The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law requires the agreement to set forth its purpose or the power to be exercised, among other things.

This bill would authorize any qualified local agency, as defined, to enter into a joint powers agreement with any other qualified local agencies pursuant to the act to create and operate a joint powers agency, named the Sacramento County Partnership on Homelessness, to assist the homeless population, to coordinate homelessness response, and to develop and manage a comprehensive strategic plan to address homelessness within the County of Sacramento. The bill would require the agreement to set forth incorporate, among other things, the composition and membership requirements of the board of directors that governs the partnership, would set forth the composition and voting procedures of the board, and would require the partnership to comply with the regulatory guidelines of each specific state funding source received. The bill would require the board of directors to be made up of, among other members, one elected member from each qualified local agency that is a party to the agreement, would require those members to serve without compensation, and would authorize reimbursement for their actual expenses, as specified. The bill would require the partnership to, within 5 years of the date on which it is established, adopt a comprehensive strategic plan to address homelessness within the County of Sacramento and submit the plan to the appropriate policy and fiscal committees of the Legislature, subject to specified requirements.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Sacramento.

Existing law establishes the Homeless Housing, Assistance, and Prevention program, administered by the California Interagency Council on Homelessness, to provide grant funds to cities, continuums of care, and tribes in specified rounds to support regional coordination and 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 effort of those individuals and families to maintain their permanent housing.

This bill would state the intent of the Legislature to enact subsequent legislation that authorizes the County of Sacramento and the Cities of Sacramento, Rancho Cordova, Elk Grove, Citrus Heights, Folsom, Galt, and Isleton to create and operate a joint powers agency for the purpose of assisting the homeless population, coordinating homelessness response, and developing and managing a comprehensive strategic plan to address homelessness within the County of Sacramento.

 THIRD READING  

Bill No: AB 2593

Author: McCarty (D), Hoover (R) and Stephanie Nguyen (D)

Amended: 6/6/24 in Senate

Vote: 21

SENATE LOCAL GOVERNMENT COMMITTEE: 7-0, 6/5/24

AYES: Durazo, Seyarto, Dahle, Glazer, Skinner, Wahab, Wiener

SENATE HOUSING COMMITTEE: 10-0, 7/2/24

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

ASSEMBLY FLOOR: 73-0, 5/2/24 (Consent) - See last page for vote

SUBJECT: Joint Exercise of Powers Act: Sacramento County Partnership on Homelessness

SOURCE: Author

DIGEST:

This bill authorizes a local agency within the County of Sacramento to enter into a joint powers agreement (agreement) with any other local agency too operate a joint powers authority (JPA) to assist the homeless.

ANALYSIS:

Existing law:

1. Authorizes, under the Joint Exercise of Powers Act, two or more public agencies to use their powers in common if they sign a joint powers agreement. Such an agreement may create a new, separate government called a joint powers agency or JPA. Agencies that may exercise joint powers include federal agencies, state departments, counties, cities, special districts, school districts, federally recognized Indian tribes, and even other JPAs.
2. Authorizes public agencies to use the JPA law and the related Marks-Roos Local Bond Pooling Act to form bond pools to finance public works, working capital, insurance needs, and other public benefit projects. Bond pooling saves money on interest rates and finance charges, and allows smaller local agencies to enter the bond market. Because a JPA is an entity separate from its members, bonds issued by JPAs do not have to be approved by voters.

This bill:

1. Authorizes a local agency within the County of Sacramento to enter into a joint powers agreement with any other local agency to operate JPA for the following purposes:
   
   1. Assist the homeless population.
   2. Coordinate a homelessness response.
   3. Develop and manage a comprehensive strategic plan to address homelessness.
2. Requires the JPA, if formed, to be called the Sacramento County Partnership on Homelessness.
3. Requires the agreement to incorporate the composition and membership requirements of the board of directors, as specified, and applicable components of the Homelessness Services Partnership Agreement adopted by the City of Sacramento and County of Sacramento.
4. Establishes parameters for the membership for the Board of Directors.
5. Requires the Sacramento County Partnership on Homelessness, within five years of the date in which it is established, to adopt a strategic plan to address homelessness within the County of Sacramento and submit the plan to the appropriate policy and fiscal committees of the Legislature.

Background

State law generally limits membership in JPAs to public agencies: federal, state, and local governments. However, legislation has authorized some types of private entities to enter into joint powers agreements with public agencies for specified purposes. For example, state law allows a mutual water company to enter into a joint powers agreement with any public agency for the purpose of jointly exercising any power common to the contracting parties provided that the agreement ensures that no participating public agency becomes responsible for the underlying debts or liabilities of the joint powers agency (AB 2014, Cortese, Chapter 250, Statutes of 1994). Similarly, state law allows nonprofit hospitals to enter into JPAs to provide health care services in Fresno County (AB 1785, Reyes, Chapter 55, Statutes of 2002); Contra Costa County (AB 3097, Campbell, Chapter 148, Statutes of 1996); Tulare, Kings, and San Diego Counties (SB 850, Kelley, Chapter 432, Statutes of 1997); and Tuolumne County (AB 2717, House, Chapter 227, Statutes of 2000). These hospital JPAs specify that a nonprofit hospital that participates in one these JPAs cannot levy any tax or assessment.

