Section § 53590

Explanation

This section defines terms used in California's Housing for a Healthy California Program. It explains key concepts like what 'county' means, which includes cities working with counties to get funding for services, and what 'department' refers to, meaning the Department of Housing and Community Development. It clarifies 'experiencing chronic homelessness' and 'experiencing homelessness' as per the federal guidelines and defines 'fair market rent' as the cost of renting a decent, standard housing unit. The term 'Health Home Program' relates to a specific welfare code section. 'Long-term rental assistance' helps tenants pay rent by covering the difference between a percentage of their income and market rent. 'Permanent housing' is a type of housing without stay limits, and 'supportive housing' follows an existing legal definition. 'Whole Person Care pilot' refers to a program outlined in federal Medicaid terms.

For purposes of this part, all of the following definitions shall apply:
(a)CA Health and Safety Code § 53590(a) “County” means a county, city and county, or a city collaborating with a county to secure services funding.
(b)CA Health and Safety Code § 53590(b) “Department” means the Department of Housing and Community Development.
(c)CA Health and Safety Code § 53590(c) “Experiencing chronic homelessness” means a person who is chronically homeless, as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 1, 2018, except that a person who was experiencing chronic homelessness before entering an institution would continue to be defined as experiencing chronic homelessness upon discharge, regardless of length of stay.
(d)CA Health and Safety Code § 53590(d) “Experiencing homelessness” means a person experiencing homelessness, as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 1, 2018.
(e)CA Health and Safety Code § 53590(e) “Fair market rent” means the rent, including the cost of utilities, as established by the United States Department of Housing and Urban Development pursuant to Parts 888 and 982 of Title 24 of the Code of Federal Regulations, as those parts read on January 1, 2018, for units by number of bedrooms, that must be paid in the market area to rent privately owned, existing, decent, safe, and sanitary rental housing of nonluxury nature with suitable amenities.
(f)CA Health and Safety Code § 53590(f) “Health Home Program” means the Health Home Program established pursuant to Article 3.9 (commencing with Section 14127) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code.
(g)CA Health and Safety Code § 53590(g) “Long-term rental assistance” means a rental subsidy provided to a housing provider, including a developer leasing affordable or supportive housing, private-market landlord, or sponsor master leasing private-market apartments, to assist a tenant to pay the difference between 30 percent of the tenant’s income and fair market rent or reasonable market rent as determined by the grant recipient and approved by the department.
(h)CA Health and Safety Code § 53590(h) “Federal Housing Trust Fund” has the same meaning as the national Housing Trust Fund established pursuant to the Housing and Economic Recovery Act of 2008 (Public Law 110-289), and implementing federal regulations.
(i)CA Health and Safety Code § 53590(i) “Permanent housing” means a housing unit where the landlord does not limit length of stay in the housing unit, the landlord does not restrict the movements of the tenant, and the tenant has a lease and is subject to the rights and responsibilities of tenancy, pursuant to Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of Division 3 of the Civil Code.
(j)CA Health and Safety Code § 53590(j) “Program” means the Housing for a Healthy California Program created by this part.
(k)CA Health and Safety Code § 53590(k) “Supportive housing” has the same meaning as in Section 50675.14.
(l)CA Health and Safety Code § 53590(l) “Whole Person Care pilot” has the meaning as described in the Medi-Cal 2020 Waiver Special Terms and Conditions (STCs), Sections 110-126, as approved by the federal Centers for Medicare and Medicaid Services on December 30, 2015.

Section § 53591

Explanation

This law requires the California Department of Housing to create the 'Housing for a Healthy California Program' focused on providing supportive housing opportunities. By January 1, 2019, the program should be in place, offering either grants to counties or loans to developers for housing projects. The department must consider various factors such as homelessness rates and local partnerships when awarding these grants on a competitive basis.

Additionally, they will align the program with existing housing programs and ensure funds are only used for projects meeting specific requirements. The department must gather data from recipients of grants and loans, hire an evaluator by 2020 to study impacts on health care costs, and report findings in 2024. Consultation with health services is encouraged, and the department must also draft necessary regulations and incorporate public feedback.

