Existing law establishes the Homeless Housing, Assistance, and Prevention (HHAP) program for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Under existing law, grants under the HHAP program are allocated in 4 rounds of funding, administered by the associated staff within the Interagency Council on Homelessness, as provided.

Existing law requires the Department of Housing and Community Development to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department. Existing law requires that the report include, among other things, the number of units assisted by those programs and the number of individuals and households served and their income levels.

This bill would additionally require that this report include an evaluation of the HHAP program.

Existing law establishes the Homeless Housing, Assistance, and Prevention (HHAP) program for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Under existing law, grants under the HHAP program are allocated in 4 rounds of funding, administered by the Interagency Council on Homelessness, as provided.

Existing law requires the Department of Housing and Community Development to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department. Existing law requires that the report include, among other things, the number of units assisted by those programs and the number of individuals and households served and their income level.

This bill would additionally require that this report include an evaluation of the HHAP program.

Existing law establishes the Homeless Housing, Assistance, and Prevention (HHAP) program for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Under existing law, grants under the HHAP program are allocated in 4 rounds of funding, administered by the Interagency Council on Homelessness, as provided.

Existing law requires the Department of Housing and Community Development to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department. Existing law requires that the report include, among other things, the number of units assisted by those programs and the number of individuals and households served and their income level.

This bill would additionally require that this report include an evaluation of the HHAP program.

GOVERNOR'S VETO

GV Bill Id:AB 2570

Author:(Joe Patterson)

As Enrolled Ver:June 25, 2024

2/3 vote

SUMMARY

Requires the Department of Housing and Community Development (HCD) as part of its annual report on specified programs to include an evaluation of the Homeless Housing, Assistance, and Prevention (HHAP) program as administered by the Business, Consumer Services, and Housing Agency and the Interagency Council on Homelessness.

Governor's Veto Message

"I am returning Assembly Bill 2570 without my signature. This bill would require the Department of Housing and Community Development to conduct an annual evaluation of the Homeless Housing, Assistance and Prevention program (HHAP) and include that information in the Department's annual report.

I support increasing transparency and accountability for cities and counties' use of state funding to address homelessness. Earlier this year, I directed California's Housing Accountability Unit to increase its oversight and enforcement of existing housing laws to address homelessness. Additionally, the recently adopted 2024 Budget includes statutory language that requires more frequent reporting by HHAP grantees on their expenditures, corrective action plans for grantees not meeting specified performance measures, and maintenance of compliant Housing Elements prior to receiving additional HHAP funding.

This bill is redundant to these efforts and creates an unnecessary ongoing workload for the Department without providing additional accountability or transparency to taxpayers."

COMMENTS

CA-ICH: In 2016, SB 1380 (Mitchell), Chapter 847, created the Homelessness Coordinating and Financing Council, which was renamed the California Interagency Council on Homelessness (CA-ICH) in 2021 (AB 1220 (L. Rivas), Chapter 398) to coordinate the state's response to homelessness. SB 1380 set out a list of list of "goals" for CA-ICH to focus on, but no clear authority to make changes to state policy or programs that address homelessness. CA-ICH is also responsible for ensuring that all state housing and homelessness programs follow Housing First principles. As the state's homelessness crisis has worsened, the role of the CA-ICH has significantly increased. The council was responsible for administering several programs dedicated to addressing homelessness, including HHAP and the Encampment Resolution Program.

HHAP: The HHAP Program was created to provide jurisdictions with one-time grant funds expand or develop local capacity to address immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Program funds can be used for services for those experiencing homelessness or at risk of homelessness, such as rapid rehousing, operating subsidies, street outreach, services coordination, delivery of permanent and innovative housing solutions, and homelessness prevention. HHAP replaced a prior program, the Homeless Emergency Aid Program (HEAP), which also provided block grants to large cities and Continuums of Care (CoCs) for a variety of solutions addressing homelessness. Large cities (with a population of 300,000 or more), counties, CoCs, and tribes can apply for HHAP funding. HHAP has received $3.95 billion in funding from 2019-24. Round four of the HHAP Program included robust accountability provisions, including the requirement that applicants develop a Local Action Plan and performance goals. Round five requires regions to submit a joint applicant and plan for addressing homelessness.

