GOOD AFTERNOON, AND WELCOME TO
OUR ASSEMBLY BUDGET SUBCOMMITTEE
FIVE HEARING TODAY. THIS HEARING
WILL COVER THE DEPARTMENT OF
HOUSING AND COMMUNITY
DEVELOPMENT, BUSINESS, CONSUMER
SERVICES AND HOUSING AGENCY AND
THE STATE TREASURER'S OFFICE.
HOUSING AFFORDABILITY IS ONE OF
THE BIGGEST CHALLENGES
CONFRONTING CALIFORNIA TODAY.
AND AN ISSUE I HAVE LONG
ADVOCATED FOR. IN MY TIME IN THE
LEGISLATURE, I'VE SEEN FIRSTHAND
THE IMPACT THAT HOUSING
AFFORDABILITY HAS ON MY
CONSTITUENTS AND ON ALL OF OUR
COMMUNITIES, AS WE ARE DEFINED
BY OUR ABILITY TO ENSURE THAT
EVERY INDIVIDUAL, REGARDLESS OF
THEIR BACKGROUND OR
CIRCUMSTANCES, HAS A PLACE TO
CALL HOME. ADDRESSING HOUSING
ISSUES DECISIVELY IS ONE OF THE
MOST VITAL THINGS OUR
LEGISLATURE CAN DO. ADDITIONALLY
IT IS IMPERATIVE THAT WE NOT
ONLY ADDRESS THE IMMEDIATE
HOUSING NEEDS OF CALIFORNIANS,
BUT ALSO FOCUS ON PREVENTION
THÀNH BY INVESTING IN INNOVATIVE
SOLUTIONS SUCH AS PILOT PROJECTS
FOR RENT SUBSIDIES AND FUNDING
FOR TRANSITIONAL HOUSING, WE CAN
PROVIDE INDIVIDUALS WITH THE
SUPPORT THEY NEED TO AVOID
HOMELESSNESS IN THE FIRST PLACE.
SPEAKING OF HOMELESSNESS, THIS
QUOTE AND THIS IS A SHARON QUOTE
QUOTE WE ARE STARVING
HOMELESSNESS BY DYING PEOPLE ARE
DYING THEIR WAY. FROM THE
STREETS, THOUSANDS OF
CALIFORNIANS AND ORANGE COUNTY,
OVER 50 PEOPLE A MONTH DIE ON
THE STREETS OF ORANGE COUNTY,
ONE OF THE WEALTHIEST COUNTIES
IN THE STATE OF CALIFORNIA. THIS
IS UNCONSCIONABLE, AND WE HAVE
TO DO BETTER. Þ AND A SLIM
BUDGET. WE WILL HAVE TO MAKE
UNAVOIDABLE CUTS. BUT ALL CUTS
ARE NOT EQUAL. AND THIS BUDGET
HEARING TODAY IS TO FOCUS ON
GETTING YOUR INFORMATION, YOUR
TESTIMONY, BUT ALSO USING DATA
AND INFORMATION THAT WE WILL
FIND TO HELP MAKE THESE HARD,
HARD DECISIONS. FINDING NEW
APPROACHES SUCH AS UTILIZING H
HAP FUNDING FUNDS TO ESTABLISH
COMPETITIVE GRANT PROGRAMS
TAILORED TO FUND THE
CONSTRUCTION OF SMALL SCALE
HOUSING SOLUTIONS LIKE TINY
HOMES AND TRANSITIONAL
TRANSITIONAL UNITS ON CAMPUSES
ON FAITH BASED LANDS WOULD
INVITE SOLUTIONS FROM
ORGANIZATIONS AND MUNICIPALITIES
ACROSS CALIFORNIA. AGAIN, IT IS
EVERYBODY'S RESPONSIBILITY EVERY
CITY, EVERY COUNTY, EVERY
JURISDICTION TO DO SOMETHING.
THE ANSWER OF WE CAN DO NOTHING
IS SIMPLY NOT ACCEPTABLE.
PUSHING HOMELESS FROM ONE CITY
OR COUNTY TO ANOTHER IS NOT
ACCEPTABLE. AND WE HAVE SEEN
THIS PATTERN IN THREE ARTICLES
THAT JUST CAME OUT TODAY.
HOMELESSNESS IN CALIFORNIA. THE
AUDIT HAS SOME IMPORTANT
INFORMATION THAT WE NEED PEOPLE
TO NOT ONLY READ, BUT
UNDERSTAND. SOME PROGRAMS ARE
WORKING BETTER THAN OTHERS.
ANOTHER ARTICLE, JUST THIS WEEK
IN ORANGE COUNTY'S HOMELESS
SHELTER PROGRAM, BROKEN. IS IT
BROKEN? JUST THIS WEEK AND VOICE
OF OC IN ORANGE COUNTY. AND
ANOTHER ONE, IN FROM CALMATTERS.
IT'S NOW SIGNIFICANTLY MORE
DEADLY TO BE HOMELESS. WHY ARE
SO MANY PEOPLE DYING? MANY OF US
WHO WORK IN THIS SPACE DON'T
NEED TO READ THIS ARTICLE. WE
KNOW WHY THEY'RE DYING. IF
YOU'RE OUT ON THE STREETS,
YOU'RE GOING TO DIE 10 TO 15
YEARS EARLIER THAN YOUR PEERS
THAT ARE HIGH HOUSED. IT'S
SIMPLE. WE HAVE TO GET PEOPLE
INDOORS AND OFF THE STREETS.
MANY OF OUR APPROACHES NOT ONLY
DIFFER AND NOT ONLY OFFER
IMMEDIATE RELIEF, BUT ALSO
PROVIDE PATHWAYS TO STABILITY
THROUGH TRANSITIONAL HOUSING,
THEREBY PREVENTING INDIVIDUALS
FROM SLIPPING FURTHER INTO
HOMELESSNESS. OUR APPROACH WILL
SHAPE THE TRAJECTORY OF
CALIFORNIA'S FOR GENERATIONS TO
COME, IMPACTING SOCIAL EQUITY,
PUBLIC HEALTH, ECONOMIC
STABILITY AND MORE. BY ENSURING
WE ALLOCATE OUR BUDGET RESOURCES
TO THE BEST OPTIONS, WE CAN
EMPOWER CALIFORNIANS TO SUCCEED.
THE HEARING AGENDA IS AVAILABLE
ON OUR COMMITTEE WEBSITE, AND
PHYSICAL COPIES ARE AVAILABLE
OUTSIDE OF THE HEARING ROOM. A
FEW HOUSEKEEPING NOTES. THIS IS
AN IN-PERSON HEARING WITH ALL
PANELISTS TESTIFYING IN PERSON.
WE WILL TAKE QUESTIONS FROM
MEMBERS OF THIS SUBCOMMITTEE
AFTER EACH ITEM. SO AGAIN, I'LL
REPEAT THAT. WE'RE GOING TO HAVE
PUBLIC TESTIMONY AFTER EACH
ITEM. IT'S A LITTLE BIT
DIFFERENT THAN WE'VE DONE IN THE
PAST. PUBLIC COMMENT IS LIMITED
TO ONE MINUTE FOR EACH PERSON
TESTIFYING AND WILL BE TAKEN IN
PERSON. IF YOU ARE AN Ã UNABLE
TO ATTEND THIS HEARING IN
PERSON, YOU MAY SUBMIT YOUR
COMMENTS VIA EMAIL TO ASSEMBLY
BUDGET AT ASM DOT K.GOV, WITH
THAT, LET'S CALL THE ROLL AND
ASSEMBLY MEMBER QUIRK-SILVA
HERE. ASSEMBLY MEMBER PATTERSON,
ASSEMBLY MEMBER WARD HERE. AND
BEFORE WE START THE HEARING, LET
ME, ALLOW MY COLLEAGUE TO MAKE
ANY COMMENTS. THANK YOU, MADAM
CHAIR, THANK YOU, EVERYBODY, FOR
BEING HERE TODAY. I THINK FOR
THE WORK OF THIS SUBCOMMITTEE,
I'VE BEEN, REGRETTABLY LOOKING
FORWARD TO THIS HEARING HERE
TODAY BECAUSE OF THE INFORMATION
WE'RE RECEIVING FROM OUR DRAFT
BUDGET. THAT DOES NOT SIT WELL
WITH ME, I'M GOING TO PREFACE IT
AND JUST, YOU KNOW, I KNOW WE
HAVE A LOT OF PRESENTERS HERE
TODAY, A LOT OF INFORMATION TO
GO THROUGH. AND I DON'T BELIEVE
THAT ANY ONE OF THESE PRESENTERS
ALSO FEELS THAT THESE MIGHT BE
GOOD IDEAS. THEY MIGHT, FOR SOME
PERSPECTIVES, BE SOME OF THE
BEST THAT WE CAN, KNOWING WE
HAVE TO HAVE A STATE, A BALANCED
BUDGET, BUT FOR GIVEN THAT WE
ALL HERE, I THINK UNIFORMLY THAT
ADDRESSING HOUSING AND
HOMELESSNESS IS THE BIGGEST
ISSUE FACED WITH THE
CALIFORNIANS WANT US TO DO UP
HERE, IT IS VERY HARD TO
RECONCILE HOW WE'RE SUPPOSED TO
DO THAT WITH LESS, IT TAKES A
LONG TIME TO PRODUCE AFFORDABLE
HOUSING UNITS, AND IT TAKES A
LONG TIME OF UPFRONT INVESTMENTS
TO BE ABLE TO LAY DOWN THAT THE
GUARANTEES ARE GOING TO BE THERE
TO ACCESS THOSE FUNDS SO THAT
ULTIMATELY, EVERYTHING PENCILS
OUT AND THEY CAN BREAK GROUND,
WE HAVE BEEN DOING MORE SUSTAIN,
AND WE SHOULD CELEBRATE THAT. WE
HAVE BEEN REVIEWING THAT THROUGH
SUBCOMMITTEE SEVEN, THROUGH THAT
ACCOUNTABILITY MEASURE TO LOOK
AT OUR HOUSING PROGRAMS. WE HAVE
BEEN THROUGH MY OWN POLICY
COMMITTEE WITH THE ASSEMBLY,
COMMITTEE ON HOUSING AND
COMMUNITY DEVELOPMENT, EXAMINING
NEW WAYS TO BE EFFICIENT AND
MORE EFFECTIVE WITH THE WAY THAT
WE ADDRESS HOUSING SOLUTIONS AND
ADDRESS HOMELESS SERVICES. BUT
THE ABSOLUTE GUTTING AND
REVERSION TO THIS LEVEL THAT
WE'RE SEEING RIGHT NOW FOR
HOUSING PROGRAMS, NOT ONLY IS
GOING TO WOULD SET US BACK IF
THIS IS WHERE WE'RE GOING TO
FINALLY END UP IN JUNE, BUT IT
WOULD TAKE YEARS TO BE ABLE TO
RESTART AND RE, REINVIGORATE THE
LEVEL OF COMMITMENT AND
INVESTMENT AND ACTIVITY THAT THE
STATE HAS BEEN ABLE TO
FACILITATE THE HOUSING UNITS
THAT WE HAVE BEEN ABLE TO
PRODUCE, THE NUMBER OF SERVICE
WORKERS THAT ARE OUT THERE DOING
THE HARD WORK ON THE GROUNDS, SO
THIS ISN'T JUST ABOUT A ONE TIME
CUT FOR ME. THIS IS A
FUNDAMENTAL CHANGE IN HOW WE ARE
PRIORITIZING THROUGH OUR BUDGET
WHAT CALIFORNIA'S COMMITMENT
SHOULD BE. AND I JUST WANTED TO
LAY THAT OUT AS THE OUTSET. NOW,
I KNOW WE HAVE A LOT OF MATERIAL
TO GO THROUGH, I THINK IT'S
IMPORTANT THAT WE HAVE, A VERY,
THOROUGH OVERVIEW OF SOME OF
THESE PROPOSALS. AND I THINK I'M
GOING TO BE HAVING, YOU KNOW, A
NUMBER OF QUESTIONS, BUT I THINK
THE CENTRAL THEME IS WHAT HAVE
BEEN THE MOST EFFECTIVE WAYS,
UNDER THE BUDGET TO DATE THROUGH
THESE DIFFERENT PROGRAMS, TO BE
ABLE TO ADDRESS HOUSING OUTCOMES
AND HOMELESSNESS SOLUTIONS. SO
I'M LOOKING FORWARD TO EACH ONE
OF THESE PANELS. AND I'M, READY
TO ENGAGE. THANK YOU. THANK YOU,
BOTH OF US HAVE BILLS TO PRESENT
IN OTHER COMMITTEES. SO WE WILL
DO OUR BEST TO MAKE SURE ONE OR
THE OTHER OF US IS HERE. THAT
BEING SAID, WE WILL BEGIN OUR
ISSUE ONE GOVERNOR'S JANUARY
BUDGET SOLUTIONS. THAT'S ON THE
AGENDA. PAGE TWO, LET'S START
WITH OUR FIRST ISSUE, AND WE
WELCOME YOU TO THE TABLE HERE.
PLEASE INTRODUCE YOURSELF AS YOU
MAKE YOUR REMARKS.
HELLO, ANDREW MARCH WITH THE
DEPARTMENT OF FINANCE, SO AS THE
AGENDA NOTES, THE GOVERNOR'S
BUDGET INCLUDES APPROXIMATELY
$1.2 BILLION IN GENERAL FUND
SOLUTIONS FOR HOUSING. SINCE
2019. THE STATE'S COMMITTED,
APPROXIMATELY $5.2 BILLION TO
AFFORDABLE HOUSING PROGRAMS. SO
IN LIGHT OF THESE CUTS, THAT
WOULD LEAVE APPROXIMATELY $4
BILLION SINCE 2019, THAT HAS
BEEN COMMITTED TO AFFORDABLE
HOUSING PROGRAMS, THE AGENDA
GOES INTO FURTHER DETAIL ON THE
SPECIFIC, REDUCTIONS. AND I KNOW
WE'LL GET TO SOME OF THOSE
THROUGHOUT THE AGENDA. HAPPY TO
TAKE ANY QUESTIONS ON ANY
SPECIFIC REDUCTIONS. THANK YOU.
THANK YOU, MADAM CHAIR. GINNY
BELLA WITH THE LEGISLATIVE
ANALYST'S OFFICE, AS YOU JUST
HEARD, OVER THE LAST SEVERAL
YEARS, THE STATE HAS, ALLOCATED
A SIGNIFICANT AMOUNT OF
DISCRETIONARY FUNDING FOR
HOUSING AND HOMELESSNESS
PROGRAMS. THE GOVERNOR'S BUDGET,
GIVEN THE GIVEN THE, BUDGET
CHALLENGES THAT WE'RE FACING,
DOES INCLUDE A PACKAGE OF
SOLUTIONS TOTALING 1.2 BILLION
ACROSS ABOUT SEVEN PROGRAMS IN
THE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT, WHICH
YOU'LL HEAR MORE ABOUT TODAY.
THOSE THAT FUNDING WAS, FOR THE
MOST PART, ONE TIME
DISCRETIONARY AUGMENTATIONS THAT
WOULD HAVE EXPIRED OTHERWISE.
BUT THE PROPOSALS REALLY
ACCELERATE THAT EXPIRATION. AND
THEN REDUCE THE AMOUNT OF THE
ALLOCATION OVERALL AS YOU START
YOUR WORK ON THE BUDGET, WE
THINK YOU SHOULD THINK OF THE
GOVERNOR'S PROPOSAL AS ONE, ONE
PACKAGE TO BEGIN THAT THINKING.
BUT ULTIMATELY, THE LEGISLATURE,
YOU HAVE AN OPPORTUNITY TO CRAFT
YOUR OWN SET OF SOLUTIONS AS IT
WILL TAKE A COMBINATION OF
REDUCTIONS, REVENUE INCREASES,
BORROWING, AND ALSO DRAWING ON
THE RESERVES TO PUT THAT PACKAGE
TOGETHER, BUT AGAIN, IT'S THE
GOVERNOR'S PROPOSAL IS ONE, ONE
STARTING POINT. BUT THIS IS AN
OPPORTUNITY TO REALLY HEAR FROM
THE ADMINISTRATION. AND WE THINK
THE QUESTIONS LAID OUT IN YOUR
AGENDA THAT REALLY GET TO THE
ROOT OF WHAT WAS THE REASON FOR
THE REDUCTIONS PROPOSED AND ARE
THERE OTHER AREAS THAT YOU COULD
POTENTIALLY PULL BACK ONE TIME?
FUNDING IS A REALLY GOOD
STARTING SPOT. THANK YOU. DID
YOU HAVE ANY COMMENTS? NO. ALL
RIGHT, JUST TO MAKE NOTE, WE
WILL HAVE A SEPARATE PANELS ON
REAP 2.0, AND THE HOUSING
NAVIGATOR PROGRAM. SO WE'LL WAIT
FOR ANY DISCUSSION ON THAT, BUT,
FOR THE DEPARTMENT OF FINANCE,
HOW DID THE DEPARTMENT OF
FINANCE DETERMINE WHICH PROGRAMS
TO CUT AND DELAY AND WHAT
METRICS DID THE DEPARTMENT OF
FINANCE USE TO MAKE THE
DETERMINATION FOR THE CUTS?
YEAH, SO GENERALLY, THE PROPOSED
REDUCTIONS ARE TO PROGRAMS THAT,
OR TO FUNDING THAT HADN'T
ALREADY BEEN INCLUDED IN A
NOTICE OF FUNDING AVAILABILITY,
SO TO BACKTRACK, THE DEPARTMENT
OF HOUSING AND COMMUNITY
DEVELOPMENT PROVIDES FUNDING
THROUGH NOTICES OF FUNDING
AVAILABILITY, WHICH ARE
ESSENTIALLY, NOTICES THAT THAT,
THAT THERE ARE APPLICATIONS CAN
BE RECEIVED NOW FOR A POT OF
FUNDING, THE FUNDING THAT'S
INCLUDED IN THE GOVERNOR'S
BUDGET FOR REDUCTION IS FUNDING
THAT HADN'T BEEN INCLUDED. SO
IT'S NOT FUNDING THAT, THAT WAS
ACTIVELY ACCEPTING APPLICATIONS,
ALTHOUGH IT MAY HAVE BEEN
INCLUDED ON A ON THE NOTICE OF
FUNDING AVAILABILITY CALENDAR,
BUT THE APPLICATION PERIOD WAS
NOT OPEN YET FOR THOSE PROGRAMS.
I DON'T UNDERSTAND I'M NOT.
MAYBE YOU ANSWERED HER QUESTION,
BUT I'M NOT SURE THAT I HEARD
WHAT WENT INTO THE DECISION
MAKING AS FAR AS REDUCING THIS
PROGRAM BY THAT AMOUNT. THE NEXT
PROGRAM BY THIS AMOUNT. HOW HOW
DID YOU REALLY I MEAN, EACH ONE
OF THESE PROGRAMS CONTRIBUTES
EITHER SINGULARLY OR IN
COMBINATION, TO THE PRODUCTION
OF AFFORDABLE HOUSING UNITS
ACROSS OUR STATE. AND THEY MORE
OR LESS ARE GOING TO HAVE A
CERTAIN LEVEL OF IMPACT TO
PRODUCE UNITS THAT OTHERWISE
WOULDN'T EXIST BECAUSE THE DEAL
FELL THROUGH, THE MONEY WAS NOT
THERE. SO HOW DID YOU DECIDE
WHICH PROGRAMS TO CUT AND BY HOW
MUCH TO CUT, SO GENERALLY THERE
WASN'T A SPECIFIC METHODOLOGY
THAT WAS USED TO DETERMINE IT
WAS THAT THIS IS AN EFFORT TO
BALANCE THE BUDGET. SO THESE ARE
THESE ARE AVAILABLE FUNDS THAT
WERE AVAILABLE TO BE PROPOSED
FOR REDUCTION. SO PARDON ME IF
I'M BEING A LITTLE RUDE WITH MY
CHARACTERIZATION, BUT WHAT I'M
HEARING IS THAT WE JUST THREW A
BLANK NUMBER OUT THERE. WE JUST
SAID WE'RE GOING TO CUT ALL OF
IT. WE'RE GOING TO CUT 75% OF
IT. WE JUST WE HAD NOTHING TO
BASE A DECISION ON. GENERALLY IT
WAS THE FUNDING THAT WAS
AVAILABLE IN 23, 24, 24, 25 THAT
WAS PROPOSED FOR REDUCTION. SO
EXCEPT FOR, A FEW EXAMPLES. SO
FOR, FOR EXAMPLE, IN THE INFILL
INFRASTRUCTURE GRANT PROGRAM,
THERE IS A PORTION OF FUNDING
THAT THAT REMAINS. AND FOR THE
MULTIFAMILY HOUSING PROGRAM,
THERE'S A PORTION OF FUNDING
THAT REMAINS. BUT GENERALLY IT
IS THE ENTIRE APPROPRIATION FROM
23, 24 OR 2425 AND ONGOING IN
CERTAIN PROGRAMS. A PORTION IS A
GENEROUS, I THINK, WORD TO USE.
HOW MANY HOUSING UNITS WILL NOT
BE CONSTRUCTED BECAUSE OF THESE
REDUCTIONS? IF THEY ALL WERE IN
THE FINAL ADOPTED BUDGET. SO THE
ADMINISTRATION DOESN'T HAVE AN
EXACT NUMBER OF, OF UNITS THAT
WOULD NOT BE CONSTRUCTED OR
FOREGONE BECAUSE OF THIS FUNDING
, IT'S DIFFICULT TO DETERMINE
EXACTLY HOW MANY UNITS MAY NOT
BE CREATED, ALTHOUGH WE DO
ACKNOWLEDGE THAT THERE WOULD BE
FEWER, AFFORDABLE HOUSING UNITS
CREATED, BECAUSE OF THE
REDUCTION IN FUNDING. HOWEVER,
SOME OF IT DEPENDS ON OTHER
FUNDING SOURCES BECOMING
AVAILABLE. FOR EXAMPLE, IN THE
BAY AREA, THERE'S A DISCUSSIONS
ABOUT AN AFFORDABLE HOUSING
BOND. SO THERE MAY BE OTHER
SOURCES THAT COME IN AND,
BACKFILL SOME OF THE LOST STATE
FUNDING TO, TO, TO, TO A VERY
LITTLE DEGREE THAT THAT MIGHT BE
TRUE. AND OF COURSE, WE'RE, YOU
KNOW, HAVING CONVERSATIONS
AROUND OUR HOUSING BOND AS WELL.