The department shall do all of the following:
(a)CA Health and Safety Code § 53591(a) On or before January 1, 2019, establish the Housing for a Healthy California Program to create supportive housing opportunities through either or both of the following:
(1)CA Health and Safety Code § 53591(a)(1) Grants to counties for capital, rental assistance, and operating subsidies. The department shall award grants to counties on a competitive basis pursuant to rating and ranking criteria that include, but are not limited to, points based upon all of the following:
(A)CA Health and Safety Code § 53591(a)(1)(A) Need, which includes consideration of the number of individuals experiencing homelessness and the impact of housing costs in the county.
(B)CA Health and Safety Code § 53591(a)(1)(B) Ability of the county to administer or partner to administer a program offering capital loans, rental assistance, or operating subsidies in supportive housing, based on the county’s proposed use of program funds. Operating subsidies may include operating reserves.
(C)CA Health and Safety Code § 53591(a)(1)(C) The county’s documented partnerships with affordable and supportive housing providers in the county.
(D)CA Health and Safety Code § 53591(a)(1)(D) Demonstrated commitment to address the needs of people experiencing homelessness through existing programs or programs planned to be implemented within 12 months.
(E)CA Health and Safety Code § 53591(a)(1)(E) Preferences or set asides for housing populations established by the department pursuant to Section 53595.
(F)CA Health and Safety Code § 53591(a)(1)(F) Coordination with all of the following:
(i)CA Health and Safety Code § 53591(a)(1)(F)(i) Community-based housing and homeless service providers.
(ii)CA Health and Safety Code § 53591(a)(1)(F)(ii) Behavioral health providers.
(iii)CA Health and Safety Code § 53591(a)(1)(F)(iii) Safety net providers, including community health centers.
(2)CA Health and Safety Code § 53591(a)(2) Operating reserve grants and capital loans to developers. The department may use existing guidelines in awarding grants and loans to developers.
(3)CA Health and Safety Code § 53591(a)(3) In administering the operating reserve grants and capital loans to developers pursuant to paragraph (2), the department shall do all of the following:
(A)CA Health and Safety Code § 53591(a)(3)(A) Make program funds available at the same time funds, if any, are made available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)CA Health and Safety Code § 53591(a)(3)(B) Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)CA Health and Safety Code § 53591(a)(3)(C) Administer funds subject to this part in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2) to the extent permitted by federal requirements.
(D)CA Health and Safety Code § 53591(a)(3)(D) Only applications serving persons that meet all of the requirements of Section 53595 and any other threshold requirements established by the department, shall be eligible to receive funds pursuant to paragraph (2).
(b)CA Health and Safety Code § 53591(b) Until August 31, 2022, if the department elects to fund operating grants and loans to developers in any year, or before August 31, submit federal Housing Trust Fund allocation plans to the Department of Housing and Urban Development that includes state objectives consistent with the goals of this part.
(c)CA Health and Safety Code § 53591(c) Draft any necessary regulations, guidelines, and notices of funding availability for stakeholder comment.
(d)CA Health and Safety Code § 53591(d) Midyear and annually, collect data from counties and developers awarded grant or loan funds.
(e)CA Health and Safety Code § 53591(e) No later than October 1, 2020, contract with an independent evaluator to analyze data collected pursuant to Section 53593 to determine changes in health care costs and utilization associated with services and housing provided under the program. The department shall provide, on a regular basis as needed, collected data to the evaluator.
(f)Copy CA Health and Safety Code § 53591(f)
(1)Copy CA Health and Safety Code § 53591(f)(1) Report data collected in the department’s annual report due in 2024, as required by Section 50408.
(2)CA Health and Safety Code § 53591(f)(2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(g)CA Health and Safety Code § 53591(g) The department is encouraged to consult with the State Department of Health Care Services where appropriate to carry out the intent of this section.
(h)CA Health and Safety Code § 53591(h) This section shall become operative on January 1, 2022.

Section § 53592

Explanation

This law outlines the conditions under which a county in California can qualify for a program grant aimed at promoting housing stability. However, being eligible doesn't guarantee the county will receive the funds as grants depend on availability. To qualify, a county must identify funding for intensive housing stability services, which can come from multiple sources like county general funds or specific care programs. The county must also establish a process using agencies that manage housing programs to administer these funds, and agree to collect and report relevant data as required by another section of the law.