Local Action Plans required HHAP recipients to set outcome goals that prevent and reduce homelessness over a three-year period, informed by the findings from a local landscape analysis and the jurisdiction's base system performance measure from 2020 calendar year data in the Homeless Data Integration System. The outcome goals included definite metrics, based on the United States Department of Housing and Urban Development's system performance measures, to do the following:

1. Reduce the number of persons experiencing homelessness;
2. Reduce the number of persons who become homeless for the first time;
3. Increase the number of people exiting homelessness into permanent housing;
4. Reduce the length of time persons remain homeless;
5. Reduce the number of persons who return to homelessness after exiting homelessness to permanent housing; and
6. Increase successful placements from street outreach.

Applicants recently submitted applications for round five of HHAP and are currently receiving funds. The Governor's January Budget maintains $1 billion General Fund in 2023-24 for a fifth round of HHAP.

HCD Reporting: HCD completes an annual report of programs that they administer, including how many people served by income level and the number of units created. This bill would add an evaluation of the HHAP program to the report. In the 2022-23 Budget, the HHAP program and the Encampment Resolution Program, the two programs previously administered by Cal-ICH, were moved to HCD.

According to the Author

"Accounting for nearly 30% of the nation's homeless population, California continues to face a growing homelessness epidemic. In response to this staggering reality, state leaders have tackled the issue through the development of varying programs and funding sources. While the effort possesses altruistic intentions, the Homeless Housing, Assistance, and Prevention program has failed to address the ever-intensifying homelessness crisis in California, with the state experiencing the second largest increase in homeless population in the nation from 2022-2023. It is crucial for state leaders to become informed of the problems plaguing our homelessness efforts, of which are funded by taxpayer dollars. I believe that by requiring a status update and review of the Homeless Housing, Assistance, and Prevention program in the Department of Housing and Community Development annual report to the Governor and both houses of the Legislature, we will be able to shed light on the flaws in our plan of action in addressing the overwhelming homelessness issue in our state."

Arguments in Support

None on file.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations: HCD indicates minor and absorbable costs.

VOTES

ASM HOUSING AND COMMUNITY DEVELOPMENT: 9-0-0

YES: Ward, Joe Patterson, Grayson, Kalra, Lee, Quirk-Silva, Reyes, Sanchez, Wilson

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Friedman, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 71-0-9

YES: Aguiar-Curry, Alanis, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Grayson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Addis, Alvarez, Cervantes, Megan Dahle, Flora, Vince Fong, Gipson, Irwin, Mathis

SENATE FLOOR: 36-0-4

YES: Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Allen, Alvarado-Gil, Durazo, Grove

UPDATED

VERSION: June 25, 2024

CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0003734

 CONSENT  

Bill No: AB 2570

Author: Joe Patterson (R)

Amended: 5/9/24 in Assembly

Vote: 21

SENATE HOUSING COMMITTEE: 9-0, 6/4/24

AYES: Skinner, Ochoa Bogh, Blakespear, Caballero, Cortese, Menjivar, Seyarto, Umberg, Wahab

NO VOTE RECORDED: Padilla

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 71-0, 5/16/24 (Consent) - See last page for vote

SUBJECT: Department of Housing and Community Development: annual report: Homeless Housing, Assistance, and Prevention program

SOURCE: Author

DIGEST:

This bill requires the Department of Housing and Community Development (HCD) as part of its annual report to the Legislature and Governor on specified programs to include an evaluation of the Homeless Housing, Assistance, and Prevention (HHAP) program.