AS YOU WERE EVALUATING SOME OF
THESE RECOMMENDATIONS, ACTIONS,
I ASSUME YOU HAD HAD
CONVERSATIONS WITH DEPARTMENT OF
HOUSING, COMMUNITY DEVELOPMENT.
YES. I MEAN, SO GENERALLY, THIS
IS THE ADMINISTRATION'S PROPOSAL
AND THE GOVERNOR'S BUDGET. SO
THIS IS. YES, BUT THEY DIDN'T
PROVIDE YOU AN IMPACT OR AN
OUTCOME ON WHICH TO BASE THE
DECISION. SO I THINK IT AND THE
DEPARTMENT OF HOUSING COMMUNITY
DEVELOPMENT CAN DEFINITELY,
PROVIDE ANY, ANY MORE, COLOR TO
THE, TO THE ANSWER, BUT
GENERALLY WE DON'T PREDICT HOW
MANY UNITS WILL BE CREATED. WHEN
THIS FUNDING WAS COMMITTED TO IN
THE 2022 BUDGET, LARGELY THERE
WASN'T AN EXPECTATION OR A
PROJECTION OF HOW MANY NEW UNITS
WOULD BE CREATED WITH THIS
FUNDING. JUST KNOWING THAT THERE
WOULD BE NEW UNITS CREATED, A
LOT OF IT DEPENDS ON SORT OF THE
MARKET FOR AFFORDABLE HOUSING
AND WHAT PROJECTS ARE BEING
RECEIVED, AND APPLYING FOR, FOR
FUNDING IN THOSE PROGRAMS. I
WOULD LIKE US TO DO THAT. AND
I'VE MENTIONED THIS IN FISCAL
YEARS PAST BECAUSE WE'VE GOT
ENOUGH OF OUR OWN INFORMATION
NOW THAT THE STATE HAS BEEN
RAMPING UP INVESTMENTS OVER THE
LAST 5 OR 6 YEARS, THAT WE CAN
START TO MEASURE HOW MUCH THIS
$100 MILLION CONTRIBUTED TOWARDS
AND BASED OFF OF OUR OWN
EXPERIENCE, COULD THEN BEGIN TO
PREDICT HOW MUCH IS AT RISK, IS
NOT GOING TO HAPPEN FOR THE
CRISIS THAT WE KNOW WE NEED TO
ADDRESS. AND I FULLY APPRECIATE
THAT WE HAVE THE LARGER FISCAL
CHALLENGES THAT WE HAVE, AND
SOMETHING'S GOT TO GIVE. BUT AND
IT'S ON US, LIKE YOU SAID, TO BE
ABLE TO HAVE A COUNTER PROPOSAL
THAT WILL DO LEAST HARM, BUT IT
DOES FEEL LIKE THIS IS
INCREDIBLY BROAD IN ITS,
DECISION MAKING WITHOUT ANY
STUDY OR INPUT ABOUT WHAT THE
OUTCOMES OR THE IMPACTS ARE
GOING TO BE. AND I THINK THAT
THAT IS SHORTSIGHTED OF, OUR
COMMITMENTS TO OUR COMMUNITIES
TO BE ABLE TO, STAY AS BEST ON
TRACK AS WE CAN WITH MEETING THE
HOUSING INVESTMENTS THAT, THAT
WE KNOW THAT WE NEED TO MEET,
AND I KNOW THAT, YOU KNOW,
THROUGH OUR OTHER SUBCOMMITTEE
WORK, WE'VE HAD BOTH THE LAO AND
I THINK HCD WITH SOME
INFORMATION ABOUT HOW MANY UNITS
I'VE SEEN. THOSE TABLES HAVE
BEEN PRODUCED BASED ON BOTH THE
ADOPTED, AND THE BUDGETS FROM
PREVIOUS YEARS. AND A VERY, VERY
GOOD ESTIMATE ABOUT HOW MUCH
THOSE HAVE GONE TOWARDS HOW MANY
UNITS. SO AND WHEN AS YOU AS THE
ADMINISTRATION HAS BEEN
REVIEWING SOME OF THIS, HAVE YOU
HAD CONSULT WITH, THOSE IN THE
DEVELOPMENT? INDUSTRY TO GET
THEIR PERSPECTIVE ON WHICH
PROGRAMS A OR B ARE MORE OR LESS
EFFECTIVE, OR IS THIS COMPLETELY
BEEN SOMETHING, YOU KNOW,
INTERNAL? WELL, IN THE WAY THAT
YOU'VE BEEN ABLE TO DEVELOP THIS
PROPOSAL? THERE HAVE BEEN
CONVERSATIONS WITH NUMEROUS
STAKEHOLDERS THROUGHOUT THE, YOU
KNOW, SINCE THE GOVERNOR'S
BUDGET HAS BEEN RELEASED, I
WOULD SAY THAT THE EFFECTIVENESS
OF A SPECIFIC PROGRAM DEPENDS ON
ON WHAT THE MEASUREMENT IS, AND
SORT OF WHAT THE PROGRAM IS
DESIGNED TO, TO FUND, FOR
EXAMPLE, FOR THE INFILL
INFRASTRUCTURE GRANT PROGRAM,
THERE'S A CALCULATION THAT'S
USED TO DETERMINE, YOU KNOW, HOW
MANY, HOW MANY UNITS WERE
ASSISTED, HOW THOUGH THAT
FUNDING ITSELF DOESN'T
NECESSARILY GO TO SUPPORT AN
AFFORDABLE HOUSING UNIT, SO THE
RELATIVE EFFECTIVENESS OF
PROGRAMS AND, AND THERE MAY BE
DIFFERENT PRIORITIES AMONGST
DIFFERENT STAKEHOLDERS DEPENDING
ON WHAT TYPE OF, PROJECTS THE
DEVELOPERS CREATE. SO I'VE HAD
CONVERSATIONS WITH SOME OF
THOSE. AND WHEN THEY'RE
REVIEWING THE JANUARY DRAFT, YOU
KNOW, THEY SAY OF ALL OF THESE
DIFFERENT PROPOSED REDUCTIONS OR
CHANGES IN THE DIFFERENT
PROGRAMS, THE ONE THAT'S MOST
IMPORTANT IS THE, THE STATE LOW
INCOME HOUSING TAX CREDIT
ALLOCATION, THAT IN PRACTICE,
THAT ONE HAS BEEN THE MOST
EFFECTIVE AT GETTING THE
PROJECTS TO PENCIL OUT AND TO
BREAK GROUND. AND SO THAT WAS
COMPLETELY SLASHED FROM $500
MILLION DOWN TO ZERO. AND THAT'S
WHAT THOSE WHO DO THE WORK ON
THE GROUND ARE TELLING US IS THE
MOST EFFECTIVE THING TO BE ABLE
TO MAKE TO PROGRESS ON, ON, ON,
ON NEW HOUSING STARTS. THE
SECOND ONE WAS THE MULTIFAMILY
HOUSING PROGRAM, WHICH WAS, I
SEE, YOU KNOW, A $250 MILLION
REDUCTION, DOING QUICK MATH,
APPROXIMATELY THREE QUARTERS,
80% REDUCTION BASED ON, THE
ENACTED BUDGET, AND SO THAT'S
WHERE THIS FEELS A LITTLE
SCATTERSHOT IN HOW WE ARE MAKING
SOME OF THESE DECISIONS, EVEN IF
WE HAD TO SAY IN TOTALITY THAT
WE HAVE TO ABSORB $1 BILLION
SOMEWHERE HERE, IT JUST IS. I'M
NOT CONVINCED YET THAT WE'VE
DONE OUR HOMEWORK TO BE ABLE TO
SAY THAT WE HAVE ALLOCATED
EVERYTHING IN A WAY THAT IS
GOING TO DO AS MUCH AS WE CAN IN
HOUSING OUTCOMES. AND I'D LIKE
TO HEAR MORE AS THIS BUDGET, YOU
KNOW, PROCESS GOES FORWARD,
TOWARDS THE MAY REVISE AND
TOWARDS TO TOWARDS OUR ENACTED
BUDGET. I THINK, MADAM CHAIR, I
THINK THAT'S, THAT'S, YOU KNOW,
MY ONLY OBSERVATIONS BECAUSE I
DON'T KNOW WHAT ELSE TO REALLY
PROD INTO HERE. EVERYTHING IS
PRETTY MUCH EVISCERATED, IN THIS
AREA. AND WE'VE GOT TO FIND
OTHER SOLUTIONS, TO BE ABLE TO
HELP, MAYBE, YOU KNOW, STAVE OFF
SOME OF THESE REDUCTIONS AND
BUILD BACK SOME OF THE BUDGET IN
THERE TO CONTINUE THE WORK THAT
WE NEED TO DO, THANK YOU VERY
MUCH. AND TO ECHO MY COLLEAGUE,
AND WE'RE A VERY SMALL, TWO
PERSON, COMMITTEE. AND WHEN OUR
OTHER COLLEAGUE, ASSEMBLY MEMBER
PATTERSON, JOINS US, WE WOULD BE
THREE, BUT STILL VERY SMALL, BUT
WEIGHTED WITH SOME OF THE MOST,
SIGNIFICANT CUTS, AS WAS NOTED
IN OPENING COMMENTS, A HUGE
INFUSION OF DOLLARS OVER THE
LAST FIVE YEARS. AND NOW, OF
COURSE, BECAUSE OF THE DEFICIT
NOW PULLING THOSE BACK, AS THE
OPENING COMMENTS SUGGESTED, WE
WILL BE HEARING ABOUT SOME OF
THESE PROGRAMS, BUT AS THE
GOVERNOR PUT OUT HIS INITIAL
BUDGET, WERE THERE OTHER
PROGRAMS THAT WEREN'T IN THE
NOFA CATEGORY BECAUSE YOU
MENTIONED THAT IN ESSENCE, THESE
PROGRAMS HADN'T BEEN ROLLED OUT
YET, AND I AGREE THAT IT'S
EASIER TO CUT SOMETHING THAT
ISN'T ALREADY ACTIVATED,
ALTHOUGH WE DO KNOW THAT THERE'S
A FEW THAT THERE WERE ALREADY,
WORK DONE, THAT WEREN'T CUT. AND
WHAT WOULD THOSE PROGRAMS BE? SO
THERE THERE ARE A NUMBER OF
PROGRAMS THAT AREN'T NECESSARILY
SUBJECT TO THE NOTICE OF FUNDING
AVAILABILITY, CALENDAR IN THAT
WAY OR THE, THE MULTIFAMILY
SUPERNOVA, AS HCD CAN SPEAK MORE
TO IT. BUT THERE ARE A NUMBER OF
PROGRAMS THAT WERE, FOR LACK OF
A BETTER TERME. THE FUNDS ARE
AWARDED OVER THE COUNTER. SO
FIRST COME, FIRST SERVE BASIS,
THOSE PROGRAMS INCLUDE, JUST OFF
THE TOP OF MY HEAD, THE
PORTFOLIO REIMBURSEMENT PROGRAM,
WHICH HELPS TO PRESERVE LOW
INCOME HOUSING UNITS THAT ARE AT
RISK OF LOSING THEIR
AFFORDABILITY OR AT THE END OF
THEIR AFFORDABILITY, COVENANT
CYCLE, AND THEN, THE INFILL
INFRASTRUCTURE GRANT PROGRAM,
THE CATALYTIC PORTION OF THAT,
ALSO IS SUBJECT TO THAT, THOSE
ARE THE TWO LARGEST ONES THAT
COME TO MIND, I BELIEVE THE
DEPARTMENT OF HOUSING, COMMUNITY
DEVELOPMENT, WHEN THEY'RE UP
HERE, CAN, CAN PROVIDE SOME MORE
CONTEXT TO ADDITIONAL ONES. BUT
I BELIEVE THOSE ARE THOSE ARE
TWO OF SEVERAL. ALL RIGHT. AND
AS WE GO THROUGH TODAY'S
HEARING, WE'LL TALK MORE
SPECIFICALLY ABOUT A FEW OF
THOSE PROGRAMS, WITH THAT WE'RE
GOING TO GO AHEAD AND CALL UP.
THANK YOU VERY MUCH. ANY OTHER
QUESTIONS? OKAY. WE'RE GOING TO
GO AHEAD AND GO TO ITEM NUMBER
TWO ON OUR FISH. OH SORRY WE
CHANGED IT. WE ARE GOING TO DO
PUBLIC COMMENT JUST ON THIS
PART. IF WE HAVE ANY PUBLIC
COMMENT JUST.
THANK YOU. MEMBERS. MARK STEIGER
FROM THE HOUSING PARTNERSHIP.
SINCE MY COMMENTS ARE GENERAL,
I'LL COME UP NOW, WE AT THE
HOUSING PARTNERSHIP ARE BELIEVED
TO HAVE DONE A CALCULATION, AND
WE THINK THAT THE BUDGET CUTS
PROPOSED BY THE. THANK YOU, MARK
STIVERS WITH THE CALIFORNIA
HOUSING PARTNERSHIP. I THINK
WE'LL SPEAK TO THE OVERALL
HOUSING BUDGET RATHER THAN THIS
PARTICULAR ITEMS. AND WE AT THE
PARTNERSHIP HAVE DONE A
CALCULATION BASED ON WHAT WE
THINK THE IMPACT WILL BE OF NOT
ONLY THE CUTS TO THE CURRENT
YEAR PROGRAMS, BUT ALSO THE NOT
RENEWING THE FUNDING IN THE IN
THE BUDGET YEAR. AND WE BELIEVE
THAT THAT WILL BE ABOUT 6400
FEWER AFFORDABLE HOME UNITS THAT
WE WILL BE ABLE TO BUILD IN
CALIFORNIA. WE CURRENTLY HAVE A
PIPELINE OF ABOUT 50,000 UNITS
THAT ARE SHOVEL READY TO GO, AND
THOSE WILL JUST BE STUCK AND
WAITING IN QUEUE FOR SOME PERIOD
OF TIME. WE ALSO BELIEVE THAT
THE THAT REDUCTION IN STATE
RESOURCES WILL HAVE ABOUT A ONE
FOR ONE IMPACT ON THE LOSS OF
FEDERAL RESOURCES AS WELL. WE
ARE CURRENTLY LIVING, 4% FEDERAL
LOW INCOME HOUSING TAX CREDITS
ON THE TABLE. THEY ARE THERE FOR
THE TAKING IF WE HAVE STATE
MONEY TO MAKE THOSE PROJECTS.
OTHERWISE WHOLE, AND WE WILL IF
WE DO 6400 FEWER UNITS, WE WILL
BE LEAVING ABOUT ANOTHER $1.6
BILLION OF FEDERAL RESOURCES ON
THE TABLE. SO AS WE LOOK TO THE
BUDGET, A LOT, ANYTHING TO FILL
THE GAP IS IMPORTANT. BUT OUR
HIGHEST PRIORITY IS FOR THE LOW
INCOME HOUSING STATE TAX
CREDITS. AND NOT JUST THIS YEAR,
BUT HOPEFULLY LOCKING THOSE IN
FOR A FEW YEARS. AND ALSO THE
MULTIFAMILY HOUSING PROGRAM. AND
ON THE HOMELESS SIDE, WHICH
WE'LL TALK ABOUT LATER. I THINK
THE HAP PROGRAM, OBVIOUSLY, WE
NEED TO KIND OF KEEP THOSE
RESOURCES FLOWING AS WELL. SO IN
ANY EVENT, THANK YOU FOR THE
COMMENT, THE ABILITY TO COMMENT
GENERALLY. THANK YOU. THANK YOU.
ONE MINUTE, MADAM CHAIR. ANDRES
RAMIREZ, ON BEHALF OF ALL HOME,
JUST WANTED TO BRIEFLY MENTION,
OUR CONCERN OF ALL THE PROGRAMS
EITHER TAKING REDUCTIONS OR
REVISIONS, FROM ALL HOMES
PERSPECTIVE, THE ONE WE ARE MOST
CONCERNED ABOUT IS THE
REDUCTIONS TO THE MULTIFAMILY
HOUSING PROGRAM, AS MR. WARD
MENTIONED, YOU KNOW, THIS BEING
ONE OF THE ONES WITH THE
GREATEST APPLICABILITY OVERALL,
WE JUST FEEL LIKE THIS IS THE
PROGRAM THAT CAN BENEFIT THOSE
MOST AT RISK OF FALLING INTO
HOMELESSNESS. SO WANTED TO STATE
THAT SENTIMENT. THANK YOU. THANK
YOU. MADAM CHAIR, MEMBERS RANCH.
MARTIN, ON BEHALF OF THE H
HEALTH CARE FOUNDATION AND ITS
HEALTHY HOUSING FOUNDATION
PROGRAM. I JUST WANT TO POINT
OUT, REGARDLESS OF WHAT YOUR
ULTIMATE DECISION IS IN AN
ENACTED BUDGET, WE NEED TO MAKE
SURE THAT THE MONEY IS BEING
SPENT MORE EFFECTIVELY. AND WE
IMPLORE THE LEGISLATURE TO SORT
OF SIT ON THE ADMINISTRATION TO
MAKE SURE THE MONEY IS BEING
SPENT WELL. SO, FOR EXAMPLE, IN
THE LAST ROUND OF THE
MULTIFAMILY HOUSING PROGRAM, THE
WARD'S TOTALED ABOUT $70
MILLION, A LITTLE OVER 400 UNITS
WERE CREATED. THAT'S NOT MANY
UNITS. WHEN WE'RE SPENDING THAT
MUCH MONEY, WE NEED TO FIND
BETTER WAYS TO SPEND THE MONEY.
SO AND IF YOU END UP WITH LESS
MONEY THIS YEAR BECAUSE YOU HAVE
TO MAKE THE CUTS, THEN WE'RE
GOING TO HAVE TO BE IS GOING TO
BE EVEN MORE IMPORTANT TO MAKE
SURE WE SPEND IT WISELY SO WE
CAN MAXIMIZE THE NUMBER OF UNITS
THAT WE CAN GET OUT OF THE
MONEY. THANK YOU. THANK YOU.
CLIFTON WILSON, ON BEHALF OF THE
MAYOR OF THE CITY AND COUNTY OF
SAN FRANCISCO, LONDON BREED IN
OPPOSITION TO THE PROPOSED CUTS
TO THE AFFORDABLE HOUSING
PROGRAMS. AND THEN IN
PARTICULAR, WE HOPE THAT THERE
IS MONEY, LEFT OVER IN THE
BUDGET FOR MULTIFAMILY HOUSING
PROGRAM. THE INFILL
INFRASTRUCTURE GRANT PROGRAM,
AND THE FORECLOSURE INTERVENTION
HOUSING PRESERVATION PROGRAM.
THANK YOU. THANK YOU. HONORABLE
CHAIR AND MEMBERS AMY HINES-IKE
WITH WILDCAT CONSULTING,
REPRESENTING THE CALIFORNIA
COMMUNITY LAND TRUST NETWORK,
THE CALIFORNIA COMMUNITY LAND
TRUST NETWORK RESPECTS THE VERY
DIFFICULT POSITION THAT YOU ALL
ARE IN WITH THIS DIFFICULT
BUDGET TIME, WE HAVE THE
POSITION THAT WE WOULD LIKE NO
FURTHER CUTS BEYOND WHAT THE
GOVERNOR HAD PROPOSED AND
DEFINITELY ALLOCATE THE MONEY
THAT THE GOVERNOR PROPOSED TO
GET OUT. BUT WE JUST WANT FIPP
TO APPEAR IN THE PROSPECTIVE
YEARS AS A BUDGET LINE ITEM
MOVING FORWARD. I'M KIND OF
KIDDING, BUT KIND OF VERY
SERIOUS THAT WE NEED AT LEAST $1
TO STAY IN THE PERSPECTIVE OUT
YEARS, AND THAT IS A WIN,
BECAUSE THAT MEANS THAT WE'RE A
LINE ITEM IN THE BUDGET, AND WE
CAN FIGHT FOR MORE FUNDING IN
ANOTHER DAY. AND THAT PROGRAM
JUST DOESN'T DISAPPEAR OFF THE
FACE OF THE PLANET. THANK YOU
VERY MUCH FOR YOUR
CONSIDERATION. THANK YOU. GOOD
AFTERNOON. HOLLY. FOR MANY YEARS
WITH LIGHTHOUSE PUBLIC AFFAIRS,
SPEAKING ON BEHALF OF EDEN
HOUSING TODAY AND HABITAT FOR
HUMANITY CALIFORNIA, I WANT TO
ECHO THE COMMENTS FROM, OUR
PARTNER, MR. STIVERS, IN SUPPORT
OF ALL THE PROGRAMS THAT ARE
ESSENTIAL. AND THESE ARE
DEVASTATING, TO EAT AT ANOTHER
NONPROFIT PROVIDERS, BUT ALSO
ESPECIALLY NOT JUST THE TAX
CREDIT PROGRAM, BUT THE
PRESERVATION LOAN PROGRAMS AND
THE FUNDING FOR PRESERVATION. WE
ARE A NONPROFIT THAT IS 50 YEARS
OLD, AND MANY OF OUR PROPERTIES
ARE 50 YEARS OLD, AND WE TAKE
PRIDE IN THE FACT THAT WE KEEP
THESE UNITS DECENT AND FABULOUS
FROM THE MOMENT THEY WALK IN TO
50 YEARS LATER WHEN OUR TENANTS
ARE STILL THERE. SO REALLY
IMPORTANT TO SUPPORT THOSE
PRESERVATION DOLLARS, AS WELL AS
ALL THE OTHER ESSENTIAL PROGRAMS
. AND THEN LAST BUT NOT LEAST,
ON BEHALF OF HABITAT FOR
HUMANITY, CAL HOME, WE CAN
ANSWER YOUR QUESTION.