The Legislature enacted SB 1403 (Maienschein, Chapter 188, Statutes of 2015), which, until January 1, 2024, allows one or more private, nonprofit 501(c)(3) corporations that provide services to homeless persons for the prevention of homelessness to form a JPA, or enter into a joint powers agreement with one or more public agencies. The JPA must be a public entity, but cannot have the power to incur debt. JPAs formed under this provision are to encourage and ease information sharing between public agencies and nonprofit corporations to identify the most costly and frequent users of publicly funded emergency services, provide frequent user coordinated care housing services, and prevent homelessness. The participating public agencies must determine the composition of the board of directors, but the representation of nonprofit 501(c)(3) corporations cannot exceed 50% of the board membership.

In recent years, the Legislature has also created five new JPAs for funding the development of housing for homeless and low-income individuals and families in different regions of the state. Following these efforts, SB 20 (Rubio, Chapter 147, Statutes of 2023) generally authorized any two or more local agencies to enter into an agreement to create a regional housing trust to fund housing for people experiencing homelessness and persons and families of extremely low-, very low-, and low-income within their jurisdictions.

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

SUPPORT: (Verified 7/15/24)

Caity Maple - Councilmember, City of Sacramento 
Downtown Streets Team
Hope Cooperative (TLCS, Inc.)
Sacramento Regional Coalition to End Homelessness

OPPOSITION: (Verified 7/15/24)

City of Citrus Heights
City of Elk Grove

County of Sacramento

ARGUMENTS IN SUPPORT: According to the author, “Homelessness is an issue that we must tackle together. I appreciate the innovative city-county efforts to tackle homelessness, but we need a more robust local collaboration if we are going to solve this problem. This partnership will help us make a tangible difference in the lives of homeless individuals, and restore the well-being and vitality of Sacramento County communities.”

ARGUMENTS IN OPPOSITION: According to the County of Sacramento, “On March 12, 2024, the Sacramento County Board of Supervisors and City Council adopted the Regionally Coordinated Homeless Housing, Assistance and Prevention Plan (HHAP), which gives strategies for heightened regional collaboration. Since the Plan adoption, entities hired a consultant who finalized a report on shared governance models. The report was presented to the County and all cities with a request to participate in an exploratory committee to determine the best governance approach for the region, which we have done. This exploratory committee is interested in heightened collaboration but does not agree that a JPA is the best model for our region at this time. We will continue to work toward a more effective model of collaboration that is cost-effective and fair so that all partners have a voice in strategic development.”

ASSEMBLY FLOOR: 73-0, 5/2/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, 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, Wicks, Wilson, Wood, Zbur

NO VOTE RECORDED: Calderon, Megan Dahle, Flora, Low, Mathis, Weber, Robert Rivas

Prepared by: Jonathan Peterson / L. GOV. / (916) 651-4119

7/31/24 15:30:51

**** END ****

SENATE COMMITTEE ON HOUSING

Senator Nancy Skinner, Chair

2023 - 2024 Regular

Bill No: AB 2593 Hearing Date: 7/2/2024

SUBJECT: Joint Exercise of Powers Act: Sacramento County Partnership on Homelessness

DIGEST: This bill authorizes a local agency within the County of Sacramento to enter into a joint powers agreement (agreement) with any other local agency too operate a joint powers authority (JPA) to assist the homeless, as specified.

ANALYSIS:

Existing law:

1. Requires an annual report from the Department of Housing and Community Development (HCD) to the Legislature to include all of the following information:
2. The number of units assisted by those programs;
3. The number of individuals and households served and their income levels;
4. The distribution of units among various areas of the state;
5. The amount of other public and private funds leveraged by the assistance provided by those programs;
6. Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups;
7. The information required to be reported pursuant to specified law; and
8. 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.
9. Established Homeless Housing, Assistance, and Prevention Program (HHAPP) 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 HHAPP.
10. Requires, beginning with the third round of HHAPP, 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:
11. 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;
12. 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; and
13. 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.
14. Requires CA-ICH to post a statewide report that aggregates each applicant’s outcome goals into a single statewide set of metrics.
15. 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.
    
16. 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:

1. Authorizes a local agency within the County of Sacramento to enter into a joint powers agreement (agreement) with any other local agency too operate a joint powers authority (JPA) for the following purposes:
   
   1. Assist the homeless population.
   2. Coordinate a homelessness response.
   3. Develop and manage a comprehensive strategic plan to address homelessness.
2. Requires the JPA, if formed, to be called the Sacramento County Partnership on Homelessness.
3. Requires the agreement to incorporate the composition and membership requirements of the board of directors, as specified, and applicable components of the Homelessness Services Partnership Agreement adopted by the City of Sacramento and County of Sacramento.
4. Establishes parameters for the membership for the Board of Directors.
5. Requires the Sacramento County Partnership on Homelessness, within five years of the date in which it is established, to adopt a strategic plan to address homelessness within the County of Sacramento and submit the plan to the appropriate policy and fiscal committees of the Legislature.