ANALYSIS:

Existing law:

1. Requires HCD, on or before December 31 of each year, to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department, including, but not limited to, the Emergency Housing and Assistance Program and Community Development Block Grant activity.
2. Requires the report to include all of the following information:
3. The number of units assisted by those programs;
4. The number of individuals and households served and their income levels;
5. The distribution of units among various areas of the state;
6. The amount of other public and private funds leveraged by the assistance provided by those programs;
7. Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups;
8. The information required to be reported pursuant to specified law; and
9. An evaluation, in collaboration with the Department of Veterans Affairs (DVA), of any program established by DVA, including information relating to the effectiveness of assisted projects in helping veterans occupying any supportive housing or transitional housing development that was issued funds pursuant to that article. (Health and Safety Code (HSC) 50408)
10. Establishes HHAP to provide jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Directs HCD to administer HHAP.
11. Requires HHAP to be used for evidence-based solutions that address and prevent homelessness among eligible populations, including any of the following:
12. Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees;
13. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves;
14. Street outreach to assist persons experiencing homelessness to access permanent housing and services;
15. Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing;
16. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations, including families and homeless youth;
17. Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions;
18. Prevention and shelter diversion to permanent housing, including rental subsidies; and
19. Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing noncongregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
20. The number of available shelter beds in the city, county, or region served by a continuum of care;
21. The number of people experiencing unsheltered homelessness in the homeless point-in-time count;
22. Shelter vacancy rate in the summer and winter months;
23. Percentage of exits from emergency shelters to permanent housing solutions; and
24. A plan to connect residents to permanent housing.
25. Requires, beginning with the third round of HHAP, applicants to provide the following information for all rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework, as established by CA-ICH:
26. Data on the applicant’s progress towards meeting their outcome goals, which must be submitted annually on December 31 of each year through the duration of the program;
27. If the applicant has not made significant progress toward their outcome goals, the applicant must submit a description of barriers and possible solutions to those barriers;
28. Applicants that do not demonstrate significant progress towards meeting outcome goals must accept technical assistance from the council and may also be required to limit the allowable uses of these program funds, as determined by the council;
29. A quarterly fiscal report of program funds expended and obligated in each allowable budget category approved in their application for program funds; and
30. If the applicant has not made significant progress toward their outcome goals, then the applicant must report on their outcome goals in their quarterly report.
31. Requires CA-ICH to post a statewide report that aggregates each applicant’s outcome goals into a single statewide set of metrics.
32. Requires each recipient that receives a round three program allocation to submit to CA-ICH a final report, as well as detailed uses of all program funds, no later than October 1, 2026.
    
33. Requires each recipient that receives a round four program allocation to submit to CA-ICH a final report, as well as detailed uses of all program funds, no later than October 1, 2027.

This bill requires HCD, as part of its annual report to the Legislature and Governor on specified programs, to include an evaluation of the HHAP program.

Background

HHAP. The HHAP Program was created to provide jurisdictions with one-time grant funds expand or develop local capacity to address immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Program funds can be used for services for those experiencing homelessness or at risk of homelessness, such as rapid rehousing, operating subsidies, street outreach, services coordination, delivery of permanent and innovative housing solutions, and homelessness prevention. HHAP replaced a prior program, the Homeless Emergency Aid Program (HEAP), which also provided block grants to large cities and Continuums of Care (CoCs) for a variety of solutions addressing homelessness. Large cities (with a population of 300,000 or more), counties, CoCs, and tribes can apply for HHAP funding. HHAP has received $3.95 billion in funding from 2019-24. Round four of the HHAP Program included robust accountability provisions, including the requirement that applicants develop a Local Action Plan and performance goals. Round five requires regions to submit a joint applicant and plan for addressing homelessness.

Local Action Plans required HHAP recipients to set outcome goals that prevent and reduce homelessness over a three-year period, informed by the findings from a local landscape analysis and the jurisdiction's base system performance measure from 2020 calendar year data in the Homeless Data Integration System. The outcome goals included definite metrics, based on the United States Department of Housing and Urban Development's system performance measures, to do the following:

1. Reduce the number of persons experiencing homelessness;
2. Reduce the number of persons who become homeless for the first time;
3. Increase the number of people exiting homelessness into permanent housing;
4. Reduce the length of time persons remain homeless;
5. Reduce the number of persons who return to homelessness after exiting homelessness to permanent housing; and
6. Increase successful placements from street outreach.