ASSEMBLYMEMBER. WARD 2000 UNITS
ARE WHAT IS AT STAKE IF THAT CUT
OF 156 MILLION STAYS IN PLACE
FOR CAL HOME, THAT PROGRAM WAS
ZEROED OUT. THAT CUT IS
DISPROPORTIONATE TO ALL THE
OTHER RENTAL PROGRAM CUTS THAT
THE GOVERNOR PROPOSED. SO THIS
IS THE ONLY PROGRAM, THE ONLY
PROGRAM IN THE STATE OF
CALIFORNIA THAT PRODUCES A NEW
OWNER OCCUPIED UNIT FOR LOW
INCOME HOUSEHOLDS THROUGHOUT THE
STATE. WE HAVE 32 AFFILIATES PROGRAMS IS
GOING TO BE JUST ABSOLUTELY
DEVASTATING. THESE COMMUNITIES
OFTENTIMES DO NOT HAVE THE
AMOUNT OF PHILANTHROPY, THE
AMOUNT OF OTHER HOUSING
ORGANIZATIONS IN THEIR
COMMUNITIES. SO WHEN WE TAKE
THESE PROGRAMS AWAY, LARGELY,
WE'RE GOING TO BE LOOKING AT
. AND MEMBERS, GRACIELA CASTILLO
KRINGS HERE ON BEHALF OF
ENTERPRISE COMMUNITY PARTNERS
AND CALIFORNIA HOUSING
CONSORTIUM, WE APPRECIATE THE
LEADERSHIP ROLE THAT THE
LEGISLATURE IS TAKING THE
GOVERNOR'S PROPOSING TO CUT 1.2
BILLION, AS YOU KNOW, IN
ADDITION TO THE 500 MILLION IN
TAX CREDITS THAT ARE NOT GOING
TO BE PROVIDED, THAT IF THAT
MOVES FORWARD, ABSENT ANY OTHER
FUNDING SOURCE FROM GENERAL OF
MY COLLEAGUES AHEAD OF ME AND,
REALLY WANT TO THANK YOU FOR
YOUR LEADERSHIP AND PRESERVING
THE FUNDING, THAT THAT MONEY IS
INCREDIBLY IMPORTANT AND
VALUABLE TO THESE ORGANIZATIONS.
AND WE WANT TO ALLOW FOR
INCREASING HOMEOWNERSHIP ACCESS.
SO I'D LIKE TO, YOU KNOW,
REITERATE THE COMMENTS BY MY
COLLEAGUE HOLLY ON THE CAL HOME
FUNDING. AND THAT'S INCREDIBLY
IMPORTANT, TO INCREASING ACCESS
TO HOMEOWNERSHIP. THANK YOU.
THANK YOU. HONORABLE CHAIR AND
COMMITTEE MEMBERS. I'LL BE SHORT
AND SWEET. NICCOLO DELUCA HERE
ON BEHALF OF MPH CITY OF
OAKLAND. CITY OF BERKELEY.
STRONG SUPPORT OF THE NCMP
PROGRAM. SO GRATEFUL FOR
WHATEVER YOU CAN DO TO RESTORE
AS MUCH FUNDING THERE AS
POSSIBLE. THANK YOU. THANK YOU.
ALL RIGHT. WE APPRECIATE THOSE
COMMENTS. AND WE'RE GOING TO GO
AHEAD AND MOVE TO OUR NEXT ITEM,
ISSUE NUMBER TWO, REGIONAL EARLY
ACTION PROGRAM
AFTERNOON. I'M HERE TO TELL YOU
ABOUT THE. EVALUATION CRITERIA
FOR OUR LOCAL, SUBREGIONAL AND
COMPETITIVE RATE PROGRAMS. IN
THE SUMMER OF 2023, AMBAG ISSUED
A NOTICE OF FUNDING AVAILABILITY
FOR REGIONAL REAP 2.0 TO
ELIGIBLE AGENCIES. APPLICATIONS
WERE DUE IN AUGUST AND WERE
EVALUATED IN SEPTEMBER OF 2023.
IN THE FALL OF 2023, THE AMBAG
BOARD OF DIRECTORS APPROVED 24
AWARDS TO CITIES, COUNTIES AND
TRANSIT AGENCIES FOR VARIOUS
AFFORDABLE HOUSING PROJECTS.
AMBAG EXECUTED CONTRACTS WITH
ALL REAP 2.0 AWARDEES, AND WORK
ON REAP 2.0 PROJECTS WAS
UNDERWAY BY THE END OF THE
CALENDAR YEAR. SUBSEQUENT TO
THESE REGIONAL AWARDS, AMBAG
REQUESTED FUNDING FROM HCD
TOTALING $6 MILLION. IN NOVEMBER
OF 2023, THIS REQUEST WAS
APPROVED BY HCD STAFF AND WAS IN
FINAL REVIEW FOR PAYMENT WHEN
THE GOVERNOR'S BUDGET REVERSION
WAS PROPOSED IN JANUARY 2024.
SINCE THAT TIME, HCD HAS
RESCINDED APPROVAL OF OUR REAP
2.0 PAYMENT REQUEST AND INFORMED
US THAT THEY CANNOT AUTHORIZE
TOTAL PAYMENTS GREATER THAN 25%
OF OUR REAP 2.0 ALLOCATION.
ALTHOUGH A REVISED INVOICE WAS
SUBMITTED AND APPROVED IN EARLY
MARCH, TO DATE, WE HAVE NOT
RECEIVED PAYMENT, DELAYING
REIMBURSEMENT TO OUR REGIONAL
GRANTEES. AMBAG WAS FORCED TO
NOTIFY OUR PROJECT SPONSORS TO
DELAY OR STOP WORK ON THEIR REAP
2.0 HOUSING PROJECTS. SINCE WE
DO NOT HAVE FUNDING AVAILABLE TO
REIMBURSE THEM, WE URGE THE
ASSEMBLY TO RESTORE OR DELAY OUR
REAP 2.0 FUNDING TO ANOTHER
BUDGET YEAR, RATHER THAN CUTTING
THE PROGRAM BY 50. AMBAG HAS
BEEN WORKING ON THE REAP 2.0
PROGRAM FOR NEARLY THREE YEARS.
ALL OF OUR PROJECTS ARE UNDERWAY
AND WE WANT TO BUILD THE MORE
THAN 23,000 AFFORDABLE HOUSING
UNITS OUR REGION DESPERATELY
NEEDS. THANK YOU. THANK YOU.
NEXT THANK YOU. CHAIR AND MEMBER
WARD, AGAIN MY NAME IS COMING AT
YOU. SO ON BEHALF OF SCAG,
REALLY, THANK YOU FOR THE HONOR
OF BEING HERE TO SHARE OUR
SKAGGS EXPERIENCE WITH 2.0, THIS
IS A TRANSFORMATIVE PROGRAM, AND
QUITE FRANKLY, IT'S THE UP FRONT
INVESTMENT THAT MEMBER WARD WAS
TALKING ABOUT, IN IN JULY OF
2023, HCD AWARDED THE FINAL
PACKAGE OF REAP 2.0 TO MAKE $246
MILLION TO SCAG BY JANUARY OF
2024, WE HAD SUB ALLOCATED 192
MILLION OF THESE FUNDS TO 100
PROJECTS ACROSS SOUTHERN
CALIFORNIA. SO, THE REAP 2.0
FUNDS HAVE ALSO LEVERAGED IN THE
PROCESS THAT THE 192 MILLION
HAVE LEVERAGED ABOUT 130 MILLION
IN FEDERAL, FEDERAL, STATE AND
LOCAL FUNDS, TO THE TUNE OF
ABOUT TWO $360 MILLION TOTAL
THAT WE HAVE, REALLY READY TO GO
INTO HOUSING PRODUCTION AND
STRATEGIES TO IMPLEMENT
SUSTAINABLE COMMUNITY STRATEGY
TO REDUCE GREENHOUSE GAS
EMISSIONS, THE TIME OF THE
JANUARY BUDGET ANNOUNCEMENT,
SCAG HAD ALREADY RECEIVED $8.6
MILLION IN REIMBURSEMENTS ON THE
REAP 2.0 FUNDS BY MARCH, WHICH
IS LAST MONTH, SCAG HAD
SUBMITTED A SECOND REQUEST FOR
53 MILLION FOR THE 2.0 WORK IN
TOTAL. WE HAVE REQUESTED $61
MILLION IN REAP 2.0 FUNDS FROM
HCD, AS REQUIRED BY STATE
GUIDELINES. AS MENTIONED BY MY
COLLEAGUE, WE CONDUCTED THE
STAKEHOLDER OUTREACH. WE HIRED
CONSULTANTS TO DO TO CONDUCT
TARGETED RESEARCH IN PRIORITY
COMMUNITIES SUCH AS REGIONAL
TRIBAL GOVERNMENTS. WE CREATED A
PROGRAM TO REFLECT THAT OUTREACH
, AND WE HIRED STAFF, WE SIFTED
THROUGH HUNDREDS OF LOCAL
APPLICATIONS FOR THE BEST
PROJECTS THAT WOULD MEET OUR
HOUSING AND CLIMATE GOALS. AND
SUBSEQUENTLY, WE HAVE ENTERED
INTO MOUS WITH PROJECT SPONSORS
TO COVER AT LEAST A QUARTER OF
THOSE PROJECTS, THAT WE HAVE
SELECTED, WITH THE GOVERNOR'S
BUDGET ANNOUNCEMENT, HOWEVER,
SCAG HAD TO ISSUE ISSUES. TOUGH
WORK ORDER ON ALL REAP 2.0
PROJECTS IN OUR REGION, OUR 100
PROJECTS ARE ALL OVER SOUTHERN
CALIFORNIA, 240 ACCESSORY
DWELLING UNITS, ADUS IN ORANGE
COUNTY, WOULD HAVE BEEN MADE
POSSIBLE BY $4 MILLION IN REAP
GRANTS TO THE ORANGE COUNTY
AFFORDABLE HOUSING TRUST, 1500
NEW HOUSING UNITS MADE POSSIBLE
BY A $15 MILLION REAP GRANT FOR
THE EXPANSION OF THE NORTH
HOLLYWOOD TRANSIT CENTER, WOULD
ALSO BE IN JEOPARDY. 679
AFFORDABLE HOUSING UNITS, MADE
POSSIBLE BY A $5 MILLION REAP
GRANT TO THE GATEWAY CITIES
PRE-DEVELOPMENT LOAN FUND IN
SOUTHEAST LOS ANGELES, IS ALSO
IN JEOPARDY. UP TO 10,000 NEW
HOUSING UNITS WOULD BE MADE
POSSIBLE BY A $5 MILLION REAP
GRANT TO CREATE AN ENVIRONMENTAL
REMEDIATION HOUSING ACCELERATION
FUND AT LA METRO TO ASSESS AND
REMEDIATE SURPLUS TRANSIT SITES
FOR AFFORDABLE AND MIXED USE
HOUSING DEVELOPMENT. AND
FINALLY, JUST THIS IS JUST ONE
OF THE FINAL EXAMPLES, 203 NEW
UNITS, WILL BE MADE AVAILABLE BY
A $6.1 MILLION REAP GRANT TO THE
SOBOBA BAND OF LUISENO LUISENO
INDIANS IN RIVERSIDE COUNTY TO
CONSTRUCT A STORMWATER DRAINAGE,
WHICH WOULD THEN ENABLE THEM TO
BUILD THIS THREE THIS 203 NEW
UNITS, THIS 100 PROJECTS ARE
REAL, THEY'RE READY TO GO IN
MANY CASES, THE WORK THAT HAS
ACTUALLY ALREADY BEGUN AND OUR
REGION NEEDS THEM, WE'RE GOING
TO WE'RE ASKING YOU TO, KEEP
THIS IN MIND THAT WE ARE ALREADY
OBLIGATED ON THE REFUNDS BEYOND
THE CUTS THAT ARE BEING
PROPOSED. AND SO WE WERE BEYOND
THE NOFA STAGE. AND SO WE'RE
GOING TO WE'RE ASKING YOU THAT
YOU CONSIDER THAT AS YOU REVIEW
THESE CUTS GOING FORWARD, PLEASE
HELP US TO CONTINUE THIS WORK,
WHICH WE BELIEVE IS
TRANSFORMATIVE, NOT ONLY ON THE
HOUSING SIDE, BUT ALSO ON THE
CLIMATE SIDE, BECAUSE THAT'S THE
INTENT OF THE REAP 2.0 PROGRAM.
SO AGAIN, THANK YOU FOR THE
OPPORTUNITY TO BE HERE. WE'LL BE
GLAD TO TAKE ANY QUESTIONS.
THANK YOU FOR YOUR TESTIMONY.
I'M QUITE PERPLEXED AS, AS AND
AGAIN, THIS IS NOT A SHOWDOWN
BETWEEN, YOU KNOW, THE GOVERNOR
OR THE DEPARTMENT OF FINANCE OR
THE LÀ Þ. BUT IT WAS MENTIONED
THAT SOME OF THE FUNDING THAT
WAS DETERMINED TO BE CUT UNDER
THE HOUSING, BUDGETS WOULD BE,
PROJECTS, THAT HADN'T BEEN
PUSHED OUT NOFA TYPE OF
PROGRAMS. BUT UNDER THIS, THESE
REAP PROGRAMS, IT'S VERY CLEAR
THAT THEY'VE DONE EXTENSIVE WORK
FOR, QUITE A FEW MONTHS, MAYBE
EVEN LONGER, THAT WE'RE LOOKING
AT, HUNDREDS IF NOT THOUSANDS OF
UNITS AND ALSO DRAWING DOWN
FEDERAL FUNDS. SO I'M TRYING TO
UNDERSTAND HOW, REAP POINT TWO
WAS PUT ON THE LIST FOR THIS
SIGNIFICANT CUTS, BUT ALSO
BECAUSE MONEY HAS BEEN EXPENDED
TO CONTRACTORS TO, MATERIALS TO
GET OUT TO THE COMMUNITIES. ALL
OF THIS, IF YOU COULD SPEAK TO
THAT, PLEASE. YEAH. SO AS AS
NOTED, THE REDUCTION IS
GENERALLY IS 50% OF THE ENTIRE
PROGRAM. SO THERE'S NO
ADDITIONAL GUIDANCE OR LANGUAGE
AROUND SORT OF HOW THAT, FUNDING
IS TREATED, HOWEVER, IF THIS
BECOMES PART OF THE, THE JUNE
BUDGET, THAT IS SOMETHING THAT
THE ADMINISTRATION IS WILL WORK
ON WITH THE LEGISLATURE AS FAR
AS HOW THE REDUCTION IS
PRIORITIZED, WHEN LOOKING AT
THIS, THIS PROGRAM, IT WAS NOTED
THAT THERE WAS A SIGNIFICANT
AMOUNTS OF FUNDING THAT HADN'T
BEEN, BEEN OBLIGATED OR
COMMITTED BY, BY LOCAL
JURISDICTIONS. AND ADMITTEDLY,
THERE MAY HAVE BEEN SOME DELAY
IN IN WHEN THE JANUARY BUDGET
WAS RELEASED AND WHEN THIS WAS
BEING EVALUATED IN THE FALL
THROUGH THE FALL BUDGET PROCESS,
HOWEVER, THE DEPARTMENT OF
HOUSING AND COMMUNITY
DEVELOPMENT HAS DONE EXTENSIVE
OUTREACH, WITH VARIOUS LOCAL
JURISDICTIONS TO DETERMINE WHERE
THEY'RE AT IN THEIR EXPENDITURES
OR THEIR OBLIGATIONS. AND I KNOW
MY COLLEAGUE CAN SPEAK MORE TO
THAT PROCESS AND THE EXTENT OF
OUTREACH THAT THEY'VE BEEN DOING
, SO GENERALLY, THAT WAS THE
THOUGHT PROCESS BEHIND THIS
FUNDING IS STILL MAINTAINING A
LARGE PORTION OF THE FUNDING OF
$300 MILLION, BUT, BUT TRYING TO
BALANCE THE BUDGET IN THE LARGER
PICTURE, CAN HCD SPEAK TO THE
DIFFERENCE BETWEEN REIMBURSEMENT
PROGRAMS VERSUS OTHER PROGRAMS
AND, SPEAK TO THE LEG OF
AWARDING CONTRACTS, BUT THEN THE
REIMBURSEMENT THAT MAY HAVE
LAGGED BEHIND? YEAH. YES,
ABSOLUTELY, SO JUST TO ANSWER
THE FIRST PART, FIRST,
REIMBURSEMENT PROGRAMS, THIS IS
HOW WE'VE ALWAYS DONE, GRANT
PROGRAMS, PLANNING AND GRANT
IMPLEMENTATION PROGRAMS WHEN
YOU'RE DOING SUCH A BIG
ALLOCATION, IT'S BEEN A
PARTNERSHIP BETWEEN US AND THE
ALLOCATED ENTITIES. SO IT'S
REALLY MORE THAN JUST AN AWARD
FOR A SPECIFIC TOPIC. THIS IS A
VERY LARGE ALLOCATION. YOU KNOW,
OR TO SOME BASED ON POPULATION.
BUT THE SET OUT THAT ALLOCATION,
THE REGIONS WE GIVE THEM 10% OF
THAT FUNDING UP FRONT, AND ONE
OF THE THINGS WE DID TO ACTUALLY
SPEED UP THINGS WAS TO MAKE ONE
STANDARD AGREEMENT FOR THAT UP
FRONT PLANNING, PIECE OF THEIR
ALLOCATION AS WELL AS THE LATER
PART, SO THAT THEY WOULDN'T KIND
OF HAVE TO COME BACK AND RE
CONTRACT WITH US. BUT THE WORK
WE DID WITH THEM TO GET TO
APPROVAL OF THOSE AWARDS, WAS
ABOUT, A PARTNERSHIP IN, IN
LOOKING FOR A PLAN ON HOW TO
SPEND THOSE MONEYS. AND WE ARE
INCREDIBLY PROUD OF THE WORK
THAT CAME OUT OF THAT PROGRAM.
AND THE ONLY, THE FACT THAT THIS
IS, IS ON THERE, I THINK IS JUST
EVIDENCE OF THE TROUBLING BUDGET
CHALLENGE WE'RE FACING, BUT IN
TERMS OF THE REIMBURSEMENT PIECE
WITH THE GRANT PROGRAM, THAT HAS
ALWAYS BEEN THE WAY BECAUSE THIS
IS, IT'S IMPORTANT FOR US TO
VERIFY THAT THESE FUNDS, WE
DIDN'T JUST PUT THEM OUT THE
DOOR AND THEN SORT OF LOSE TRACK
OF THEM, THAT WE SAY THESE ARE
SORT OF ELIGIBLE USES. YOU GO
FORTH WITH SOME LEVEL OF
FLEXIBILITY, YOU COME BACK, YOU
SHOW US THAT, YOU DEMONSTRATE
THAT YOU ACHIEVED THAT, GOAL,
AND THEN WE REIMBURSE YOU FOR
THAT FUNDING. AND THAT'S JUST
SORT OF BEEN THE HISTORICAL PATH
OF OUR PLANNING GRANT AND
IMPLEMENTATION GRANTS, AND I
THINK FOR GOOD REASON TO THIS
DATE, IN THE SENSE THAT IT'S,
IT'S A PROTECTION TO MAKE SURE
THAT THOSE FUNDS ARE SPENT ON
ELIGIBLE USES AND IN AN
EFFECTIVE AND EFFECTIVE MANNER.
YOU CAN SEE THE CONCERN, THOUGH.
YES ALL RIGHT, SO ONE QUESTION,
FOR, MR. COMEY, IF YOU DON'T
MIND ME SAYING THAT. SURE, YOU
TALKED YOU GAVE A NUMBER OF
FEDERAL FUNDS THAT YOU WERE ABLE
TO DRAW DOWN. CAN YOU REPEAT
THAT NUMBER, IT'S 100, AND WE
HAVE 129 MILLION IN FEDERAL,
STATE AND LOCAL SOURCES. SO
THERE ARE DIFFERENT SOURCES OF
FUNDS THAT COMBINE TO THAT I
DON'T HAVE. WE CAN GET YOU THE
SPECIFIC BREAKDOWN BETWEEN, THE
VARIOUS LEVELS OF THOSE 130. SO
I WANT, US TO NOTE UP HERE THE
IMPACT WHEN
YOU'RE NOT, IF, IF THRESHOLDS
HAVE NOT HAVE ALREADY BEEN ABOVE
YOUR 25% HAVE ALREADY BEEN
EXPENDED. SO WE'RE LEAVING OUR
LOCAL PARTNERS HOLDING THE BAG
AND WE'RE COUNTER TO HOW WE WERE
MAKING DECISIONS ON OTHER
PROGRAMS. I GUESS I'M TRYING TO
RECONCILE THIS. COULD YOU
EXPLAIN FURTHER, SO GENERALLY,
THE APPROACH TO THE REDUCTIONS
WAS FOR, FUNDING THAT HADN'T
ALREADY BEEN ISSUED IN A NOTICE
OF FUNDING AVAILABILITY. THIS
PROGRAM IS A LITTLE BIT
DIFFERENT, ALTHOUGH SOME FUNDING
IT WAS IT WAS AWARDED ON A
COMPETITIVE BASIS. A LARGE
PORTION OF THIS WAS, BASED ON AN THAT'S WHAT
THE ADMINISTRATION DID TO
PROVIDE MORE FLEXIBILITY TO, TO
THE LOCAL JURISDICTIONS TO
PROVIDE THEM ADDITIONAL LEAD
TIME AS WELL, SO THAT DOING
THAT, EXTENDED THE TIME FRAME BY
ANOTHER TWO YEARS, RECOGNIZING
THAT IT WAS TAKING A LITTLE BIT
LONGER TO GET THIS FUNDING OUT
THE DOOR, SO IN THE FALL, WHEN
THIS PROGRAM WAS BEING
EVALUATED, THERE WAS IT WAS WELL, YOU
KNOW, TO MY COLLEAGUE, I THINK
HE WOULD SHARE, YOU KNOW, 300 IS
STILL AN EXTREMELY LARGE
INVESTMENT INTO THIS IMPORTANT
SPACE. AND I THINK THAT'S
PROBABLY PART OF THE
CONSIDERATION, BUT ALSO WHERE WE
ARE LOOKING AT IN TERMS OF THESE
REIMBURSEMENT REQUESTS, THE
MINUTE THAT WE KNEW, WHAT WAS
GOING ON, WE DID COMMUNICATE TO
THE GRANTEES AND, AND PART OF
WHAT YOU HEARD FROM MY COLLEAGUE
AT AMBAG IS AMBAG IS ONE OF THE
REGIONS THAT IS SORT OF AHEAD OF
AHEAD OF THE GAME THERE, AND
THAT WE HAVE WE HAVE TRACKED
THAT THEY, THEY ARE AHEAD IN
TERMS OF BEING READY FOR THAT
REIMBURSEMENT REQUEST. AND THAT
IS NOT YET SOMETHING THAT WE'RE
SEEING ACROSS THE BOARD. SO WE
DID SEE A BUMP AFTER WE REACHED
OUT TO GRANTEES IN TERMS OF
REIMBURSEMENT REQUESTS, BUT WE
STILL AREN'T IN, WE AREN'T IN
THE NEIGHBORHOOD OF, SAY, 25% OF
THE REIMBURSEMENT REQUESTS
STATEWIDE. YET AND SO WE DO HAVE
REGIONS THAT ARE IN DIFFERENT
PLACES FROM ONE ANOTHER. AND
THAT'S AN IMPORTANT PIECE OF THE
PUZZLE FOR MY TEAM TO BE
TRACKING. RIGHT NOW IS, HEY,
GIVE US ALL THE INFORMATION YOU
CAN. LET'S REALLY TRY AND
UNDERSTAND, YOU KNOW, BETWEEN
OBLIGATION AT THE HCD LEVEL, WE
HAVE THESE VERY INTENSE, YOU
KNOW, LAID OUT PLANS FOR EACH OF
THE REGIONS, RIGHT, BETWEEN
BETWEEN THERE AND GETTING TO
REIMBURSEMENT. WHERE IS
EVERYBODY AT? AND WE'RE TRYING
TO COLLECT THAT INFORMATION SO
THAT WE CAN INFORM YOU, YOU ALL,
AS TO THE NEXT STAGE, SHOULD
THIS BUDGET CUT REMAIN WHERE IT
IS, SHOULD IT MOVE TO A
DIFFERENT PLACE? WE'RE GOING TO
HAVE TO, WORK WITH THE GRANTEES.
