporary or chronic homelessness. The VHHP Act specifies that up to five percent of bond funds may be used for administrative purposes.
The VHHP Program funds the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability. The administering departments must ensure that at least 50 percent of funds awarded for capital development be used to provide housing to veteran households with extremely low incomes (up to 30% of the area median income [AMI]), and 60 percent of those units must be supportive housing. In determining income eligibility for units restricted to extremely low income veteran households, eligibility must consider all of the household’s income sources upon initial tenancy.
The California Debt Limit Advisory Committee (CDLAC), in the State Treasurer’s Office, administers the tax-exempt private activity bond program for the state. Private activity bonds may only be used by the private sector to support projects and programs that provide a public benefit, primarily the creation of affordable housing in California. CDLAC’s allocation of tax-exempt bond authority results in the issuance of bonds by cities, counties, joint powers authorities, and state agencies. The tax-exempt bonds lower the interest rate paid by developers who in turn produce market rate and affordable rental housing for low and very low-income households by reducing rental rates to individuals and families. Projects that receive an award of bond authority may also apply for non-competitive 4% low-income housing tax credits (LIHTCs). The LIHTC program is administered by the California Tax Credit Allocation Committee (CTCAC), which is also within the State Treasurer’s Office.
Proposed Law:
AB 1386 would authorize entities referring veterans to specified income-restricted housing units funded by the VHHP Program funds, LIHTCs, or specified private activity bonds to place a veteran with higher income levels in a restricted unit under certain circumstances. Specifically, this bill would:
- Authorize entities responsible for making referrals of supportive housing units restricted to extremely low-income (up to 30% AMI) veterans through the VHHP Program (qualified tenant) to match a prospective homeless veteran with an income up to 60% of AMI due to service-connected disability benefits (secondary tenant) to a restricted unit if a qualified extremely low-income tenant cannot be placed within 28 days of the unit becoming available.
- Authorize a referring entity to match a tenant who is a veteran experiencing homelessness with an income at or below 60% of AMI, if neither a qualified tenant nor a secondary tenant can be placed in the restricted unit within 14 additional days.
- Specify that the above exceptions to requirements to place extremely low-income veterans in restricted units may be used even if it would cause the supported development to have less than 50% of its units occupied by extremely low-income tenants, as long as no less than 30% of units are occupied by qualified tenants.
- Limit the rent in a restricted unit to the rate that would have been charged to an extremely low-income tenant, if the homeless veteran tenant placed in that unit has an income between 30% and 50% of the AMI.
- Require a restricted unit to return to its original eligibility criteria if the unit is occupied by a homeless veteran tenant with an income between 30% and 50% of the AMI, and that tenant vacates the unit.
- Require the referring entity to make a good faith effort to match an extremely low-income tenant to a restricted unit, document those good faith efforts, as specified, and make the documentation available to the housing sponsor, who must include the documentation in the tenant file, and to the administering department, upon request.
- Specify that the provisions of this bill would also apply to entities responsible for referring qualified tenants to supportive housing units restricted to extremely low-income homeless veterans pursuant to a regulatory agreement with CTCAC or with a bond issuer under the private activity bonds program administered by CDLAC.
Related Legislation:
AB 411 (Irwin), which was held on this Committee’s Suspense File last year, would have enacted the VHHP Bond Act of 2022, which authorizes the sale of $600 million in general obligation bonds, upon approval by voters at the March 5, 2024 statewide primary election.
AB 694 (Irwin) would have enacted the VHHP Bond Act of 2022, authorizing the sale of $600 million in general obligation bonds, upon approval by the voters at the March 8, 2022 primary election. That bill was referred to this Committee’s Suspense File in 2019, where it remained without further action until the end of the 2019-20 session.
SB 3 (Beall), Chap. 365/2017, authorized the issuance of $4 billion in general obligation bond for various existing housing programs, including $1 billion for the CalVet Home Loan Program, upon approval by the voters at the 2018 general election. This measure was approved by the voters as Proposition 1 of 2018.
AB 639 (Perez), Chap. 727/2013, restructured the funding provided by Proposition 12 of 2008, and authorized the issuance of $600 million in general obligation bonds for the construction, rehabilitation, and preservation of multifamily housing for veterans and their families that is affordable, supportive, and transitional. The measure was approved by the voters as Proposition 41 of 2014.
SB 1572 (Wyland), Chap. 122/2008, the Veterans' Bond Act of 2008, authorized the issuance of $900 million in general obligation bonds to be used to fund the Veterans Farm and Home Loan Program, upon approval by the voters at the November 4, 2008 general election. The measure was approved by the voters as Proposition 12 of 2008.
Staff Comments:
A majority of California’s veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population. The homeless point-in-time count for 2022 estimated there are 10,395 veterans experiencing homelessness in California, including 7,392 who are unsheltered. The author and supporters of the bill argue once veterans become connected to service-related benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for income-restricted VHHP units. Local housing departments and nonprofit homeless service providers contend they often find it hard to fill available units because many homeless veterans do not qualify under the existing income restrictions. This bill would address persistently high vacancy rates in the restricted units of supportive housing developments by allowing referring entities to place homeless veterans with incomes between 30% and 60% of AMI in units restricted to very low-income veteran households if they are unable to find an eligible tenant within 28 days after the unit becomes available. The bill would also allow a development to go below the statutorily-mandated 50% extremely low-income unit threshold if qualified tenants cannot be matched in the specified timeframe.
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SENATE COMMITTEE ON MILITARY AND VETERANS AFFAIRS
Senator Bob Archuleta, Chair
2023 - 2024 Regular
Bill No: AB 1386 Hearing Date: 7/10/23
Author: | Gabriel | ||
Version: | 6/13/23 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Jenny Callison | ||
Subject: Veterans housing: tenant referrals
DESCRIPTION
Summary:
Authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at higher income levels if units are unable to be filled after 28 days at a lower-income threshold.
Existing law:
- Defines veteran as any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
- Defines “extremely low-income” as persons and families whose income does not exceed 30% AMI.
- Enacts the Veterans Housing and Homeless Prevention Act of 2014 (VHHPA), the purpose of which is to provide the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability.
- Requires the California Housing Finance Authority (CalHFA), the Department of Housing and Community Development (HCD), and the California Department of Veterans Affairs (CalVet) to work collaboratively pursuant to a memorandum of understanding to carry out the duties and functions of the VHHPA.
- Requires CalHFA, HCD, and CalVet to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, and to the extent feasible, that do the following:
- Leverage public, private, and nonprofit program and fiscal resources;
- Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation;
- Promote public and private partnerships;
- Foster innovative financing opportunities; and
- Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with such experience.
- Requires the departments to ensure at least 50% of funds awarded for capital development under the VHHPA is used to provide housing to ELI veteran households.
- Requires eligibility to take into consideration all of a household’s income sources upon initial tenancy in determining whether a potential tenant is eligible for supportive, affordable, or transition housing targeted to ELI households.
- Requires at least 60% of units funded targeting ELI households to be supportive housing units. Clarifies that this shall not deter the departments from funding projects serving mixed-income populations.
- Authorizes, pursuant to federal rules and regulations, public housing authorities (PHAs) to project-base up to 20% of their allocation of Housing Choice Vouchers, including HUD-VASH vouchers without additional approval by HUD. PHAs may raise the limit an additional 10% for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use.
- Requires, pursuant to federal regulations, no less than 75% of the families admitted to a PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the PHA waiting list to be ELI families.
- Permits, pursuant to federal regulations, a property that receives a federal low-income housing tax credit to change the designated income limitation of a unit in a property according to certain rules, so long as the overall average income of the property does not exceed certain thresholds.
This bill:
- Defines “qualified entity” as an entity that is responsible for making referrals of qualified tenants to qualified units.
- Defines “qualified tenant” as an ELI veteran who is homeless.
- Defines qualified unit as a supportive housing unit restricted to ELI veterans.
- Defines secondary tenants as a veteran who is homeless who has an income of up to 60% area median income (AMI) and is receiving income as a result of service-connected disability benefits.
- Authorizes a qualified entity to match secondary tenants to qualified units funded through VHHP if after 28 days of a qualified unit becoming available, a qualified tenant is unable to be matched to and accept placement in the available unit.
- Authorizes a qualified entity to match a tenant who is a veteran experiencing homelessness with income at or below 60% AMI to qualified units if after 14 days of a qualified unit becoming available to prospective secondary tenants a qualified tenant or secondary tenant is unable to be matched and accept placement in the available unit.
- Requires the rate of rent for a secondary or other tenant who is a veteran experiencing homelessness with an income between 30 and 60% AMI to not exceed the rate that would be charged had the unit been placed with a qualified ELI tenant.
- Requires the supportive development to have 30% or more of its units be occupied by ELI tenants.
- Requires a qualified unit to return to its initial eligibility criteria for ELI tenants after a tenant vacates the unit.
- Requires the qualified entity to make and document a good faith effort to match an ELI tenant to the qualified unit. The documentation shall be made available to the housing sponsor and included in the tenant file. The documentation shall include, but not be limited to, the following:
- Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
- Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
- Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
- Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
- Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
- Requires TCAC and CDLAC to treat secondary tenants as eligible for the qualified unit if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available.
