Bill Text: CA SB1079 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Youth Housing Bond Act of 2024.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-26 - June 26 set for first hearing canceled at the request of author. [SB1079 Detail]

Download: California-2023-SB1079-Amended.html

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Amended  IN  Senate  April 02, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1079

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Introduced by Senator Menjivar

February 12, 2024

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An act to add Part 14.3 (commencing with Section 53700) to Division 31 of the Health and Safety Code, relating to the Youth Center and Youth Housing Bond Act of 2024, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

SB 1079, as amended, Menjivar. Youth Center and Youth Housing Bond Act of 2024.

Existing law, the Veterans and Affordable Housing Bond Act of 2018, which was approved by the voters as Proposition 1 at the November 6, 2018, statewide general election, authorizes the issuance of bonds in the amount of $4,000,000,000 pursuant to the State General Obligation Bond Law and requires the proceeds from the sale of these bonds to be used to finance various housing programs and a specified program for farm, home, and mobilehome purchase assistance for veterans, as provided. Existing law establishes, among various other programs intended to address homelessness in this state, the Homeless Housing, Assistance, and Prevention program for the purpose of providing 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.

This bill would enact the Youth Center and Youth Housing Bond Act of 2024 (bond act), which, if adopted, would authorize the issuance of bonds in the amount of $____ pursuant to the State General Obligation Bond Law to finance the Youth Center and Youth Housing Program, established as part of the bond act. The bill, as a part of the program, would require the Department of Housing and Community Development to make awards to local agencies, nonprofit organization, and joint ventures for the purpose of acquiring, renovating, constructing, and purchasing equipment for youth centers or youth housing, as those terms are defined.

This bill would provide for submission of the bond act to the voters at the November 5, 2024, statewide general election in accordance with specified law.

This bill would declare that it is to take effect immediately as an urgency statute.

Digest Key

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Part 14.3 (commencing with Section 53700) is added to Division 31 of the Health and Safety Code, to read:

PART 14.3. Youth Center and Youth Housing Bond Act of 2024

CHAPTER  1. General Provisions

53700.

 This part shall be known as the Youth Center and Youth Housing Bond Act of 2024.

53701.

 For purposes of this part:

(a) “Acquiring” means obtaining ownership of an existing facility in fee simple for use as a youth center or youth housing.

(b) “Altering” or “renovating” means making modifications to an existing facility which are necessary for cost-effective use as a youth center or youth housing, including restoration, repair, expansion, and all related physical improvements.

(c) “Applicant” means a local agency or nonprofit organization, and any joint venture of local agencies and nonprofit organizations.

(d) “Committee” means the Youth Center and Youth Housing Finance Committee created pursuant to Section 53719.

(e) “Constructing” means the purchase or building of a new facility, including the costs of land acquisition and architectural and engineering fees.

(f) “Department” means the Department of Housing and Community Development.

(g) “Equipment” means tangible personal property having a useful life of more than one year and an acquisition cost of five thousand dollars ($5,000) or more.

(h) “Fund” means the 2024 Youth Center and Youth Housing Bond Fund created pursuant to Section 53702.

(i) “Nonprofit organization” means an institution or organization that is owned and operated by one or more corporations or associations with no part of the net earnings benefiting any private shareholder or individual.

(j) “Programs” means a variety of services and activities provided in a youth center or youth housing, which include, but are not limited to, all of the following:

(1) Recreation.

(2) Health and fitness.

(3) Delinquency prevention.

(4) Counseling for problems Counseling, including drug and alcohol abuse counseling for substance use and suicide.

(5) Citizenship and leadership development.

(6) Education.

(7) Youth employment.

(k) “Recipient” means a local agency, nonprofit organization, or joint venture that receives an award and executes a contract pursuant to Section 53706.

(l) “Services” means the services provided in youth center or youth housing, including, but not limited to, all of the following:

(1) Food.

(2) Shelter.

(3) Counseling.

(4) Outreach.

(5) Basic health screening. screening, including health screenings for medical and behavioral health.

(6) Referral and linkage to other services offered by public and private agencies.

(7) Long-term planning for reunification with the family or in a suitable home where family reunification is not possible.

(8) Supportive services, including case management, housing retention assistance, and tenancy support services.

(9) Aftercare and follow up services.

(m) “State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), as it may be amended from time to time.

(n) “Youth center” means a facility where children, 6 to 17 years of age, inclusive, and 18 years of age if still enrolled in high school, gather for programs and services or youth, 18 to 25 years of age, inclusive, that is equipped to meet the needs of youth, including mental and behavioral health needs, housing, education and employment support, and linkage to other services, where youth ages 12 to 25 years of age, inclusive, gather for programs and services.