AND I THINK WE JUST NEED AS MUCH
INFORMATION AS WE CAN IN ORDER
TO HELP EVERYONE MAKE INFORMED
DECISIONS ON THAT MATTER. BUT
BUT, YES, I THINK THAT THAT'S
SORT OF THE SITUATION IS YOU DO
HAVE SOME REGIONS THAT ARE AHEAD
OF THE GAME. NOT EVERYBODY IS
THERE YET, AND THAT THERE'S LOTS
OF REASONS FOR THAT. SO I DON'T
WANT TO UNDERMINE ANYBODY. THEY
ABSOLUTELY HAD MORE TIME ON DECK
TO BE PUTTING IN REIMBURSEMENT
REQUESTS. BUT FROM WHERE WE'RE
SITTING, WE STILL AREN'T AT, YOU
KNOW, YOU KNOW, WE'RE STILL
FINDING OUT WHERE EVERYONE'S AT
BECAUSE THERE IS A STEP BETWEEN
THE REGIONS OBLIGATING AND THEN
PUTTING IN THEIR REIMBURSEMENT
REQUESTS, OF COURSE. BUT WE
STILL AREN'T IN THE NEIGHBORHOOD
OF 25% IN TERMS OF SEEING
REIMBURSEMENT REQUESTS. OKAY
APPRECIATE THAT FROM MAYBE A
STATEWIDE AGGREGATE. RIGHT. AND
YOU ACKNOWLEDGE THAT THERE ARE
REGIONS THAT THAT HAVE EXCEEDED
THAT. NOW, ARE REALLY YOU KNOW,
ON A FULL STOP POSITION BECAUSE
THEY NEED TO FIGURE OUT WHAT
THEY'RE GOING TO DO TO, YOU
KNOW, NOT DRAG THEMSELVES
FURTHER INTO RISK OR DEBT. YEAH,
A COUPLE OF THINGS HERE. SO ONE,
YOU KNOW, I THINK THIS, MOMENT
IS REALLY SHINED A LIGHT AS HOW
WE CAN MAYBE, THINK TOGETHER
ABOUT THE REIMBURSEMENT PROCESS
ITSELF, I'VE BEEN A LONG
PROPONENT ABOUT MAKING SURE THAT
AS WE'RE MAKING APPROPRIATIONS
DECISIONS AND WE'RE LOCKING
SOMETHING IN A BUDGET THAT WE
ARE GETTING THOSE FUNDS AS CLOSE
TO THE COMMUNITY AS POSSIBLE SO
THE WORK CAN GET DONE IN AS
QUICK AS TIME AS POSSIBLE AND
RESPONSIBLE AND I KNOW WHY WE
ARE USE A REIMBURSEMENT PROCESS
IN THE WAY THAT WE DO, IS
BECAUSE WE WANT TO MAKE SURE
THAT WE'RE GETTING WHAT WE SAID
THAT WE WERE GOING TO GET
THROUGH THAT GRANT PROCESS,
THERE HAS TO BE A LITTLE BIT
MORE KIND OF TRUST AND A LITTLE
BIT MORE FLEXIBILITY. I THINK,
BETWEEN THE WORK THAT OTHERS ARE
DOING, BECAUSE THAT GETS TO MY
NEXT ISSUE. IT TAKES TIME. AND I
MENTIONED THIS IN MY OPENING
COMMENTS TO RAMP UP AND TO
REALLY START TO THINGS, YOU
KNOW, TO GET THINGS, YOU KNOW,
NOT JUST, YOU KNOW, PUT ON PAPER
THAT'S GOING TO GET OUT THE
DOOR. AND WE KNOW EVENTUALLY
IT'S GOING TO TAKE 6 TO 18
MONTHS TO GET DOWN TO YOU, BUT
THEY GOT TO START TO DO THE WORK
ON THEIR END. RIGHT. SO NOW FAST
FORWARD TO WHERE WE ARE RIGHT
NOW. IT IS INCREDIBLY ALARMING
THAT THIS ONE LINE ITEM HERE IS
INVOKING AS MUCH, IMMEDIATE,
WORK STOPPAGE THAT, THAT, THAT
WE'RE SEEING, AND PART OF THAT,
I THINK IS BECAUSE OF THE
PROCESS AND MAYBE THE NUMBERS
ITSELF THAT ARE PUT FORWARD HERE
, AND SO HOWEVER THIS SHAKES
OUT, YOU KNOW, BETWEEN NOW AND
JUNE, WE'VE GOT TO WORK ON THIS
PROCESS AS WELL. SO IT'S NOT SO
DISRUPTIVE, IN GOOD YEARS OR IN
BAD YEARS. AND THERE'S A LITTLE
BIT MORE STRONGER CONNECTIVITY
BETWEEN THE STATE AND OUR LOCAL
PARTNERS. THE SIR, IF I MAY JUST
ADD SOMETHING, BECAUSE I THINK
THAT'S AN IMPORTANT POINT. THE
LAG TIME IN, IN THE
REIMBURSEMENT PROCESS, I THINK
SHOULD BE NOTED, AND WE'VE
WORKED REALLY WELL WITH HCD ON,
ON THIS PROGRAM. SO WE'RE WE'RE
VERY COMFORTABLE WITH THE WORK
WITH THEM. BUT WHEN WE, WHEN WE
SUB ALLOCATED THE FUNDS TO OUR
CITIES AND COUNTIES, THEY'RE
BUSY DOING WORK. AND SO THEY
HAVE TO THEN SEND BILLS TO US
THAT WE AGGREGATE TO THEN SEND
TO HCD FOR THE REIMBURSEMENT. SO
YOU COULD SEE THE LAG. AND WHAT
HAS HAPPENED IN THE STOP WORK
PROCESS IS WE HAVE A LOT OF
JURISDICTIONS HOLDING THE BAG ON
EXPENDED TIME THAT CAN BE
COMPENSATED RIGHT NOW, BECAUSE
WE JUST DON'T KNOW HOW MUCH
WE'RE GOING TO GET REIMBURSED.
TOTALLY FROM, FROM THE STATE.
AND SO WE'VE HAD TO BASICALLY
STOP WORK. AND THAT REALLY
CREATES SOME INEFFICIENCIES IN
THE PROCESS. RIGHT. WELL, LET ME
LET ME RESTATE THAT AND, AND
CORRECT ME IF I'M WRONG. SO
LET'S SAY WE FOUND A MIRACLE AND
WE'RE ABLE TO FULLY RESTORE THIS
AND CORRECT ACTIONS GOING
FORWARD. JUST THE ACTION OF
STOPPING THAT WORK AND THEN
TRYING TO RESTART IT AGAIN IS
GOING TO MAKE ANY OF THESE
PROJECTS MORE COSTLY IN THE LONG
RUN. ABSOLUTELY, SO IT JUST YOU
KNOW, YES, IT'S DISRUPTIVE,
PHYSICALLY DISRUPTIVE. BUT I
THINK IT'S ALSO NOT A SMART,
FISCAL, DECISION TO PROCEED IN
THE WAY THAT WE DID. I WANT TO
COMMEND, YOU KNOW, THE WORK THAT
OUR COUNCILS OF GOVERNMENT HAVE
DONE UNDER REAP, YOU KNOW, FROM,
YOU KNOW, SANDAG AND SAN DIEGO,
WHICH I REPRESENT THROUGH SCAG
AND ALL UP AND DOWN THE STATE,
YOU KNOW, THOUSANDS OF UNITS
THAT HAVE BEEN PRODUCED OR IN
PIPELINE TO BE ABLE TO PRODUCE
MANY NOW ARE NOW AT RISK, BUT
ALSO DOING SO IN A WAY THAT WE
KNOW IS CLIMATE SMART, WHICH IS
EXACTLY WHERE WE WANT TO GO IN A
PATTERN OF FUTURE DEVELOPMENT,
BEING ABLE TO FOR THE STATE
SUPPORT. THANK YOU FOR THE
EDUCATION TODAY AS WELL ABOUT
HISTORY, FEDERAL SORT OF NOW
LIKE MOVING FORWARD TO MORE OF
STATE INVESTMENTS, WHICH I
SUPPORT IS TO THE EXTENT THAT WE
CAN, BECAUSE THAT'S EXACTLY YOUR
YOUR KIND OF TWO BIRDS IN ONE
STONE HERE THAT YOU ARE, NOT
ONLY SUPPORTING HOUSING UNITS,
BUT DOING SO IN A WAY THAT IS,
YOU KNOW, RESPONSIBLY DEVELOPING
IT AND LINKING IT TO TRANSIT
INVESTMENTS. YES, AND SO I AM
ENCOURAGED BY THE OUTCOMES THAT
WE'VE BEEN ABLE TO SEE TO DATE.
AND THIS, FOR ME, ISN'T JUST A
HOUSING QUESTION, BUT IT ALSO IS
IMPACTING INFRASTRUCTURE AND
OTHER COMMUNITY DEVELOPMENT, THE
FUTURE OF COMMUNITY DEVELOPMENT
THAT NEEDS, THAT, THAT WE HAVE
HERE THAT THAT'S A LITTLE BIT
MORE BROAD BRUSH. SO I WOULD, I
WOULD PAY SPECIAL CLOSE
ATTENTION AND MAYBE AND
HOPEFULLY THROUGH, YOU KNOW,
SOME, SOME EARLIER ACTION THAT
THE BETTER THAT THAT WE CAN
PARTICULARLY ADDRESS THIS ISSUE.
SO WE STOP THE DISRUPTION THAT
WE'RE EXPERIENCING THIS WINTER,
IN THE SPRING, AND WE, WE SORT
OF GET TO A PLACE OF, OF,
SURETY, ABOUT WHAT WE HAVE TO
WORK WITH IN THE IMMEDIATE AND
THEN ADDRESS MAYBE THE LONG
TERME BUDGETARY, CAPACITY GOING
FORWARD. THANK YOU. THANK YOU.
AND I THINK BETWEEN, BOTH OF US
VOCALIZING IN YOUR TESTIMONY,
IT'S PROBABLY, APPARENT THAT
THIS SEEMS TO BE A PROGRAM THAT
I FULLY SUPPORT. I'VE INTERFACED
WITH SKAG MOSTLY. BEING IN
SOUTHERN CALIFORNIA, BUT, I KNOW
ONE OF THE THINGS THAT WE HEAR
OFTEN AS STATE LEGISLATORS IS
FROM OUR LOCAL, MUNICIPALITIES,
WE DON'T WANT TO SEE MANDATES OR
DON'T LEAVE US HOLDING THE BAG.
AND IN THIS CASE, IT VERY MUCH
COULD APPEAR THAT WAY IF WE
DON'T DO SOMETHING TO RECTIFY
THIS AND THAT. TRUST AMONG
AMONGST AGENCIES, WHETHER IT'S
HCD GOVERNOR'S OFFICE,
METROPOLITAN PLANNING
ORGANIZATIONS OR EVEN THE STATE
IS AN IMPORTANT RELATIONSHIP IN
THIS CERTAINLY IS GOING TO RING
THE ALARM THAT WE FOLLOWED THE
INSTRUCTIONS GIVEN AND NOW,
WE'RE ALL ON, RED ALERT TO STOP
WHAT WE'RE DOING. AND NOT ONLY
IS IT ALARMING, BUT IT'S GOING
TO COST US MONEY. SO I THINK
THAT THAT BEING SAID, WE
APPRECIATE, ANY FINAL COMMENTS,
FINAL COMMENTS. THEN WE'LL GO
AHEAD AND OPEN IT UP FOR PUBLIC
COMMENT. THANK YOU SO MUCH,
EVERYBODY. LET'S MAKE SURE WE
KEEP OUR COMMENTS TO ONE MINUTE
AND UNDER, JAMES CARILLO FROM
THE SACRAMENTO AREA COUNCIL OF
GOVERNMENTS, THE GREATER SIX
COUNTY SACRAMENTO REGION, WANT
TO ALIGN MYSELF WITH THE
COMMENTS HERE. OUR REAP 2.0 IS
CRITICAL TO IMPLEMENT OUR
CLIMATE GOALS, THE STATE'S
CLIMATE GOALS, AND OUR
SUSTAINABLE COMMUNITY
STRATEGIES, OR RS. WE HAVE USED
THOSE REAP 2.0 FUNDS FOR OUR
LOCAL GOVERNMENTS, 26 OF 26 ARE
UNDER CONTRACT TO DO WATER SEWER
UTILITY UPGRADES TO UNLOCK 8000
UNITS OF HOUSING. THEY'VE
STOPPED WORK. THEY ARE. WE ARE
NOT CREATING THOSE HOUSING
UNITS. WE'RE NOT CREATING THOSE
JOBS. WE ARE NOT BUILDING THE
INFRASTRUCTURE. AND WE HAVE ALSO
USED IT TO LEVERAGE AN
APPLICATION TO THE US EPA FOR
INFLATION REDUCTION ACT MONEY,
90 PLUS MILLION DOLLAR GRANT,
JUST WOMEN WITH OUR REAP 2.0 AS
LOCAL LEVERAGE. SO IT'S VERY
REAL. AND THANK YOU FOR YOUR
SUPPORT. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR. MEMBERS
OF THE COMMITTEE, KIANA
VALENTINE WITH POLITICO GROUP,
IN OPPOSITION ON A NUMBER ON
BEHALF OF A NUMBER OF CLIENTS IN
TULARE COUNTY, THEY ARE BUILDING
OR HAVE ALREADY BUILT, AND
PEOPLE ARE LIVING IN 240 UNITS
THAT SUPPORT LOW INCOME
FAMILIES, LOW INCOME SENIORS AND
UNHOUSED INDIVIDUALS WITH
WRAPAROUND SERVICES IN MERCED
COUNTY. THEY ARE USING THE
FUNDING FOR TRANSIT ORIENTED
MULTIFAMILY AFFORDABLE HOUSING
DEVELOPMENT AROUND THE FUTURE
HIGH SPEED RAIL STATION IN THE
COACHELLA VALLEY. THERE IS OVER
6200 UNITS OF AFFORDABLE HOUSING
THAT WOULD BE SUPPORTED BY THIS
MONEY. IN ADDITION, MILLIONS OF
DOLLARS INTO ACTIVE
TRANSPORTATION CONNECTIVITY
PROJECTS AND ADDITIONAL PLANNING
EFFORTS TO HELP UNLOCK
ADDITIONAL INFILL HOUSING IN
SONOMA COUNTY. IT WOULD SUPPORT
1500 UNITS OF AFFORDABLE HOUSING
AND OTHER VMT REDUCING PROJECTS
AND TRANSIT CONNECTIVITY.
FINALLY, IN VENTURA COUNTY, THEY
WOULD BE USING THEIR REAP 2.0
ALLOCATION TO SUPPORT PLANNING
AND OTHER ACTIVITIES AROUND FARM
WORKER HOUSING. THANK YOU VERY
MUCH. THANK YOU SO MUCH, MADAM
CHAIR AND MEMBERS, GAS REDUCTION GOALS
IN THE BAY AREA. WE'RE
LEVERAGING UPWARDS OF $170
MILLION IN VARIOUS FEDERAL
FUNDING SOURCES TO MULTIPLY THE
IMPACT OF THE STATE'S INVESTMENT
IN TERMS OF THAT IMPACT, WE'RE
IMPLEMENTING TWO HOUSING
PROGRAMS THAT WILL BUILD OVER
1600 APARTMENTS, THAT WILL HOUSE
14,000 HOUSEHOLDS OVER THE LIFE
OF THE DEED RESTRICTION. WE'VE
HIRED STAFF, WE'VE PUT OUT
GUIDELINES, AND WE'VE ISSUED
NOFAS. WE HAVE THREE TIMES THE
AMOUNT OF APPLICATIONS AS WE
HAVE FUNDING, AND WE WERE
ACTUALLY READY TO ISSUE AWARDS
THIS MONTH OR NEXT. SO WE'VE
ABSOLUTELY HAD TO STOP WORK ON
ALL OF THOSE PROGRAMS, AND WE
URGE YOU TO REJECT THIS CUT.
THANK YOU. THANK YOU. IF YOU SEE
ME DO THIS, IT MEANS WRAP IT UP.
GOOD AFTERNOON, CHAIR AND
MEMBERS, CARLY SHELBY, ON BEHALF
OF THE SAN GABRIEL VALLEY
COUNCIL OF GOVERNMENTS, OR SGV
COG, REPRESENTING OVER 2 MILLION
RESIDENTS AND 31 INCORPORATED
JURISDICTIONS WITHIN THE LOS
ANGELES COUNTY REGION. WE HAVE
CONCERNS OVER THIS PROPOSED $300
MILLION REVERSION. SGV COG HAS
BEEN AWARDED OVER $9 MILLION AND
REAP 2.0 FUNDS THAT WILL SUPPORT
THE DEVELOPMENT OF AN ESTIMATED
150 NEW AFFORDABLE HOUSING UNITS
AND PROVIDE TECHNICAL ASSISTANCE
TO SUPPORT THE DEVELOPMENT OF
ADDITIONAL HOUSING UNITS. THIS
REVERSION COULD JEOPARDIZE
BRINGING THESE PROJECTS TO
FRUITION. WE RESPECTFULLY
REQUEST THAT IN FORMULATING THE
LEGISLATURE'S THE LEGISLATURE'S
COUNTER BUDGET PROPOSAL, YOU
REJECT THIS REVERSION AND
SUPPORT THESE FUNDS. THANK YOU.
THANK YOU, MADAM CHAIR AND
MEMBERS. NICK ROMO, ON BEHALF OF
COUNTY OF SACRAMENTO, URGING YOU
TO REJECT THE CUTS TO REAP 2.0.
THE CUTS JEOPARDIZE DOZENS OF
CRITICAL TRANSPORTATION PROJECTS
IN OUR REGION. THANK YOU. THANK
YOU, MADAM CHAIR AND MEMBERS.
CONSUELO HERNANDEZ, ON BEHALF OF
THE CITY OF SACRAMENTO, I WOULD
ECHO SACOG AND SACRAMENTO
COUNTY'S, CONCERN AS THIS
FUNDING IS CRITICAL FOR US. IT'S
WE'VE GOT THOUSANDS OF HOUSING
UNITS THAT ARE CONTINGENT ON
BOTH THE FUNDING AND THE
ADDITIONAL FUNDS THAT THEY WILL
DRAW DOWN. THANK YOU. SABRINA
BRADBURY WITH THE CALIFORNIA
ASSOCIATION OF COUNCILS OF
GOVERNMENTS, WE REPRESENT ALL 18
MPOS THAT ARE RECIPIENTS OF REAP
TWO FUNDING. AND SO JUST WANT TO
REITERATE FROM A STATEWIDE
PERSPECTIVE THAT BEYOND JUST THE
MEMBERS WHO ARE PRESENT HERE TO
COMMENT TODAY, ALL OF OUR
MEMBERS HAVE ISSUED STOP WORK
ORDERS. AND SO THERE'S ALREADY
BEEN A LOT OF DISRUPTION AND AS
OTHERS HAVE MENTIONED, THIS
REALLY IS THE ONLY FUNDING
SOURCE THAT WE HAVE TO DULY
ADDRESS OUR CLIMATE AND
TRANSPORTATION AND EQUITY GOALS
AROUND HOUSING WITH OF
VENTURA COUNTY, UNFORTUNATELY,
VENTURA COUNTY IS NUMBER. ONE
NOW IN THE COUNTRY. FOR
RESIDENTS WHO NEED THESE
AFFORDABLE HOMES TO CONTINUE TO
WAIT. THANK YOU FOR YOUR
SUPPORT. THANK YOU. GOOD
AFTERNOON. ROBBIE AVALON HERE ON
BEHALF OF THE CALIFORNIA ASIAN
CHAMBER OF COMMERCE, I JUST WANT
TO REITERATE SOME OF THE POINTS,
MADAM CHAIR AND MR. WARD, THAT
YOU HAD MENTIONED EARLIER, ONE,
THERE'S FEDERAL DOLLARS FOR A
LOT OF THESE PROGRAMS. AND FOR
HOUSING, TWO THIS IS FUNDING
THAT'S ATTACHED TO VERY REAL,
BUILDING PROJECTS THAT ARE READY
TO GO. AND IN MANY CASES, HAVE
STOPPED, BUT MANY ARE COULD BE
SHOVEL READY OR READY TO GO,
WITH, WITH VARIOUS DEGREES OF
READINESS, AND THEN THREE, MR.
WARD, I THINK, SAID IT BEST
WHERE LOCAL GOVERNMENTS HAVE
PRIORITIZED, HOUSING AND
INFRASTRUCTURE, MANY OF THEM
WHO'VE GOTTEN AHEAD FOR
PRIORITIES FOR US IN CALIFORNIA
MAY BE LEFT HOLDING THE BAG FOR
IF THIS GOES THROUGH WITH, WITH
FUNDING CUTS. SO I URGE YOU TO
MAINTAIN AND CONTINUE THE
FUNDING LEVEL FOR THE REPROGRAM
2.0. THANK YOU. THANK YOU. MADAM
CHAIR AND COMMITTEE MEMBERS,
I'LL BE SHORT AND SWEET. NICOLO
DE LUCA, CITY OF OAKLAND. WE GOT
AN AWARD IN 22. SIGNED GRANT
AGREEMENT IN 23. PUTTING 10
MILLION TOWARDS AN AFFORDABLE
HOUSING PROJECT IN WEST OAKLAND.
SO WHEN YOU SCALE BACK, CLAWBACK
REDUCTION WOULD SEVERELY,
NEGATIVELY IMPACT THAT PROJECT.
SO HOPEFULLY WE COULD REJECT IT.