- Requires TCAC and CDLAC to treat veterans experiencing homelessness at or below 60% AMI as eligible for the qualified unit if a qualified entity unable to locate, match, or otherwise place a qualified tenant or secondary tenant in a qualified unit within 14 days of the qualified unit becoming available to secondary tenants.
- Allows TCAC and CDLAC to adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
BACKGROUND
Veterans face higher risks of homelessness than the general population. The homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date the VHHP Program has provided six rounds of funding administered by HCD in collaboration with CalHFA and CalVet, plus one round via the state’s first “Super NOFA” or “Super Notice of Funding Availability” consolidated application round pursuant to AB 434 (Daly, Chapter 192, Statutes of 2020).
The latest award information for round six, HCD’s “VHHP Program 2021 Round 6 Awards Data Summary,” shows that $478 million in VHHP awards have been made cumulatively over the six rounds of the program. This is expected to result in a total of 3,058 VHHP housing units for veterans and their families with 66% of those reserved for extremely low-income veterans, 27% for very low-income veterans, and the remainder for low-income veterans. Additionally, 80% of the housing units developed with VHHP funds are restricted to veterans experiencing homelessness. While the VHHP funds are helping to create much-needed affordable housing, transitional housing, and supportive housing for California’s veterans, it is important to note the program will run out of funding unless additional resources are approved for the VHHP program.
COMMENT
Currently, at least 50% of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30% or less of AMI. HUD publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes.
According to HCD’s “Multifamily Housing Programs: 2022 Multifamily Tax Subsidy Project Income Limits,” VHHP was subject specific income limits in 2022 by county. The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for deeply income-restricted VHHP units.
According to the Los Angeles Housing Department’s (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city’s Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30% AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e., non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75% lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing.
The memo requested, and the Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50% AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations.
Given the acute nature of the housing crisis in California, including for veterans at risk of homelessness, persistently high vacancy rates in affordable and supportive housing developments should not be occurring. This bill proposes to allow housing providers who are making referrals to VHHP and TCAC units to refer tenants with incomes up to 60% AMI only if they are unable to find tenants at 30% AMI for 28 days after a unit becomes available. This bill would also allow a development to dip below the statutorily mandated 50% ELI unit threshold if no tenants at 30% AMI can be found in the specified time period.
According to the Author:
“California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California’s homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed. The existing eligibility criteria for some supportive housing developments that serve homeless Veterans can leave many Veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the units even though they would otherwise qualify for the program. This leaves some developments with high vacancy rates and struggling to fill units while many Veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.”
Related Legislation:
AB 531 (Irwin, 2023) — authorizes, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the VHHP Bond Act of 2024.
AB 411 (Irwin, 2022) — would have authorized, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the Veterans Housing and Homeless Prevention Bond Act of 2022. This bill was held in the Senate Appropriations Committee.
AB 434 (Daly, Chapter 192, Statutes of 2020) — aligned six rental housing programs with the Multifamily Housing Program , to enable the HCD to implement a single application and scoring system for making coordinated awards under all seven programs, starting on January 1, 2022.
SB 222 (Hill, Chapter 601, Statutes of 2019) — prohibited housing discrimination on account of military or veteran status under the Fair Employment and Housing Act (FEHA). Also defined a VASH voucher as a source of income for purposes of FEHA, and in so doing, prohibited landlords from discriminating against a tenant based on their use of a VASH voucher to pay rent.
AB 639 (Pérez, Chapter 727, Statutes of 2013) — authorized the Veterans Housing and Homeless Prevention Act of 2014 which voters approved through Proposition 41. Additionally, restructured the Veterans’ Bond Act of 2008 (Proposition 12) and provided for the issuance of $600 million in general obligation bonds to support affordable, supportive, and transition multifamily housing for veterans and their families.
SB 1572 (Wyland, Chapter 122, Statutes of 2008) — established the Veterans’ Bond Act of 2008 which California voters approved as Proposition 12. Authorized $900 million in general obligation bonds intended to help veterans purchase single family homes, farms, and mobilehomes through the CalVet Home Loan Program.
POSITIONS
Sponsor: Author.
Support:
Building Industry Association of Southern California, INC.
California Apartment Association
California Association of Veteran Service Agencies
California Housing Partnership Corporation
Corporation for Supportive Housing
County of Los Angeles Board of Supervisors
Enterprise Community Partners, INC.
Hope the Mission
Los Angeles Homeless Services Authority
National Alliance to End Homelessness
Path (People Assisting the Homeless)
San Diego Regional Task Force on Homelessness
Supportive Housing Alliance
The People Concern
Oppose: None on File.
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SENATE COMMITTEE ON HOUSING
Senator Scott Wiener, Chair
2023 - 2024 Regular
Bill No: AB 1386 Hearing Date: 6/20/2023
Author: | Gabriel | ||
Version: | 6/13/2023 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Aiyana Cortez | ||
SUBJECT: Veterans housing: tenant referrals
DIGEST: This bill authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at higher income levels if units are unable to be filled after 28 days at a lower-income threshold.
ANALYSIS:
Existing law:
- Defines veteran as any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period.
- Defines “extremely low-income” as persons and families whose income does not exceed 30% AMI.
- Enacts the Veterans Housing and Homeless Prevention Act of 2014 (VHHPA), the purpose of which is to provide the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability.
- Requires the California Housing Finance Authority (CalHFA), the Department of Housing and Community Development (HCD), and the California Department of Veterans Affairs (CalVet) to work collaboratively pursuant to a memorandum of understanding to carry out the duties and functions of the VHHPA.
- Requires CalHFA, HCD, and CalVet to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, and to the extent feasible, that do the following:
- Leverage public, private, and nonprofit program and fiscal resources;
- Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation;
- Promote public and private partnerships;
- Foster innovative financing opportunities; and
- Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with such experience.
- Requires the departments to ensure at least 50% of funds awarded for capital development under the VHHPA is used to provide housing to ELI veteran households.
- Requires eligibility to take into consideration all of a household’s income sources upon initial tenancy in determining whether a potential tenant is eligible for supportive, affordable, or transition housing targeted to ELI households.
- Requires at least 60% of units funded targeting ELI households to be supportive housing units. Clarifies that this shall not deter the departments from funding projects serving mixed-income populations.
- Authorizes, pursuant to federal rules and regulations, public housing authorities (PHAs) to project-base up to 20% of their allocation of Housing Choice Vouchers, including HUD-VASH vouchers without additional approval by HUD. PHAs may raise the limit an additional 10% for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use.
- Requires, pursuant to federal regulations, no less than 75% of the families admitted to a PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the PHA waiting list to be ELI families.
- Permits, pursuant to federal regulations, a property that receives a federal low-income housing tax credit to change the designated income limitation of a unit in a property according to certain rules, so long as the overall average income of the property does not exceed certain thresholds.
This bill:
- Defines “qualified entity” as an entity that is responsible for making referrals of qualified tenants to qualified units.
- Defines “qualified tenant” as an ELI veteran who is homeless.
- Defines qualified unit as a supportive housing unit restricted to ELI veterans.
- Defines secondary tenants as a veteran who is homeless who has an income of up to 60% area median income (AMI) and is receiving income as a result of service-connected disability benefits.
- Authorizes a qualified entity to match secondary tenants to qualified units funded through VHHP if after 28 days of a qualified unit becoming available, a qualified tenant is unable to be matched to and accept placement in the available unit.
- Authorizes a qualified entity to match a tenant who is a veteran experiencing homelessness with income at or below 60% AMI to qualified units if after 14 days of a qualified unit becoming available to prospective secondary tenants a qualified tenant or secondary tenant is unable to be matched and accept placement in the available unit.
- Requires the rate of rent for a secondary or other tenant who is a veteran experiencing homelessness with an income between 30 and 60% AMI to not exceed the rate that would be charged had the unit been placed with a qualified ELI tenant.
- Requires the supportive development to have 30% or more of its units be occupied by ELI tenants.
- Requires a qualified unit to return to its initial eligibility criteria for ELI tenants after a tenant vacates the unit.
- Requires the qualified entity to make and document a good faith effort to match an ELI tenant to the qualified unit. The documentation shall be made available to the housing sponsor and included in the tenant file. The documentation shall include, but not be limited to, the following:
- Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
- Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
- Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
- Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
- Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
- Requires TCAC and CDLAC to treat secondary tenants as eligible for the qualified unit if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available.
- Requires TCAC and CDLAC to treat veterans experiencing homelessness at or below 60% AMI as eligible for the qualified unit if a qualified entity unable to locate, match, or otherwise place a qualified tenant or secondary tenant in a qualified unit within 14 days of the qualified unit becoming available to secondary tenants.
- Allows TCAC and CDLAC to adopt regulations to establish additional documentation standards for demonstrating a good faith effort.
