Today's Law As Amended


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SB-234 Transition Aged Youth Housing Program.(2021-2022)



As Amends the Law Today


SECTION 1.

 Chapter 7 (commencing with Section 50230) is added to Part 1 of Division 31 of the Health and Safety Code, to read:

CHAPTER  7. Transition Aged Youth Housing Program
50230.
 The Legislature hereby declares that California has the highest poverty rate in the nation as measured by the Supplemental Poverty Measure published by the United States Census Bureau and that transition aged youth currently or formerly in the foster care system, youth experiencing homelessness, and youth under probation supervision are the most vulnerable to the housing instability that has been created by the housing crisis and the economic distress caused by the COVID-19 pandemic in California. Youth of color and lesbian, gay, bisexual, transgender, and queer (LGBTQ) youth are overrepresented among these transition aged youth.
50231.
 For purposes of this chapter:
(a) “Council” means the Homeless Coordinating and Financing Council as described in Section 8257 of the Welfare and Institutions Code.
(b) “Current or former foster youth” means youth under 26 years of age who are currently or were formerly removed from their home pursuant to Section 300, 450, or 602 of the Welfare and Institutions Code.
(c) “Eligible activities” includes, but is not limited to, either of the following:
(1) Funding capital development programs, such as acquisition, leasing, construction, and rehabilitation of sites for emergency shelter, transitional housing, and permanent supportive housing for transition aged youth.
(2) Capital development loans for the conversion of emergency shelter or transitional housing to permanent supportive housing for transition aged youth.
(d) “Eligible organization” means an agency of local government or a nonprofit corporation that provides, or contracts with community organizations to provide, emergency shelter or transitional housing, or both.
(e) “Fund” means the Transition Aged Youth Housing Fund established pursuant to Section 50232.
(f) “Homeless youth” means an unaccompanied youth between 12 and 24 years of age, inclusive, who is experiencing homelessness, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)). “Homeless youth” includes unaccompanied youth who are pregnant or parenting.
(g) “Program” means the Transition Aged Youth Housing Program established pursuant to Section 50232.
(h) “Transition aged youth” means either of the following:
(1) Current or former foster youth.
(2) Homeless youth.
50232.
 (a) (1) The Transition Aged Youth Housing Program is hereby established for the purpose of creating housing for youth under 26 years of age, who have been removed from their homes, are experiencing homelessness unaccompanied by a parent or legal guardian, or under the jurisdiction of a court pursuant to Section 300, 450, or 602 of the Welfare and Institutions Code.
(2) The council shall develop, implement, and administer the program pursuant to this chapter.
(b) (1) The Transition Aged Youth Housing Fund is hereby created within the State Treasury.
(2) Moneys in the Transition Aged Youth Housing Fund, upon appropriation by the Legislature, shall be made available to the council for purposes of the program.
50233.
 (a) The council shall award grants to eligible organizations for the development of housing for transition aged youth subject to this section.
(b) Grants awarded by the council pursuant to this chapter shall be used by a grant recipient to defray costs of eligible activities.
(c) The council shall distribute funds appropriated for eligible activities as grants in the form of forgivable deferred loans, subject to all of the following:
(1) Funding shall be made available to each project granted to an eligible organization as a loan with a term of 5 years for rehabilitation, 7 years for substantial rehabilitation, 10 years for acquisition and rehabilitation or new construction, or 20 years for conversion to permanent supportive housing for transition aged youth.
(2) (A) Each deferred loan shall be secured by a deed of trust and promissory note.
(B) Repayment of the loan shall be deferred as long as the project is used as an emergency shelter, permanent supportive housing, or transitional housing for transition aged youth. The loan shall be forgiven at the completion of the specified year term.
(C) If a transfer or conveyance of the project property occurs before the council forgives the loan, and the transfer or conveyance results in the property no longer being an emergency shelter, permanent supportive housing, or transitional housing for transition aged youth, the council shall terminate the grant and require the repayment of the deferred loan in full.
(D) A project may opt for the council to not forgive the loan. The project property shall not be restricted to be used as an emergency shelter, permanent supportive housing, or transitional housing for transition aged youth once the loan is repaid in full.
(d) A total of up to one hundred million dollars ($100,000,000) shall be distributed by the council for the purposes of this chapter consistent with the following:
(1) The council shall make at least 47.5 percent of funds available to eligible organizations for projects to house current foster youth between 18 to 21 years of age, inclusive. If the council is unable to comply with this paragraph due to a lack of applications, it may spend the remaining funds pursuant to paragraph (2).
(2) No more than 5 percent of available funds shall be expended on program administration, including state operations expenditures and technical assistance.
(3) The council shall make the remaining available funds not subject to paragraph (1) or (2) available to eligible organizations for eligible activities consistent with this chapter.
(4) The council shall disburse grant funds as expeditiously as possible.
50234.
 (a) The council’s decision to approve or deny an application and the determination of the amount of funding to be provided shall be final.
(b) The council shall develop and set forth the criteria for evaluating applications in a notice of funding availability and shall award grants to applicants that best meet the criteria.
(c) The council shall give preference to applications from organizations that have experience providing direct services to transition aged youth, and organizations working in partnership with those that provide direct services to transition aged youth.
(d) The council shall specify the minimum and maximum grant award amount in the notice of funding availability. Minimum and maximum award amounts may vary for urban and nonurban counties.
(e) Grant awards for projects that have not begun construction within 12 months of the award shall be terminated and the council shall reallocate the funds. The council may, in its discretion, extend the 12-month period by an additional period of no more than 12 months.
(f) An applicant that receives funds pursuant to this chapter shall provide the council with a list of all subrecipients.
(g) The council shall maintain and make available to the public on its internet website records of all the following:
(1) The number of applications for program funding received by the council.
(2) The number of applications for program funding denied by the council.
(3) The name of each recipient of program funds and any subrecipients.
(4) The number of new and converted units created for transition aged youth, by year.
(h) In administering this chapter, the council shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).