Applicants recently submitted applications for round five of HHAP and are currently receiving funds.

Comments

1. Author’s statement. According to the author, “Accounting for nearly 30% of the nation’s homeless population, California continues to face a growing homelessness epidemic. In response to this staggering reality, state leaders have tackled the issue through the development of varying programs and funding sources. While the effort possesses altruistic intentions, the Homeless Housing, Assistance, and Prevention program has failed to address the ever-intensifying homelessness crisis in California, with the state experiencing the second largest increase in homeless population in the nation from 2022-2023. It is crucial for state leaders to become informed of the problems plaguing our homelessness efforts, of which are funded by taxpayer dollars. I believe that by requiring a status update and review of the Homeless Housing, Assistance, and Prevention program in the Department of Housing and Community Development annual report to the Governor and both houses of the Legislature, we will be able to shed light on the flaws in our plan of action in addressing the overwhelming homelessness issue in our state.”
2. HCD Reports. HCD completes an annual report of programs that they administer, including how many people served by income level and the number of units created. This bill would add an evaluation of the HHAP program to the report. In the 2022-23 Budget, the HHAP program and the Encampment Resolution Program, the two programs previously administered by Cal-ICH, were moved to HCD.

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

SUPPORT: (Verified 6/17/24)

None received

OPPOSITION: (Verified 6/17/24)

None received

ASSEMBLY FLOOR: 71-0, 5/16/24

AYES: Aguiar-Curry, Alanis, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Grayson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Addis, Alvarez, Cervantes, Megan Dahle, Flora, Vince Fong, Gipson, Irwin, Mathis

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

6/18/24 10:59:42

**** END ****

SENATE COMMITTEE ON HOUSING

Senator Nancy Skinner, Chair

2023 - 2024 Regular

Bill No: AB 2570 Hearing Date: 6/4/2024

SUBJECT: Department of Housing and Community Development: annual report: Homeless Housing, Assistance, and Prevention program

DIGEST: This bill requires the Department of Housing and Community Development (HCD) as part of its annual report to the Legislature and Governor on specified programs to include an evaluation of the Homeless Housing, Assistance, and Prevention (HHAP) program.

ANALYSIS:

Existing law:

1. Requires HCD, on or before December 31 of each year, to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department, including, but not limited to, the Emergency Housing and Assistance Program and Community Development Block Grant activity.
2. Requires the report to include all of the following information:
3. The number of units assisted by those programs;
4. The number of individuals and households served and their income levels;
5. The distribution of units among various areas of the state;
6. The amount of other public and private funds leveraged by the assistance provided by those programs;
7. Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups;
8. The information required to be reported pursuant to specified law; and
9. An evaluation, in collaboration with the Department of Veterans Affairs (DVA), of any program established by DVA, including information relating to the effectiveness of assisted projects in helping veterans occupying any supportive housing or transitional housing development that was issued funds pursuant to that article. (Health and Safety Code (HSC) 50408)
10. Established HHAP to provide jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Directs HCD to administer HHAP.
11. Requires HHAP to be used for evidence-based solutions that address and prevent homelessness among eligible populations, including any of the following:
12. Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees;
13. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves;
14. Street outreach to assist persons experiencing homelessness to access permanent housing and services;
15. Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing;
16. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations, including families and homeless youth;
17. Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions;
18. Prevention and shelter diversion to permanent housing, including rental subsidies; and
19. Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing noncongregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
20. The number of available shelter beds in the city, county, or region served by a continuum of care;
21. The number of people experiencing unsheltered homelessness in the homeless point-in-time count;
22. Shelter vacancy rate in the summer and winter months;
23. Percentage of exits from emergency shelters to permanent housing solutions; and
24. A plan to connect residents to permanent housing.
25. Requires, beginning with the third round of HHAP, applicants to provide the following information for all rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework, as established by CA-ICH:
26. Data on the applicant’s progress towards meeting their outcome goals, which must be submitted annually on December 31 of each year through the duration of the program;
27. If the applicant has not made significant progress toward their outcome goals, the applicant must submit a description of barriers and possible solutions to those barriers;
28. Applicants that do not demonstrate significant progress towards meeting outcome goals must accept technical assistance from the council and may also be required to limit the allowable uses of these program funds, as determined by the council;
29. A quarterly fiscal report of program funds expended and obligated in each allowable budget category approved in their application for program funds; and
30. If the applicant has not made significant progress toward their outcome goals, then the applicant must report on their outcome goals in their quarterly report.
31. Requires CA-ICH to post a statewide report that aggregates each applicant’s outcome goals into a single statewide set of metrics.
32. Require each recipient that receives a round three program allocation to submit to CA-ICH a final report, as well as detailed uses of all program funds, no later than October 1, 2026.
    