COMMENTS:
- Author’s statement. “California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California’s homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed. The existing eligibility criteria for some supportive housing developments that serve homeless Veterans can leave many Veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the units even though they would otherwise qualify for the program. This leaves some developments with high vacancy rates and struggling to fill units while many Veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.”
- Veterans and housing needs. A majority of California’s veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date the VHHP Program has provided six rounds of funding administered by HCD in collaboration with CalHFA and CalVet, plus one round via the state’s first “Super NOFA” or “Super Notice of Funding Availability” consolidated application round pursuant to AB 434 (Daly, Chapter 192, Statutes of 2020).
The latest award information for round six, HCD’s “VHHP Program 2021 Round 6 Awards Data Summary,” shows that $478 million in VHHP awards have been made cumulatively over the six rounds of the program. This is expected to result in a total of 3,058 VHHP housing units for veterans and their families with 66% of those reserved for extremely low-income veterans, 27% for very low-income veterans, and the remainder for low-income veterans. Additionally, 80% of the housing units developed with VHHP funds are restricted to veterans experiencing homelessness. While the VHHP funds are helping to create much-needed affordable housing, transitional housing, and supportive housing for California’s veterans, it is important to note the program will run out of funding unless additional resources are approved for the VHHP program.
- VHHP income limits. Currently, at least 50% of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30% or less of AMI. HUD publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes.
According to HCD’s “Multifamily Housing Programs: 2022 Multifamily Tax Subsidy Project Income Limits,” VHHP was subject specific income limits in 2022 by county. The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for deeply income-restricted VHHP units.
- HUD-VASH and project-based vouchers (PBVs). Through a cooperative partnership, the HUD-VASH Program provides long-term case management, supportive services and permanent housing support to qualified veterans experiencing homelessness. HUD provides Housing Choice Vouchers (Section 8 vouchers) designated for HUD-VASH to participating PHAs to assist with rent payments. To be eligible for this program, veterans must be VA Health Care-eligible, homeless, and must participate in case management services in order to obtain and sustain permanent independent community housing. PHAs can choose to “project-base” or dedicate up to 20% (in some cases up to 30%) of their vouchers to specific units in an affordable or supportive housing development. Because these vouchers represent a stable, medium-term rental assistance payment stream, affordable and supportive housing developers often use PBVs to help subsidize deeply affordable ELI units in a development.
PHAs are required to conduct their HUD-VASH programs in conjunction with their nearby Veterans Affairs Medical Center (VAMC), which must make supportive services available to individuals receiving HUD-VASH assistance. When a PHA chooses to project-based their HUD-VASH vouchers, they must ensure they have the support of their partnering VAMC.
- Issues related to veteran unit vacancy rates in certain regions. According to the Los Angeles Housing Department’s (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city’s Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30% AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e., non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75% lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing.
The memo requested, and the Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50% AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations.
People Assisting the Homeless (PATH), a nonprofit homeless service provider and affordable housing developer with a number of projects in the LA region, notes that many of their supportive housing developments have struggled to fill VHHP units, which they contend puts them at risk of penalties from the IRS, complicates their efforts to successfully put together financing for future developments, and delays veterans from exiting homelessness.
Given the acute nature of the housing crisis in California, including for veterans at risk of homelessness, persistently high vacancy rates in affordable and supportive housing developments should not be occurring. This bill proposes to allow housing providers who are making referrals to VHHP and TCAC units to refer tenants with incomes up to 60% AMI only if they are unable to find tenants at 30% AMI for 28 days after a unit becomes available. This bill would also allow a development to dip below the statutorily mandated 50% ELI unit threshold if no tenants at 30% AMI can be found in the specified time period.
- Double-referral. This bill has also been referred to Senate Military and Veterans Affairs Committee.
Related Legislation:
AB 531 (Irwin, 2023) — authorizes, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the VHHP Bond Act of 2024. This bill is also being heard at this hearing.
AB 411 (Irwin, 2022) — would have authorized, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the Veterans Housing and Homeless Prevention Bond Act of 2022. This bill was held in the Senate Appropriations Committee.
AB 434 (Daly, Chapter 192, Statutes of 2020) — aligned six rental housing programs with the Multifamily Housing Program (MHP), to enable the HCD to implement a single application and scoring system for making coordinated awards under all seven programs, starting on January 1, 2022.
SB 222 (Hill, Chapter 601, Statutes of 2019) — prohibited housing discrimination on account of military or veteran status under the Fair Employment and Housing Act (FEHA). Also defined a Veterans Affairs Supportive Housing (VASH) voucher as a source of income for purposes of FEHA, and in so doing, prohibited landlords from discriminating against a tenant based on their use of a VASH voucher to pay rent.
AB 639 (Pérez, Chapter 727, Statutes of 2013) — authorized the Veterans Housing and Homeless Prevention Act of 2014 which voters approved through Proposition 41. Additionally, restructured the Veterans’ Bond Act of 2008 (Proposition 12) and provided for the issuance of $600 million in general obligation bonds to support affordable, supportive, and transition multifamily housing for veterans and their families.
SB 1572 (Wyland, Chapter 122, Statutes of 2008) — established the Veterans’ Bond Act of 2008 which California voters approved as Proposition 12. Authorized $900 million in general obligation bonds intended to help veterans purchase single family homes, farms, and mobilehomes through the CalVet Home Loan Program.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 14, 2023.)
SUPPORT:
Building Industry Association of Southern California, INC.
California Apartment Association
California Association of Veteran Service Agencies
Corporation for Supportive Housing
County of Los Angeles Board of Supervisors
Hope the Mission
Los Angeles Homeless Services Authority
National Alliance to End Homelessness
Path (people Assisting the Homeless)
San Diego Regional Task Force on Homelessness
Supportive Housing Alliance
The People Concern
OPPOSITION:
None received.
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1386
Author:(Gabriel)
As Amended Ver:April 11, 2023
Majority vote
SUMMARY
Authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at higher income levels if units are unable to be filled after 21 days at a lower income threshold.
Major Provisions
- Authorizes entities tasked with making referrals of units targeted to extremely low income (ELI) households funded through VHHP to match prospective tenants with incomes at or below 60% of the area median income (AMI) with a unit, if the tenant's income exceeds the ELI threshold as a result of receiving service-connected disability benefits and the unit has been available for 21 days with no successful placement of an eligible ELI tenant. If after 21 days no tenant exceeding the ELI threshold as a result of service-connected disability benefits is placed in the unit, the entity tasked with making referrals may match prospective tenants with incomes up to 60% of AMI generally to that unit.
- Allows for the authorization in 1) to be utilized in circumstances in which housing tenants with incomes up to 60% of AMI would cause a VHHP-funded development to have less than 50% of its units occupied by ELI tenants, pursuant to existing law requirements. Requires the development to not have less than 30% of overall units occupied by ELI tenants.
- Provides that if a unit was originally restricted to an ELI tenant and a tenant with income up to 60% of AMI occupies the unit, once that tenant vacates the unit, the unit must return to its original eligibility criteria for ELI tenants.
- Requires the entity tasked with making referrals to these units to make a good faith effort to match an ELI tenant, to document these good faith efforts as specified, and to make this documentation available to the Department of Housing and Community Development (HCD), the Department of Veterans Affairs (CalVet), and the California Housing Finance Agency (CalHFA) upon request.
- Authorizes a qualified entity, as defined, to petition the California Tax Credit Allocation Committee (TCAC) requesting authority to allow veterans with incomes up to 60% of AMI to be placed in a qualified unit funded by a project-based voucher, if the unit has been available for 21 days with no successful match and placement of an eligible ELI tenant.
- Requires TCAC to create or establish all of the following by July 1, 2024 to implement 5) above:
- A standardized form for petitions that a qualified entity may submit;
- An online portal for the submission of the petition; and
- If necessary, rules and regulations for the review and determination on the petitions that are consistent with the requirements of this bill.
- Requires TCAC, within 30 days of receiving a petition, to do both of the following:
- Review the petition and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to all applicable federal Internal Revenue Service and committee guidelines, rules, and regulations, and other law; and
- Provide a written determination to the qualified entity that made the petition.
- Defines various terms for purposes of the TCAC petition process.
COMMENTS
Veterans and housing needs: A majority of California's veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
In 2014, Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date the VHHP Program has provided six rounds of funding administered by HCD in collaboration with CalHFA and CalVet, plus one round via the state's first "Super NOFA" or "Super Notice of Funding Availability" consolidated application round pursuant to AB 434 (Daly), Chapter 192, Statutes of 2020. The latest award information shows that $478 million in VHHP awards have been made cumulatively over the six rounds of the program. This is expected to result in a total of 3,058 VHHP housing units for veterans and their families with 66% reserved for ELI veterans, 27% for very low-income veterans, and the remainder for low-income veterans. Additionally, 80% of the housing units developed with VHHP funds are restricted to veterans experiencing homelessness. While the VHHP funds are helping to create much-needed affordable housing, transitional housing, and supportive housing for California's veterans, it is important to note the program will run out of funding unless additional resources are allocated.