COMMENTS:

1. Author’s statement. “Homelessness is an issue that we must tackle together. I appreciate the innovative city-county efforts to tackle homelessness, but we need a more robust local collaboration if we are going to solve this problem. This partnership will help us make a tangible difference in the lives of homeless individuals, and restore the well-being and vitality of Sacramento County communities.”
2. JPAs generally. The Joint Exercise of Powers Act allows two or more public agencies to use their powers in common if they sign a joint powers agreement. Each public agency must independently possess the authority to perform the activity that is to be performed jointly pursuant to a joint powers agreement. Sometimes an agreement creates a new, separate government called a joint powers authority (JPA). Public agencies can also use the JPA law and the related Marks-Roos Local Bond Pooling Act to form bond pools to finance public works, working capital, insurance needs, and other public benefit projects. JPAs can issue one large Marks-Roos Act bond and then loan the capital to local agencies, thus creating a “bond pool.” Bond pooling saves money on interest rates and finance charges. It also lets smaller local agencies enter the bond market. Because JPAs are entities separate from its members, and so are not bound by the same limitations on debt issuance, voters need not approve bonds JPAs issue.

State law generally limits membership in JPAs to public agencies: federal, state, and local governments. However, legislation has authorized some types of private entities to enter into joint powers agreements with public agencies for specified purposes. For example, the Legislature enacted SB 1403 (, 2015), which, until January 1, 2024, allows one or more private, nonprofit 501(c)(3) corporations that provide services to homeless persons for the prevention of homelessness to form a JPA, or enter into a joint powers agreement with one or more public agencies. The JPA must be a public entity, but cannot have the power to incur debt. JPAs formed under this provision are to encourage and facilitate information sharing between public agencies and nonprofit corporations to identify the most costly and frequent users of publicly funded emergency services, provide frequent user coordinated care housing services, and prevent homelessness. The participating public agencies must determine the composition of the board of directors, but the representation of nonprofit 501(c)(3) corporations cannot exceed 50% of the board membership. Without this legislation, private organizations could not have joined a JPA, since the Joint Exercise of Powers Act requires members to be public agencies.

1. Homelessness in Sacramento. In its December 2023 Annual Homelessness Assessment Report to Congress, the U.S. Department of Housing and Urban Development (HUD) estimated 181,399 Californians are experiencing homelessness, and California accounts for 28% of all people experiencing homelessness in the United States. HUD reported in 2023 that Sacramento County’s point-in-time (PIT) count was 9,281 homeless persons.

On December 6th, 2022, the City of Sacramento and Sacramento County entered into the Homeless Services Partnership Agreement, an agreement to provide services and programs to the unhoused population within the City of Sacramento. According to the partnership’s six-month update, City and County leadership finalized collaboration protocols in March, and several interagency workgroups have been meeting regularly.

Sacramento Steps Forward (SSF) is the lead agency for the Sacramento Continuum of Care, and a non-profit organization formed to facilitate the provision of homeless services and housing in the Sacramento Region. According to a December 2023 report from SSF:

“The Partnership Agreement between the City of Sacramento and the County of Sacramento has been highlighted by the City and County, as well as other partners, as a step in the right direction to better align the efforts of these jurisdictions to more effectively meet the needs of people experiencing homelessness. The City/County Partnership Agreement formalizes City and County coordination and outlines the role of each partner to invest in and coordinate strategies and programs to prevent and end homelessness. It was noted by many that the scope of the Partnership Agreement is limited (the primary focus is behavioral health and emergency services) and would be a more effective coordination tool if the scope were expanded to include all roles and responsibilities of the City and County in preventing and addressing homelessness.”

1. Regional coordination requirements under HHAPP. 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. 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.

1. Sacramento JPA authorization. This bill allows the County of Sacramento and any cities in the county with populations of at least 50,000 to enter into an agreement to create and operate a JPA to assist the homeless population, coordinate homelessness response, and develop and manage a comprehensive strategic plan to address homelessness. If these local governments create a JPA using this authority, it shall assist the homeless population; coordinate a homelessness response; and develop and manage a comprehensive strategic plan to address homelessness; the agreement to incorporate the composition and membership requirements of the board of directors, as specified, and applicable components of the Homelessness Services Partnership Agreement adopted by the City of Sacramento and County of Sacramento.
2. Opposition. This bill is opposed by the County of Sacramento. “On March 12, 2024, the Sacramento County Board of Supervisors and City Council adopted the Regionally Coordinated Homeless Housing, Assistance and Prevention Plan (HHAP), which gives strategies for heightened regional collaboration. Since the Plan adoption, entities hired a consultant who finalized a report on shared governance models. The report was presented to the County and all cities with a request to participate in an exploratory committee to determine the best governance approach for the region, which we have done. This exploratory committee is interested in heightened collaboration but does not agree that a JPA is the best model for our region at this time. We will continue to work toward a more effective model of collaboration that is cost-effective and fair so that all partners have a voice in strategic development.”
3. Incoming! This bill was heard in the Local Government Committee on July 5, 2024 and passed on a 7-0 vote.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

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

June 26, 2024.)

SUPPORT:

Councilmember Caity Maple, City of Sacramento

OPPOSITION:

County of Sacramento

-- END --

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2023 - 2024 Regular

Joint Exercise of Powers Act: Sacramento County Partnership on Homelessness

Allows the County of Sacramento and any cities in the county with populations of at least 50,000 to create a joint powers authority to assist the homeless population, coordinate their homelessness response, and develop and manage a comprehensive strategy to address homelessness.