A county shall be eligible for a program grant if the county meets the requirements of this section. Eligibility does not create an entitlement to grant funds and is subject to availability of funds. The county shall meet all of the following requirements:
(a)CA Health and Safety Code § 53592(a) Has identified a source of funding for providing intensive services promoting housing stability. Funding for these services may include, but are not limited to, one or more of the following:
(1)CA Health and Safety Code § 53592(a)(1) County general funds.
(2)CA Health and Safety Code § 53592(a)(2) Whole Person Care pilot program funds, to the extent those funds are available or the Whole Person Care program has been renewed.
(3)CA Health and Safety Code § 53592(a)(3) The Health Home Program.
(4)CA Health and Safety Code § 53592(a)(4) Other county-controlled funding to provide these services to eligible participants.
(b)CA Health and Safety Code § 53592(b) Has designated a process for administering grant funds through agencies administering housing programs.
(c)CA Health and Safety Code § 53592(c) Agrees to collect and report data, as described in Section 53593, to the department.

Section § 53593

Explanation

This law requires coordination between different departments to evaluate the impact of housing programs on healthcare outcomes and costs for participants. Specifically, it involves matching data from Medi-Cal (California's Medicaid program) with program participant data to track health and cost changes before and after moving into permanent housing.

Counties or developers receiving funds must report certain data annually and midyear. They need to provide information on program costs, outcomes, the number of participants, types of interventions, and housing status. Additionally, where feasible, they need to report the program's impact on participants' interactions with the legal system.

(a)CA Health and Safety Code § 53593(a) The department shall coordinate with the State Department of Health Care Services to match program participant data, consistent with state and federal privacy law, to Medi-Cal data to identify outcomes among participants as well as changes in health care costs and utilization associated with housing and services provided under the program to the extent that information is available, up to 12 months prior to each participant’s move into permanent housing, as well as changes in costs and utilization after each participant’s move into permanent housing.
(b)CA Health and Safety Code § 53593(b) A county or developer awarded grant or loan funds shall, at annual and midyear intervals, report all of the following data to the department:
(1)CA Health and Safety Code § 53593(b)(1) Data specified by the department necessary to measure the costs and outcomes of the program.
(2)CA Health and Safety Code § 53593(b)(2) The number of participants and the type of interventions offered through grant funds.
(3)CA Health and Safety Code § 53593(b)(3) The number of participants living in supportive housing or other permanent housing.
(4)CA Health and Safety Code § 53593(b)(4) To the extent feasible and available, data on the impact of the program on participants’ use of corrections systems and law enforcement resources.

Section § 53594

Explanation

This law specifies how counties in California can use grants related to housing. Counties can use the grants for long-term rental assistance, but it's limited to no more than twice the area's fair market rent. Grants can also fund acquiring, constructing, or renovating housing. They can be used for project-based operating subsidies, which may last up to five years or include a reserve for 15 years. Additionally, counties can incentivize landlords to support rental assistance with perks like security deposits. Administrative costs related to these grants are capped at 5%, unless the department approves a higher amount.

(a)CA Health and Safety Code § 53594(a) A county shall use grants awarded pursuant to this part for one or more of the following:
(1)CA Health and Safety Code § 53594(a)(1) Long-term rental assistance in an amount the county identifies, but no more than two times the fair market rent for the market area where the county is providing long-term rental assistance.
(2)CA Health and Safety Code § 53594(a)(2) Acquisition funding, new construction, gap funding, or reconstruction and rehabilitation.
(3)CA Health and Safety Code § 53594(a)(3) Project-based operating subsidies.
(4)CA Health and Safety Code § 53594(a)(4) Incentives to landlords to accept rental assistance for program participants, including security deposits and holding fees.
(5)CA Health and Safety Code § 53594(a)(5) Administrative costs, as determined by the department, of no more than 5 percent of the total grant awarded, or a higher amount upon approval by the department.
(b)CA Health and Safety Code § 53594(b) Project based operating subsidies may include either or both of the following:
(1)CA Health and Safety Code § 53594(b)(1) Operating subsidies for periods of up to five years.
(2)CA Health and Safety Code § 53594(b)(2) A capitalized operating reserve for at least 15 years to pay for operating costs of an apartment or apartments receiving capital funding to provide supportive housing to people experiencing homelessness.

Section § 53595

Explanation

This law requires the relevant department to create a system for rating and ranking housing opportunities for individuals who are homeless or chronically homeless and are also high-cost health care users.

These individuals must be eligible for Medi-Cal and services that support housing stability, like the Whole Person Care program, the Health Home Program, or local services in supportive housing.

The law aims to help these individuals improve their health conditions through supportive housing.