(o) “Youth housing” means a facility that provides a variety of services to current or former foster youth, homeless minors or youth living on the street, youth, or minors or youth at risk of homelessness to assist them with their immediate survival basic needs and to help reunite them with their parents, if appropriate, or, find a suitable home. ”Youth housing” may include include, but is not limited to, any of the following:

(1) A transitional housing placement provider licensed pursuant to Section 1559.110.

(2) A transitional living setting, as described in paragraph (3) of subdivision (x) of Section 11400 of the Welfare and Institutions Code.

(3) A Transitional Housing Program-Plus, as defined in subdivision (s) of Section 11400 of the Welfare and Institutions Code, that serves only eligible former foster youth over 18 years of age who have exited from the foster care system on or after their 18th birthday, and that has obtained certification from the applicable county in accordance with subdivision (c) of Section 16522 of the Welfare and Institutions Code.

(4) A transitional housing program as defined in Section 578.3 of Title 24 of the Code of Federal Regulations for homeless youth under 25 years of age.

53702.

 (a) The 2024 Youth Center and Youth Housing Bond Fund is hereby created within the State Treasury. The proceeds of bonds issued pursuant to this part, except for refunding bonds issued pursuant to Section 53726, shall be deposited in the fund and used to make awards to local agencies, nonprofit organizations, or joint ventures to purchasing equipment and acquire, renovate, and construct youth centers or youth housing, consistent with the requirements of this part.

(b) Notwithstanding Section 13340 of the Government Code, moneys in the fund are continuously appropriated to the department for purposes of making awards to local agencies, nonprofit organizations, or joint ventures, or a combination of those entities, in order to purchase equipment and acquire, renovate, and construct youth centers or youth housing, consistent with this part.

53703.

 The Legislature finds and declares all the following:

(a) The intent of this part is to address the ongoing need to develop housing to support current and former foster youth and youth experiencing or at risk of homelessness. Annual homelessness counts consistently find that California has the highest number of homeless youth, with over 68% of the homeless youth being unsheltered. The purpose of this chapter is to allow community-based nonprofit organizations with experience in providing youth services to directly apply for a designated pot of funding.

(b) Nonprofit organizations provide support to individuals who are homeless or at-risk of homelessness through targeted services. Invested in improving communities, these organizations are experts in identifying the specific housing needs, gaps, and coordinating efforts to support transition-aged youth as they transition to stable housing.

CHAPTER  2. Youth Center and Youth Housing Program

53705.

 (a) Moneys in the fund, up to a limit of ____ dollars ($____), shall be available for purposes of this part consistent with the following requirements:

(1) ____ dollars ($____) shall be available for youth centers.

(2) ____ dollars ($____) shall be available for youth housing.

(3) Any remaining money that has not been awarded under this subdivision within two years of the effective date of this part shall be available for both youth centers and youth housing.

(b) The department may disburse any funds made available to youth centers or youth housing pursuant to this chapter upon execution of awards and contracts pursuant to Section 53706.

53706.

 (a) (1) The department shall make awards to local agencies, nonprofit organization, or joint ventures, for the purpose of acquiring, renovating, constructing, and purchasing equipment for youth centers or youth housing, consistent with the part.

(2) An applicant that receives an award pursuant to this chapter shall execute a contract with the department that, at a minimum, provides assurances that the youth center or youth housing complies with the requirements of Section 53707, as applicable.

(b) If a local agency, nonprofit organization, or joint venture, is granted an award pursuant to subdivision (a) for youth housing that will provide services for both homeless youth and current or former foster youth, the department shall credit the allocation of bond proceeds awarded to reflect the proportion of funds to be used by the recipient for services for homeless youth and the proportion of funds to be used for services for current or former foster youth.

53707.

 (a) A recipient that receives an award for the acquisition of a facility to be used as a youth center or youth housing shall ensure that the facility will be used for that purpose for at least 10 years from the date of acquisition.

(b) A recipient that receives an award for the construction of a facility to be used as a youth center or youth housing shall ensure the facility will be used for that purpose for at least 20 years after completion of construction.

(c) A recipient that receives an award for the renovation of an existing facility to be used as a youth center or youth housing shall ensure the facility will be used for that purpose for the following periods:

(1) Not less than three years from the date the contract terminates, where the amount of the award does not exceed five hundred thousand dollars ($500,000).

(2) If the award exceeds five hundred thousand dollars ($500,000), the period of time shall increase one year for each additional hundred thousand dollars ($100,000) or part thereof, to a maximum of eight years.

(3) For awards that exceed one million dollars ($1,000,000), the period of time shall not be less than 10 years.

53708.

