BILL NUMBER: AB 1929 CHAPTERED
BILL TEXT
CHAPTER 674
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2014
APPROVED BY GOVERNOR SEPTEMBER 27, 2014
PASSED THE SENATE AUGUST 21, 2014
PASSED THE ASSEMBLY AUGUST 22, 2014
AMENDED IN SENATE AUGUST 18, 2014
AMENDED IN SENATE JUNE 26, 2014
AMENDED IN ASSEMBLY MAY 1, 2014
INTRODUCED BY Assembly Member Chau
FEBRUARY 19, 2014
An act to add Section 5892.5 to the Welfare and Institutions Code,
relating to mental health.
LEGISLATIVE COUNSEL'S DIGEST
AB 1929, Chau. California Housing Finance Agency: MHSA funding:
special needs housing for person with mental illness.
Existing law, the Mental Health Services Act (hereafter, the
MHSA), an initiative measure, was approved by the voters in November
2004 as Proposition 63. The MHSA establishes the Mental Health
Oversight and Accountability Commission, and imposes a tax of 1% on
incomes above $1,000,000 for the purpose of financing new or expanded
mental health services. Under the MHSA, the former State Department
of Mental Health is required, among other things, to distribute funds
for local assistance for designated mental health programs according
to a local plan. Existing law requires the State Department of
Health Care Services to implement the mental health services provided
under the Adult and Older Adult Mental Health System of Care Act,
which provides, among other things, funds for counties to provide
mental health services and related supportive housing or housing
assistance necessary to stabilize homeless, mentally ill persons or
mentally ill persons at risk of being homeless. The MHSA permits
amendment by the Legislature by a2/3 vote of each house if the
amendment is consistent with and furthers the intent of the MHSA, and
also permits the Legislature to clarify procedures and terms of the
MHSA by a majority vote.
Existing law establishes the California Housing Finance Fund in
the State Treasury, and authorizes the transfer of construction loan
funds to the construction lender or to the contractor as necessary to
meet draws for progress payments pursuant to rules and regulations
of the California Housing Finance Agency. Existing law authorizes the
agency to make loans to finance affordable housing, including
residential structures, housing developments, multifamily rental
housing, special needs housing, as defined, and other forms of
housing permitted by provisions regulating housing and community
development.
Existing law authorizes the agency to issue revenue bonds, in
accordance with specified requirements, for the purpose of financing
the acquisition, construction, rehabilitation, refinancing, or
development of special needs housing, including, but not limited to,
supportive housing intended to benefit persons identified as having
special mental health needs, including housing intended to meet the
housing needs of persons eligible for mental health services funded
in whole or in part under the MHSA. Existing law requires the agency,
in consultation with the State Department of Mental Health and the
State Department of Housing and Community Development, and other
agencies and interested parties, to prepare and present to the
Legislature a plan for the development, acquisition, construction,
and rehabilitation of supportive housing projects using up to
$75,000,000 annually in funding from the Mental Health Services Act,
as provided under the Governor's Executive Order S-07-06. Under
existing law, by executive order, the State Department of Mental
Health, in consultation with the California Mental Health Directors
Association, is directed to allocate up to $75,000,000 in Mental
Health Services Act funds each year to finance the capital costs
associated with the development, acquisition, construction, and
rehabilitation of permanent supportive housing for individuals with
mental illness.
The bill would require the agency, with the concurrence of the
State Department of Health Care Services, to release unencumbered
Mental Health Services Fund moneys dedicated to the MHSA housing
program upon the request of the respective county, and would require
these counties to use these moneys to provide housing assistance, as
defined, to identified target populations, including persons with a
serious mental disorder.
The bill would make findings and declarations regarding the need
to encourage counties, the agency, and the State Department of Health
Care Services to continue partnering in the development of
supportive housing, and to ensure county mental health departments
are able to more fully utilize the MHSA funds for supportive housing
and other housing assistance purposes.