33. Requires each recipient that receives a round four program allocation to submit to CA-ICH a final report, as well as detailed uses of all program funds, no later than October 1, 2027.

This bill requires HCD, as part of its annual report to the Legislature and Governor on specified programs, to include an evaluation of the HHAP program.

COMMENTS:

1. Author’s statement. “Accounting for nearly 30% of the nation’s homeless population, California continues to face a growing homelessness epidemic. In response to this staggering reality, state leaders have tackled the issue through the development of varying programs and funding sources. While the effort possesses altruistic intentions, the Homeless Housing, Assistance, and Prevention program has failed to address the ever-intensifying homelessness crisis in California, with the state experiencing the second largest increase in homeless population in the nation from 2022-2023. It is crucial for state leaders to become informed of the problems plaguing our homelessness efforts, of which are funded by taxpayer dollars. I believe that by requiring a status update and review of the Homeless Housing, Assistance, and Prevention program in the Department of Housing and Community Development annual report to the Governor and both houses of the Legislature, we will be able to shed light on the flaws in our plan of action in addressing the overwhelming homelessness issue in our state.”
2. CA-ICH. In 2016, SB 1380 (Mitchell), Chapter 847, created the Homelessness Coordinating and Financing Council, which was renamed the California Interagency Council on Homelessness (CA-ICH) in 2021 (AB 1220 (L. Rivas), Chapter 398) to coordinate the state's response to homelessness. SB 1380 set out a list of list of “goals” for CA-ICH to focus on, but no clear authority to make changes to state policy or programs that address homelessness. CA-ICH is also responsible for ensuring that all state housing and homelessness programs follow Housing First principles. As the state’s homelessness crisis has worsened, the role of the CA-ICH has significantly increased. The council was responsible for administering several programs dedicated to addressing homelessness, including HHAP and the Encampment Resolution Program.
3. HHAP. The HHAP Program was created to provide jurisdictions with one-time grant funds expand or develop local capacity to address immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Program funds can be used for services for those experiencing homelessness or at risk of homelessness, such as rapid rehousing, operating subsidies, street outreach, services coordination, delivery of permanent and innovative housing solutions, and homelessness prevention. HHAP replaced a prior program, the Homeless Emergency Aid Program (HEAP), which also provided block grants to large cities and CoCs for a variety of solutions addressing homelessness. Large cities (with a population of 300,000 or more), counties, Continuums of Care (CoCs), and tribes can apply for HHAP funding. HHAP has received $3.95 billion in funding from 2019-24. Round four of the HHAP Program included robust accountability provisions, including the requirement that applicants develop a Local Action Plan and performance goals. Round five requires regions to submit a joint applicant and plan for addressing homelessness.