THANK YOU VERY MUCH FOR ALL YOUR
WORK. YOU GOOD AFTERNOON,
COMMITTEE MEMBERS. MY NAME IS
JAMES ALLISON WITH THE MIDTOWN
ASSOCIATION, A PROPERTY BUSINESS
IMPROVEMENT DISTRICT
REPRESENTING OVER 1200
PROPERTIES IN THE HUNDREDS OF
BUSINESSES IN OUR DISTRICT IN
MIDTOWN. THIS FUNDING IS
SUPPORTING THE CONSTRUCTION OF
THE LAVENDER HEIGHTS WATER
INFRASTRUCTURE EXPANSION
PROJECT, WHICH WILL SERVE MORE
THAN 1000 NEW MULTIFAMILY UNITS,
INCLUDING CRITICAL, AFFORDABLE
HOUSING AND COMMERCIAL SPACES
THAT ARE ENTITLED AND MOVING
THROUGH THE BUILDING PERMIT
PROCESS. THE UNPRECEDENTED
DECISION TO RETRACT FULLY
COMMITTED FUNDS WILL RESULT IN
THE CANCELLATION OR CONSIDERABLE
DELAY OF PROJECTS NEEDED TO
ALLEVIATE THE CRISIS BEING FELT
IN SACRAMENTO AND STATEWIDE.
PLEASE PROTECT THIS VITAL
FUNDING AND THE PROJECTS IT
SUPPORTS. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR AND
ASSEMBLY MEMBER WARD PAUL
GONSALVES, ON BEHALF OF THE
CITIES OF PALM DESERT AND RANCHO
CORDOVA, FIRST FOR THE CITY OF
PALM DESERT, THIS IS ABOUT AN $8
MILLION CUT FOR THEM. THESE THAT
$8 MILLION WAS GOING TO BE USED
FOR IMPROVEMENTS THAT WOULD FUND
3300 SHOVEL READY PROJECTS IN
ANOTHER 1600 PROJECTS THAT ARE
UNDER REVIEW. SO CRITICAL FOR
THE CITY OF PALM DESERT AND
GETTING AND REACHING THE ARENA
NUMBERS. ADDITIONALLY, THE CITY
OF RANCHO CORDOVA. THIS IS A $7
MILLION CUT FOR WHAT THEY CALL
THEIR TRANSIT ORIENTED URBAN
HUB, WHICH IS GOING TO ALSO
INCLUDE TOWNHOMES AND
MULTIFAMILY HOUSING. SO FOR
THESE REASONS, WE ASK THAT YOU
REJECT THE GOVERNOR'S CUTS.
THANK YOU. MADAM CHAIR, MEMBERS,
AMY BROWN, ON BEHALF OF THE CITY
OF WEST SACRAMENTO, WE ARE ALSO
OPPOSED TO THE CUTS. WE REALLY
APPRECIATE THE COMMENTS MADE BY
YOU. MADAM CHAIR AND ASSEMBLY
MEMBER WARD, WE ARE A PART OF
THE GREEN MEANS GO PROGRAM
ADMINISTERED BY THE SACRAMENTO
AREA COUNCIL OF GOVERNMENTS. THE
REPRESENTATIVES BEHIND ME. SO
I'M NOT GOING TO STEAL HER
THUNDER. BUT I WILL SAY ON
BEHALF OF THE CITY IN PARTICULAR
IN WEST SACRAMENTO, THEY'VE
ALREADY MATCHED 4 MILLION IN
GREEN MEANS GO FUNDING, WITH 1
MILLION IN CITY FUNDS TO
IMPLEMENT A UNDERGROUND UTILITY
INFRASTRUCTURE AND INFILL
PROGRAM. THANK YOU, THANK YOU.
GOOD AFTERNOON, MADAM CHAIR.
MATT ROBINSON WITH CHAU AND TÚI,
SCHMELZER AND L®NG, ON BEHALF OF
THE SAN MATEO CITY COUNTY
ASSOCIATION OF GOVERNMENTS, WE
PUT A LETTER IN FOR THE RECORD
WITH OUR COMMENTS. SO JUST TO
SUMMARIZE THEM, WE ARE OPPOSED
TO THE REDUCTIONS THAT ARE
INCLUDED IN THE JANUARY BUDGET.
AND I WOULD JUST ECHO THE
COMMENTS OF MISS SNYDER FROM THE
MTC REGION. THANK YOU VERY MUCH.
THANK YOU. GOOD AFTERNOON.
BLESSED SHEPPARD, REPRESENTING
PLACERVILLE CITY, REQUESTING
THAT YOU REJECT THIS
UNPRECEDENTED CUTS. AND THIS IS
CRITICAL FOR THE SACRAMENTO
REGION TO MEET OUR CLIMATE AND
HOUSING GOALS. THANK YOU. THANK
YOU. GOOD AFTERNOON, MADAM CHAIR
AND ASSEMBLY MEMBER WARD ONCE
AGAIN, GALEN DOBBINS, ON BEHALF
OF THE CALIFORNIA COALITION FOR
RURAL HOUSING, WE ARE ONE OF THE
OLDEST LOW INCOME HOUSING
COALITIONS IN THE COUNTRY,
SPECIFICALLY WORKING IN
FARMWORKER, TRIBAL AND RURAL
HOUSING. REAP 2.0 WAS A
FANTASTIC PROGRAM BECAUSE IT
CAME WITH SEPARATE GUIDELINES
FOR RURAL AND TRIBAL
COMMUNITIES, AND IT WORKED
REALLY WELL. IT WAS CONSIDERED A
BEST PRACTICE, AND BECAUSE OF
THAT INTEREST, WE HAD 14 TRIBAL
APPLICANTS, OF WHICH SIX WERE
AWARDED, WHICH IS FANTASTIC,
TAKING THESE FUNDS AWAY OR
ELIMINATING THIS PROGRAM IS
GOING TO DO NOTHING BUT
DETERIORATE TRUST IN THESE
COMMUNITIES. AND URGE YOU TO
REJECT THESE CUTS. THANK YOU.
THANK YOU. GOOD AFTERNOON, CHAIR
AND MEMBERS. JEANNIE WARD WALLER
ON BEHALF OF TRANSFORM, BASED IN
THE BAY AREA. WE ARE OPPOSED TO
THE CUTS TO REAP. THANK YOU,
THANK YOU, HOLLY, FOR THE WHITE
HOUSE PUBLIC AFFAIRS HERE TODAY
ON BEHALF OF THE SAN DIEGO
HOUSING COMMISSION. EVEN THOUGH
WE'RE NOT THE RECIPIENT OF A
REAP $2.0, IT IS A REALLY
IMPORTANT RESOURCE TO THE REGION
. AND JUST I WANT TO SAY, ON
BEHALF OF THE COMMISSION, THE
MOST IMPORTANT AND CRITICAL
PROGRAM TO THE WHOLE REGION. AND
THEIR BIGGEST CONCERN ARE THE
REDUCTIONS PROPOSED BY THE
ADMINISTRATION TO THE TAX
ALLOCATION COMMITTEE. SO PLEASE,
LET'S TRY TO RESTORE THOSE
FUNDS. THANK YOU. ALL RIGHT. ANY
FINAL COMMENTS UP HERE FROM OUR
MEMBERS? ALL RIGHT. WITH THAT,
WE'RE GOING TO MOVE TO ISSUE
NUMBER THREE HOUSING NAVIGATION
AND MAINTENANCE PROGRAM, IT'S ON
AGENDA PAGE NINE. PLEASE JOIN US
UP HERE ON THE DAIS. WE HAVE
ANDREW. MARCH, ASSISTANT PROGRAM
BUDGET MANAGER, DEPARTMENT OF
FINANCE. YES, HE'S HERE FOR THE
DURATION. WE HAVE. BLAIR HUXMAN,
FINANCE JUNIOR STAFF ANALYST,
DEPARTMENT OF FINANCE. JEANNIE
BELLA NAVARRE, DEPUTY OF
LEGISLATIVE ANALYSIS, LAO OFFICE
, SIMONE TUREK, LEE JOHN BURTON
ADVOCATES FOR YOUTH AND ROSELLA
WILLIAM J. BAY, YOUTH ADVOCATE.
ALL RIGHT, WHOEVER WOULD LIKE TO
BEGIN. WELCOME ALL RIGHT. GOOD
AFTERNOON. COMMITTEE MEMBERS,
STAFF AND CHAIR. MY NAME IS
SIMONE TURECK LEE. I'M HERE WITH
JOHN BURTON. ADVOCATES FOR
YOUTH. WE REPRESENT A COALITION
OF MORE THAN 100 ORGANIZATIONS
AND PUBLIC AGENCIES THAT ARE
DEEPLY CONCERNED ABOUT THE
ADMINISTRATION'S PROPOSED
ELIMINATION OF THE HOUSING,
NAVIGATION AND MAINTENANCE
PROGRAM. THIS IS A SMALL STATE
PROGRAM. $13.7 MILLION THAT
PLAYS A CRITICAL ROLE IN HELPING
US ACCESS $22.6 MILLION IN
FEDERAL HOUSING ASSISTANCE FOR
YOUTH LEAVING OUR STATES WHO
HAVE LEFT OUR STATE'S FOSTER
CARE SYSTEM. THE FEDERAL
GOVERNMENT MAKES SPECIAL
POPULATION HOUSING CHOICE
VOUCHERS AVAILABLE TO YOUTH UP
TO AGE 25 WHO HAVE EXITED FOSTER
CARE, AND EVEN ALLOWS HOUSING
AUTHORITIES TO REQUEST THESE
VOUCHERS ON A ROLLING BASIS TO
SYNCHRONIZE WITH THE DATE. YOUTH
LEAVE FOSTER CARE. THEIR VISION
IS THAT NO YOUTH HAS TO EXIT THE
SYSTEM TO HOMELESSNESS.
REQUESTING THESE VOUCHERS
REQUIRES A PARTNERSHIP BETWEEN
HOUSING AUTHORITIES AND COUNTY
CHILD WELFARE AGENCIES. THIS
PARTNERSHIP REQUIRES THE COUNTY
CHILD WELFARE AGENCY TO PROVIDE
OR SECURE HOUSING, NAVIGATION
AND SUPPORTIVE SERVICES FOR
YOUNG PEOPLE. WITH THESE
VOUCHERS FOR A GOOD REASON. IT'S
VERY DIFFICULT TO TURN YOUR
VOUCHER INTO HOUSING WITHOUT
THAT SUPPORT. AT THE AGE OF 21,
22, WE HISTORICALLY SEEN MINIMAL
PARTICIPATION IN THESE VOUCHER
PROGRAMS BECAUSE THERE HAS BEEN
NO DESIGNATED FUNDING FOR THESE
SAID SERVICES. THE HOUSING
NAVIGATION AND MAINTENANCE
PROGRAM WAS EXPANDED TO
EXPLICITLY SERVE THIS PURPOSE,
SINCE COUNTIES HAVE STARTED
USING THE FUNDING FOR THIS
PURPOSE, WE'VE SEEN A 54%
INCREASE IN THE NUMBER OF
VOUCHERS FOR THIS POPULATION IN
OUR STATE. LOSING THIS PROGRAM
WOULD MEAN REVERSING THAT
PROGRESS. NEARLY HALF OF
PARTICIPATING COUNTIES RECENTLY
INDICATED IN A SURVEY THAT THEY
WOULD HALT REQUESTING ADDITIONAL
VOUCHERS. SHOULD THIS PROGRAM BE
ELIMINATED. AND I WANT TO
CLARIFY EARLIER THERE WAS
DISCUSSION ABOUT SORT OF NOT
ELIMINATING PROGRAMS THAT FOR
WHICH NOFAS HAD ALREADY GONE OUT
OR THAT KIND OF EXISTING
PROGRAMS. THIS PROGRAM HAS BEEN
AROUND SINCE 2019. THERE IS NO
PENDING NOFA. IT'S THERE'S
CONTRACTS ACROSS THE STATE THAT
ARE RELYING ON THIS FUNDING
ANNUALLY. AND MORE IMPORTANTLY,
MORE THAN 1300 YOUNG PEOPLE
BEING SERVED WITH THESE. WITH
THIS, THIS FUNDING, EXPERIENCING
HOMELESSNESS AS A YOUNG PERSON
IS THE SINGLE MOST LIKELY
PATHWAY TO CHRONIC ADULT
HOMELESSNESS. THE PER PERSON
COST OF THE HOUSING NAVIGATION
AND MAINTENANCE PROGRAM IS ABOUT
$10,200 PER YEAR. THIS IS AT
LEAST FOUR TIMES LESS THAN THE
$42,000 CALIFORNIA SPENT LAST
YEAR PER PERSON ON HOMELESSNESS,
SO IT'S REALLY A SMART FISCAL
INVESTMENT TO PREVENT
HOMELESSNESS AMONG YOUNG PEOPLE
BEFORE THEY EXPERIENCE IT.
PLEASE PRESERVE THE HOUSING,
NAVIGATION AND MAINTENANCE
PROGRAM. THANK YOU. THANK YOU.
NEXT THANK YOU. HI. MY NAME IS
ROSELLA WILHELM AND I'M 21 YEARS
OLD AND I'M CURRENTLY I
CURRENTLY RECEIVE SERVICES THAT
ARE FUNDED THROUGH THE HOUSING,
NAVIGATION AND MAINTENANCE
PROGRAM. I'M HERE TO ASK THE
COMMITTEE TO PRESERVE FUNDING
FOR THIS IMPORTANT PROGRAM, TO
HELP YOU UNDERSTAND WHY THIS IS
SO IMPORTANT, I'D LIKE TO SHARE
A LITTLE BIT ABOUT MY PERSONAL
HISTORY AS A NEWBORN. I WAS
PLACED INTO THE SACRAMENTO
CHILDREN'S RECEIVING HOME
BECAUSE ME AND MY TWIN SISTER
WERE BORN WITH DRUGS IN OUR
SYSTEM. UNFORTUNATELY FOR MY
SISTER, THIS LEFT HER
PERMANENTLY DISABLED AND
NONVERBAL. WE WERE BOTH
INITIALLY.
DEPARTMENT COMPLEX WAS NOT SAFE.
THERE WAS DRUG TRAFFICKING,
HUMAN TRAFFICKING. AND I DIDN'T
FEEL SAFE BEING OUTSIDE MY
APARTMENT AFTER DARK. WHEN I
TURNED 21, THE MONTHLY PAYMENT
THAT I WAS RECEIVING IN FOSTER
CARE SYSTEM STOPPED. THIS
DECREASE IN MY MONTHLY INCOME
CAME AT THE TIME WHEN MY JOB THIS
SITUATION. THEY HELPED ME GET
OUT OF MY LEASE AND MOVE TO AND
MOVE INTO AN APARTMENT THAT WAS
MORE AFFORDABLE AND SAFER. THEY
HELPED. THEN THEY HELPED ME
APPLY FOR A FEDERAL HOUSING
CHOICE VOUCHER WITHOUT LUTHERAN
SOCIAL SERVICES, WHICH
SACRAMENTO COUNTY FUNDS THROUGH
THE HOUSING TO TAKE
IN. LUTHERAN SOCIAL SERVICES IS
HELPING ME AT EVERY. THEY ARE
CURRENTLY HELPING ME FIGURE OUT
THE NEXT BEST STEP, AND THEY'RE
GOING TO SEE THIS THROUGH UNTIL
I HAVE STABLE HOUSING I CAN
AFFORD WITH MY VOUCHER. FOR
YOUNG ADULTS LIKE ME WHO CAME
THROUGH THE FOSTER CARE SYSTEM,
WE DON'T HAVE THE PARENTAL OR
FAMILY GUIDANCE IN TIMES LIKE
THESE. NOT TO NOT TO MENTION
FINANCIAL SUPPORT. THE HOUSING
NAVIGATION AND MAINTENANCE
PROGRAM HELPS ENSURE THAT EVEN YOUTH BY
PRESERVING THE MAINTENANCE, THE
PRESERVING THE HOUSING. MEANINGFUL,
MORAL AND HELPFUL FOR THOSE THAT
ARE TO BE
ABLE TO SUPPORT OUR FOSTER YOUTH
AS ONE OF THE MOST IMPORTANT
THINGS THAT WE CAN VERY
STRONGLY WITH US, AND WE'LL TAKE
IT UNDER CONSIDERATION. I
APPRECIATE YOUR REMARKS. YEAH, I
HAVE A FEW FACE MEETINGS. AND SO IN
ORANGE COUNTY, I HAD A MEETING
WITH ABOUT NINE SOCIAL WORKERS
AND, ALL JUST OWN UP TO THE FACT
THAT SOMETIMES YOU'LL SEE
SOMETHING ON A LIST AND YOU'LL
THINK, OKAY, IT'S A HARD BUDGET,
YOU KNOW, MAYBE
WALKED INTO MY OFFICE, ALL,
SAYS IT IS ALSO. SO, OF COURSE,
KEEPING THESE INDIVIDUAL YOUNG
FOSTER YOUTH FROM FALLING INTO
HOMELESSNESS. BUT WHAT REALLY
CAUGHT MY EYE AND THEY LEFT IT
WITH ME. AND I ACTUALLY WISH I
WOULD HAVE BROUGHT IT, I DO HAVE
IT UP IN THE OFFICE IS, A BINDER
THAT IS ABOUT THIS BIG. LIKE,
LOOK AT THE WIDTH HERE. OF
PAPERWORK THAT THESE YOUNG
INDIVIDUALS HAVE TO GO THROUGH
IN ORDER TO ATTAIN NOT ONLY
THESE VOUCHERS, BUT TO STAY
HOUSED. SO I'M GOING TO SHOW YOU
AGAIN ABOUT THIS BIG. AND AS
ADULTS, WITH SUPPORT, I
GUARANTEE ABOUT 90% OF US IN
THIS ROOM WOULD NOT MAKE IT
THROUGH THESE PROCESSES. THEY
ARE EXTREME. THEY'RE LENGTHY. IT
WOULD ALMOST BE LIKE APPLYING
FOR A HOME MORTGAGE, AND IT WAS
SHOCKING. SO THAT'S A WHOLE
NOTHER STORY. IT'S NOBODY'S
FAULT. IT'S JUST WHAT'S BEEN PUT
IN FRONT OF THESE INDIVIDUALS
JUST TO ATTAIN THE VOUCHER, I
ATTRIBUTE TO, VETERANS WHO ARE
LEAVING SERVICE. AND IN ORDER TO
ATTAIN THEIR BENEFITS, THEY HAVE
26 STEPS WHICH WHICH SEVERAL OF
THEM, THEY MAKE IT THROUGH. AND
THEN AT SOME POINT, MANY OF THEM
FALL OFF BECAUSE IT JUST IS MORE
AND MORE AND MORE. AND THEN WE
SAY, WHY DO WE HAVE HOMELESS
VETS? SO, THAT BEING SAID, MY
MIND WAS COMPLETELY CHANGED. ONE
OF THE SOCIAL WORKERS THAT
SHOWED UP WAS ACTUALLY RETIRED,
AND SHE CAME ON HER OWN, TIME TO
SAY THIS IS THE PROGRAM SHE HAD
BEEN REALLY SPENDING HER LAST
YEARS, BEFORE SHE RETIRED. AND,
WAS, VERY, ADAMANT THAT THIS
WOULD BE A DIRECT LINK FOR THESE
YOUTH TO FALL INTO HOMELESSNESS
IF WE WERE NOT TO PROTECT THESE
FUNDS. SO WITH THAT, IT WAS EYE
OPENING, AND THAT'S THE JOBS WE
DO TO GAIN THE INFORMATION WE
NEED TO MAKE THESE HARD
DECISIONS. AND I WILL DO
EVERYTHING I CAN TO PROTECT
THESE FUNDS. I KNOW WE HAVE A
TOUGH JOB AHEAD OF US, BUT IT
WAS. AND I'LL BE HAPPY TO SHARE
THAT BINDER WITH ANYBODY THAT
HAS ALL THE PAPERWORK. IF
ANYBODY WANTS TO SEE IT, BECAUSE
I'VE SHOWN IT A FEW TIMES
BECAUSE I WAS JUST I DON'T KNOW
IF YOU'VE SEEN THAT. IT WAS JUST
SHOCKING. SO, DO WE HAVE ANY
OTHER QUESTIONS? ANY OTHER
COMMENTS, ANDREW ROBERTS,
DEPARTMENT OF FINANCE. SO WE
WOULD JUST LIKE TO NOTE THAT
THIS FUNDING IS IN ADDITION TO,
OTHER FUNDING THAT'S AT THE
DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT FOR FOSTER
YOUTH, FOR THE TRANSITIONAL
HOUSING PROGRAM, SUPPLEMENT. IS
ROUGHLY $40 MILLION. GENERAL
FUND ONGOING. BOTH OF THESE
PROGRAMS ARE DISCRETIONARY
PROGRAMS IN STATUTE. IT'S NOTED
THAT IT'S, OBVIOUSLY THESE ARE
UP TO THE LEGISLATURE. TO
INCLUDE IN THE BUDGET EACH YEAR.
AND THAT DESPITE THIS BEING A
FLEXIBLE POT OF FUNDING FOR
COUNTIES, THERE ARE OTHER
SOURCES OF FUNDING, THAT
COUNTIES CAN UTILIZE FOR THIS,
ALTHOUGH IT WOULD HAVE TO BE AT
THE DIRECTION OF THE COUNTY
BOARD OF SUPERVISORS TO UTILIZE
THAT FUNDING. SO, FOR EXAMPLE,
THE BUILDING HOMES AND JOBS
TRUST FUND PROVIDES ONGOING
FUNDING TO COUNTIES AND CITIES,
AND THIS IS AN ELIGIBLE USE OF
THAT FUNDING THAT COUNTIES WOULD
HAVE TO THEN TAKE PROACTIVE
STEPS. SO IT WOULD BE REALLY A
PRIORITIZATION OF EXISTING
FUNDING THAT THAT COUNTIES AND
CITIES HAVE, IF THIS, THIS
FUNDING WERE NOT INCLUDED IN THE
BUDGET, IT DOES NOT NECESSARILY
MEAN THAT THERE WOULD BE NO
FUNDING, THAT THE STATE PROVIDES
FOR COUNTIES AND CITIES TO, TO
SUPPLEMENT THE, THE, FOSTER
YOUTH VOUCHERS. REALLY GOOD
POINT. AND I, WITHOUT CALLING
ANYBODY OUT IN PARTICULAR, WOULD
JUST NOTE THAT WE HAVE A
RESPONSIBILITY TO, I THINK,
RAISE A CERTAIN LEVEL OF FLORIDA
GUARANTEES, THAT ALL
CALIFORNIANS ARE GOING TO
BENEFIT FROM FOSTER YOUTH, ARE
GOING TO BE ABLE TO, FORMERLY
FOSTER YOUTH ARE GOING TO BE
ABLE TO BENEFIT FROM THIS. AND
BY DOING SO, RELYING ON BACKFILL
FROM OTHER, MORE GENERAL PURPOSE
FUNDS, DOESN'T PROVIDE THAT
GUARANTEE, I GUESS. AND SO
SOMETHING WE'LL LOOK AT. BUT I
APPRECIATE THAT, YOU KNOW, WE
MIGHT HAVE SOME FLEXIBILITY OUT
THERE, I WOULD BE MORE
COMFORTABLE IF WE WERE AT LEAST
RAISING THE FLOOR FOR SOME
MINIMUM GUARANTEES FOR THESE
PURPOSES. LAST QUESTION. MAYBE
LAO OR DEPARTMENT OF FINANCE.