Background

Joint Exercise of Powers Act. The Joint Exercise of Powers Act allows two or more public agencies to use their powers in common if they sign a joint powers agreement. Each public agency must independently possess the authority to perform the activity that is to be performed jointly pursuant to a joint powers agreement. Sometimes an agreement creates a new, separate government called a joint powers authority (JPA). Public agencies can also use the JPA law and the related Marks-Roos Local Bond Pooling Act to form bond pools to finance public works, working capital, insurance needs, and other public benefit projects. JPAs can issue one large Marks-Roos Act bond and then loan the capital to local agencies, thus creating a “bond pool.” Bond pooling saves money on interest rates and finance charges. It also lets smaller local agencies enter the bond market. Because JPAs are entities separate from its members, and so are not bound by the same limitations on debt issuance, voters need not approve bonds JPAs issue.

State law generally limits membership in JPAs to public agencies: federal, state, and local governments. However, legislation has authorized some types of private entities to enter into joint powers agreements with public agencies for specified purposes. For example, state law allows a mutual water company to enter into a joint powers agreement with any public agency for the purpose of jointly exercising any power common to the contracting parties provided the agreement ensures no participating public agency becomes responsible for the underlying debts or liabilities of the joint powers agency (AB 2014, Cortese, 1994). Similarly, state law allows nonprofit hospitals to enter into JPAs to provide health care services certain counties. These hospital JPAs specify that a nonprofit hospital that participates in one these JPAs cannot levy any tax or assessment.

The Legislature enacted SB 1403 (Maienschein, 2015), which, until January 1, 2024, allows one or more private, nonprofit 501(c)(3) corporations that provide services to homeless persons for the prevention of homelessness to form a JPA, or enter into a joint powers agreement with one or more public agencies. The JPA must be a public entity, but cannot have the power to incur debt. JPAs formed under this provision are to encourage and facilitate information sharing between public agencies and nonprofit corporations to identify the most costly and frequent users of publicly funded emergency services, provide frequent user coordinated care housing services, and prevent homelessness. The participating public agencies must determine the composition of the board of directors, but the representation of nonprofit 501(c)(3) corporations cannot exceed 50% of the board membership. Without this legislation, private organizations could not have joined a JPA, since the Joint Exercise of Powers Act requires members to be public agencies.

In recent years, the Legislature has also created five new JPAs for funding the development of housing for homeless and low-income individuals and families in different regions of the state:

• • Orange County Housing Finance Trust (AB 448, Daly, 2018);
  • San Gabriel Valley Regional Housing Trust (SB 751, Rubio, 2019);
  • Western Riverside County Housing Finance Trust (AB 687, Seyarto, 2021);
  • Burbank-Glendale-Pasadena Regional Housing Trust (SB 1177, Portantino, 2022); and
  • South Bay Regional Housing Trust (SB 1444, Allen, 2022).

Following these efforts, SB 20 (Rubio, 2023) generally authorized any two or more local agencies to enter into an agreement to create a regional housing trust to fund housing for people experiencing homelessness and persons and families of extremely low-, very low-, and low-income within their jurisdictions.

Homelessness in Sacramento. In its December 2023 Annual Homelessness Assessment Report to Congress, the U.S. Department of Housing and Urban Development (HUD) estimated 181,399 Californians are experiencing homelessness, and California accounts for 28% of all people experiencing homelessness in the United States. HUD reported in 2023 that Sacramento County’s point-in-time (PIT) count was 9,281 homeless persons.

On December 6th, 2022, the City of Sacramento and Sacramento County entered into the Homeless Services Partnership Agreement, an agreement to provide services and programs to the unhoused population within the City of Sacramento. According to the partnership’s six-month update, City and County leadership finalized collaboration protocols in March, and several interagency workgroups have been meeting regularly.

Sacramento Steps Forward (SSF) is the lead agency for the Sacramento Continuum of Care, and a non-profit organization formed to facilitate the provision of homeless services and housing in the Sacramento Region. According to a December 2023 report from SSF:

“The Partnership Agreement between the City of Sacramento and the County of Sacramento has been highlighted by the City and County, as well as other partners, as a step in the right direction to better align the efforts of these jurisdictions to more effectively meet the needs of people experiencing homelessness. The City/County Partnership Agreement formalizes City and County coordination and outlines the role of each partner to invest in and coordinate strategies and programs to prevent and end homelessness. It was noted by many that the scope of the Partnership Agreement is limited (the primary focus is behavioral health and emergency services) and would be a more effective coordination tool if the scope were expanded to include all roles and responsibilities of the City and County in preventing and addressing homelessness.”

The 2022-2023 Sacramento County Grand Jury (SCGJ) released a report investigating the strategies, programs, and working relationships between the county and the seven incorporated cities (Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, and Sacramento). One of the recommendations by the SCGJ was that the County and the seven incorporated cities should implement a JPA to address homelessness by December 1, 2023. The Grand Jury noted that, “The SCGJ studied other California counties that successfully coordinated efforts to address the homeless issue. They have formed JPAs through legislation to develop housing trusts. All of these JPAs use a governing board comprised of elected officials from each jurisdiction. This is a critical model of successful JPAs. These efforts reflect the best practices and solutions to homelessness as demonstrated by reductions in the PIT counts.”

So far, a homelessness JPA including Sacramento County and all its cities has not been created. The author wants to encourage the creation of such a JPA.

Proposed Law

Assembly Bill 2593 allows, notwithstanding any law, the County of Sacramento and any cities in the county with populations of at least 50,000 to enter into a joint powers agreement to create and operate a JPA to assist the homeless population, coordinate homelessness response, and develop and manage a comprehensive strategic plan to address homelessness.