The department shall establish rating and ranking criteria to promote housing for persons who meet all of the following requirements:
(a)CA Health and Safety Code § 53595(a) Is experiencing homelessness or chronic homelessness and a high-cost health user upon initial eligibility.
(b)CA Health and Safety Code § 53595(b) Is a Medi-Cal beneficiary or is eligible for Medi-Cal.
(c)CA Health and Safety Code § 53595(c) Is eligible to receive services under a program providing services promoting housing stability, including, but not limited to, the following:
(1)CA Health and Safety Code § 53595(c)(1) The Whole Person Care pilot program, to the extent the Whole Person Care program is available or has been renewed.
(2)CA Health and Safety Code § 53595(c)(2) The Health Home Program.
(3)CA Health and Safety Code § 53595(c)(3) A locally controlled services program funding or providing services in supportive housing.
(d)CA Health and Safety Code § 53595(d) Is likely to improve their health conditions with supportive housing.

Section § 53596

Explanation

This law requires the Legislature to evaluate how moving eligible people into supportive housing affects their use of services and healthcare costs. They need to look at the changes identified in a specific evaluation report.

The Legislature shall consider the impact that housing and supportive services have had in changing utilization and health care costs, as identified in the evaluation described in Section 53591, of moving eligible participants into supportive housing.

Section § 53597

Explanation

This law mandates that the department must cover the expenses the State Department of Health Care Services incurs while working together to match and supply relevant data.

The department shall reimburse the State Department of Health Care Services for the costs of collaborating in matching and providing relevant data.

Section § 53598

Explanation

This section allows a department to enter into contracts without following the usual competitive bidding and review processes required by other government regulations. These contracts can be either exclusive or nonexclusive and are not subject to some typical state contract oversight rules.

Additionally, any regulations or guidelines created for implementing this part of the law don't have to go through the usual rule-making process that involves public notice and comment.

(a)CA Health and Safety Code § 53598(a) For purposes of implementing this part, the department may enter into exclusive or nonexclusive contracts on a bid or negotiated basis. Contracts entered into or amended pursuant to this subdivision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and shall be exempt from the review or approval of any division of the Department of General Services.
(b)CA Health and Safety Code § 53598(b) Any regulations or guidelines that are adopted, amended, or repealed to implement this part shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

Section § 53599

Explanation

This law section explains how the department is to use funds for a specific program. These funds can come from federal Housing Trust Fund allocations for the years 2018 to 2021, or they can come from other revenues that are allocated to the department for the program's purposes.

The department shall carry out the purposes of this part with either or both of the following:
(a)CA Health and Safety Code § 53599(a) Revenues appropriated to the department from federal Housing Trust Fund allocations for years 2018 to 2021, inclusive.
(b)CA Health and Safety Code § 53599(b) Any other revenues appropriated to the department that may be allocated for purposes of the program.

Section § 53600

Explanation

This law allows the department to charge an ongoing fee for monitoring loans that it directly issues. The money repaid on these loans, including interest, goes into a specific fund called the Housing Rehabilitation Loan Fund. This fund is used for the Multifamily Housing Program, and the money is always available for the department to use for this purpose.

(a)CA Health and Safety Code § 53600(a) For loans issued directly by the department, the department may charge an ongoing monitoring fee to cover the costs of project monitoring.
(b)CA Health and Safety Code § 53600(b) All moneys received by the department in repayment of loans made pursuant to this part, including interest and payments in advance in lieu of future interest, shall be deposited into the Housing Rehabilitation Loan Fund established by Section 50661, and, notwithstanding Section 13340 of the Government Code, all such moneys deposited pursuant to this part are continuously appropriated to the department for purposes of the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).

Section § 53601

Explanation

This law is about income verification for unhoused people in Los Angeles who move into subsidized housing. If a landlord rents a unit to someone thought to meet income requirements but later discovers they do not, the landlord won’t face penalties if corrected within 24 months. During this time, the tenant is still eligible for help as an unhoused individual. Landlords are protected from penalties if they comply with certain conditions, like working with local housing authorities to find suitable housing if the tenant's income is too high. Income checks must be completed within 90 days of moving in. The law also outlines how rent should be adjusted if the tenant's income is above the expected threshold. This rule is temporary and will no longer apply after July 31, 2025, or when specific waivers expire.