VHHP income limits: Currently, at least 50% of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30% or less of AMI. The United States Department of Housing and Urban Development (HUD) publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes. The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for deeply income-restricted VHHP units.
HUD-VASH and project-based vouchers (PBVs): Through a cooperative partnership, the HUD-VASH Program provides long-term case management, supportive services and permanent housing support to qualified veterans experiencing homelessness. HUD provides Housing Choice Vouchers (Section 8 vouchers) designated for HUD-VASH to participating public housing authorities (PHAs) to assist with rent payments. To be eligible for this program, veterans must be VA Health Care-eligible, homeless, and must participate in case management services in order to obtain and sustain permanent independent community housing. PHAs can choose to "project-base" or dedicate up to 20% (in some cases up to 30%) of their vouchers to specific units in an affordable or supportive housing development. Because these vouchers represent a stable, medium-term rental assistance payment stream, affordable and supportive housing developers often use PBVs to help subsidize deeply affordable ELI units in a development.
Issues related to veteran unit vacancy rates in certain regions: According to the Los Angeles Housing Department's (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city's Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30% AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e. non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75% lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing.
The memo requested, and the City Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50% of AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations.
According to the memo:
"A critical challenge facing projects with VASH assistance is receiving sufficient referrals of veterans whose income does not exceed the 30% AMI requirements. The VA has indicated that leasing VASH units targeting extremely low-income veterans is a significant challenge because veterans eligible for VA benefits have incomes that exceed 30% AMI at the time of lease-up. According to current veterans disability compensation rates, a veteran with no dependents who is 100% 'service connected' (meaning they receive healthcare, disability and other benefits) receives $3,621.95 monthly, which is an annual income of $43,463.40. This is above the 30% AMI income limit of $25,050 for a one-person household."
People Assisting the Homeless (PATH), a nonprofit homeless service provider and affordable housing developer with a number of projects in the LA region, notes that many of their supportive housing developments have struggled to fill VHHP units, which they contend puts them at risk of penalties from the IRS, complicates their efforts to successfully put together financing for future developments, and delays veterans from exiting homelessness.
This bill proposes to allow housing providers who are making referrals to VHHP units to refer tenants with incomes up to 60% AMI due to receiving service-connected disability benefits only if they are unable to find tenants at 30% AMI for at least three weeks after a unit becomes available. If there are no interested tenants between 30-60% AMI due to service-connected disability benefits, after another three-week search period the entity may then refer a veteran tenant who makes up to 60% AMI generally. This bill would also allow a VHHP development to dip below the statutorily mandated 50% ELI unit threshold if no ELI tenants can be found in that three-week period, but overall at least 30% of the development must still house ELI tenants. Additionally, once a higher income tenant vacates a unit, the unit must revert back to the original ELI income targeting requirement, so that the building does not gradually convert to higher income thresholds over time.
TCAC-monitored housing units: This bill also creates a petition process at TCAC for a referring entity to request authorization to place a tenant up to 60% of AMI in a TCAC-regulated unit with a PBV if no tenant at 30% of AMI can be located for at least two weeks after a unit becomes available. TCAC has the ability to permit this substitution so long as the overall affordability level of the building does not exceed certain income thresholds under federal IRS rules.
According to the Author
"California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California's homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed.
The existing structure of the State Veterans Housing and Homelessness Prevention Program leaves many veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the VHHP housing units even though they would otherwise qualify for the program. This leaves some VHHP-funded buildings with high vacancy rates and struggling to fill units while many veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive."
Arguments in Support
According to the California Association of Veteran Service Agencies, "AB 1386 makes necessary updates to the Veterans Housing and Homeless Prevention (VHHP) Program; this bill would allow local homeless systems to match a Veteran experiencing homelessness with an income at or below 60% area median income (AMI) in cases when a veteran with a lower income cannot be located. Additionally, the bill focuses on accepting Veterans into the VHHP program through a lens of equity, and ensures that Veterans with the lowest-income are prioritized before Veterans of higher incomes are accepted. We believe this legislation is critical in addressing the needs and obstacles of veterans."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- HCD estimates ongoing General Fund (GF) costs of $195,000 annually for one additional staff position to request and review documentation of good faith efforts to place tenants with ELIs. HCD indicates staffing needs may increase over time as additional projects are added to the portfolio.
- TCAC estimates ongoing GF costs of $174,000 for one staff position to develop a petition form, policy, and regulations, and to review applications of petitions. TCAC anticipates costs of an unknown amount to develop and maintain the online portal.
- CalVet estimates minor and absorbable costs.
- CalHFA indicates negligible costs.
VOTES
ASM HOUSING AND COMMUNITY DEVELOPMENT: 8-0-0
YES: Wicks, Joe Patterson, Wendy Carrillo, Gabriel, Juan Carrillo, Quirk-Silva, Sanchez, Ward
ASM MILITARY AND VETERANS AFFAIRS: 11-0-0
YES: Soria, Davies, Addis, Alvarez, Boerner Horvath, Juan Carrillo, Mathis, Muratsuchi, Petrie-Norris, Ta, Valencia
ASM APPROPRIATIONS: 15-0-1
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega
ABS, ABST OR NV: Robert Rivas
UPDATED
VERSION: April 11, 2023
CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0000408
Date of Hearing: May 17, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 1386
Author:(Gabriel) – As Amended Ver:April 11, 2023
Policy Committee: | Housing and Community Development | Vote: | 8 - 0 |
Military and Veterans Affairs | 11 - 0 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at a higher income threshold if units are unable to be filled after 21 days at a lower income threshold.
Specifically, this bill:
- Authorizes entities tasked with making referrals of units targeted to extremely low income (ELI) households funded through VHHP to match prospective tenants with incomes at or below 60% of the area median income (AMI) to a unit, if the tenant’s income exceeds the ELI threshold as a result of the prospective tenant receiving service-connected disability benefits and the unit has been available for 21 days with no successful placement of an eligible ELI tenant.
- Further authorizes an entity, if after 21 days there is no eligible tenant pursuant to 1) to match prospective tenants with incomes at or below 60% of AMI.
- Allows the authorization in 1) to be used even when housing tenants with incomes up to 60% of AMI would cause a VHHP-funded development to have less than 50% of its units occupied by ELI tenants, pursuant to existing law requirements, but prohibits the development to have less than 30% of its units occupied by tenants with ELIs.
- Requires when a unit originally restricted to a tenant with an ELI is occupied by a tenant with an income between 30% and 60% of AMI, and the tenant vacates the unit, that unit to return to its initial eligibility criteria for tenants with ELIs.
- Requires the entity tasked with making referrals to these units to make a good faith effort to match an ELI tenant, to document these good faith efforts, as specified, and to make the documentation available to the Department of Housing and Community Development (HCD), the Department of Veterans Affairs (CalVet), and the California Housing Finance Agency (CalHFA) upon request.
- Authorizes a qualified entity, as defined, to petition the California Tax Credit Allocation Committee (TCAC) requesting authority to allow veterans with incomes up to 60% of AMI to be placed in a qualified unit, if the unit has been available for 21 days with no successful match and placement of an eligible ELI tenant.
- Requires TCAC, by July 1, 2024, for purposes of 6) above, to create a standardized form for petitions, an online portal for the submission of the petition and, if necessary, rules and regulations for the review and determination of the petitions.
- Requires TCAC, within 30 days of receiving a petition, to review and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to applicable Internal Revenue Service and TCAC guidelines, rules, and regulations, and provide a written determination to the petitioning qualified entity.
FISCAL EFFECT:
- HCD estimates ongoing General Fund (GF) costs of $195,000 annually for one additional staff position to request and review documentation of good faith efforts to place tenants with ELIs. HCD indicates staffing needs may increase over time as additional projects are added to the portfolio.
- TCAC estimates ongoing GF costs of $174,000 for one staff position to develop a petition form, policy, and regulations, and to review applications of petitions. TCAC anticipates costs of an unknown amount to develop and maintain the online portal.
- CalVet estimates minor and absorbable costs.
- CalHFA indicates negligible costs.
COMMENTS:
- Purpose. According to the author:
The existing structure of the State Veterans Housing and Homelessness Prevention Program leaves many veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them ineligible for the VHHP housing units even though they would otherwise qualify for the program. This leaves some VHHP-funded buildings with high vacancy rates and struggling to fill units while many veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.
- Background. A majority of California’s veterans are considered cost-burdened and pay more than 30% of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population. The homeless point-in-time count for 2022 estimated there are 10,395 veterans experiencing homelessness in California, including 7,392 who are unsheltered.
Proposition 41, approved by the voters in June 2014, created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date, the VHHP Program has provided six rounds of funding, administered by HCD in collaboration with the CalHFA and CalVet. Under the program, at least 50% of capital development funding must be used to subsidize ELI units, meaning they must be affordable to households making 30% or less of the AMI. The U.S. Department of Housing and Urban Development publishes income limits each year outlining the AMI thresholds for each county in the state for a variety of household sizes.