If these local governments create a JPA using this authority, it must:

• Be called the Sacramento County Partnership on Homelessness;
• Set up the composition and membership requirements for the board of directors;
• Have an executive director that serves as the JPA’s chief executive officer and secretary of the board of directors, but cannot have voting rights. Actual expenses must be approved before they are incurred; and
• Comply with the regulatory guidelines of each state funding source received.

Additionally, the JPA may determine its voting procedures by taking into consideration the population of each local agency that joins.

Comments

1. Purpose of the bill. According to the author, “Homelessness is an issue that we must tackle together. I appreciate the innovative city-county efforts to tackle homelessness, but we need a more robust local collaboration if we are going to solve this problem. This partnership will help us make a tangible difference in the lives of homeless individuals, and restore the well-being and vitality of Sacramento County communities.”

2. Necessary? The beauty of the Joint Exercise of Powers Act is its flexibility: local agencies can come together to form an agreement of its own design to carry out any power common to each of its members. Agreements specify a JPA’s mission, structure, governing board, each member’s financial obligations, and provisions for members to enter and exit the JPA, among other items. As such, local agencies do not need legislative authority for a JPA unless it requires powers not common to all its members, or when statutory certainty and specificity is preferable to the agreement’s details. For example, the Legislature created the series of housing trust JPAs because the member agencies lacked the ability to issue bonds repayable from funds the JPA receives from public and private financing.

AB 2593 allows the County of Sacramento and cities over 50,000 to form or join a JPA to assist the homeless population, coordinate homelessness response, and develop and manage a comprehensive strategic plan to address homelessness. Cities and counties already have the power to create JPAs that assist, coordinate, and develop strategies, so it is unclear why this bill is necessary. More problematic is enacting a measure that allows, but does not require, local agencies to create a JPA erroneously suggests to other jurisdictions that they too will need legislation if they want to create a similar JPA even when they already share common powers. To achieve the author’s goals without unintended consequences, the Committee may wish to consider amending the bill to:

• Require members of the JPA board include elected members from each participating agency’s governing body and at least two homelessness experts appointed by the rest of the board;
• Clarify members serve without compensation, but can be reimbursed for actual and necessary expenses;
• If a JPA is created, require the JPA to draft and adopt a regional plan within 5 years of its creation; and
• If a JPA is created, require the JPA to incorporate applicable parts of the City of Sacramento and Sacramento County’s Homeless Services Partnership Agreement into the joint powers agreement.

3. Not big enough to ride this ride. AB 2593 limits the agencies who can participate in the JPA to the County of Sacramento and cities in the county with at least 50,000 residents. Two of the cities in the county fall under this 50,000 threshold: Galt currently has around 26,000 residents and Isleton has around 800. While the author argues these cities are small and have a relatively small portion of individuals experiencing homelessness in Sacramento County, it is unclear why that is sufficient justification to prohibit them from joining a JPA if they are interested in participating. The Committee may wish to consider amending the bill to remove the 50,000-population threshold.

4. Special legislation. Section 16 of Article Four of the California Constitution prohibits special legislation when a general law can apply. AB 2593 contains findings and declarations explaining the need for legislation that applies only to the County of Sacramento.

5. Coming and going. The Senate Rules Committee has ordered a double referral of AB 2593: first to the Senate Local Government Committee to hear issues related to local government, and second to the Senate Housing Committee.

Assembly Actions

Assembly Local Government Committee: 9-0
Assembly Housing and Community Development Committee: 9-0
Assembly Floor: 73-0

Support and Opposition

(5/31/24)

Support: Caity Maple - Councilmember, City of Sacramento 
Downtown Streets Team
Hope Cooperative (TLCS, Inc.)
Sacramento Regional Coalition to End Homelessness

Opposition: None received.

-- END --

Date of Hearing: April 24, 2024

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Christopher M. Ward, Chair

ABPCA Bill Id:AB 2593 (

Author:McCarty) – As Amended Ver:March 18, 2024

SUBJECT: Joint Exercise of Powers Act: Sacramento County Partnership on Homelessness

SUMMARY: Specifies that qualified local agencies may enter into a joint powers agreement (agreement) to assist the homeless population within Sacramento County. Specifically, this bill:

1. Defines “qualified local agency” as a city or county that has jurisdiction within geographical borders of the County of Sacramento and that has a population of at least 50,000, as determined by the most recent federal decennial census or a subsequent census between United States Decennial censuses that is validated by the Demographic Research Unit of the Department of Finance.
2. Authorizes any qualified local agency to enter into an agreement with any other qualified local agencies pursuant to the Joint Exercise of Powers Act (JPA Law) to create and operate a joint powers agency (JPA) to assist the homeless population, to coordinate homelessness response, and to develop and manage a comprehensive strategic plan to address homelessness within the County of Sacramento.
3. Requires the JPA created pursuant to this bill to be known as the Sacramento County Partnership on Homelessness (SCPH), and to be created and operate pursuant to this bill.
4. Specifies that the SCPH shall be governed by a board of directors and that the agreement shall set forth the composition and membership requirements of the board of directors.
5. Allows the voting procedures of the SCPH’s board of directors to be determined by taking into consideration the population of each qualified local agency that is a member of the partnership.
6. Requires an executive director to serve as the partnership’s chief executive officer and as secretary of the board of directors, but shall not have voting rights. Actual expenses shall be approved before they are incurred.
7. Specifies that the SCPH shall comply with the regulatory guidelines of each specific state funding source received.
8. Finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances facing the County of Sacramento with regard to the homelessness crisis.