AND I KNOW WE HAVEN'T EVEN MOVED
FORWARD WITH IT, BUT PROP ONE
WAS JUST VOTED UPON, DO WE KNOW
IF THERE IS ANY FUNDING IN THERE
FOR, A PROGRAM LIKE THIS,
PARTICULARLY FOR FOSTER CARE? I
DON'T BELIEVE SO, HOWEVER, THE
SERVICES COMPONENT OF
PROPOSITION ONE IS NOT IN MY
EXPERTISE, BUT WE CAN FOLLOW UP
AND GET BACK TO YOU. ALL RIGHT.
THANK YOU. ANY LAST COMMENTS,
WELL, WE APPRECIATE YOU DID AN
EXCELLENT JOB. WE APPRECIATE YOU
BEING HERE. AND THAT WITH THAT,
WE WILL, BRING IT OPEN TO PUBLIC
COMMENTS ON THIS ITEM. THANK
YOU. AND AGAIN, ONE MINUTE OR
UNDER AND FOR THOSE OF YOU WHO
HAVEN'T BEEN UP TO THE MIC, YOU
CAN PULL THE MIC UP OR DOWN
ACCORDING TO YOUR HEIGHT.
WELCOME HELLO. MY NAME IS DIANA
PISANO. I'M A YOUNG ADULT WITH
LIVED EXPERIENCE, I FLEW HERE
TODAY FROM LOS ANGELES,
CALIFORNIA. I'M ALSO A FORMER
YOUTH COMMISSIONER FOR DISTRICT
THREE, I COME IN SUPPORT OF
CONTINUING TO FUND THE HOUSING
NAVIGATION BECAUSE I'M A DIRECT
RECIPIENT OF THE SUPPORT
SERVICES THAT WERE ALLOCATED BY
THIS FUNDING. AND BECAUSE OF
THAT, I'M NOW HOUSED IN STABLE
AND ABLE TO CONTINUE TO PURSUE
MY DREAMS AND MY GOALS. AND I
JUST SAY THAT I HOPE THAT SHE
LISTENS TO THE PEOPLE AND THE
NECESSITY OF HAVING THIS
FUNDING, ESPECIALLY FOR FORMER
FOSTER YOUTH, WHEN WE'RE
STRIPPED OF OUR COMMUNITY, OF
OUR PARENTS, OF THE PEOPLE THAT
ARE SUPPOSED TO GUIDE US IN
LIFE, THIS IS THE JOB OF NOW THE
GOVERNMENT AND THE COUNTY TO
HELP SUPPORT US AND GUIDE US TO
LIVE HEALTHY, LONG LIVES. THANK
YOU. WE'RE REALLY PROUD OF YOU.
THANK YOU FOR COMING. GOOD
AFTERNOON, MADAM CHAIR. MY NAME
IS ELLA HOLMAN AND I AM THE
CURRENT HOUSING NAVIGATOR
MAINTENANCE PROGRAM SUPERVISOR
IN STOCKTON, FIRST BARONET.
FORMERLY, I WAS A LIFE COACH,
FOR THESE FORMER FOSTER YOUTH
FOR TEN YEARS. SO OBVIOUSLY I'M
WAIST DEEP IN THIS AND I, I IF I
KNOW THIS IS A HARD DECISION FOR
YOU GUYS TO MAKE WITH THESE
FUNDS, BUT IF I'M ON THE OTHER
SIDE AND I SEE THE OUTCOME OF
WHAT THOSE FUNDS DO, THEY HAVE A
VERY BIG IMPACT ON THESE YOUTH
LIVES. SO WHEN YOU SEE THAT
HOUSING NAVIGATOR MAINTENANCE
PROGRAM LINE ITEM, PLEASE DON'T
REJECT IT. THANK YOU. HELLO, MY
NAME IS ELIJAH WATSON. I AM,
SPEAKING FOR ASPIRANT OUT IN
STOCKTON, CALIFORNIA. I JUST
WANTED TO REALLY REITERATE, AS
YOU GUYS KNOW, THERE'S A HIGH
SUICIDE RATE WITH ALL THE FOSTER
YOUTH
ANGELES COUNTY BOARD OF
SUPERVISORS, WHO ECHOES YOUR
YOUR POSITION TO REJECT THE
PROPOSAL TO CUT THE FUNDING,
APPRECIATE YOUR INSIGHT ON THE
SOCIAL WORKERS. AS A SOCIAL
WORKER MYSELF, AND ALSO
ADVOCATING ON ISSUES LIKE THIS.
IN MY PAST DAYS WHEN I WAS MUCH
YOUNGER, BUT, YOU KNOW, YOU
UNDERSTAND THE HARD WORK IT
TAKES IN ORDER FOR US TO BE ABLE
TO DELIVER THE IMPORTANT, YOU
KNOW, STABILITY FOR OUR FOSTER
YOUTH AND YOUTH IN PROBATION,
EXITING OUT OF THE SYSTEM AND
PREVENTING HOMELESSNESS. BUT
THAT THAT'S THE REASON WHY IT IS
A PRIORITY FOR THE BOARD OF
SUPERVISORS AND APPRECIATE THAT
OUR LA COUNTY DELEGATION, HAS
ALSO LISTED IT AS A PRIORITY.
THANK YOU. THANK YOU. HI. MY
NAME IS GEORGIA SACKETT, AND
I'VE EXPERIENCED EIGHT YEARS IN
THE FOSTER CARE SYSTEM. I AM A
STUDENT AT BIÂU COLLEGE, AND I'M
HERE TO ASK THE COMMITTEE TO
PRESERVE FUNDING FOR THE $13.7
MILLION HOUSING NAVIGATION AND
MAINTENANCE PROGRAM, WHICH IS
PROPOSED FOR ELIMINATION IN THE
GOVERNOR'S BUDGET. THIS PROGRAM,
AGAIN, DOES SERVE OVER 1300
FORMER FOSTER YOUTH AT AND WITH
THE FEDERAL HOUSING VOUCHERS
KEEPING YOUTH HOUSED WHILE
LEVERAGING 22 MILLION AND
FEDERAL HOUSING ASSISTANCE. AS A
FORMER FOSTER YOUTH, THIS
PROGRAM HAS ALLOWED ME TO PURSUE
MY COLLEGE CAREER FULL TIME.
COLLEGE CAREER WHILE HAVING MY
FIRST STABLE PLACEMENT, LIVING
ALONE AND NOT ONLY HAS THIS
PROGRAM HELPED ME BE SUCCESSFUL,
IT'S ALSO HELPED ME LEVEL THE
PLAYING FIELD AND GIVING ME A
FIGHTING CHANCE TO BE PRODUCTIVE
IN THIS SOCIETY. THANK YOU.
GREAT JOB. WELL DONE. THANK YOU.
HI, MY NAME IS JASMINE. YOU MOVE
UP TO THE MIC A LITTLE BIT.
THERE YOU GO. HI MY NAME IS
JASMINE AND I EXPERIENCED THE
FOSTER CARE SYSTEM SINCE I WAS
TWO YEARS OLD. AND I'M JUST HERE
BASICALLY TO ASK YOU TO PRESERVE
IT, BECAUSE IT DOES HELP A LOT
OF KIDS IN NEED. THANK YOU.
THANK YOU FOR COMING. YOU THINK
THIS WOULD BE EASIER? ON MY
THIRD TRY? MOVE THE MIC DOWN
JUST A TINY BIT. THERE YOU GO.
SORRY ARE
SYSTEMS IMPACTED AND ARE YOUNG,
THEREFORE WILL LIKELY IMPACTED
BY THE SYSTEM FOR MORE MANY MORE
YEARS TO COME. AND I'D HATE TO
SEE BUDGET CUTS BE THE REASON
THEY CAN'T SUCCEED. THANK YOU,
THANK YOU. GREAT JOB. SUSANNA
KNIFFEN WITH CHILDREN NOW ALSO
URGING YOU TO REJECT THE
PROPOSED CUT TO THIS PROGRAM, WE
ARE LEGALLY RESPONSIBLE FOR
THESE CHILDREN AND YOUTH AND
THEY SHOULD ALWAYS BE OUR
PRIORITY. EVEN IN A DIFFICULT
BUDGET YEAR. THANK YOU. HI. MY
NAME IS SARAH THOMPSON, AND I
AGED OUT OF THE FOSTER CARE
SYSTEM ENTERING WHEN I WAS FOUR
YEARS OLD. I AM A STUDENT WITH
THE BUTTE COLLEGE INSPIRING
SCHOLARS, AND I AM HERE TO ASK
THE COMMITTEE TO PLEASE PRESERVE
THIS HOUSING, NAVIGATION AND
MAINTENANCE PROGRAM. BUDGET CUTS
THAT END UP THIS WAY ARE ARE
THINGS THAT ENDED UP, THAT HELP
AIDED. I ENDED UP HOMELESS
BECAUSE OF BUDGET CUTS LIKE THIS
AND HAD TO ENDURE A NUMBER OF
DIFFERENT THINGS THAT YOU'D
RATHER NOT LISTEN TO. SO PLEASE
HELP US AND PEOPLE LIKE US GET
THE RESOURCES THAT WE DESERVE.
THANK YOU. HI EVERYONE. MY NAME
IS MIA COMMUNITY. YOU ALL
HAVE A PLACE TO GO HOME TONIGHT.
I DO NOT THANK YOU FOR YOUR
TIME. THANK YOU. GOOD AFTERNOON,
MADAM CHAIR AND COMMITTEE
MEMBERS. MY NAME IS EDDIE
AGUILAR. I'M AN ADVISOR AT BUTTE
COMMUNITY COLLEGE, AND I'M HERE
TO ALSO URGE THE COMMITTEE TO
MAINTAIN FUNDING FOR THE
HOUSING, NAVIGATION AND
MAINTENANCE PROGRAM. AS SOMEONE
WHO HAS PERSONALLY EXPERIENCED
FOSTER CARE, I UNDERSTAND THE
CHALLENGES AND UNCERTAINTIES
THAT MANY FOSTER YOUTH HAVE
FACED, PARTICULARLY WHEN IT
COMES TO HOUSING STABILITY. I
WAS ALSO FORM HOW HOMELESS WHEN
I WAS IN CARE OR WELL, ACTUALLY
AFTER I GRADUATED HIGH SCHOOL.
THIS PROGRAM IS VITAL TO OVER
13,000 1300 FORMER FOSTER YOUTH,
BY PROVIDING FEDERAL HOUSING
VOUCHERS IN MY CAPACITY AS AN
ADVISOR, I HAVE WORKED CLOSELY
WITH STUDENTS, HAVE WITNESSED
FIRSTHAND THE IMPACT OF HOUSING
INSTABILITY ON YOUNG PEOPLE.
IT'S DISHEARTENING TO SEE YOUTH
ON THE BRINK OF DROPPING OUT OF
CLASS SIMPLY BECAUSE THEY'RE
UNSURE OF WHAT HOUSING OPTIONS
AWAIT THEM. AFTER THE EXIT, THE
THP PROGRAM. AND, THE REALITY IS
STARK. THP PLUS IN BUTTE COUNTY
HAS ONLY TEN AVAILABLE BEDS IN
SHASTA COUNTY. NONE IN. AND THE
WAITING LIST FOR THE ONE IN
BUTTE COUNTY IS OVER 50 PEOPLE.
MANY OF THESE YOUNG ADULTS FALL
THROUGH THE CRACKS AND BECOME
HOMELESS OR INCARCERATED OR
UNABLE TO RETURN BACK TO THEIR
EDUCATION. SHOCKINGLY, WITH ONLY
3%
MEETING WITH US. AND I'M HERE TO
ASK THAT THE COMMITTEE PRESERVE
FUNDING FOR THE HOUSING AND
MAINTENANCE PROGRAM. THANK YOU.
GOOD AFTERNOON, MADAM CHAIR, AND
MEMBERS. DANIELLE BRADLEY, ON
BEHALF OF THE CALIFORNIA STATE
ASSOCIATION OF COUNTIES. JUST
WANT TO ECHO COMMENTS, WE ARE IN
OPPOSITION TO THE PROPOSED
ELIMINATION OF THE HOUSING
NAVIGATION AND MAINTENANCE
PROGRAM. THANK YOU, THANK YOU.
ALL RIGHT. SEEING NO OTHER
PUBLIC COMMENTS, ANY LAST
COMMENTS FROM ANYBODY UP HERE?
ALL RIGHT. THANK YOU VERY MUCH
FOR YOUR TESTIMONY AND, WE WILL
NOW MOVE TO ISSUE FOUR FEDERAL
FINANCIAL ASSISTANCE, SUPPORT
STAFF, IT'S ON AGENDA PAGE 11,
AND WE'RE GOING TO GO AHEAD AND
LET YOU INTRODUCE YOURSELF.
MADAM CHAIR, MEMBERS, MATT
SCHULER I'M THE DEPUTY DIRECTOR
OF ADMINISTRATION AT HOUSING AND
COMMUNITY DEVELOPMENT, THIS ITEM
IS A WORKLOAD PROPOSAL. WE'RE
ASKING FOR TEN STAFF TO AUGMENT
OUR DIVISION OF FEDERAL
FINANCIAL ASSISTANCE TO DO WORK
ON FEDERAL PROGRAMS IN A VARIETY
OF CAPACITIES THAT ARE OUTLINED
IN THE PROPOSAL. CURRENTLY, THAT
UNIT IS UNDERSTAFFED RELATIVE TO
SIMILAR MULTIFAMILY EFFORTS IN
OTHER DIVISIONS, SO IT'S PRETTY
STRAIGHTFORWARD. I MEAN, I WILL
NOTE THAT THIS MONEY IS FEDERAL
TRUST FUND MONEY, THAT IS
ASSOCIATED WITH THE
ADMINISTRATION OF THE PROGRAMS.
IT DOESN'T INVOLVE ANY SPEND OF
GENERAL FUND. THANK YOU. ANY
QUESTIONS? ANY QUESTIONS FROM
OUR MEMBERS HERE? I DON'T HAVE
ANY QUESTIONS EITHER. DO WE HAVE
ANY PUBLIC COMMENTS? CGRTS
SEEING NONE. THANK YOU FOR YOUR
TESTIMONY. VERY STRAIGHTFORWARD.
THANK YOU. OKAY, ITEM NUMBER
FIVE, PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM
ADMINISTRATION. DO WE JUST DO
THAT? NØ. YEAH. AND AGAIN, MADAM
CHAIR, AGAIN PROVIDING TESTIMONY
ON THIS MATTER WITH THE WITH THE
DEPARTMENT, WITH HOUSING AND
COMMUNITY DEVELOPMENT. THIS IS A
VERY SIMILAR PROPOSAL TO THE
LAST ISSUE, IN TERMS OF BEING
STAFF AUGMENTATION, WE'RE ASKING
FOR FOUR POSITIONS, TO DO WORK
ON THE PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM, OVER THE
ROUGHLY THE LAST THREE YEARS,
WE'VE DOUBLED THE NEED OF
BASICALLY EVERY WORKLOAD
MEASURE. SO THERE'S DEFINITELY A
NEED TO AUGMENT THE STAFF, FOR A
VARIETY OF REASONS, BUT
PRIMARILY TO PROVIDE ADDITIONAL
TECHNICAL ASSISTANCE TO AWARDEES
AND POTENTIAL AWARDEES AND
REALLY TO DO DISBURSEMENTS IN AN
EVEN MORE TIMELY MANNER TO GET
THAT MONEY OUT THE DOOR TO THE
PEOPLE THAT NEED TO PUT IT TO
WORK, AGAIN, LIKE THE FEDERAL,
PROPOSAL, ALL THIS MONEY IS
ASSOCIATED SPECIFICALLY WITH
THIS PROGRAM WITHIN THE
ADMINISTRATIVE CAP FOR THAT
PROGRAM DOESN'T INVOLVE ANY
GENERAL FUND SPEND. ALL RIGHT,
ANY QUESTIONS? NO, BUT DON'T DO
ANY MORE, GIVING OUT AWARDS IF
WE HAVE TO PULL THEM BACK. NO, I
DON'T HAVE ANY QUESTIONS, THANK
YOU FOR THAT. ANY PUBLIC
COMMENTS? SEEING NONE. THANK
YOU. THANK YOU. ALL RIGHT. WE'RE
GOING TO GO TO A WHOLE NOTHER
PART OF THIS HEARING, WHICH
WOULD BE BUSINESS, CONSUMER
SERVICES AND HOUSING AGENCY,
HOUSING AND COMMUNITY
DEVELOPMENT DEPARTMENT. AND WE
ARE GOING TO HAVE NEW FRIENDS
FROM THE GOVERNOR'S OFFICE AND
HOUSING. AND WE'LL GO AHEAD AND
LET, THE PANELISTS INTRODUCE
THEMSELVES AND MAKE COMMENTS.
YOU GUYS CAN GO FIRST. OKAY.
LEAH. DEPARTMENT OF FINANCE
CHRIS HILL, DEPARTMENT OF
FINANCE, I'M MEGAN KIRKBY. I'M
OUR DEPUTY DIRECTOR FOR HOUSING
POLICY AT THE CALIFORNIA
DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT. I SUPPOSE
I COULD HAVE TAKEN THAT SEAT,
BUT I JUST LIKE MEGAN KIRKBY SO
MUCH, I'M MEGAN MARSHALL, I'M
THE EXECUTIVE OFFICER FOR THE
CALIFORNIA INTERAGENCY COUNCIL
ON HOMELESSNESS. ALL RIGHT,
DEPARTMENT OF FINANCE, IF YOU
WANT TO GO AHEAD AND LET US KNOW
WHAT YOU ARE CUTTING. THE
GOVERNOR'S BUDGET MAINTAINS $1.1
BILLION. GENERAL FUND FOR ROUND
FIVE OF THE HOMELESS, HOUSING
ASSISTANCE AND PREVENTION
PROGRAM. HOWEVER, TO MAINTAIN A
BALANCED GENERAL FUND, THE
GOVERNOR'S BUDGET DOES PROPOSE
TO DEFER $260 MILLION IN HAP
ROUND FIVE FUNDING FROM 2023 TO
20 4 TO 20 2526. THE GOVERNOR'S
BUDGET ALSO PROPOSES TO REVERT
$100.6 MILLION GENERAL FUND AND
ADMINISTRATIVE SET ASIDES FOR
THE VARIOUS ROUNDS OF HALF FOR
THE AND FOR THE FAMILY
HOMELESSNESS CHALLENGE GRANTS AS
GENERAL FUND SAVINGS. BECAUSE
THESE FUNDS ARE NOT REQUIRED BY
THE ADMINISTERING DEPARTMENTS,
THE DEPARTMENT OF FINANCE IS
PREPARED TO ANSWER ANY QUESTIONS
THE SUBCOMMITTEE MEMBERS MAY
HAVE. THANK YOU. THANK YOU,
JENNY BELLA. WITH THE LAO, WE
HAVE NO CONCERNS WITH THE
REVERSION OF THE 100 MILLION FOR
ADMINISTRATIVE FUNCTIONS IN
TERMS OF THE DELAY OF THE 260
MILLION GENERAL FUND. IT'S OUR
UNDERSTANDING THAT REALLY ALSO
IS ALIGNING WITH THE PREDICTION
OF WHEN THAT FUNDING WOULD BE
NEEDED. SO THAT WOULD BE, I
THINK, A KEY QUESTION TO EXPLORE
TODAY AS YOU CHAT THROUGH THIS
ISSUE. ALL RIGHT. THANK YOU. ANY
OTHER COMMENTS BEFORE
ASSEMBLYMEMBER WARD? NO THANK
YOU, AS SOMEBODY WHO WAS
FORMERLY THE CHAIR OF OUR CAC, I
KNOW VERY WELL THE IMPROVEMENTS
THAT WE'VE MADE TO THE CHAP
PROGRAM, AND THE RELIANCE THAT
BOTH OUR CSAS, OUR CITIES AND
OUR COUNTIES, HAVE COME TO, YOU
KNOW, TO BE ABLE TO DO THE WORK
THAT THE HARD WORK THAT THEY'RE
DOING OUT THERE AND THE WORK IS
CERTAINLY GETTING HARDER. THE
NEED IS CERTAINLY STRONGER, NO
PROBLEMS, I THINK, WITH THE SOME
OF THE ADMINISTRATIVE SET
ASIDES. BUT BY DELAYING MONIES
FROM THE 2023 FISCAL, THE 24
FISCAL YEAR FORWARD, ONE OF THE
THINGS THAT I SAW, I THINK, IN
THE GOVERNOR'S, JANUARY DRAFT
WAS THAT THERE WAS NO
GUARANTEES, I GUESS, FOR THE
SUBSEQUENT FISCAL YEAR, THAT WE
WERE GOING TO BE CONTINUING
FUNDING AND THINGS HAVE NOT
GOTTEN BETTER. WE KNOW WE NEED
TO SUSTAIN MANY OF THESE
PROGRAMS. WE CERTAINLY HAVE
RESPONSIBILITY TO LOOK AT THEIR
EFFECTIVENESS, BUT I HAVE SEEN
IMPROVEMENT ON OUR LOCAL COX AND
LOCAL GOVERNMENTS TO BE ABLE TO,
PRODUCE SOME OF THE OUTCOMES
THAT, THAT WE'RE EXPECTING,
ACROSS A VARIETY OF PROGRAMS AND
LOCAL LOCAL PROGRAMS AND
FUNCTIONS, THAT ARE DELIVERING
ON THESE SERVICES. SO I'M
WONDERING IF THERE'S ANY COMMENT
ABOUT, THE STATUS OF THAT. I SEE
THAT YOU'RE GOING TO MAINTAIN
THE FUNDING FOR FISCAL YEAR 25,
BUT AGAIN, THE THIS ISSUE ABOUT
NEEDING TO PREDICT AHEAD AND
RAMP UP, AND PROVIDE CERTAINTY
FOR THE FUNDING AND SOME OF THE
OUT YEARS, WHAT'S THE STATUS OF
THAT, THROUGH WHAT I HAVE SEEN
IN THE JANUARY DRAFT, CHRIS HILL
AGAIN WITH DEPARTMENT OF
FINANCE, AS MY COLLEAGUE AND AS
LAO NOTED, WE ARE PROPOSING TO
MAINTAIN THE ENTIRETY OF THE HAP
FIVE FUNDING THAT THE
ADMINISTRATION AND THE
LEGISLATURE MUTUALLY AGREED TO
AS PART OF THE 2023 BUDGET ACT.