Local Action Plans required HHAP recipients to set outcome goals that prevent and reduce homelessness over a three-year period, informed by the findings from a local landscape analysis and the jurisdiction's base system performance measure from 2020 calendar year data in the Homeless Data Integration System. The outcome goals included definite metrics, based on the United States Department of Housing and Urban Development's system performance measures, to do the following:

1. Reduce the number of persons experiencing homelessness;
2. Reduce the number of persons who become homeless for the first time;
3. Increase the number of people exiting homelessness into permanent housing;
4. Reduce the length of time persons remain homeless;
5. Reduce the number of persons who return to homelessness after exiting homelessness to permanent housing; and
6. Increase successful placements from street outreach.

Applicants recently submitted applications for round five of HHAP and are currently receiving funds.

1. HCD Reports. HCD completes an annual report of programs that they administer, including how many people served by income level and the number of units created. This bill would add an evaluation of the HHAP program to the report. In the 2022-23 Budget, the HHAP program and the Encampment Resolution Program, the two programs previously administered by Cal-ICH, were moved to HCD.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

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

May 29, 2024.)

SUPPORT:

None received.

OPPOSITION:

None received.

-- END --

Date of Hearing: May 8, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2570

Author:(Joe Patterson) – As Introduced Ver:February 14, 2024

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

SUMMARY:

This bill requires the Department of Housing and Community Development (HCD) as part of its annual report to the Governor and the Legislature on specified programs administered by the department to include an evaluation of the Homeless Housing, Assistance, and Prevention (HHAP) program.

FISCAL EFFECT:

HCD indicates minor and absorbable costs.

COMMENTS:

1. Purpose. According to the author:

Accounting for nearly 30% of the nation’s homeless population, California continues to face a growing homelessness epidemic. In response to this staggering reality, state leaders have tackled the issue through the development of varying programs and funding sources. While the effort possesses altruistic intentions, the HHAP program has failed to address the ever-intensifying homelessness crisis in California, with the state experiencing the second largest increase in homeless population in the nation from 2022-2023. It is crucial for state leaders to become informed of the problems plaguing our homelessness efforts, of which are funded by taxpayer dollars. I believe that by requiring a status update and review of the HHAP program in HCD annual report to the Governor and both houses of the Legislature, we will be able to shed light on the flaws in our plan of action in addressing the overwhelming homelessness issue in our state.

1. Background. The HHAP Program provides jurisdictions with one-time grant funds to expand or develop local capacity to address immediate homelessness challenges. The program is informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Program funds can be used for services for those experiencing homelessness or at risk of homelessness, such as rapid rehousing, operating subsidies, street outreach, services coordination, delivery of permanent and innovative housing solutions, and homelessness prevention.

Large cities, counties, Continuums of Care (CoCs), and tribes can apply for HHAP funding. HHAP has received $3.95 billion in funding from 2019-24. Round four of the HHAP Program included robust accountability provisions, including the requirement that applicants develop a Local Action Plan and performance goals. Round five requires regions to submit a joint application and plan for addressing homelessness.

Applicants recently submitted applications for round five of HHAP and are currently receiving funds. The Governor’s January budget proposes to maintain $1 billion General Fund in 2023-24 for a fifth round of HHAP.

HCD completes an annual report to the Governor and the Legislature of programs the department administers, including the number of people served by income level and the number of units created. This bill adds an evaluation of the HHAP program to the report.

1. Clarifying Amendment. In the 2022-23 budget, the HHAP program, previously administered by the Interagency Council on Homelessness (Cal-ICH), was moved to HCD. The bill incorrectly references Cal-ICH as the administrating entity of the HHAP. The Committee suggests deleting the erroneous reference, as follows:

(9) An evaluation of the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) of Part 1), as administered by the Business, Consumer Services, and Housing Agency and the Interagency Council on Homelessness.

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

Date of Hearing: April 24, 2024

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Christopher M. Ward, Chair

ABPCA Bill Id:AB 2570 (

Author:Joe Patterson) – As Introduced Ver:February 14, 2024

SUBJECT: Department of Housing and Community Development: annual report: Homeless Housing, Assistance, and Prevention program

SUMMARY: Requires the Department of Housing and Community Development (HCD) as part of its annual report on specified programs to include an evaluation of the Homeless Housing, Assistance, and Prevention (HHAP) program as administered by the Business, Consumer Services, and Housing Agency and the Interagency Council on Homelessness.