EXISTING LAW:

1. Authorizes, under the Joint Exercise of Powers Act, two or more public agencies to use their powers in common if they sign a JPA. Such an agreement may create a new, separate government called a joint powers agency. Agencies that may exercise joint powers include federal agencies, state departments, counties, cities, special districts, school districts, federally recognized Indian tribes, and even other JPAs. (Government Code (GC)Section 65700 et.al.)
2. Authorizes public agencies to use the JPA law and the related Marks-Roos Local Bond Pooling Act to form bond pools to finance public works, working capital, insurance needs, and other public benefit projects. (GC Section 65700 et.al.)
3. Establishes the Local Housing Trust Fund (LHTF) Program under the Department of Housing and Community Development (HCD), to provide matching grants to local housing trust funds that are funded on an ongoing basis from private or public sources.

FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel.

COMMENTS:

Author’s Statement: According to the author, “Homelessness is an issue that we must tackle together. I appreciate the innovative city-county efforts to tackle homelessness, but we need a more robust local collaboration if we are going to solve this problem. This partnership will help us make a tangible difference in the lives of homeless individuals, and restore the well-being and vitality of Sacramento County communities.”

JPAs: JPA Law allows two or more public agencies to use their powers in common if they sign an agreement. Sometimes an agreement creates a new, separate public entity called a joint powers agency or joint powers authority. Entities that can exercise joint powers include federal agencies, state departments, counties, cities, special districts, school districts, federally recognized tribal governments, and even other joint powers authorities. Public agencies can also use JPA Law and the related Marks-Roos Local Bond Pooling Act to form bond pools to finance public works, working capital, insurance needs, and other public benefit projects. JPAs can issue one large Marks-Roos Act bond and then loan the capital to local agencies, thus creating a “bond pool.” Bond pooling saves money on interest rates and finance charges. It also lets smaller local agencies enter the bond market. Because JPAs are entities separate from their members, and so are not bound by the same limitations on debt issuance, voters do not need to approve bonds that JPAs issue.

Housing Trusts: The Legislature recently authorized the creation of five new JPAs for funding the development of housing for homeless and low-income individuals and families. The statutorily authorized agencies include the following:

• 1. The Orange County Housing Finance Trust (2018).
  2. The San Gabriel Valley Regional Housing Trust (2019).
  3. The Western Riverside County Housing Finance Trust (2021).
  4. The Burbank-Glendale-Pasadena Regional Housing Trust (2022).
  5. The South Bay Regional Housing Trust (2022).

The authorizing statutes creating each of these trusts include standards and operating conditions substantially similar to the standards and conditions that would apply to trusts formed under the authority proposed in this bill. SB 20 (Rubio), Chapter 147, Statutes of 2023 generally authorized any two or more local agencies to enter into an agreement to create a regional housing trust to fund housing for people experiencing homelessness and persons and families of extremely low-, very low-, and low-income within their jurisdictions.

Homelessness in California and Sacramento: In its December 2023 Annual Homelessness Assessment Report to Congress, the U.S. Department of Housing and Urban Development (HUD) estimated that California identified 181,399 people experiencing homelessness in the State, and California accounts for 28% of all people experiencing homelessness in the United States. HUD reported in 2023 that Sacramento County’s point-in-time (PIT) count was 9,281 homeless persons.

On December 6th, 2022, the City of Sacramento and Sacramento County entered into the Homeless Services Partnership Agreement, an agreement to provide services and programs to the unhoused population within the City of Sacramento. According to the partnership’s 6-month update, City and County leadership finalized collaboration protocols in March, and several interagency workgroups have been meeting regularly.

Sacramento Steps Forward (SSF) is the lead agency for the Sacramento Continuum of Care and a non-profit organization formed to facilitate the provision of homeless services and housing in the Sacramento Region. According to a December 2023 report from SSF, “The Partnership Agreement between the City of Sacramento and the County of Sacramento has been highlighted by the City and County, as well as other partners, as a step in the right direction to better align the efforts of these jurisdictions to more effectively meet the needs of people experiencing homelessness. The City/County Partnership Agreement formalizes City and County coordination and outlines the role of each partner to invest in and coordinate strategies and programs to prevent and end homelessness. It was noted by many that the scope of the Partnership Agreement is limited (the primary focus is behavioral health and emergency services) and would be a more effective coordination tool if the scope were expanded to include all roles and responsibilities of the City and County in preventing and addressing homelessness.”

The 2022-2023 Sacramento County Grand Jury (SCGJ) conducted a report into the strategies, programs, and working relationships between the county and the seven incorporated cities (Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, and Sacramento). One of the recommendations by the SCGJ was that the County and the seven incorporated cities should implement a JPA to address homelessness by December 1, 2023. The Grand Jury noted that, “The SCGJ studied other California counties that successfully coordinated efforts to address the homeless issue. They have formed JPAs through legislation to develop housing trusts. All of these JPAs use a governing board comprised of elected officials from each jurisdiction. This is a critical model of successful JPAs. These efforts reflect the best practices and solutions to homelessness as demonstrated by reductions in the PIT counts.”

