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AB-2870 Housing: supportive housing grants.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB2870:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2870


Introduced by Assembly Member Fong

February 21, 2020


An act to add Chapter 17 (commencing with Section 50897) to Part 2 of Division 31 of the Health and Safety Code, relating to housing, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 2870, as introduced, Fong. Housing: supportive housing grants.
Existing law establishes, among other housing programs, the Multifamily Housing Program, pursuant to which the Department of Housing and Community Development provides financial assistance, in the form of deferred payment loans to pay for the eligible costs of development, to specified types of housing development projects. Existing law, among other things, requires that the department ensure that at least 40% of the units in developments providing supportive housing, as defined, under that program target specified populations.
This bill would appropriate $750,000,000 from the General Fund to the department for the purpose of providing counties with one-time grants to build, acquire space for, and renovate structures to be used for supportive housing for persons experiencing homelessness, as provided. The bill would require the department to allocate these moneys among counties by a competitive application process. The bill would require a county to develop and submit a housing needs assessment that includes a demonstration of the county’s need for supportive housing units and capacity to build those units in order to receive a grant. The bill, among other things, would require that all units of supportive housing that are assisted with grant moneys be constructed or renovated within 36 months of the receipt of that grant, otherwise the bill would require the county to return those moneys to the department for a 2nd round of allocation, as provided.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 17 (commencing with Section 50897) is added to Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER  17. Supportive Housing Grants

50897.
 For purposes of this chapter:
(a) “Continuum of care” means the same as that term is defined by the United States Department of Housing and Urban Development pursuant to Section 578.3 of Title 24 of the Code of Federal Regulations.
(b) “County” includes a city and county.
(c) “Homeless point-in-time count” means the 2019 homeless point-in-time count pursuant to Section 578.3 of Title 24 of the Code of Federal Regulations.
(d) “Supportive housing” means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community.
(e) (1) “Target population” means persons, including persons with disabilities, and families who are “homeless,” as that term is defined in Section 11302 of Title 42 of the United States Code, or who are “homeless youth,” as that term is defined in paragraph (2) of subdivision (e) of Section 12957 of the Government Code.
(2) Individuals and families currently residing in supportive housing meet the definition of “target population” if the individual or family was “homeless,” as that term is defined in Section 11302 of Title 42 of the United States Code, when approved for tenancy in the supportive housing project in which they currently reside.

50897.1.
 (a) There is hereby appropriated, without regard to fiscal years, the sum of seven hundred fifty million dollars ($750,000,000) from the General Fund to the department for the purpose of providing counties with one-time grants to build, acquire space for, and renovate structures to be used for supportive housing for persons experiencing homelessness.
(b) The department shall allocate the amount appropriated in subdivision (a) among counties by a competitive application process in accordance with this chapter.

50897.2.
 In order to be eligible for a grant pursuant to this chapter, a county shall develop and submit a housing needs assessment, developed in coordination with cities located within the county’s boundaries and any relevant continuum of care representing the county or serving the target population within the county. The housing needs assessment shall include a demonstration of the county’s need for supportive housing units and its capacity to build those units.

50897.3.
 In allocating grants pursuant to this chapter, the department shall do all of the following:
(a) Develop and administer a competitive application process for the allocation of grants pursuant to this chapter.
(b) Evaluate and approve applications based on the demonstrated need of each county for supportive housing units and capacity to build those units, as shown in the housing needs assessment submitted pursuant to Section 50987.2.
(c) (1) Allocate grant funds among counties eligible for a grant pursuant to this chapter in an amount proportionate to each county’s share of the homeless population, based on the homeless point-in-time count, subject to paragraph (2).
(2) Each eligible county shall receive a minimum grant of one million dollars ($1,000,000).
(d) Upon the repayment of funds pursuant to paragraph (1) of subdivision (a) of Section 50987.4, allocate that amount in a second round of funding in accordance with this chapter.

50897.4.
 (a) A county that receives a grant pursuant to this chapter shall use those moneys for the acquisition of space, construction of new units, or renovation of existing units to provide supportive housing to the target population, subject to all of the following requirements:
(1) (A) All units of supportive housing that are assisted with grant moneys provided under this chapter shall be constructed or renovated within 36 months of the receipt of that grant.
(B) If the county does not comply with the 36-month deadline specified in this paragraph, the county shall return all moneys awarded to it under this chapter, for reallocation pursuant to subdivision (d) Section 50897.3.
(2) All units assisted with grant moneys provided under this chapter shall be restricted to extremely low income households.
(3) The maximum amount of subsidy that the county may provide to a supportive housing development shall be one hundred thousand dollars ($100,000) per unit, exclusive of predevelopment costs.
(4) The county may use grant moneys provided pursuant to this chapter in coordination with any other funds available for purposes of financing supportive housing, provided that any grant moneys awarded pursuant to this chapter are expended in accordance with the requirements of this section.
(b) The department may monitor expenditures and activities of a county, as the agency deems necessary, to ensure compliance with program requirements.
(c) The department may, as it deems appropriate or necessary, request the repayment of funds from a county, or pursue any other remedies available to it by law for failure to comply with the requirements of this chapter.