AND IN TERMS OF ANY FUTURE
FUNDING FOR HAP, THE
ADMINISTRATION DID SIGNAL IN
WHEN WE RELEASED THE GOVERNOR'S
BUDGET THAT WERE PREPARED TO
WORK WITH THE LEGISLATURE TO
EXAMINE WAYS TO POSSIBLY,
LEVERAGE ADDITIONAL FUNDS FOR
FUTURE ROUNDS OF HOMELESSNESS
PROGRAMS SIMILAR TO HAP. BUT,
THAT'S GOING TO DEPEND UPON THE
FISCAL SITUATION AND A MYRIAD OF
FACTORS. AND SO, WE DID MAKE
THAT COMMITMENT, BUT THAT'S
STILL SORT OF, TO BE DETERMINED
RIGHT NOW. AND IT'S GOING TO
DEPEND ON REVENUES AND VARIOUS
OTHER THINGS. SO WE'RE NOT
REALLY PREPARED TO SAY ANYTHING
MORE ON THAT POINT AT THIS
JUNCTURE. OKAY, WELL, I SAID
WHAT I NEEDED TO SAY. I GUESS
THAT, CERTAINLY I APPRECIATE
FROM LOCAL PERSPECTIVE THE
PREDICTION OF PREDICTABILITY OF
SOME OF THESE FUNDS COMING
FORWARD IN FUTURE YEARS AND THE
PLANNING THAT WE NEED TO GO INTO
TO BE ABLE TO, DEVELOP AND, AND,
AND ACCOUNT FOR SOME OF THESE
PROGRAMS GOING FORWARD,
GENERALLY, I KNOW THERE'S BEEN
AN ISSUE OF AND ACROSS ALL THESE
PROGRAMS AND EVEN THOSE ISSUES
WE TOUCHED EARLIER, THE, OF THE
NEED TO HAVE SORT OF MULTI YEAR
COMMITMENTS, BECAUSE IT DOES
TAKE SO LONG TO BE ABLE TO, TO,
PLAN FOR IT AND EVENTUALLY
CONTRACT OUT, AND DELIVER ON, ON
WHAT WE'RE TRYING TO FUND. AND I
THINK THE SAME IS TRUE HERE FOR
THE HAP PROGRAM. A QUESTION FOR
WHOEVER CAN CAN CAN TACKLE THIS
ON ON THE DELAY FROM, FISCAL
YEAR 24, TO, I ASSUME THIS IS
FISCAL YEAR 25 OF 250 MILLION OF
GENERAL FUND ARE THESE. I DON'T
WANT TO GET INTO THE SAME
PROBLEM THAT WE HAVE WITH THE
REAP PROGRAM, BUT ARE THERE
FUNDS THAT HAVE BEEN, ACCOUNTED
FOR I GUESS. ARE THERE ARE THERE
ARE. COX OR LOCAL GOVERNMENTS
EXPECTING THAT ALLOCATION IN
THERE FOR WHICH THEY ARE GOING
TO SEEK REIMBURSEMENT IN AN
UPCOMING TIME PERIOD BY MAKING
THIS FUND DELAY? ARE WE ARE WE
PUTTING ANY OF THOSE, AT RISK?
NO. WELL, I MEAN, I'D BE HAPPY
TO TAKE THE FIRST SHOT AT THAT.
AND THEN, MY COLLEAGUES FROM THE
DEPARTMENTS CAN FLUSH OUT
ANYTHING OR CORRECT ANYTHING. I
MISCHARACTERIZE. BUT, WE DO NOT
BELIEVE THIS WILL HAVE ANY
PROGRAMMATIC IMPACT WHATSOEVER
FOR THE WAY THE FUNDING IS GOING
TO FLOW OUT FOR HAP, THE FIRST
TRANCHE OF THE $100 MILLION GOES
OUT, PROBABLY WITHIN THE NEXT
FEW WEEKS. AND THEN THE
LOCALITIES HAVE TO COMMIT, HAVE
TO OBLIGATE 75% AND SPEND 50% OF
THAT AMOUNT BEFORE THEY CAN
LEVERAGE THE OTHER HALF OF THE
FUNDING. SO WE THINK THAT THE
WAY THAT'S GOING TO PLAY OUT IN
TERMS OF TIMING, IT SHOULDN'T BE
IMPACTFUL IN THAT, THE MONEY
SHOULD BE RESTORED IN TIME FOR
THEM TO ACTUALLY BE ABLE TO USE
IT. OKAY THAT'S THAT'S
ENCOURAGING. THANK YOU, YEAH.
CAN YOU TELL ME HOW THE HAP
RECIPIES ARE USING THEIR FUNDING
FOR PREVENTION? BECAUSE NOW
WE'RE GETTING INTO THE WEEDS.
WHEN WE SAY REAP POINT TWO OR WE
SAY HAP, THE PUBLIC DOESN'T
REALLY UNDERSTAND. SO IF WE CAN
GET A LITTLE CONTEXT. THANK YOU.
MEGAN MARSHALL FROM CALIFORNIA
INTERAGENCY COUNCIL ON
HOMELESSNESS. AGAIN, WE HAVE A
HAP ANNUAL REPORT THAT IS COMING
OUT FOR PUBLICATION IN SHORT
ORDER AT THE END OF THIS MONTH,
AND SO VERY HAPPY TO SHARE
THOSE. THE RESULTS OF THE FINAL
REPORT WITH THIS COMMITTEE AND
OTHERS. CAN YOU JUST GIVE US
SOME EXAMPLES RIGHT NOW OF HOW
JURISDICTIONS ARE USING THE
FUNDS THEY RECEIVE OR APPLY FOR?
I CAN SAY THE BULK OF OUR, OF
OUR, ELIGIBLE APPLICANTS ARE
UTILIZING DOLLARS FOR INTERIM
HOUSING, PREVENTION IS AN AREA,
AS I'M SURE YOU CAN UNDERSTAND,
MADAM CHAIR. VERY, VERY
DELICATE, IN TERMS OF, OF
RESEARCH AND PREDICTION
ANALYSIS. AND SO WE WILL HAVE AS
I SAID, A MORE ROBUST REPORT AT
THE END OF THIS MONTH. SO SO
WHEN YOU SAY PREVENTION, WHAT
ARE SOME EXAMPLES THAT, THAT,
JURISDICTIONS MIGHT USE THOSE
FUNDS FOR. SO HAP, THE, THE
DEFINITION OF ELIGIBLE
POPULATIONS HAS SLIGHTLY CHANGED
OVER THE FIVE ROUNDS OF HAP. HAP
FIVE IS THE FIRST ROUND OF THIS
FUNDING TYPE THAT ALLOWS FOR A
MORE BROADER DEFINITION OF AN
ELIGIBLE POPULATION FOR
PREVENTION IN PRIOR ROUNDS OF
HAP AND ELIGIBLE POPULATION
WOULD HAVE BEEN IDENTIFIED AS
SOMEONE WHO WOULD HAVE, NEEDED
TO PROVE THAT THEY WERE GOING TO
LOSE THEIR PLACE OF RESIDENCE
WITHIN 14 DAYS. AND SO THERE'S
SOME NUANCES ACROSS THE ROUNDS
OF HAP BASED ON LEGISLATION IN.
JUST TO ADD TO THAT, THOUGH,
MEGAN MARSHALL'S TEAM DOES PUT
TOGETHER A PRETTY ROBUST GUIDE
ON SORT OF ELIGIBLE USES ROUND
BY ROUND. AND WE CAN SHARE THAT
WITH THE COMMITTEE. MEGAN HAS IT
HERE, BUT THE ROUND BY ROUND
WHAT EACH OF THOSE ELIGIBLE USES
ARE. AND SO, YOU KNOW, WE CAN
GET INTO DETAIL OF SORT OF
WHICH, WHICH ROUNDS THEY CAN
SPEND ON WHICH USES. BUT IT HAS
BEEN INCREASING IN TERMS OF
FLEXIBILITY AND PRIORITIZATION
ON PERMANENT OVER THE COURSE OF
THE ROUNDS. SO ANYBODY CAN
ANSWER THE QUESTION HERE BECAUSE
ONE OF THE AREAS THAT NOT ONLY
MYSELF BUT OTHER COLLEAGUES HAVE
VOICED TO ME, PARTICULARLY,
THROUGH THIS BUDGET DEFICIT, IS
HOW DO WE, OF COURSE, ADDRESS
HOMELESSNESS. BUT BUT PREVENT
HOMELESSNESS. SO WHETHER IT'S,
PREVENTION IN SUBSIDIES FOR
SOMEBODY TO REMAIN IN THEIR,
RENTAL OR, OR, SO THEY'RE NOT
EVICTED BECAUSE WE KNOW ONCE
INDIVIDUALS ARE EVICTED, IT'S
THAT MUCH MORE OF A CLIMB OUT,
TO GET THEM BACK HOUSED, WHETHER
IT'S, I WILL TELL YOU AGAIN,
BEING IN THIS ROLE, SOMETIMES
PEOPLE FORGET UP HERE, WE GO
BACK TO CONSTITUENTS. AND RIGHT
BEFORE THANKSGIVING, WE HAD
THREE INDIVIDUALS WHO TOLD US,
IN FULLERTON THAT THEY WERE
GOING TO BE EVICTED. AND RIGHT,
LITERALLY THE WEEK BEFORE
THANKSGIVING. SO MYSELF
INDIVIDUALLY WAS TRYING TO
SCRAMBLE AROUND TO FIND OUT
WHERE OUR EMERGENCY FUNDS FOR
SOMEBODY WHO'S IN THAT SCENARIO,
AND IT WAS DIFFICULT, ALTHOUGH.
SO, WE DID REACH OUT TO THE
COUNTY SUPERVISOR. WE REACHED
OUT TO THE CITY OF FULLERTON,
EVEN FAITH BASED GROUPS, AND IN
THE END, WE WERE ABLE TO MAKE
SOME CONNECTIONS WITH CALOPTIMA,
BUT NOBODY WAS ABLE TO KIND OF
HAVE CASH ASSISTANCE FOR, SAY, A
ONE MONTH, TWO MONTH PERIOD. SO
ARE THERE ANY PROGRAMS RIGHT
NOW? AND, HAP THAT, YOU KNOW, OF
THAT ARE DOING THAT? SO AGAIN,
MADAM CHAIR, WE'RE THE BULK OF
OUR GRANTEES ARE SPENDING ON
INTERIM HOUSING. SO FOCUS ON
GETTING THE FOLKS WHO ARE
CURRENTLY ON THE STREET INTO
SOME SORT OF, WHETHER IT'S
SHELTER OR PERMANENT HOUSING.
THERE HAS NOT BEEN A LOT OF
ATTENTION PAID IN TERMS OF
PREVENTION. HAP HAS CONTINUED
AND CONTINUES TO BE A ONE TIME
FUNDING SOURCE, WITH LOCAL
JURISDICTIONS ABLE TO DECIDE FOR
THEMSELVES WHAT THEIR LOCAL
NEEDS ARE AND SO THE HAP PLANS
THAT EXIST CURRENTLY ARE BASED
OFF OF LOCAL LEADERSHIP'S
DETERMINATION THAT THIS IS
WHERE, BASED ON THE ELIGIBLE USE
CATEGORIES, THIS IS WHERE THEY
ARE PRIORITIZING THOSE DOLLARS.
AND BUT JUST TO ADD TO THAT. SO,
RAPID RAPID REHOUSING RENTAL
SUBSIDIES ARE VERY CLEAR.
THEY'RE ACTUALLY THE NUMBER ONE
ELIGIBLE USES THAT ARE SORT OF
LISTED FOR ALL THE HAP GRANTEES.
AND SO THIS IS MOSTLY JUST A
SIGNAL TO YOUR QUESTION IS, I
THINK ONE OF THE PLACES, MEGAN
MARSHALL AND MYSELF, IN TERMS OF
THIS TRANSITION HAVE BEEN
WORKING ON IS HOW DO WE BE MORE
PROACTIVE WITH OUR GRANTEES AND
SORT OF MAKING RECOMMENDATIONS
TO THEM ABOUT WHERE THEY, SPEND
THOSE DOLLARS AND PROVIDING
ADDITIONAL TECHNICAL ASSISTANCE
TO HELP THEM START THOSE KIND OF
PROGRAMS. AND SO, YOU KNOW,
RIGHT NOW, WE HAVE BEEN THE HANDS OFF
IN TERMS OF, YOU KNOW, THESE ARE
ELIGIBLE USES. YOU KNOW, GO TO
AS YOU SEE FIT. BUT WE CAN MOVE
INTO A POSTURE OF BEING A LOT
MORE PROACTIVE OF, HEY, WE
NOTICED YOU HAVE REMAINING
DOLLARS. LIKE HERE ARE SOME
THINGS THAT YOUR PARTNERS ARE
DOING. HERE ARE IDEAS YOU COULD
BE DOING. HERE ARE SORT OF
MODELS YOU COULD BE USING. AND,
YOU KNOW, I THINK IT IS GOING TO
LOOK LIKE A DIFFERENT CRISIS IN
EVERY SINGLE REGION. AND THERE
ARE GOING TO BE INDIVIDUAL
PIECES AND WE WANT TO MAINTAIN
THAT FLEXIBILITY. BUT ADD ALSO
ACCOUNTABILITY AND ADDITIONAL
SUPPORT TO THE TABLE. AND SO I
THINK THOSE ARE SOME OF THE
SHIFTS YOU'RE GOING TO BE SEEING
IN TERMS OF THE PROGRAM.
TRANSITIONS ARE A LITTLE BIT
MORE HANDHOLDING IN TERMS OF
HEY, DID YOU NOTICE YOU HAVE
THESE THESE ELIGIBLE USES LIKE,
AND REALLY MAKING THAT SORT OF
CLEAR AND TRANSPARENT SO PEOPLE
KNOW HOW MUCH FUNDING IS LEFT
FROM HEP ONE ALL THE WAY THROUGH
HEP FIVE. I APPRECIATE THAT
BECAUSE, I DO THINK, WHETHER
IT'S NONPROFITS, WHETHER IT'S,
LOCAL MUNICIPALITIES, SOMETIMES
THEY READ SOMETHING AND THEY'RE
NOT READING BETWEEN THE LINES.
SO WHETHER IT'S RENTAL
SUBSIDIES, WHETHER IT'S
EMERGENCY, FUNDING FOR EVICTION.
BUT I KNOW WE HAD THIS
CONVERSATION ON QUITE A FEW
YEARS AGO, WHICH WAS RV PARKING.
COULD HOMELESS FUNDS BE USED FOR
, RV PARKING OR SAFE PARKING
OVERNIGHT? THAT TYPE OF. AND I
WAS EVEN LOOKING AT DOING IT
WELL, ACTUALLY DID DO A PIECE OF
LEGISLATION. DIDN'T GET THROUGH.
BUT MY POINT IS THERE WAS A LOT
OF INFORMATION IN THE LOCAL
COMMUNITIES LIKE, OH, YOU CAN'T
USE THOSE FUNDS FOR THAT. EVEN
THOUGH WE KEPT SAYING IT'S
FLEXIBLE AND YOU CAN. I THINK
YOU SPELLING IT OUT AND MAYBE
EVEN DOING SOME EDUCATION ON
THAT IN BIG, BOLD LETTERS CAN
OFFER THAT FLEXIBILITY THAT
SOME, CITIES ARE, NOT READING
INTO BECAUSE WE ARE NOT JUST MY
OFFICE, BUT MANY NONPROFITS HAVE
THE SCENARIO WHERE SOMEBODY'S
SHOWING UP SCHOOL DISTRICTS OR,
OTHER ENTITIES WHERE THEY NEED
HELP NOW AND THEY CAN'T. WE
CAN'T JUST SEND THEM TO HCD.
THAT'S NOT THE TIMELINESS OF
THIS IS NOT GOING TO WORK. WE
NEED LIKE A TURNAROUND, THAT'S
GOING TO BE WITHIN DAYS TO
PREVENT SOME OF THIS, AND SO I
THINK THE FUNDS ARE REALLY
VALUABLE. I KNOW THAT THEY'VE
BEEN USED TO KEEP PEOPLE HOUSED
OR GET PEOPLE WHO ARE UNHOUSED
HOUSED, BUT HAVING THAT
FLEXIBILITY IS REALLY IMPORTANT.
IF I MAY JUST ADD. SO THE
DOCUMENT THAT, MEGAN KIRKBY AND
I ARE SHARING AT THIS POINT IN
TIME IS A SIDE BY SIDE FOR ALL
OF THE ROUNDS OF HAP. THIS IS
THE DOCUMENT THAT THE CAL ACH
TEAM WHICH WILL ENSURE ORDER
BECOME THE HCD TEAM FOR THESE.
THESE RESPECTIVE PROGRAMS REFERS
TO CONSISTENTLY. IT'S HOW WE
SUPPORT OUR GRANTEES IN TERMS OF
MAKING THOSE THOSE LOCAL
DECISIONS BASED OFF OF LOCAL
DATA, WHERE THEY WOULD LIKE TO
INVEST THEIR THEIR HAP
ALLOCATIONS. BUT, YOU KNOW, WITH
THIS TRANSITION UNDERWAY, THERE
IS A SPACE FOR CAL ACH AND I
KNOW WE HAVE A SUBSEQUENT AGENDA
ITEM THAT WE CAN SPEAK TO THIS A
LITTLE BIT MORE PERHAPS, BUT
CALLISTEGE WILL BE MOVING INTO
THE SPACE OF PROACTIVE TECHNICAL
ASSISTANCE PROVISION, FOR
JURISDICTIONS NOT NOT JUST IN
RECEIPT OF THESE DOLLARS, BUT
FOR THE ENTIRETY OF THE STATE'S
INVESTMENTS AND HOUSING AND
HOMELESSNESS, WHICH INCLUDES OUR
COLLEAGUES AT CSS, DCS, CALVERT,
ETC. SO THIS IS A SPACE THAT
CALLISTEGE IS VERY EXCITED TO
STEP INTO FOR THIS NEXT FISCAL
YEAR AND FOR THE YEARS TO COME.
WELL, WE THANK YOU FOR THAT
BECAUSE THERE'S JUST AN ONGOING,
STREAM OF NOT JUST HCD'S, BUT
COMMUNITIES, CITIES, SCHOOL
DISTRICTS, COUNTIES THAT HAVE TO
BE ABLE TO ACCESS THE
INFORMATION, ACCESS THE FUND AND
BE ABLE TO USE IT AND PIVOT WHEN
THINGS CHANGE, BECAUSE THIS I
MEAN, WE TALK ABOUT HOMELESSNESS
AS IF IT'S ALWAYS BEEN HERE, BUT
WE'RE REALLY IN THE INFANCY AS A
STATE OF NOT ONLY ACKNOWLEDGING
THE PROBLEM WE HAVE, BUT
ADDRESSING IT. I MEAN, IN I
STARTED AT THE STATE ASSEMBLY IN
2012, AND I CAN TELL YOU IT WAS
NOT THE TOP PRIORITY.
HOMELESSNESS AND HOUSING, I WAS
ON CITY COUNCIL IN FULLERTON
SINCE 2004. WE WERE NOT TALKING
ABOUT THIS AT ALL. SO WHEN YOU
LOOK AT JUST THE LAST FIVE
YEARS, MORE SAU, WE KNOW IT'S
BEEN LONG TIME IN MAKING. BUT
CITIES, THE STATE ADDRESSING IT,
IT'S ACTUALLY BEEN A PRETTY
SHORT TIMELINE. SO WE'VE LEARNED
A LOT OF LESSONS AND WE'LL
CONTINUE TO LEARN MORE. BUT FOR
THE LIMITED RESOURCES, WE HAVE
TO DO THE BEST WE CAN TO EXECUTE
WHAT WE CAN. WITH THAT, I THINK,
ANY OTHER COMMENTS ON THIS? ANY
PUBLIC COMMENTS ON THIS ITEM?
HOLLY, FOR MANY DAYS, USED WITH
LIGHTHOUSE PUBLIC AFFAIRS HERE
ON BEHALF OF THE SAN DIEGO
HOUSING COMMISSION. AND WE
SUPPORT THE PRESERVATION AS MUCH
OF THIS PROGRAM FUNDING AS
POSSIBLE. WE WANT TO THANK THE
COMMENTS, AND WE SHARE THE
CONCERNS THAT WERE RAISED BY
SOME OF THE MEMBER WARD ABOUT
PREDICTABILITY AND THE DELAYS,
BUT ANY ANYTHING WE CAN SAVE ON
THIS AND PRESERVE IS VERY
IMPORTANT, TO SUPPORT THE
HOMELESSNESS IN THE REGION. SO
THANK YOU. MADAM CHAIR, ANDRÉS
RAMIREZ, ON BEHALF OF ALL HOME
AS WELL AS THE CITY OF OAKLAND,
I'M GRATEFUL FOR THE MAINTENANCE
OF THE 1.1 BILLION FOR ROUND
FIVE, BUT OF COURSE, VERY DEEPLY
CONCERNED ABOUT THE
ADMINISTRATION'S PROPOSAL WITH
THE LACK OF, ROUND SIX FUNDING.
I DO WANT TO REALLY COMMEND,
COMMITTEE STAFF'S WORK ON THIS
PROGRAM OVER THE YEARS, AS
MENTIONED, IT'S BEEN REFINED.
IT'S GOTTEN BETTER AND BETTER.