Arguments in Support: According to the Sacramento Regional Coalition to End Homelessness, “To move forward, we must work together, learn from the mistakes and successes of others, and be strategic while utilizing an economy of scale to maximize the impact of our tax dollars. Lately, there have been multiple calls for more regional partnership on this issue, including to establish a coordinated system for homeless services in our region. It is a model that has shown promise elsewhere. That is why we are supportive of AB 2593, which would establish a Joint Powers Authority known as the ‘Sacramento County Partnership on Homelessness’. It is imperative that our leaders and a range of stakeholders, including people with lived experience of homelessness, meet regularly in a transparent manner, set concrete strategies with clear goals and objectives, share resources, and most importantly, follow a regional strategic plan to address homelessness. Such a plan has already been developed by Sacramento’s Continuum of Care provider, Sacramento Steps Forward, but needs the accountability that a Joint Powers Authority would provide.”

Arguments in Opposition: None on file.

Related Legislation:

SB 1177 (Portantino) Chapter 173, Statutes of 2022: Authorized the creation of the Burbank-Glendale-Pasadena Regional Housing Trust.

SB 1444 (Allen) Chapter 672, Statutes of 2022: Authorized the creation of the South Bay Regional Housing Trust.

AB 687 (Seyarto) Chapter 120, Statutes of 2021: Authorized the creation of the Western Riverside County Housing Finance Trust.

SB 751 (Rubio) Chapter 670, Statutes of 2019: Authorized local agencies within the San Gabriel Valley Council of Governments to enter into a JPA to fund housing.

AB 448 (Daly) Chapter 336, Statutes of 2018: Authorized the creation of the Orange County Housing Finance Trust as a JPA in the County of Orange.

Double Referred: This bill is double referred. It was heard in the Assembly Committee on Local Government and passed on a vote of 9-0 on April 17, 2024.

REGISTERED SUPPORT / OPPOSITION:

Support

Councilmember Caity Maple, City of Sacramento

Downtown Streets Team

Hope Cooperative

Sacramento Regional Coalition to End Homelessness

Opposition

None on file.

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

Date of Hearing: April 17, 2024

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Juan Carrillo, Chair

ABPCA Bill Id:AB 2593 (

Author:McCarty) – As Amended Ver:March 18, 2024

SUBJECT: Joint Exercise of Powers Act: Sacramento County Partnership on Homelessness.

SUMMARY: Specifies that qualified local agencies may enter into a joint powers agreement (agreement) to assist the homeless population within Sacramento County. Specifically, this bill:

1. Defines “qualified local agency” as a city or county that has jurisdiction within geographical borders of the County of Sacramento and that has a population of at least 50,000, as determined by the most recent federal decennial census or a subsequent census between United States Decennial censuses that is validated by the Demographic Research Unit of the Department of Finance.
2. Authorizes any qualified local agency to enter into an agreement with any other qualified local agencies pursuant to the Joint Exercise of Powers Act (JPA Law) to create and operate a joint powers agency (JPA) to assist the homeless population, to coordinate homelessness response, and to develop and manage a comprehensive strategic plan to address homelessness within the County of Sacramento.
3. Requires the JPA created pursuant to this bill to be known as the Sacramento County Partnership on Homelessness (SCPH), and to be created and operate pursuant to this bill.
4. Specifies that the SCPH shall be governed by a board of directors and that the agreement shall set forth the composition and membership requirements of the board of directors.
5. Allows the voting procedures of the SCPH’s board of directors to be determined by taking into consideration the population of each qualified local agency that is a member of the partnership.
6. Requires an executive director to serve as the partnership’s chief executive officer and as secretary of the board of directors, but shall not have voting rights. Actual expenses shall be approved before they are incurred.
7. Specifies that the SCPH shall comply with the regulatory guidelines of each specific state funding source received.
8. Finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances facing the County of Sacramento with regard to the homelessness crisis.

EXISTING LAW:

Enacts JPA Law, which allows two or more public

agencies to use their powers in common if they sign an agreement. (Government Code (GC) (6500-6539.9).

FISCAL EFFECT: None.

COMMENTS:

1. Bill Summary. This bill authorizes qualified local agencies in Sacramento County to enter into an agreement with any other qualified local agency in Sacramento County to create a JPA to assist the homeless population to coordinate homelessness response, and to develop and manage a comprehensive strategic plan to address homelessness. This bill requires the name of the JPA to be the SCPH and places specified requirements on the SCPH. This bill is sponsored by the author.
   
2. Author’s Statement. According to the author, “Homelessness is an issue that we must tackle together. I appreciate the innovative city-county efforts to tackle homelessness, but we need a more robust local collaboration if we are going to solve this problem. This partnership will help us make a tangible difference in the lives of homeless individuals, and restore the well-being and vitality of Sacramento County communities.”
   
3. Joint Powers Agencies. JPA Law allows two or more public agencies to use their powers in common if they sign an agreement. Sometimes an agreement creates a new, separate public entity called a joint powers agency or joint powers authority. Entities that can exercise joint powers include federal agencies, state departments, counties, cities, special districts, school districts, federally recognized tribal governments, and even other joint powers authorities.

Public agencies can also use JPA Law and the related Marks-Roos Local Bond Pooling Act to form bond pools to finance public works, working capital, insurance needs, and other public benefit projects. JPAs can issue one large Marks-Roos Act bond and then loan the capital to local agencies, thus creating a “bond pool.” Bond pooling saves money on interest rates and finance charges. It also lets smaller local agencies enter the bond market. Because JPAs are entities separate from its members, and so are not bound by the same limitations on debt issuance, voters need not approve bonds JPAs issue.