EXISTING LAW:

1. Requires HCD, on or before December 31 of each year, to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department, including, but not limited to, the Emergency Housing and Assistance Program and Community Development Block Grant activity.
2. Requires the report to include all of the following information:
3. The number of units assisted by those programs;
4. The number of individuals and households served and their income levels;
5. The distribution of units among various areas of the state;
6. The amount of other public and private funds leveraged by the assistance provided by those programs;
7. Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups;
8. The information required to be reported pursuant to specified law; and
9. An evaluation, in collaboration with the Department of Veterans Affairs (DVA), of any program established by DVA, including information relating to the effectiveness of assisted projects in helping veterans occupying any supportive housing or transitional housing development that was issued funds pursuant to that article. (Health and Safety Code (HSC) 50408)
10. Requires the evaluation of any DVA program to include, but not be limited to: performance outcome data including, but not limited to, housing stability, housing exit information, and tenant satisfaction, which may be measured by a survey, and changes in income, benefits, and education. (HSC 50408)
11. Defines “housing stability” to include, but is not limited to, how many tenants exit transitional housing to permanent housing or maintain permanent housing, and the length of time those tenants spent in assisted units. (HSC 50408)
12. Defines “housing exit information” to include but is not limited to, the following:
13. How many tenants left assisted units;
14. The length of tenancy in assisted units;
15. The reason those tenants left assisted units, when that information is readily obtainable;
16. The housing status of a tenant exiting an assisted unit upon exit when that information is readily available; and
17. Client data, which may include, but is not limited to, demographic characteristics of the veteran and  their  family, educational and employment status of the veteran, and veteran-specific information including, but not limited to, disability ratings, type of discharge, branch, era of service, and veterans affairs health care eligibility. (Cite)
18. An evaluation of any program established by the department to meet the legal requirements of the Federal Housing Trust Fund program guidelines. (Health and Safety Code Section (HSC) 50408)
19. Established HHAP to provide jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Directs HCD to administer HHAP. (Government Code (GC) Section 50216)
20. Requires HHAP to be used for evidence-based solutions that address and prevent homelessness among eligible populations, including any of the following:
21. Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees;
22. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves;
23. Street outreach to assist persons experiencing homelessness to access permanent housing and services;
24. Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing;
25. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations, including families and homeless youth;
26. Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions;
27. Prevention and shelter diversion to permanent housing, including rental subsidies; and
28. Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing noncongregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following:
29. The number of available shelter beds in the city, county, or region served by a continuum of care;
30. The number of people experiencing unsheltered homelessness in the homeless point-in-time count;
31. Shelter vacancy rate in the summer and winter months;
32. Percentage of exits from emergency shelters to permanent housing solutions; and
33. A plan to connect residents to permanent housing. (Government Code (GC) Section 50220.7)
34. Requires, beginning with the third round of HHAP, applicants to provide the following information for all rounds of program allocations through a data collection, reporting, performance monitoring, and accountability framework, as established by CA-ICH:
35. Data on the applicant’s progress towards meeting their outcome goals, which must be submitted annually on December 31 of each year through the duration of the program;
36. If the applicant has not made significant progress toward their outcome goals, the applicant must submit a description of barriers and possible solutions to those barriers;
37. Applicants that do not demonstrate significant progress towards meeting outcome goals must accept technical assistance from the council and may also be required to limit the allowable uses of these program funds, as determined by the council;
38. A quarterly fiscal report of program funds expended and obligated in each allowable budget category approved in their application for program funds; and
39. If the applicant has not made significant progress toward their outcome goals, then the applicant must report on their outcome goals in their quarterly report. (GC Section 50220.7)
40. Requires CA-ICH to post a statewide report that aggregates each applicant’s outcome goals into a single statewide set of metrics. (GC Section 50220.7)
41. Require each recipient that receives a round three program allocation to submit to CA-ICH a final report, as well as detailed uses of all program funds, no later than October 1, 2026. (GC Section 50220.7)
42. Requires each recipient that receives a round four program allocation to submit to CA-ICH a final report, as well as detailed uses of all program funds, no later than October 1, 2027. (GC Section 50220.7)