This bill would declare that it clarifies procedures and terms of
the Mental Health Services Act.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The Mental Health Services Act (hereafter, the MHSA), an
initiative measure approved by the voters in November 2004 as
Proposition 63, provides funding for local assistance for designated
mental health programs.
(b) A critical component of the success of community services for
persons with mental illness is the availability of supportive
housing.
(c) It is the intent of the Legislature that the California
Housing Finance Agency (CalHFA) continue the MHSA housing program.
The State Department of Mental Health, CalHFA, and the County Mental
Health Directors Association partnered together to administer a
housing program under which $400,000,000 in MHSA funds were initially
made available to finance the capital costs associated with the
development, acquisition, construction, or rehabilitation, or all, of
permanent supportive housing for individuals with mental illness and
their families, including homeless individuals with mental illness
and their families.
(d) Through Executive Order S-07-06 in 2006, Governor
Schwarzenegger directed the creation of the MHSA housing program. The
State Department of Mental Health, in consultation with the
California Mental Health Directors Association, were directed to
allocate up to $75,000,000 annually in MHSA funding to finance the
development, acquisition, construction, or rehabilitation, or all, of
10,000 permanent supportive housing units for individuals with
mental illness and their families, especially homeless individuals
with mental illness and their families.
(e) Senate Bill 257 (Chesbro), Chapter 748 of the Statutes of
2006, authorized CalHFA to finance permanent supportive housing for
individuals with mental illness. Senate Bill 257 also directed
CalHFA, in consultation with the State Department of Mental Health
and the State Department of Housing and Community Development, and
other agencies and parties, to present to the Legislature a plan for
the use of MHSA funds for the development of permanent supportive
housing.
(f) In 2007, county mental health departments agreed to set aside
$400,000,000 of MHSA funds with CalHFA, and allocate these funds to
all but the eight least populated counties for the purpose of
building permanent supportive housing. Counties were authorized to
use $75,000,000 annually for capital costs and $40,000,000 annually
for operating and maintenance costs. While most counties have already
expended their share of these funds, others have not because these
counties received small allocations that do not make the construction
of housing units feasible. Releasing these funds to their respective
counties will enable these counties to better utilize these funds
for supportive housing and housing assistance for individuals with
serious mental illness, and those homeless individuals with mental
illness or mentally ill individuals at risk of being homeless.
(g) Counties currently receive a direct allocation of MHSA funds
and have the discretion to dedicate additional funds for supportive
housing purposes. Some counties have found it beneficial to continue
utilizing CalHFA's assistance, given the complexity of developing
supportive housing.
(h) The purpose of this act is to encourage counties, CalHFA, and
the State Department of Health Care Services to continue partnering
in the development of supportive housing, and to enable county mental
health departments to more fully utilize MHSA funds for housing
purposes.
SEC. 2. Section 5892.5 is added to the Welfare and Institutions
Code, to read:
5892.5. (a) (1) The California Housing Finance Agency, with the
concurrence of the State Department of Health Care Services, shall
release unencumbered Mental Health Services Fund moneys dedicated to
the Mental Health Services Act Housing Program upon the written
request of the respective county. The county shall use these Mental
Health Services Fund moneys released by the agency to provide housing
assistance to the target populations who are identified in Section
5600.3.
(2) For purposes of this section, "housing assistance" means each
of the following:
(A) Rental assistance or capitalized operating subsidies.
(B) Security deposits, utility deposits, or other move-in cost
assistance.
(C) Utility payments.
(D) Moving cost assistance.
(E) Capital funding to build or rehabilitate housing for homeless,
mentally ill persons or mentally ill persons who are at risk of
being homeless.
(b) For purposes of administering those funds released to a
respective county pursuant to subdivision (a), the county shall
comply with all of the requirements described in the Mental Health
Services Act, including, but not limited to, Sections 5664, 5847,
subdivision (h) of Section 5892, and 5899.
SEC. 3. The Legislature finds and declares that this act clarifies
procedures and terms of the Mental Health Services Act within the
meaning of Section 18 of the Mental Health Services Act.