1. Housing Trusts. The Legislature recently authorized the creation of five new JPAs for funding the development of housing for homeless and low-income individuals and families. The statutorily authorized agencies include the following:
   1. The Orange County Housing Finance Trust (2018).
   2. The San Gabriel Valley Regional Housing Trust (2019)
   3. The Western Riverside County Housing Finance Trust (2021).
   4. The Burbank-Glendale-Pasadena Regional Housing Trust (2022).
   5. The South Bay Regional Housing Trust (2022).

The authorizing statutes creating each of these trusts include standards and operating conditions substantially similar to the standards and conditions that would apply to trusts formed under the authority proposed in this bill. SB 20 (Rubio), Chapter 147, Statutes of 2023 generally authorized any two or more local agencies to enter into an agreement to create a regional housing trust to fund housing for people experiencing homelessness and persons and families of extremely low-, very low-, and low-income within their jurisdictions.

1. Homelessness in California and Sacramento. In its December 2023 Annual Homelessness Assessment Report to Congress, the U.S. Department of Housing and Urban Development (HUD) estimated that California estimated that 181,399 people are experiencing homelessness in the State, and California accounts for 28% of all people experiencing homelessness in the United States. HUD reported in 2023 that Sacramento County’s point-in-time (PIT) count was 9,281 homeless persons.

On December 6th, 2022, the City of Sacramento and Sacramento County entered into the Homeless Services Partnership Agreement, an agreement to provide services and programs to the unhoused population within the City of Sacramento. According to the partnership’s 6-month update, City and County leadership finalized collaboration protocols in March, and several interagency workgroups have been meeting regularly.

Sacramento Steps Forward (SSF) is the lead agency for the Sacramento Continuum of Care and a non-profit organization formed to facilitate the provision of homeless services and housing in the Sacramento Region. According to a December 2023 report from SSF, “The Partnership Agreement between the City of Sacramento and the County of Sacramento has been highlighted by the City and County, as well as other partners, as a step in the right direction to better align the efforts of these jurisdictions to more effectively meet the needs of people experiencing homelessness. The City/County Partnership Agreement formalizes City and County coordination and outlines the role of each partner to invest in and coordinate strategies and programs to prevent and end homelessness. It was noted by many that the scope of the Partnership Agreement is limited (the primary focus is behavioral health and emergency services) and would be a more effective coordination tool if the scope were expanded to include all roles and responsibilities of the City and County in preventing and addressing homelessness.”

The 2022-2023 Sacramento County Grand Jury (SCGJ) conducted a report into the strategies, programs, and working relationships between the county and the seven incorporated cities (Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, and Sacramento). One of the recommendations by the SCGJ was that the County and the seven incorporated cities should implement a JPA to address homelessness by December 1, 2023. The Grand Jury noted that, “The SCGJ studied other California counties that successfully coordinated efforts to address the homeless issue. They have formed JPAs through legislation to develop housing trusts. All of these JPAs use a governing board comprised of elected officials from each jurisdiction. This is a critical model of successful JPAs. These efforts reflect the best practices and solutions to homelessness as demonstrated by reductions in the PIT counts.”

1. Previous Legislation. SB 1177 (Portantino) Chapter 173, Statutes of 2022, authorized the creation of the Burbank-Glendale-Pasadena Regional Housing Trust.

SB 1444 (Allen) Chapter 672, Statutes of 2022, authorized the creation of the South Bay Regional Housing Trust.

AB 687 (Seyarto) Chapter 120, Statutes of 2021, authorized the creation of the Western Riverside County Housing Finance Trust.

SB 751 (Rubio) Chapter 670, Statutes of 2019, authorized local agencies within the San Gabriel Valley Council of Governments to enter into a JPA to fund housing.

AB 448 (Daly) Chapter 336, Statutes of 2018, authorized the creation of the Orange County Housing Finance Trust as a JPA in the County of Orange.

1. Arguments in Support. According to the Sacramento Regional Coalition to End Homelessness, “To move forward, we must work together, learn from the mistakes and successes of others, and be strategic while utilizing an economy of scale to maximize the impact of our tax dollars. Lately, there have been multiple calls for more regional partnership on this issue, including to establish a coordinated system for homeless services in our region. It is a model that has shown promise elsewhere.
   
   “That is why we are supportive of AB 2593, which would establish a Joint Powers Authority known as the ‘Sacramento County Partnership on Homelessness’. It is imperative that our leaders and a range of stakeholders, including people with lived experience of homelessness, meet regularly in a transparent manner, set concrete strategies with clear goals and objectives, share resources, and most importantly, follow a regional strategic plan to address homelessness. Such a plan has already been developed by Sacramento’s Continuum of Care provider, Sacramento Steps Forward, but needs the accountability that a Joint Powers Authority would provide.”
2. Arguments in Opposition. None on file.
3. Double-Referral. This bill is double-referred to the Assembly Committee on Housing and Community Development.

REGISTERED SUPPORT / OPPOSITION:

Support

Hope Cooperative

Sacramento City Vice Mayor Caity Maple, District 5

Sacramento Regional Coalition to End Homelessness

Opposition

None on file

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958