FISCAL EFFECT: Unknown

COMMENTS:

Author’s Statement: According to the author, “Accounting for nearly 30% of the nation’s homeless population, California continues to face a growing homelessness epidemic. In response to this staggering reality, state leaders have tackled the issue through the development of varying programs and funding sources. While the effort possesses altruistic intentions, the Homeless Housing, Assistance, and Prevention program has failed to address the ever-intensifying homelessness crisis in California, with the state experiencing the second largest increase in homeless population in the nation from 2022-2023. It is crucial for state leaders to become informed of the problems plaguing our homelessness efforts, of which are funded by taxpayer dollars. I believe that by requiring a status update and review of the Homeless Housing, Assistance, and Prevention program in the Department of Housing and Community Development annual report to the Governor and both houses of the Legislature, we will be able to shed light on the flaws in our plan of action in addressing the overwhelming homelessness issue in our state.”

CA-ICH: In 2016, SB 1380 (Mitchell), Chapter 847, created the Homelessness Coordinating and Financing Council, which was renamed the California Interagency Council on Homelessness (CA-ICH) in 2021 (AB 1220 (L. Rivas), Chapter 398) to coordinate the state's response to homelessness. SB 1380 set out a list of list of “goals” for CA-ICH to focus on, but no clear authority to make changes to state policy or programs that address homelessness. CA-ICH is also responsible for ensuring that all state housing and homelessness programs follow Housing First principles. As the state’s homelessness crisis has worsened, the role of the CA-ICH has significantly increased. The council was responsible for administering several programs dedicated to addressing homelessness, including HHAP and the Encampment Resolution Program.

HHAP: The HHAP Program was created to provide jurisdictions with one-time grant funds expand or develop local capacity to address immediate homelessness challenges informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. Program funds can be used for services for those experiencing homelessness or at risk of homelessness, such as rapid rehousing, operating subsidies, street outreach, services coordination, delivery of permanent and innovative housing solutions, and homelessness prevention. HHAP replaced a prior program, the Homeless Emergency Aid Program (HEAP), which also provided block grants to large cities and CoCs for a variety of solutions addressing homelessness. Large cities (with a population of 300,000 or more), counties, Continuums of Care (CoCs), and tribes can apply for HHAP funding. HHAP has received $3.95 billion in funding from 2019-24. Round four of the HHAP Program included robust accountability provisions, including the requirement that applicants develop a Local Action Plan and performance goals. Round five requires regions to submit a joint applicant and plan for addressing homelessness.

Local Action Plans required HHAP recipients to set outcome goals that prevent and reduce homelessness over a three-year period, informed by the findings from a local landscape analysis and the jurisdiction's base system performance measure from 2020 calendar year data in the Homeless Data Integration System. The outcome goals included definite metrics, based on the United States Department of Housing and Urban Development's system performance measures, to do the following:

• Reduce the number of persons experiencing homelessness;
• Reduce the number of persons who become homeless for the first time;
• Increase the number of people exiting homelessness into permanent housing;
• Reduce the length of time persons remain homeless;
• Reduce the number of persons who return to homelessness after exiting homelessness to permanent housing; and
• Increase successful placements from street outreach.

Applicants recently submitted applications for round five of HHAP and are currently receiving funds. The Governor’s January Budget maintains $1 billion General Fund in 2023-24 for a fifth round of HHAP.

HCD Reporting: HCD completes an annual report of programs that they administer, including how many people served by income level and the number of units created. This bill would add an evaluation of the HHAP program to the report. In the 2022-23 Budget, the HHAP program and the Encampment Resolution Program, the two programs previously administered by Cal-ICH, were moved to HCD.

Arguments in Support: None on file.

Arguments in Opposition: None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

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