 (a) The department shall be entitled to recapture moneys awarded pursuant to this chapter if, before the conclusion of the applicable time period described in Section 53707, either of the following occurs:

(1) The recipient ceases to be a nonprofit organization.

(2) (A) Except as otherwise provided in subparagraph (B), the applicable facility is no longer used for youth center or youth housing activities.

(B) Notwithstanding any other provision of this section, the department shall not recapture any funds awarded to a local agency that were initially allocated for housing for current or former foster youth pursuant to subdivision (b) of Section 53713, but were expended for housing for homeless youth pursuant to subdivision (c) of Section 53713.

(b) (1) The amount recaptured pursuant to this section shall be the proportion of the current value of the facility equal to the proportion of state funds contributed to the original cost.

(2) The current value of the facility shall be determined by an agreement between the owner of the facility and the department, or by an action in the court in the jurisdiction in which the facility is located.

(c) Funding recaptured pursuant to this section shall be redeposited into the fund and reallocated according to a supplemental process established pursuant to paragraph (2) of subdivision (b) of Section 53713.

53709.

 A facility altered, acquired, renovated, constructed, or equipped using funds awarded under this part shall not be used for any sectarian instruction or as a place for religious worship.

53710.

 (a) The department shall issue a request for proposals for youth centers and youth housing within three months of moneys being deposited in the fund for the purposes of this part.

(b) (1) The department, before issuing a request for proposals, shall create an advisory committee to secure advice on the request for proposals and the criteria for reviewing and evaluating proposals.

(2) The advisory committee established pursuant to paragraph (1) shall consist of representatives, including, but not limited to, all of the following:

(A) Stakeholders representing providers of community youth services, including service providers for homeless youth and current or former foster youth.

(B) Two appointees selected by the Speaker of the Assembly.

(C) Two appointees selected by the Senate Rules Committee.

(c) The department shall review and evaluate proposals consistent with the evaluation criteria developed by the department in consultation with the advisory committee pursuant to subdivision (b) and consistent with the priorities established pursuant to Section 53712.

53711.

 Proposals submitted pursuant to this part for both youth centers and youth housing shall, at a minimum, do all of the following:

(a) Document the need for the applicant’s proposal.

(b) Contain a written commitment and a plan for the delivery of programs and services designed to meet the needs of the youth of the targeted community.

(c) (1) Include a match for funding consistent with the following, as applicable:

(A) When the applicant is a local agency or joint venture involving a local agency, a match equal to 25 percent of the total amount requested.

(B) When the applicant is a nonprofit organization, a match equal to 15 percent of the total amount requested,

(2) The match for funding required pursuant to this subdivision may be in cash or in kind.

(d) Document the cost effectiveness of the proposal.

(e) Contain a written commitment and plan to develop and implement a process to receive and consider feedback and suggestions from the community served, including a separate mechanism for the youth it serves. A board of directors reflecting broad representation of the community shall satisfy this subdivision.

(f) Document plans to utilize and coordinate with other organizations serving the same youth population, including making the facilities available where possible.

53712.

 (a) The department shall establish a priority for considering and ranking proposals based on all of the following:

(1) The greatest need in the most heavily populated areas.

(2) The most underserved areas.

(3) The most economically disadvantaged areas, both in urban and rural counties.

(4) The number of youth to be served.

(5) The cost effectiveness of the proposal.

(6) The utilization of, and coordination with, other agencies serving youth.

(7) The applicant’s experience in program management, particularly in programs serving the needs of youth.

(8) The applicant’s experience in programs serving youth.

(b) The department shall rank all proposals based on the priority established pursuant to subdivision (a).

(c) After ranking the proposals pursuant to subdivision (a), funds shall be awarded to applicants in the following order of priority:

(1) Nonprofit organizations.

(2) Joint ventures between local agencies and nonprofit organizations.

(3) Local agencies.

(d) The department shall, to the extent possible given the amount of funds available, attempt to ensure a geographically broad distribution of the funds consistent with the program priorities, in order to meet the needs of youth.

53713.

 (a) For purposes of administering this chapter and the allocation of bond proceeds, the department shall treat funding for youth centers and youth housing as separate programs and shall fund each separately.

(b) (1) Funding for youth housing shall be awarded as follows:

(A) At least 50 percent to housing for homeless youth.

(B) A maximum of 50 percent to housing for current or former foster youth.

(2) Any money that has been awarded to housing for homeless youth or current or former foster youth, and has not been encumbered by July 1, 2028, shall be reallocated according to a supplemental process to be developed by the department. The department shall establish this reallocation process only when the unspent funds accumulated under this chapter equals five million dollars ($5,000,000) or more. The department shall accept new proposals pursuant to this process from all eligible applicants consistent with the requirements of this chapter.