The author and supporters of the bill argue once veterans become connected to benefits, including disability benefits, their income can exceed the 30% AMI threshold, making them ineligible for income-restricted VHHP units. Local housing departments and nonprofit homeless service providers contend they often find it hard to fill available units because many homeless veterans do not qualify under the existing income restrictions.
This bill allows housing providers making referrals to VHHP units to refer tenants with incomes up to 60% of AMI if they are unable to find tenants at 30% of AMI for at least 21 days after a unit becomes available. This bill also allows a VHHP development to dip below the statutorily mandated 50% ELI unit threshold if no tenants at 30% of AMI can be found in that 21-day period. The entities making referrals must document its good- faith efforts to find qualifying ELI tenants prior to using these exceptions.
This bill also creates a petition process at TCAC for a referring entity to request authorization to place a tenant up to 60% of AMI in a TCAC-regulated unit with a federal project-based Housing Choice or Veterans Affairs Supportive Housing voucher if no tenant at 30% of AMI can be located for at 21 days after a unit becomes available. TCAC can permit this type of substitution provided the overall affordability level of the building does not exceed certain income thresholds under federal Internal Revenue Service rules.
- Related Legislation. AB 531 (Irwin) authorizes, subject to voter approval, the issuance of $600 million in general obligation (GO) bonds to provide affordable housing under the VHHP Bond Act of 2024. AB 531 is pending in this committee.
AB 1657 (Wicks) authorizes, subject to voter approval, the issuance of $10 billion in GO bonds to fund affordable rental housing and homeownership programs under the Affordable Housing Bond Act of 2024. AB 1657 is pending in this committee.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 18, 2023
ASSEMBLY COMMITTEE ON MILITARY AND VETERANS AFFAIRS
Esmeralda Soria, Chair
ABPCA Bill Id:AB 1386 (
Author:Gabriel) – As Amended Ver:March 21, 2023
SUBJECT: Veterans housing: tenant referrals
SUMMARY: Authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at certain income levels if units are unable to be filled after 14 days at a lower income threshold. Specifically, this bill:
- Authorizes entities tasked with making referrals of units targeted to extremely low income (ELI) households funded through VHHP to match prospective tenants with incomes up to 60 percent of the area median income (AMI) with a unit, if the income is above 30 percent of the area median income as a result of the prospective tenant receiving service-connected disability benefits, as defined in Section 50105 of the Health and Safety Code, if the unit has been available for 21 days with no successful match and placement of an eligible ELI tenant.
- Permits an entity tasked with making referrals to match prospective tenants with incomes at or below 60 percent of AMI if, after 21 days of a unit becoming available to a prospective tenant under subparagraph (A), a tenant is unable to be matched and accept placement in the available unit.
- Allows for the authorization in 1) to be utilized in circumstances in which housing tenants with incomes up to 60 percent of AMI would cause a VHHP-funded development to have less than 50 percent of its units occupied by ELI tenants, pursuant to existing law requirements, but forbids the development to have less than 30 percent of its units occupied by tenants with extremely low incomes.
- Requires that when a unit that was originally restricted to a tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income, and the tenant vacates the unit, that unit shall return to its initial eligibility criteria for tenants with extremely low incomes.
- Requires the entity tasked with making referrals to these units to make a good faith effort to match an ELI tenant, to document these good faith efforts, and to make this documentation available to the Department of Housing and Community Development (HCD), the Department of Veterans Affairs (CalVet), and the California Housing Finance Agency (CalHFA) upon request.
- States that documentation of these good faith efforts shall include, but not be limited to, the following:
- Efforts to advertise to the community at least 90 days prior to the lease-up of the building.
- Efforts to work in partnership with local homeless services providers, including those that serve veterans experiencing homelessness.
- Efforts to coordinate with the local continuum of care to identify veterans experiencing homelessness with extremely low incomes.
- Efforts to coordinate with the United States Department of Veterans Affairs to identify veterans experiencing homelessness with extremely low incomes.
- Documentation of contact with veterans experiencing homelessness with extremely low incomes and their case managers who were matched to the available unit and chose not to lease the unit.
- Authorizes a qualified entity, as defined, to petition the California Tax Credit Allocation Committee (TCAC) requesting authority to allow veterans with incomes up to 60 percent of AMI to be placed in a qualified unit, if the unit has been available for 14 days with no successful match and placement of an eligible ELI tenant.
- Requires TCAC to create or establish all of the following by July 1, 2024 to implement 4) above:
- A standardized form for petitions that a qualified entity may submit.
- An online portal for the submission of the petition.
- If necessary, rules and regulations for the review and determination on the petitions that are consistent with the requirements of this bill.
- Requires TCAC, within 30 days of receiving a petition, to do both of the following:
- Review the petition and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to all applicable federal Internal Revenue Service and committee guidelines, rules, and regulations, and other law.
- Provide a written determination to the qualified entity that made the petition.
- Defines various terms for purposes of the TCAC petition process, including the following:
- “Qualified entity” to mean an entity that is responsible for making referrals of qualified tenants to qualified units.
- “Qualified tenants” to mean an ELI veteran who is homeless.
- “Homeless” to mean the same as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.
- “Qualified unit” to mean a supportive housing unit restricted to ELI veterans that is funded or otherwise supported at least in part by a project-based voucher.
- “Project-based voucher” to mean a project-based voucher issued under Section 8 of the United States Housing Act of 1937 (42 USC Sec. 1437f), including project-based federal Department of Housing and Urban Development Veterans Supportive Housing (VASH) vouchers.
- “Supportive housing unit” to mean housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community.
EXISTING LAW:
- Enacts the Veterans Housing and Homeless Prevention Act of 2014 (VHHPA), the purpose of which is to provide the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability. (Military and Veterans Code (MVC) Sections 987.001 and 987.002)
- Requires CalHFA, HCD, and CalVet (hereafter “the departments”) to work collaboratively pursuant to a memorandum of understanding to carry out the duties and functions of the VHHPA. (MVC Section 987.002)
- Requires the departments to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, and to the extent feasible, that do the following:
- Leverage public, private, and nonprofit program and fiscal resources;
- Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation;
- Promote public and private partnerships;
- Foster innovative financing opportunities; and
- Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with such experience. (MVC Section 987.005)
- Requires the departments to ensure at least 50 percent of funds awarded for capital development under the VHHPA is used to provide housing to veteran households with ELI, as defined pursuant to Health and Safety Code Section 50106.
- (MVC Section 987.005)
- In determining whether a potential tenant is eligible for supportive, affordable, or transition housing targeted to ELI households, requires eligibility to take into consideration all of a household’s income sources upon initial tenancy. (MVC Section 987.005)
- Requires at least 60 percent of units funded targeting ELI households to be supportive housing units. Clarifies that this shall not deter the departments from funding projects serving mixed-income populations. (MVC Section 987.005)
- Defines “veteran” to mean any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period. (MVC Section 987.003)
- Defines “ELI households” to mean persons and families whose incomes do not exceed the qualifying limits for ELI families as established and amended by the Secretary of Housing and Urban Development (HUD) and defined in Section 5.603(b) of Title 24 of the Code of Federal Regulations. (Health and Safety Code (HSC) Section 50106)
- Authorizes, pursuant to federal rules and regulations, public housing authorities (PHAs) to project-base up to 20 percent of their allocation of Housing Choice Vouchers, including HUD-VASH vouchers without additional approval by HUD. PHAs may raise the limit an additional 10 percent for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use. PHAs are required to conduct their HUD-VASH programs in conjunction with their nearby Veterans Affairs Medical Center (VAMC), which must make supportive services available to individuals receiving HUD-VASH assistance. When a PHA chooses to project-based their HUD-VASH vouchers, they must ensure they have the support of their partnering VAMC. (24 Code of Federal Regulations (CFR) 983 and 82 Federal Rule 5458)
- Requires, pursuant to federal regulations, no less than 75 percent of the families admitted to a PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the PHA waiting list to be ELI families. (24 CFR 983.251(c)(6))
- Permits, pursuant to federal regulations, a property that receives a federal low-income housing tax credit to change the designated income limitation of a unit in a property according to certain rules, so long as the overall average income of the property does not exceed certain thresholds. (26 CFR 1.42 5(c) and 26 CFR 1.42 19(d))
- Section 578.3 of Title 24 of the Code of Federal Regulations defines “homeless” as:
- An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
- An individual or family with 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;
- An individual or family living in 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)
- An individual who is 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;
- An individual or family who will imminently lose their primary nighttime residence, provided that:
- The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance;
- No subsequent residence has been identified; and
- The individual or family lacks the resources or support networks, e.g., family, friends, faith-based or other social networks, needed to obtain other permanent housing;
- Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who:
- Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)), or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a);
- Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance;
- Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance; and
- Can be expected to continue in such status for an extended period of time because of chronic disabilities; chronic physical health or mental health conditions; substance addiction; histories of domestic violence or childhood abuse (including neglect); the presence of a child or youth with a disability; or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment; or
- Any individual or family who:
- Is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual's or family's primary nighttime residence or has made the individual or family afraid to return to their primary nighttime residence;
- Has no other residence; and
- Lacks the resources or support networks, e.g., family, friends, and faith-based or other social networks, to obtain other permanent housing.
