CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 456

Introduced by Senators Menjivar and Wiener

February 13, 2023

An act to amend Section 50675.1.3 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 456, as introduced, Menjivar. Multifamily Housing Program: nonprofit corporations: homeless or at-risk youth.
Existing law establishes the Multifamily Housing Program administered by the Department of Housing and Community Development. Existing law requires assistance for projects under the program to be provided in the form of deferred payment loans to pay for eligible costs of specified types of development, as provided. Existing law requires that specified funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases be disbursed in accordance with the Multifamily Housing Program for specified uses.
Existing law exempts these specified funds from the deferred payment loan requirement, as specified. Existing law also requires at least 8 percent of these specified funds to be available for projects serving homeless youth, or youth at risk of homelessness, as defined.
This bill would, instead, require that at least 8 percent of the specified funds be available for units, rather than projects, serving homeless youth, or youth at risk of homelessness. The bill would also require that at least one-half of these funds be prioritized for units to house current foster youth between 18 to 21 years of age, inclusive. The bill would prohibit projects that include units to house current or former foster youth between 18 to 21 years of age, inclusive, from requiring a referral through the coordinated entry system.
This bill would specify that nonprofit corporations that provide emergency shelter or transitional housing are eligible to receive grants disbursed for housing projects solely serving homeless youth, youth at risk of experiencing homelessness, or current or former foster youth and would require the department to give preference to applications from those nonprofit corporations, and partner organizations, that have experience providing those direct services.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 50675.1.3 of the Health and Safety Code is amended to read:

50675.1.3.
 (a) (1) Notwithstanding any other law, including subdivision (b) of Section 50675.1, funds appropriated to provide housing for individuals and families who are experiencing homelessness or who are at risk of homelessness, as defined by this section, and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases, shall be disbursed in accordance with the Multifamily Housing Program, including as grants to cities, counties, cities and counties, and all other state, regional, and local public entities, including councils of government, metropolitan planning organizations, and regional transportation planning agencies designated in Section 29532.1 of the Government Code, as necessary, for the following uses:

(1)

(A) Acquisition or rehabilitation, or acquisition and rehabilitation, of motels, hotels, hostels, or other sites and assets, including apartments or homes, adult residential facilities, residential care facilities for the elderly, manufactured housing, commercial properties, and other buildings with existing uses that could be converted to permanent or interim housing.

(2)

(B) Master leasing of properties for noncongregant housing.

(3)

(C) Conversion of units from nonresidential to residential.

(4)

(D) New construction of dwelling units.

(5)

(E) The purchase of affordability covenants and restrictions for units.

(6)

(F) Relocation costs for individuals who are being displaced as a result of rehabilitation of existing units.

(7)

(G) Capitalized operating subsidies for units purchased, converted, or altered with funds provided by this section.
(2) Nonprofit corporations that provide emergency shelter or transitional housing shall be eligible to receive grants disbursed in accordance with paragraph (1) for housing projects solely serving homeless youth, youth at risk of experiencing homelessness, or current or former foster youth. The department shall give preference to applications from nonprofit corporations that have experience providing direct services to homeless youth, youth at risk of experiencing homelessness, or current or former foster youth, and organizations working in partnership with those that provide direct services to homeless youth, youth at risk of experiencing homelessness, or current or former foster youth.
(b) Where possible, the funds described in subdivision (a) shall be allocated by the department in a manner that takes into consideration all of the following:
(1) Need geographically across the state.
(2) The demonstrated ability of the applicant to fund ongoing operating reserves.
(3) The creation of new permanent housing options.
(4) The potential for state, federal, or local funding for capitalized operating reserves to make additional housing units financially viable through this program.
(c) Not less than 8 percent of the funds described in paragraph (1) of subdivision (a) shall be available for projects units serving homeless youth, or youth at risk of homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations.
(1) At least one-half of these funds shall be prioritized for units to house current foster youth between 18 to 21 years of age, inclusive.
(2) Projects including units to house current or former foster youth between 18 to 21 years of age, inclusive, shall not require a referral through the coordinated entry system.
(d) Any conflict between the other requirements of the Multifamily Housing Program created by this chapter and this section shall be resolved in favor of this section, as may be set forth in the guidelines authorized by this section.
(e) The Department of Housing and Community Development may adopt guidelines for the expenditure of the funds appropriated to the department, and for the administration of this program. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(f) Up to 5 percent of the funds received from the Coronavirus State Fiscal Recovery Fund established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2) and appropriated for purposes of this section may be expended for the costs to administer the program, to the extent authorized by federal law.
(g) Up to 5 percent of any General Fund moneys appropriated for purposes of this section may be expended for the costs to administer this program.
(h) The department’s annual report to the Legislature submitted under Section 50408 shall include, but not be limited to, all of the following:
(1) The amount of funds expended for the uses described in this section.
(2) The location of any properties for which the funds are used.
(3) The number of usable housing units produced, or planned to be produced, using the funds.
(4) The number of individuals housed, or likely to be housed, using the funds.
(5) The number of units, and the location of those units, for which operating subsidies have been, or are planned to be, capitalized using the funds.
(6) An explanation of how funding decisions were made for acquisition, conversion, or rehabilitation projects, or for capitalized operating subsidies, including what metrics were considered in making those decisions.
(7) Any lessons learned from the use of the funds.
(8) Proposed changes to the program to address lessons learned.
(i) Any project that uses funds received for any of the purposes specified in subdivision (a) shall be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and any applicable coastal plan, local or otherwise, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discretionary permit, or any other discretionary reviews or approvals.
(j) A report to be submitted pursuant to subdivision (h) shall be submitted in compliance with Section 9795 of the Government Code.
(k) Upon an appropriation by the Legislature for the purposes described in this section, the department shall administer funding according to the timeline set forth below, subject to any modifications set forth by the guidelines:
(1) The department may accept funding applications and issue awards on a continuous, over-the-counter basis until the funding has been exhausted or as otherwise required by law.
(2) Each award shall be expended on the uses authorized at subdivision (a), and in accordance with all relevant representations and descriptions in the application, within eight months of the date of the award. Applicants may ask the department for an extension of this timeframe on the grounds and according to the procedures set forth in the guidelines. The director shall have reasonable discretion to approve or deny such an extension upon conducting a full and good faith review of the applicant’s extension request.
(l) For purposes of this section, “individuals and families who are homeless or who are at risk of homelessness” means persons and families that meet the qualifying definitions under Part 578.3 of Title 24 of the Code of Federal Regulations.
(m) To advance the objectives specified in Section 50675.1.1 or this section, the department may expand the population served beyond the population specified in subdivision (l) as specified by the guidelines authorized by this section.