(a)Copy CA Health and Safety Code § 53601(a)
(1)Copy CA Health and Safety Code § 53601(a)(1) In the City and County of Los Angeles, where the federal Department of Housing and Urban Development has granted an authority, as defined in Section 34203, a waiver effective August 17, 2024, to allow household income verifications to occur after a lease contract is signed for unhoused populations seeking entry into projects pursuant to or in connection with Section 5.110 of Title 24 of the Code of Federal Regulations, if an owner or a management agent leases a subsidized unit to an unhoused person and subsequently learns and verifies that the unhoused person does not meet applicable income requirements, then the department shall not take any negative actions against the owner or management agent if both of the following conditions are met:
(A)CA Health and Safety Code § 53601(a)(1)(A) The owner or management agent has cured the noncompliance within 24 months of discovery of the violation.
(B)CA Health and Safety Code § 53601(a)(1)(B) The local housing authority and continuum of care have developed and posted on their respective internet websites a plan describing how the local housing authority and continuum of care will coordinate with the owner or management agent to move tenants that do not meet applicable income requirements into affordable housing where the tenant is eligible for occupancy within 24 months of discovery of the violation. Income ineligible tenants shall retain their unhoused targeting eligibility.
(2)CA Health and Safety Code § 53601(a)(2) For purposes of this subdivision, “negative actions” include, but are not limited to, both of the following:
(A)CA Health and Safety Code § 53601(a)(2)(A) Issuing negative points on a current or future application.
(B)CA Health and Safety Code § 53601(a)(2)(B) Imposing a financial penalty.
(b)CA Health and Safety Code § 53601(b) If an agreement between the owner or management agent and the authority or the department restricts a unit to a tenant earning no more than 30 percent of the area median income, the tenant shall be deemed to satisfy the income requirements of this program during the 24-month period described in paragraph (1) of subdivision (a) if all of the following conditions are met:
(1)CA Health and Safety Code § 53601(b)(1) The tenant experienced homelessness prior to moving into the unit. For purposes of this paragraph, “homelessness” has the same meaning as “homeless,” as that term is defined in Section 578.3 of Title 24 of the Code of Federal Regulations.
(2)CA Health and Safety Code § 53601(b)(2) The tenant self-certified household income at no more than 30 percent of the area median income.
(3)CA Health and Safety Code § 53601(b)(3) A third-party verification shows that the tenant has household income of no more than 50 percent of the area median income, unless the tenant is otherwise eligible pursuant to federal income eligibility requirements.
(4)CA Health and Safety Code § 53601(b)(4) The tenant’s income certification is fully verified in accordance with the program rules within 90 days of the date the tenant took possession of the unit.
(5)CA Health and Safety Code § 53601(b)(5) At least 50 percent of the assisted units restricted to 30 percent area median income are occupied by verified, income-eligible households.
(6)CA Health and Safety Code § 53601(b)(6) The issuing housing authority and continuum of care, in coordination with other public agencies, coordinate with an owner or a management agent and move a tenant found to have a household income of more than 50 percent of the area median income following third-party verification described in paragraph (3) within 24 months of discovery of the violation to an affordable housing unit for which the tenant is eligible without reliance upon the same waiver described in subdivision (a). Income ineligible tenants shall retain their unhoused targeting eligibility.
(c)Copy CA Health and Safety Code § 53601(c)
(1)Copy CA Health and Safety Code § 53601(c)(1) This section does not modify any other eligibility requirements attached to assistance provided by the Department of Housing and Community Development.
(2)CA Health and Safety Code § 53601(c)(2) Tenant self-certified date of birth shall be accepted so long as the agreement between the department and the owner does not impose age-based demographic targeting requirements.
(3)CA Health and Safety Code § 53601(c)(3) If the conditions described in subdivision (b) are met, absent any rent setting methodology from subsidy programs, a tenant whose adjusted income at move-in exceeded 30 percent area median income shall have an effective rent limit for their unit be redesignated to 50 percent of area median income or, if the tenant’s verified income is higher than 50 percent of area median income, an effective rent limit for their unit be redesignated to an area median income level commensurate with the income level.
(4)CA Health and Safety Code § 53601(c)(4) Owner or management agents shall discontinue use of the waiver as described in subdivision (a) in the event that more than 50 percent of the assisted units restricted to 30 percent area median income are occupied by households with adjusted incomes at move-in over 30 percent area median income.
(d)CA Health and Safety Code § 53601(d) This section shall become inoperative on July 31, 2025, or the final expiration date of a waiver as described in subdivision (a), whichever is later, and, as of January 1 of the following year, is repealed.