- An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
FISCAL EFFECT: This bill has not been analyzed by a fiscal committee.
COMMENTS: Purpose. According to the author,
“California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California’s homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed.
The existing structure of the State Veterans Housing and Homelessness Prevention Program leaves many veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them inegible for the VHHP housing units even though they would otherwise qualify for the program. This leaves some VHHP-funded buildings with high vacancy rates and struggling to fill units while many veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.”
Background.
Veterans and housing needs. A majority of California’s veterans are considered cost-burdened and pay more than 30 percent of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
Historically the state has primarily supported veteran housing needs through the CalVet Home Loan Program. Established a century ago in 1921, the CalVet Home Loan program provides financing for qualified veterans to purchase homes, farms, and mobilehomes. However, over time, the CalVet Home Loan Program saw a marked decline in demand and, in 2014, the state pivoted to meet the changing needs of the veteran population when California voters approved Proposition 41 at the June 3, 2014 election.
Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date the VHHP Program has provided six rounds of funding administered by HCD in collaboration with CalHFA and CalVet, plus one round via the state’s first “Super NOFA” or “Super Notice of Funding Availability” consolidated application round pursuant to AB 434 (Daly, Chapter 192, Statutes of 2020).
The latest award information for round six, HCD’s “VHHP Program 2021 Round 6 Awards Data Summary,” shows that $478 million in VHHP awards have been made cumulatively over the six rounds of the program. This is expected to result in a total of 3,058 VHHP housing units for veterans and their families with 2,026 (66 percent) of those reserved for extremely low-income veterans, 813 (27 percent) for very low-income veterans, and the remainder for low-income veterans. Additionally, 80 percent of the housing units developed with VHHP funds are restricted to veterans experiencing homelessness. While the VHHP funds are helping to create much-needed affordable housing, transitional housing, and supportive housing for California’s veterans, it is important to note the program will run out of funding unless additional resources are approved for the VHHP program.
VHHP income limits. Currently, at least 50 percent of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30 percent or less of AMI. HUD publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes.
According to HCD’s “Multifamily Housing Programs: 2022 Multifamily Tax Subsidy Project Income Limits,” VHHP was subject to the following income limits in 2022 in certain selected counties:
County/AMI Level | 1 Person Household | 3 Person Household | 5 Person Household |
ALAMEDA | |||
60% AMI | $60,000 | $77,160 | $92,580 |
30% AMI | $30,000 | $38,580 | $46,290 |
FRESNO | |||
60% AMI | $32,760 | $42,120 | $50,520 |
30% AMI | $16,380 | $21,060 | $25,260 |
LOS ANGELES | |||
60% AMI | $50,040 | $64,320 | $77,220 |
30% AMI | $25,020 | $32,160 | $38,610 |
ORANGE | |||
60% AMI | $56,940 | $73,200 | $87,840 |
30% AMI | $28,470 | $36,600 | $43,920 |
SAN DIEGO | |||
60% AMI | $54,660 | $70,260 | $84,360 |
30% AMI | $27,330 | $35,130 | $42,180 |
The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30 percent AMI threshold, making them ineligible for deeply income-restricted VHHP units.
HUD-VASH and project-based vouchers (PBVs). Through a cooperative partnership, the HUD-VASH Program provides long-term case management, supportive services and permanent housing support to qualified veterans experiencing homelessness. HUD provides Housing Choice Vouchers (Section 8 vouchers) designated for HUD-VASH to participating PHAs to assist with rent payments. To be eligible for this program, veterans must be VA Health Care-eligible, homeless, and must participate in case management services in order to obtain and sustain permanent independent community housing. PHAs can choose to “project-base” or dedicate up to 20 percent (in some cases up to 30 percent) of their vouchers to specific units in an affordable or supportive housing development. Because these vouchers represent a stable, medium-term rental assistance payment stream, affordable and supportive housing developers often use PBVs to help subsidize deeply affordable ELI units in a development.
Issues related to veteran unit vacancy rates in certain regions. According to the Los Angeles Housing Department’s (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city’s Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30 percent AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e. non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75 percent lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing.
The memo requested, and the Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50 percent of AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations.
According to the memo:
“A critical challenge facing projects with VASH assistance is receiving sufficient referrals of veterans whose income does not exceed the 30% AMI requirements. The VA has indicated that leasing VASH units targeting extremely low-income veterans is a significant challenge because veterans eligible for VA benefits have incomes that exceed 30% AMI at the time of lease-up. According to current veterans disability compensation rates, a veteran with no dependents who is 100% ‘service connected’ (meaning they receive healthcare, disability and other benefits) receives $3,621.95 monthly, which is an annual income of $43,463.40. This is above the 30% AMI income limit of $25,050 for a one-person household.”
People Assisting the Homeless (PATH), a nonprofit homeless service provider and affordable housing developer with a number of projects in the LA region, notes that many of their supportive housing developments have struggled to fill VHHP units, which they contend puts them at risk of penalties from the IRS, complicates their efforts to successfully put together financing for future developments, and delays veterans from exiting homelessness.
This bill proposes to allow housing providers who are making referrals to VHHP units to refer tenants with incomes up to 60 percent of AMI only if they are unable to find tenants at 30 percent of AMI for at least two weeks after a unit becomes available. This bill would also allow a VHHP development to dip below the statutorily mandated 50 percent ELI unit threshold if no tenants at 30 percent of AMI can be found in that two-week period.
TCAC-monitored housing units. This bill also creates a petition process at TCAC for a referring entity to request authorization to place a tenant up to 60 percent of AMI in a TCAC-regulated unit with a project-based Housing Choice or VASH voucher if no tenant at 30 percent of AMI can be located for at least two weeks after a unit becomes available. TCAC has the ability to permit this type of substitution so long as the overall affordability level of the building does not exceed certain income thresholds under federal IRS rules.
Policy considerations. Given the acute nature of the housing crisis in California, including for veterans at risk of homelessness, persistently high vacancy rates in affordable and supportive housing developments should not be occurring. While the causes of those vacancy rates are complex, it is important to ensure that units dedicated to serving a specific income level are able to serve the target population as much as possible before opening up eligibility to other groups. In the scenario allowed by this bill, there is a possibility that an ELI tenant might not present within the 14-day window, but would have presented in a 21-day or 30-day window, as an example. The unit(s) that would have been available for that ELI tenant in the interim may then have already been filled with a 60 percent AMI tenant, leaving the ELI tenant with fewer housing options when they otherwise would have been eligible for that unit. A minimum reserve amount of ELI units or a reasonable cap on the amount of units that can be filled with 60 percent AMI tenants could also address this possibility.
Additionally, as noted above, TCAC monitors developments to ensure that “unit swapping” of certain units from lower to higher income targeting does not jeopardize the overall affordability level required of the development. However, for VHHP-funded units, this bill currently permits the development to dip below the statutorily mandated 50 percent ELI unit threshold if no tenants at 30 percent of AMI can be found in a two-week period. Ensuring that units filled with tenants up to 60 percent of AMI revert to ELI units upon departure of the prior tenant could address the risk that over time, VHHP units in a development could permanently convert to higher incomes.
Related legislation.
AB 531 (Irwin) of this Session would authorize, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the Veterans Housing and Homeless Prevention Bond Act of 2024. This bill is currently pending before this committee.
AB 1657 (Wicks) of this Session would authorize, subject to voter approval, the issuance of an unspecified amount of general obligation bonds to fund affordable rental housing and homeownership programs under the Affordable Housing Bond Act of 2024. This bill is currently pending before the Assembly Committee on Housing and Community Development.
AB 411 (Irwin) of the 2021-22 Session would have authorized, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the Veterans Housing and Homeless Prevention Bond Act of 2022. This bill was held in the Senate Appropriations Committee.
SB 222 (Hill, Chapter 601, Statutes of 2019) prohibited housing discrimination on account of military or veteran status under the Fair Employment and Housing Act (FEHA). Also defined a Veterans Affairs Supportive Housing (VASH) voucher as a source of income for purposes of FEHA, and in so doing, prohibited landlords from discriminating against a tenant based on their use of a VASH voucher to pay rent.
SB 3 (Beall, Chapter 365, Statutes of 2017) authorized the issuance of $4 billion in general obligation bonds for several affordable housing programs under the Veterans and Affordable Housing Bond Act of 2018. Approved by voters at the November 6, 2018 election, this included a $1 billion increase in the bond authority allowed under the CalVet Home Loan Program.
AB 639 (Pérez, Chapter 727, Statutes of 2013) authorized the Veterans Housing and Homeless Prevention Act of 2014 which voters approved through Proposition 41. Additionally, restructured the Veterans’ Bond Act of 2008 (Proposition 12) and provided for the issuance of $600 million in general obligation bonds to support affordable, supportive, and transition multifamily housing for veterans and their families.