(c) Notwithstanding any other law, a local agency may use any unexpended funds awarded to a housing project for current or former foster youth under subparagraph (B) of paragraph (1) of subdivision (b) for the purpose of acquiring, renovating, constructing, or purchasing equipment for a housing project for homeless youth.

(d) In addition to the input from its advisory committee, the department shall seek the cooperation and advice of the California Interagency Council on Homelessness and other appropriate agencies in the administration of this part.

53714.

 Notwithstanding any other provision of this part, a local agency that is the recipient of an award pursuant to this part may use funds to establish a local grant program that provides grant awards to nonprofit organizations for the acquisition, renovation, construction, or purchase of equipment for youth housing.

53715.

 An eligible applicant that is allocated funds for a grant program pursuant to this part shall not use more than 5 percent of the funds allocated for the program to pay the administrative costs of that program.

53716.

 The Legislature may amend the provisions of this chapter, including the distribution of funding established pursuant to Section 53705, for the purposes of improving the efficiency and effectiveness of the program or to further the goals of the program.

CHAPTER  3. Youth Center and Youth Housing Bond Act of 2024

CHAPTER  3. 

53717.

 (a) Bonds in the total amount of ____ dollars ($____), not including the amount of any refunding bonds issued in accordance with Section 53726, may be issued and sold for the purposes expressed in this part and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.

(b) The Treasurer shall issue and sell the bonds authorized in subdivision (a) in the amount determined by the committee to be necessary or desirable pursuant to Section 53720. The bonds shall be issued and sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.

53718.

 (a) The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), as amended from time to time, and all of the provisions of that law apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part.

(b) For purposes of this part, the references to “committee” in the State General Obligation Bond Law shall mean the Youth Center and Youth Housing Finance Committee created in Section 53719, and the references to “board” in the State General Obligation Bond Law shall mean the Department of Housing and Community Development.

53719.

 (a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this part, the Youth Center and Youth Housing Finance Committee is hereby created.

(b) The committee consists of the Controller, the Treasurer, the Director of Finance, and the Director of the Department of Housing and Community Development. Development, and the Director of Social Services. Notwithstanding any other law, any member may designate a representative to act as that member in the member’s place for all purposes, as though the member were personally present.

(c) The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.

53720.

 The committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds authorized pursuant to this part in order to carry out the actions specified in this part and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.

53721.

 There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds becoming due each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.

53722.

 Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this part and without regard to fiscal years, an amount that equals the total of the following:

(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable.

(b) The sum necessary to carry out Section 53724.

53723.

 The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purpose of carrying out this part less any amount withdrawn pursuant to Section 53724 and not yet returned to the General Fund. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this part, excluding any refunding bonds authorized pursuant to Section 53726, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 53724 and not yet returned to the General Fund. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this part.

53724.

 For the purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this part, excluding any refunding bonds authorized pursuant to Section 53726, less any amount loaned pursuant to Section 53723 and not yet repaid, and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited in the fund. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this part.

53725.

 All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this part shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of bond issuance before any transfer to the General Fund.

53726.

 The bonds issued and sold pursuant to this part may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this part includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this part or any previously issued refunding bonds. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.

53727.

 Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this part that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds or earnings required or desirable under federal law to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

53728.

 The proceeds from the sale of bonds authorized by this part are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.

SEC. 2.

 Section 1 of this act shall take effect upon the approval by the voters of the Youth Center and Youth Housing Bond Act of 2024, as set forth in Section 1 of this act.

SEC. 3.

 (a) (1) Notwithstanding Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other law, Section 1 of this act shall be submitted by the Secretary of State to the voters at the next statewide general election following the effective date of this act.

(2) The requirement of Section 9040 of the Elections Code that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature shall not apply to Section 1 of this act.

(b) The Secretary of State shall include in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code the information specified in Section 9084 of the Elections Code regarding Section 1 of this act. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding Section 1 of this act to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.

(c) Notwithstanding Section 9054 of the Elections Code or any other law, the translations of the ballot title and the condensed statement of the ballot title required pursuant to Section 9054 of the Elections Code for Section 1 of this act may be made available for public examination at a later date than the start of the public examination period for the ballot pamphlet.

(d) Notwithstanding Sections 13115 and 13117 of the Elections Code, Section 1 of this act and any other measure placed on the ballot by the Legislature for the next statewide general election after the 131-day deadline set forth in Section 9040 of the Elections Code shall be placed on the ballot, following all other ballot measures, in the order in which they qualified as determined by chapter number.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to maximize the time available for the analysis and preparation of the proposed issuance of bonds pursuant to Section 1 of this act, it is necessary that this act take effect immediately.