SB 1572 (Wyland, Chapter 122, Statutes of 2008) established the Veterans’ Bond Act of 2008 which California voters approved as Proposition 12. Authorized $900 million in general obligation bonds intended to help veterans purchase single family homes, farms, and mobilehomes through the CalVet Home Loan Program.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Veteran Service Agencies
National Alliance to End Homelessness
Path (People Assisting the Homeless)
San Diego Regional Task Force on Homelessness
Opposition
None on file.
Analysis Prepared by: Christian Burkin / M. & V.A. / (916) 319-3550
Date of Hearing: March 29, 2023
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Buffy Wicks, Chair
ABPCA Bill Id:AB 1386 (
Author:Gabriel) – As Amended Ver:March 21, 2023
SUBJECT: Veterans housing: tenant referrals
SUMMARY: Authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at certain income levels if units are unable to be filled after 14 days at a lower income threshold. Specifically, this bill:
- Authorizes entities tasked with making referrals of units targeted to extremely low income (ELI) households funded through VHHP to match prospective tenants with incomes up to 60 percent of the area median income (AMI) with a unit, if the unit has been available for 14 days with no successful match and placement of an eligible ELI tenant.
- Allows for the authorization in 1) to be utilized in circumstances in which housing tenants with incomes up to 60 percent of AMI would cause a VHHP-funded development to have less than 50 percent of its units occupied by ELI tenants, pursuant to existing law requirements.
- Requires the entity tasked with making referrals to these units to make a good faith effort to match an ELI tenant, to document these good faith efforts, and to make this documentation available to the Department of Housing and Community Development (HCD), the Department of Veterans Affairs (CalVet), and the California Housing Finance Agency (CalHFA) upon request.
- Authorizes a qualified entity, as defined, to petition the California Tax Credit Allocation Committee (TCAC) requesting authority to allow veterans with incomes up to 60 percent of AMI to be placed in a qualified unit, if the unit has been available for 14 days with no successful match and placement of an eligible ELI tenant.
- Requires TCAC to create or establish all of the following by July 1, 2024 to implement 4) above:
- A standardized form for petitions that a qualified entity may submit;
- An online portal for the submission of the petition; and
- If necessary, rules and regulations for the review and determination on the petitions that are consistent with the requirements of this bill.
- Requires TCAC, within 30 days of receiving a petition, to do both of the following:
- Review the petition and make a determination of whether the qualified unit is eligible to accept secondary tenants pursuant to all applicable federal Internal Revenue Service and committee guidelines, rules, and regulations, and other law; and
- Provide a written determination to the qualified entity that made the petition.
- Defines various terms for purposes of the TCAC petition process, including the following:
- “Qualified entity” to mean an entity that is responsible for making referrals of qualified tenants to qualified units;
- “Qualified tenants” to mean an ELI veteran;
- “Qualified unit” to mean a supportive housing unit restricted to ELI veterans that is funded or otherwise supported at least in part by a project-based voucher;
- “Project-based voucher” to mean a project-based voucher issued under Section 8 of the United States Housing Act of 1937 (42 USC Sec. 1437f), including project-based federal Department of Housing and Urban Development Veterans Supportive Housing (VASH) vouchers;
- “Supportive housing unit” to mean housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community.
EXISTING LAW:
- Enacts the Veterans Housing and Homeless Prevention Act of 2014 (VHHPA), the purpose of which is to provide the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability. (Military and Veterans Code (MVC) 987.001 and 987.002)
- Requires CalHFA, HCD, and CalVet (hereafter “the departments”) to work collaboratively pursuant to a memorandum of understanding to carry out the duties and functions of the VHHPA. (MVC 987.002)
- Requires the departments to establish and implement programs that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness, and to the extent feasible, that do the following:
- Leverage public, private, and nonprofit program and fiscal resources;
- Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation;
- Promote public and private partnerships;
- Foster innovative financing opportunities; and
- Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with such experience. (MVC 987.005)
- Requires the departments to ensure at least 50 percent of funds awarded for capital development under the VHHPA is used to provide housing to veteran households with ELI, as defined pursuant to Health and Safety Code Section 50106.
- (MVC 987.005)
- In determining whether a potential tenant is eligible for supportive, affordable, or transition housing targeted to ELI households, requires eligibility to take into consideration all of a household’s income sources upon initial tenancy. (MVC 987.005)
- Requires at least 60 percent of units funded targeting ELI households to be supportive housing units. Clarifies that this shall not deter the departments from funding projects serving mixed-income populations. (MVC 987.005)
- Defines “veteran” to mean any person who served in the active military, naval, or air service of the United States, or as a member of the National Guard who was called to and released from active duty or active service, for a period of not less than 90 consecutive days or was discharged from the service due to a service-connected disability within that 90-day period. (MVC 987.003)
- Defines “ELI households” to mean persons and families whose incomes do not exceed the qualifying limits for ELI families as established and amended by the Secretary of Housing and Urban Development (HUD) and defined in Section 5.603(b) of Title 24 of the Code of Federal Regulations. (Health and Safety Code 50106)
- Authorizes, pursuant to federal rules and regulations, public housing authorities (PHAs) to project-base up to 20 percent of their allocation of Housing Choice Vouchers, including HUD-VASH vouchers without additional approval by HUD. PHAs may raise the limit an additional 10 percent for homeless families, families with veterans, supportive housing for persons with disabilities or elderly persons, or in areas where vouchers are difficult to use. PHAs are required to conduct their HUD-VASH programs in conjunction with their nearby Veterans Affairs Medical Center (VAMC), which must make supportive services available to individuals receiving HUD-VASH assistance. When a PHA chooses to project-based their HUD-VASH vouchers, they must ensure they have the support of their partnering VAMC. (24 Code of Federal Regulations (CFR) 983 and 82 Federal Rule 5458)
- Requires, pursuant to federal regulations, no less than 75 percent of the families admitted to a PHA’s tenant-based and project-based voucher programs during the PHA fiscal year from the PHA waiting list to be ELI families. (24 CFR 983.251(c)(6))
- Permits, pursuant to federal regulations, a property that receives a federal low-income housing tax credit to change the designated income limitation of a unit in a property according to certain rules, so long as the overall average income of the property does not exceed certain thresholds. (26 CFR 1.42 5(c) and 26 CFR 1.42 19(d))
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s statement. According to the author, “California continues to hold the largest population of homeless veterans in the country—approximately 31% of the national total. Homeless veterans are overrepresented in California’s homeless population, and being a veteran is associated with a higher risk of homelessness in our state. Our state must find ways to improve our existing programs and ensure that veterans are housed.
The existing structure of the State Veterans Housing and Homelessness Prevention Program leaves many veterans unprotected and susceptible to homelessness when there are beds available. Disability benefits often push veterans over the 30% AMI threshold, making them illegible for the VHHP housing units even though they would otherwise qualify for the program. This leaves some VHHP-funded buildings with high vacancy rates and struggling to fill units while many veterans remain homeless. This bill would ensure that eligibility requirements are flexible and adaptive.”
Veterans and housing needs. A majority of California’s veterans are considered cost-burdened and pay more than 30 percent of their income towards housing-related costs. Additionally, veterans face higher risks of homelessness than the general population and the homeless point-in-time count for 2022 estimated that there are 10,395 veterans experiencing homelessness in California, with 7,392 of those veterans experiencing unsheltered homelessness.
Historically the state has primarily supported veteran housing needs through the CalVet Home Loan Program. Established a century ago in 1921, the CalVet Home Loan program provides financing for qualified veterans to purchase homes, farms, and mobilehomes. However, over time, the CalVet Home Loan Program saw a marked decline in demand and, in 2014, the state pivoted to meet the changing needs of the veteran population when California voters approved Proposition 41 at the June 3, 2014 election.
Proposition 41 created the VHHP Program and allowed for the issuance of $600 million in bonds to provide funding for multifamily affordable housing, transitional housing, and supportive housing to veterans. To date the VHHP Program has provided six rounds of funding administered by HCD in collaboration with CalHFA and CalVet, plus one round via the state’s first “Super NOFA” or “Super Notice of Funding Availability” consolidated application round pursuant to AB 434 (Daly, Chapter 192, Statutes of 2020).
The latest award information for round six, HCD’s “VHHP Program 2021 Round 6 Awards Data Summary,” shows that $478 million in VHHP awards have been made cumulatively over the six rounds of the program. This is expected to result in a total of 3,058 VHHP housing units for veterans and their families with 2,026 (66 percent) of those reserved for extremely low-income veterans, 813 (27 percent) for very low-income veterans, and the remainder for low-income veterans. Additionally, 80 percent of the housing units developed with VHHP funds are restricted to veterans experiencing homelessness. While the VHHP funds are helping to create much-needed affordable housing, transitional housing, and supportive housing for California’s veterans, it is important to note the program will run out of funding unless additional resources are approved for the VHHP program.
VHHP income limits. Currently, at least 50 percent of capital development funding for VHHP-funded developments must be used to subsidize ELI units. These units are affordable to households making 30 percent or less of AMI. HUD publishes income limits each year outlining what the thresholds are in each county in the state for a variety of household sizes.
According to HCD’s “Multifamily Housing Programs: 2022 Multifamily Tax Subsidy Project Income Limits,” VHHP was subject to the following income limits in 2022 in certain selected counties:
County/AMI Level | 1 Person Household | 3 Person Household | 5 Person Household |
ALAMEDA | |||
60% AMI | $60,000 | $77,160 | $92,580 |
30% AMI | $30,000 | $38,580 | $46,290 |
FRESNO | |||
60% AMI | $32,760 | $42,120 | $50,520 |
30% AMI | $16,380 | $21,060 | $25,260 |
LOS ANGELES | |||
60% AMI | $50,040 | $64,320 | $77,220 |
30% AMI | $25,020 | $32,160 | $38,610 |
ORANGE | |||
60% AMI | $56,940 | $73,200 | $87,840 |
30% AMI | $28,470 | $36,600 | $43,920 |
SAN DIEGO | |||
60% AMI | $54,660 | $70,260 | $84,360 |
30% AMI | $27,330 | $35,130 | $42,180 |
The author and supporters of the bill argue that once many veterans become connected to benefits, including disability benefits, their income can exceed the 30 percent AMI threshold, making them ineligible for deeply income-restricted VHHP units.
HUD-VASH and project-based vouchers (PBVs). Through a cooperative partnership, the HUD-VASH Program provides long-term case management, supportive services and permanent housing support to qualified veterans experiencing homelessness. HUD provides Housing Choice Vouchers (Section 8 vouchers) designated for HUD-VASH to participating PHAs to assist with rent payments. To be eligible for this program, veterans must be VA Health Care-eligible, homeless, and must participate in case management services in order to obtain and sustain permanent independent community housing. PHAs can choose to “project-base” or dedicate up to 20 percent (in some cases up to 30 percent) of their vouchers to specific units in an affordable or supportive housing development. Because these vouchers represent a stable, medium-term rental assistance payment stream, affordable and supportive housing developers often use PBVs to help subsidize deeply affordable ELI units in a development.
Issues related to veteran unit vacancy rates in certain regions. According to the Los Angeles Housing Department’s (LAHD) January 12, 2023 memo regarding supportive housing projects funded by the city’s Proposition HHH, the City has struggled with longer leasing times for veteran-serving HHH projects. LAHD attributes these leasing delays to overlapping eligibility restrictions, high adoption of the most restrictive income limits (30 percent AMI), and the multiple housing alternatives available to veterans, including a preference for portable (i.e. non-project-based) vouchers. The memo indicates some – though not all – HHH projects have only achieved roughly 60-75 percent lease up status for their veteran units, though the majority of projects with veteran units have yet to fully come online and begin leasing.
The memo requested, and the Council recently approved, permission for LAHD to increase the AMI limits in Proposition HHH-funded veteran projects to 50 percent of AMI, as determined by LAHD. However, affordable housing developers generally must layer funding from multiple sources to complete a project, and other funding streams like VHHP, TCAC tax credits, and project-based VASH or Section 8 vouchers – which the City of Los Angeles does not have authority over – continue to have more restrictive income limitations.
According to the memo:
“A critical challenge facing projects with VASH assistance is receiving sufficient referrals of veterans whose income does not exceed the 30% AMI requirements. The VA has indicated that leasing VASH units targeting extremely low-income veterans is a significant challenge because veterans eligible for VA benefits have incomes that exceed 30% AMI at the time of lease-up. According to current veterans disability compensation rates, a veteran with no dependents who is 100% ‘service connected’ (meaning they receive healthcare, disability and other benefits) receives $3,621.95 monthly, which is an annual income of $43,463.40. This is above the 30% AMI income limit of $25,050 for a one-person household.”
People Assisting the Homeless (PATH), a nonprofit homeless service provider and affordable housing developer with a number of projects in the LA region, notes that many of their supportive housing developments have struggled to fill VHHP units, which they contend puts them at risk of penalties from the IRS, complicates their efforts to successfully put together financing for future developments, and delays veterans from exiting homelessness.
This bill proposes to allow housing providers who are making referrals to VHHP units to refer tenants with incomes up to 60 percent of AMI only if they are unable to find tenants at 30 percent of AMI for at least two weeks after a unit becomes available. This bill would also allow a VHHP development to dip below the statutorily mandated 50 percent ELI unit threshold if no tenants at 30 percent of AMI can be found in that two-week period.
TCAC-monitored housing units. This bill also creates a petition process at TCAC for a referring entity to request authorization to place a tenant up to 60 percent of AMI in a TCAC-regulated unit with a project-based Housing Choice or VASH voucher if no tenant at 30 percent of AMI can be located for at least two weeks after a unit becomes available. TCAC has the ability to permit this type of substitution so long as the overall affordability level of the building does not exceed certain income thresholds under federal IRS rules.
Policy considerations. Given the acute nature of the housing crisis in California, including for veterans at risk of homelessness, persistently high vacancy rates in affordable and supportive housing developments should not be occurring. While the causes of those vacancy rates are complex, it is important to ensure that units dedicated to serving a specific income level are able to serve the target population as much as possible before opening up eligibility to other groups. In the scenario allowed by this bill, there is a possibility that an ELI tenant might not present within the 14-day window, but would have presented in a 21-day or 30-day window, as an example. The unit(s) that would have been available for that ELI tenant in the interim may then have already been filled with a 60 percent AMI tenant, leaving the ELI tenant with fewer housing options when they otherwise would have been eligible for that unit. A minimum reserve amount of ELI units or a reasonable cap on the amount of units that can be filled with 60 percent AMI tenants could also address this possibility.
Additionally, as noted above, TCAC monitors developments to ensure that “unit swapping” of certain units from lower to higher income targeting does not jeopardize the overall affordability level required of the development. However, for VHHP-funded units, this bill currently permits the development to dip below the statutorily mandated 50 percent ELI unit threshold if no tenants at 30 percent of AMI can be found in a two-week period. Ensuring that units filled with tenants up to 60 percent of AMI revert to ELI units upon departure of the prior tenant could address the risk that over time, VHHP units in a development could permanently convert to higher incomes.
Arguments in support. According to the California Association of Veteran Service Agencies, “AB 1386 makes necessary updates to the Veterans Housing and Homeless Prevention (VHHP) Program; this bill would allow local homeless systems to match a Veteran experiencing homelessness with an income at or below 60 percent area median income (AMI) in cases when a veteran with a lower income cannot be located. Additionally, the bill focuses on accepting Veterans into the VHHP program through a lens of equity, and ensures that Veterans with the lowest-income are prioritized before Veterans of higher incomes are accepted. We believe this legislation is critical in addressing the needs and obstacles of veterans.”
Arguments in opposition. None on file.
Double referred. This bill was also referred to the Assembly Committee on Military and Veterans Affairs, where it will be heard should it pass out of this committee.
Related legislation:
AB 531 (Irwin) of this Session would authorize, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the Veterans Housing and Homeless Prevention Bond Act of 2024. This bill is currently pending before this committee.
AB 1657 (Wicks) of this Session would authorize, subject to voter approval, the issuance of an unspecified amount of general obligation bonds to fund affordable rental housing and homeownership programs under the Affordable Housing Bond Act of 2024. This bill is currently pending before this committee.
AB 411 (Irwin) of the 2021-22 Session would have authorized, subject to voter approval, the issuance of $600 million in general obligation bonds to provide affordable housing under the Veterans Housing and Homeless Prevention Bond Act of 2022. This bill was held in the Senate Appropriations Committee.
SB 222 (Hill, Chapter 601, Statutes of 2019) prohibited housing discrimination on account of military or veteran status under the Fair Employment and Housing Act (FEHA). Also defined a Veterans Affairs Supportive Housing (VASH) voucher as a source of income for purposes of FEHA, and in so doing, prohibited landlords from discriminating against a tenant based on their use of a VASH voucher to pay rent.
SB 3 (Beall, Chapter 365, Statutes of 2017) authorized the issuance of $4 billion in general obligation bonds for several affordable housing programs under the Veterans and Affordable Housing Bond Act of 2018. Approved by voters at the November 6, 2018 election, this included a $1 billion increase in the bond authority allowed under the CalVet Home Loan Program.
AB 639 (Pérez, Chapter 727, Statutes of 2013) authorized the Veterans Housing and Homeless Prevention Act of 2014 which voters approved through Proposition 41. Additionally, restructured the Veterans’ Bond Act of 2008 (Proposition 12) and provided for the issuance of $600 million in general obligation bonds to support affordable, supportive, and transition multifamily housing for veterans and their families.
SB 1572 (Wyland, Chapter 122, Statutes of 2008) established the Veterans’ Bond Act of 2008 which California voters approved as Proposition 12. Authorized $900 million in general obligation bonds intended to help veterans purchase single family homes, farms, and mobilehomes through CalVet Home Loan Program.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Veteran Service Agencies
Corporation for Supportive Housing
Hope the Mission
PATH
San Diego Regional Task Force on Homelessness
The People Concern
Opposition
None on file.
Analysis Prepared by: Nicole Restmeyer / H. & C.D. / (916) 319-2085
Bill Author
Bill Co-Author(s):