IT'S BEEN MUCH MORE IMPACTFUL
OVER THE VARIOUS ROUNDS, AND IN
THAT VEIN, I DO WANT TO
REITERATE JUST THE COMMENTS THAT
ARE ON THIS PAGE AND THAT THE
LOSS OF FUNDING WILL RESULT IN
AN INCREASE OF HOMELESSNESS
ACROSS THE STATE. THANK YOU,
THANK YOU. APPRECIATE GOOD
AFTERNOON, MADAM CHAIR, DANIELLE
BRADLEY, ON BEHALF OF THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES, WE ARE EXTREMELY
GRATEFUL FOR THE LEADERSHIP OF
THE LEGISLATURE WORKING IN
PARTNERSHIP WITH THE
ADMINISTRATION FOR THE
UNPRECEDENTED LEVELS OF
INVESTMENT IN HOMELESSNESS OVER
THE YEARS, IN RECENT YEARS, I
SHOULD SAY, HAP SPECIFICALLY HAS
PROVIDED, COUNTIES, LARGE CITIES
AND CONTINUUMS OF CARE, A
FLEXIBLE WAY TO MEET THE UNIQUE
NEEDS OF THEIR COMMUNITIES
THROUGH SUPPORTIVE HOUSING,
INTERIM HOUSING AND SUBSIDIES
THAT HAVE HELPED PEOPLE MAINTAIN
THEIR HOUSING, UNFORTUNATELY, AS
AS DISCUSSED, HAP IS ONE TIME,
AND EVEN SCARIER, THERE IS NOT,
ROUND SIX PROPOSED IN THE BUDGET
, WITHOUT ONGOING FUNDING. OF
THE CURRENT LEVEL OF 1 BILLION
OR AT LEAST AN ADDITIONAL SIXTH
ROUND, WE DO RISK LOSING
PROGRESS ON THE LOSING THE
PROGRESS THAT WE HAVE MADE, BUT
WE APPRECIATE THE GOVERNOR'S
COMMENT IN THE BUDGET THAT HE'S
WILLING TO WORK WITH THE
LEGISLATURE IN ADDRESSING
POSSIBLE FUTURE FUNDING. WE
RECOGNIZE VERY DIFFICULT BUDGET
DECISIONS MUST BE MADE, BUT WE
JUST REALLY DON'T WANT TO
REVERSE THE PROGRESS THAT
COMMUNITIES HAVE MADE. THANK YOU
. GOOD AFTERNOON. KIM LEWIS,
REPRESENTING THE CALIFORNIA
COALITION FOR YOUTH. AND I WON'T
REPEAT THE COMMENTS MADE AROUND
THE NEED FOR ONGOING ADDITIONAL
DOLLARS, BUT PARTICULARLY I WANT
TO TALK ABOUT APPRECIATE THE
CHAIR'S COMMENT AT THE BEGINNING
OF THE HEARING AROUND
TRANSITIONAL HOUSING AND HOW
IMPORTANT IT IS FOR OUR YOUNG
PEOPLE, AND THAT WE NEED TO MAKE
SURE THAT, THE PROHIBITIONS ON
INTERIM HOUSING AS IT AFFECTS
YOUTH ISN'T CONTINUED. AND WE
NEED TO GET THIS CORRECTED GOING
FORWARD ON THAT AND REALLY
APPRECIATE YOUR LEADERSHIP TO
ENSURING THAT OUR YOUTH ARE
SERVED AND CONNECTED AND THAT
PROBLEM SOLVING, DIVERSION,
PREVENTION WORK IS VERY
IMPORTANT WHEN IT COMES TO OUR
YOUTH AND BEING ABLE TO SUPPORT
THEM TO ENSURE THAT WE CAN CATCH
THEM EARLY SO THEY DON'T BECOME
OUR CHRONICALLY HOMELESS ADULTS.
SO THANK YOU, SEEING NO ONE ELSE
COMING TO PUBLIC COMMENT. ANY
LAST COMMENTS? THANK YOU. WE
KNOW THAT YOU ARE DOING SOME OF
THE HARDEST WORK IN THE STATE OF
CALIFORNIA. IT'S NOT, SIMPLE
WORK. IT IS WORK THAT IS NEEDED,
AND WE APPRECIATE IT. THANK YOU
SO MUCH. ALL RIGHT. WITH THAT,
WE WILL MOVE TO ISSUE NUMBER
SEVEN, TRANSITION OF CAL IC
HOMELESSNESS GRANT PROGRAM. AND
WE HAVE SOME OF OUR SAME
PRESENTERS. AND, THANK YOU. AND,
PLEASE MAKE YOUR COMMENTS KELLY
ARP DEPARTMENT OF FINANCE, IN
ACCORDANCE WITH THE PROVISIONS
OF ASSEMBLY BILL 129, THE
HOUSING AND HOMELESSNESS TRAILER
BILL FOR THE 2023 BUDGET ACT
THAT TRANSFERS RESPONSIBILITY
FOR THE ADMINISTRATION OF
HOMELESSNESS PROGRAMS FOR THE
INTERAGENCY COUNCIL ON
HOMELESSNESS TO THE DEPARTMENT
OF HOUSING AND COMMUNITY
DEVELOPMENT. THE GOVERNOR'S
BUDGET PROPOSES TO TRANSFER 22
EXISTING POSITIONS THAT SUPPORT
HOMELESSNESS PROGRAMS FROM CAL H
TO HCD. IN ADDITION TO THESE
TRANSFERRED POSITIONS, THE
GOVERNOR'S BUDGET PROPOSES TO
PROVIDE FOUR NEW POSITIONS AT
HCD TO FURTHER SUPPORT THEIR NEW
RESPONSIBILITIES TO THE
TRANSFERRED HOMELESSNESS
PROGRAMS. THE DEPARTMENT OF
FINANCE IS HAPPY TO ANSWER ANY
QUESTIONS. WHERE ARE YOU HOUSED?
SPEAKING OF HOUSING AND HOW ARE
YOU ALL GOING TO FIT, I MEAN, DO
YOU WANT TO OR I CAN, SO, THE 22
STAFF THAT ARE GOING TO BE
TRANSFERRING FROM THE CAL H.
GRANT THAT'S REPRESENTS THE CAL
H GRANTS TEAM, AND THEY'LL BE
MOVING OVER TO MY DIVISION AT
HCD, THE HOUSING POLICY
DEVELOPMENT DIVISION, VIRTUALLY
HOUSED ALL WITHIN WHAT WE CALL
HPD, THE HOUSING POLICY
DEVELOPMENT DIVISION, WE, WE
HIRE STATEWIDE. AND CAL ALSO HAS
SOME STAFF THAT ARE OUTSIDE THE
AREA. SO, YOU KNOW, IT WILL BE A
HYBRID. CONTINUE TO BE A HYBRID,
GROUP IN THAT WAY, AND THEN, YOU
KNOW, HCD IS MOVING, JULY 1ST
TO, A NEW OFFICE BUILDING FOR
THOSE FOLKS THAT ARE, ARE IN
TOWN. SO YOU'LL, YOU'LL KNOW
WHERE TO FIND USE YOUR OLD
BUILDING FOR HOUSING. SO
ACTUALLY, ON THAT NOTE, MADAM
CHAIR, MY CURRENT BUILDING IS
BEING SLATED FOR PERMANENT
HOUSING, SO, KELLY SAGE
CURRENTLY OCCUPIES A SUITE AT
801 CAPITAL MALL, WHICH IS A
STATE PERSONNEL BOARD, BUILDING
THAT WILL BE DEMOLISHED AT SOME
POINT, SO KELLY SAGE,
IRONICALLY, WILL BE HOMELESS IN
SHORT ORDER AND ARE LOOKING FOR
SPACE, JUST TO MAKE THAT PLUG.
YEAH WELL, I DO LIKE THE
REPURPOSING, AND I DO LIKE THE
HYBRID, AND I, I, I'M NOT SURE
WHAT THE GOVERNOR'S GOING ON.
ALL OF THE, REMOTE, BUT I WOULD,
PUT A BID IN THAT PEOPLE HAVE
SHOWN THEY CAN WORK VERY WELL
FROM VARIOUS DIFFERENT
LOCATIONS, BUT I'LL STAY ON
TOPIC BECAUSE IT'S A LONG
HEARING. AND THEN, YEAH, I'M
GOING TO GET A LITTLE CAMPY WITH
YOU GUYS, ALL RIGHT. SO, WE'RE
WITH CAL. I SEE, MOVING IN WITH,
HCD, ARE WE GOING TO HAVE THE
STREAMLINING THAT WE KEEP
HEARING ABOUT OVER AND OVER AND
OVER? AND SO, TO BE CLEAR, IT'S
NOT THE ENTIRETY OF CAL H THAT
IS INTEGRATING WITH HCD, THERE'S
STILL A TREMENDOUS AMOUNT OF
WORK THAT WILL EXIST STATUTORILY
SPEAKING FOR CAL H OUTSIDE OF
GRANT ADMINISTRATION. IT'S THE
23. SORRY. EXCUSE ME, 22 STAFF,
FROM CAL. ACH, WHO WILL BE
TRANSITIONING ALONG WITH THE
FINANCIAL PORTFOLIO TO HCD, BUT
WE WILL RETAIN, 43 STAFF PERSONS
AT CAL ACH TO CONTINUE ON AND
THE STATUTORY OBLIGATIONS AND
RESPONSIBILITIES THAT KALASH HAS
. ALL RIGHT. ANY OTHER COMMENTS?
LAO. OH, I HAVE A BIG QUESTION.
AND, WE NOTICED THAT IN THE
GOVERNOR'S PROPOSAL THAT THE
ENCAMPMENT FUNDING DID NOT
DECREASE 350 MILLION, I BELIEVE.
OR HOW MUCH WAS IT? CAN YOU
SPEAK TO THE ENCAMPMENT FUNDING?
CHRIS, EXCUSE ME, CHRIS HILL,
DEPARTMENT OF FINANCE, YEAH,
THERE'S $400 MILLION, I BELIEVE,
IN CURRENT YEAR FOR ENCAMPMENT
RESOLUTION GRANTS. AND, THE
ADMINISTRATION DOES PROPOSE TO
MAINTAIN THAT FUNDING. AND, AS I
THINK MY COLLEAGUES WOULD ATTEST
THAT THE DEPARTMENTS THAT, ALL
THAT MONEY HAS BEEN COMMITTED
AND PROBABLY IS GOING TO BE
GOING OUT THE DOOR PRETTY SOON
IF IT ALREADY HASN'T. YES. AND
JUST TO NOTE THAT, YOU KNOW, AS
PART OF THIS TRANSITION TO BE AS
TRANSPARENT AS POSSIBLE, WE'VE
ADDED THE CAL GRANTS TO OUR HCD
NOFA CALENDAR. SO THAT WILL
CONTINUE TO BE A WAY YOU CAN GET
ACCESS TO, YOU KNOW, WHEN THE
AWARDS ARE LIKELY TO BE MADE.
AND SO FOR THOSE THOSE AWARDS
ARE, WINDOW ONE IS EXPECTED BY
THE END OF THE MONTH. AND THEN
YOU KNOW, SHOULD THERE BE
UNSPENT FUNDS THEN ADDITIONAL
WINDOWS WOULD BE USED. BUT IT IS
LIKELY TO HAPPEN VERY QUICKLY.
AND CAN YOU EXPLAIN WHAT THOSE
ENCAMPMENT GRANTS DO AND WHAT
THEY'RE FUNDED FOR? SO, THE
ENCAMPMENT RESOLUTION FUND, OVER
THE YEARS HAS, HAS SAID THAT IT
WILL PRIORITIZE AT LEAST HALF OF
THE AVAILABLE FUNDING FOR
ENCAMPMENTS THAT EXIST ON A
STATE RIGHT OF WAY IN A
COMMUNITY. UNLIKE HAP, WHICH IS
AN ALLOCATION THAT'S ONLY
AVAILABLE TO COX COUNTIES AND
BIG CITIES, URF IS A COMPETITIVE
APPLICATION THAT'S AVAILABLE TO
CITIES OF ANY SIZE TO CÁC AND
COUNTIES ALIKE, IT IS THE ONLY
OPPORTUNITY TRULY FOR CITIES.
YOU MENTIONED FULLERTON, MADAM
CHAIR FOR CITIES LIKE FULLERTON
TO APPLY FOR, FOR FUNDS THAT CAN
DIRECTLY IMPACT THEIR THEIR
LOCAL COMMUNITY ABSENT DEEP
COLLABORATION AND COMMITMENTS
FROM A LARGER CITY OR A COUNTY
ORGANIZATION, BUT URF
SPECIFICALLY REQUIRES THE
APPLICANT TO IDENTIFY A SINGULAR
ENCAMPMENT WITHIN THEIR
COMMUNITY TO HAVE DEEP KNOWLEDGE
AND ENGAGEMENT PREEXISTING WITH
THAT ENCAMPMENT, WITH THE
ULTIMATE OUTCOME BEING, OF
COURSE, CONNECTION TO PERMANENT
HOUSING, I JUST WANT TO MAKE
VERY CLEAR THIS IS NOT A
CLEANUP. GRANT, THIS IS NOT AN
OPPORTUNITY FOR JURISDICTIONS TO
ABATE OR TO REMOVE ENCAMPMENTS.
THERE IS A REQUIRED, THAT WE
TAKE VERY SERIOUSLY FOR THERE TO
BE A CONNECTION TO, TO INTERIM
AND TO PERMANENT HOUSING.
BECAUSE WE HAVE HEARD IT
EXPLAINED OR I'VE HEARD IT
EXPLAINED AS KIND OF LIKE A
CALIFORNIA BEAUTIFUL TYPE OF,
FUNDING. AND I KNOW THAT THERE
HAVE BEEN SOME, CITIES THAT ARE
WANTING THOSE FUNDS TO, IN
ESSENCE, CLEAR A LOCATION. AND,
THEN WHAT KIND OF DATA DO WE
HAVE TO SHOW THAT ONCE THIS
GRANT IS ATTAINED AND THERE IS
SOME TYPE OF CLEARING THAT THERE
IS HOUSING THAT'S ATTAINED AFTER
THAT? BECAUSE WE HAVE BEEN TOLD
BY SOME THAT THESE ENCAMPMENTS
ARE CLEARED, FUNDS ARE USED, BUT
WE DON'T HAVE ANY DATA TO SHOW.
WHERE DO THE PEOPLE GO. SO
THAT'S AN UNFORTUNATE, COMMENT
ON THE ON THE PROJECT. I WILL
SAY THAT WE DO HAVE DATA, BUT
THESE ARE DEMONSTRATION
PROJECTS. AND SO THESE ARE
MULTIYEAR FUNDS, SO, YOU KNOW,
DO WE HAVE DATA THAT'S
IMMEDIATELY AVAILABLE FOR THE
FIRST OR SECOND QUARTER OF
EARTH? TWO, WHICH WAS JUST, YOU
KNOW, FULLY AWARDED IN THIS LAST
FISCAL YEAR? NO, WE DO NOT,
HOWEVER, I WILL SAY AND IT'S
BEEN JUST A LITTLE BIT OVER A
YEAR SINCE MY APPOINTMENT INTO
THIS POSITION. FOR THE FIRST
TIME IN CALIFORNIA HISTORY, WE
HAVE, ENGAGED WITH LOCALS IN A
WAY, PERHAPS, THAT THEY'VE BEEN
UNACCUSTOMED TO, WE'RE AWARE OF
A NUMBER OF JURISDICTIONS THAT
HAVE BEEN BROUGHT TO OUR
ATTENTION WHO ARE POTENTIALLY
USING PROGRAM DOLLARS IN A WAY
THAT IS NOT STATUTORILY, WRITTEN
DOWN. AND SO CALLISTEGE IS
PROACTIVELY ENGAGING WITH THOSE
ENTITIES TO ENSURE THAT EITHER
THOSE FUNDS ARE RETURNED TO THE
STATE, OR THAT WE OFFER DEEP
TECHNICAL ASSISTANCE TO RESOLVE
WHATEVER THE LOCAL THE LOCAL
NEED IS. SO WHEN AN ENTITY
APPLIES FOR THESE GRANTS, ARE
THESE MEASURES CLEARLY OUTLINED
AND, AND, SO FORTH? THEY ARE.
AND AGAIN, URF IS A COMPETITIVE
APPLICATION THAT GOES THROUGH A
MULTI-STEP REVIEW PROCESS, AND
SO WE'RE VERY, THE INEVITABLE
AWARD ANNOUNCEMENTS. WE'RE VERY
CONFIDENT THAT THOSE ENTITIES
ARE ABLE TO GET THOSE DOLLARS
ONE OUT THE DOOR AS QUICKLY AS
POSSIBLE TO ADDRESS THAT
PARTICULAR ENCAMPMENT IN THEIR
COMMUNITY, BUT THAT THERE ARE
ABIDING BY HOUSING FIRST, THAT
THEY HAVE LOCAL NONPROFITS OR
COMMUNITY SUPPORTS AROUND, TO
ENSURE DEEP CONNECTION TO
SERVICES THAT ARE ABSOLUTELY
NECESSARY TO HOUSING RETENTION.
ONE MORE QUESTION, SO THIS MONEY
IS NOT BEING SLATED TO BE CUT,
AND YET THERE'S OTHER PROGRAMS
LIKE REAP POINT TWO OTHERS THAT
HAVE BEEN MENTIONED TODAY. WHAT
IS IT, FROM THE GOVERNOR'S
OFFICE, IS THAT, IN ESSENCE,
WOULD PROTECT THESE FUNDS VERSUS
OTHER FUNDS, I DON'T HAVE A
SPECIALTY IN THE HOUSING
PORTFOLIO, BUT I CAN JUST SAY
FROM THE HOMELESSNESS
PERSPECTIVE, THE ADMINISTRATION,
FELT VERY STRONGLY ON
MAINTAINING A FOCUS ON
HOMELESSNESS, GIVING THE GIVEN
THE CURRENT HOMELESSNESS CRISIS
THAT'S EVIDENT BEFORE ALL OF US.
AND THAT COUPLED WITH THE FACT
THAT THESE, THEY WERE DEEP INTO
THE, PROCESS OF, AWARDING THESE
FUNDS AND THE GRANT APPLICATION
PROCESS. SO THERE WAS A THERE
WAS, NO DESIRE ON THE
ADMINISTRATION'S PART TO CUT
THIS PARTICULAR HOMELESSNESS
PROGRAM. THANK YOU. DO YOU HAVE
QUESTIONS? I HAVE TO HAND IT
OVER TO YOU BECAUSE I NEED TO GO
PRESENT A BILL. I DO APPRECIATE
ALL YOUR COMMENTS. THANK YOU SO
MUCH. THANK YOU, MADAM CHAIR.
HAPPY TO TAKE OVER AND KEEP THE,
KEEP THIS MOVING FORWARD, MAYBE
NOT A LOT A LOT OF COMMENTS,
BECAUSE I DID WALK INTO THE
MIDDLE OF THIS, THIS ISSUE, SO I
WANT TO DISRESPECT THAT. I
HAVEN'T HEARD THE FULL
PRESENTATION, BUT I'M CERTAINLY
AWARE FROM MY OWN EXPERIENCE AND
SOME OF THE BACKGROUND HERE THAT
I'M NOT I'M, YOU KNOW, IF WE
HAVE TO COMPARE ONE TO ANOTHER,
I'M LESS CONFIDENT ABOUT THE
ENCAMPMENT RESOLUTION PROGRAM,
RELATIVE TO OTHER PROGRAMS. AND
IF THIS BUDGET, YOU KNOW, DEBATE
AMONGST OURSELVES IS COMING DOWN
TO THESE THINGS. SOME ARE SOME
THINGS ARE NICE TO HAVE VERSUS
SOME THINGS, YOU KNOW, WE MUST
HAVE, OR AT LEAST ARE PRODUCING
BETTER OUTCOMES, THAT'S A FACTOR
THAT I'M HAVING TO WEIGH, AND,
YOU KNOW. YES WE WOULD VERY MUCH
LIKE TO HAVE. AND I KNOW EXACTLY
WHERE LISA, MY LOCAL AREA. A LOT
OF THESE FUNDS ARE BEING
DISPERSED, AND SUPPORTING, THE
NOT JUST BEAUTIFICATION OF STATE
OWNED LANDS, OR GRANTS TO, TO
LOCAL AREAS, BUT ALSO, THE
SERVICE WORKERS THAT ARE DOING
THE HARD WORK AND THE FRONT LINE
WORK OUT THERE TO REALLY ENGAGE
INDIVIDUALS. AND I KNOW HOW
DIFFICULT THAT IS, BECAUSE
ULTIMATELY THEY HAVE TO GET TO.
YES, AND IT DOES BEG THE
QUESTION, YOU KNOW, AND THESE
FUNDS AND THESE PROGRAMS DON'T
NECESSARILY SATISFY, WHERE ARE
THEY GOING TO HOW ARE WE
PRODUCING MORE UNITS ON THE BACK
END? BECAUSE THAT IS WHERE WE
NEED TO DO A BETTER JOB AS A
STATE. JUST SOME GUIDING VALUES.
I WANTED TO SORT OF LAY OUT
THERE TOO, AS I'M RECONCILING,
YOU KNOW, THE TRADE OFFS THAT WE
HAVE HERE. BUT I APPRECIATE THE
PRESENTATION, AND I THINK, WE
NEED PUBLIC COMMENT ON THIS
ITEM. UNLESS THERE'S ANYTHING
FURTHER FROM THE PANEL. THANK
YOU. WE'LL TAKE MEMBERS OF THE
PUBLIC ON ITEM NUMBER SEVEN. IF
ANY ARE HERE. OKAY. SEEING NONE.
THANK YOU VERY MUCH. THANK YOU.
WE WILL BE MOVING ON TO ISSUE
NUMBER EIGHT. THIS IS THE
CALIFORNIA HOUSING FINANCE
AGENCY FOR AN OVERVIEW AND
PROGRAM UPDATES.
THANK YOU. AND WITH THAT, WE
WILL HAVE A PERSONAL PREFERENCE
ON ORDER. SO MAYBE I'LL JUST LET
YOU TAKE TAKE IT OFF WITH,
DEPARTMENT OF FINANCE OR I SALAS
GESTURES, GOOD AFTERNOON, CHRIS
SCHULTZ. CHIEF DEPUTY DIRECTOR
WITH THE CALIFORNIA HOUSING
FINANCE AGENCY, WITH ME IS ELLEN
MARTIN, OUR DIRECTOR OF
HOMEOWNERSHIP. SURE. GO AHEAD.
ELLEN. ALL RIGHT. THANK YOU SO
MUCH. WELL, GOOD AFTERNOON,
ASSEMBLYMEMBER WARD. MY NAME IS
ELLEN MARTIN. I AM THE DIRECTOR
OF HOMEOWNERSHIP FOR THE
CALIFORNIA HOUSING FINANCE
AGENCY HERE TODAY TO OFFER AN
UPDATE REGARDING CALHFA STREAM
FOR ALL AND ADU GRANT PROGRAM.
SO THE DREAM FOR ALL. I'LL START
WITH DREAM FOR ALL, THE DREAM
FOR ALL PROGRAM IS A REVOLVING
SHARED APPRECIATION LOAN PROGRAM
THAT PROVIDES LOANS FOR A DOWN
PAYMENT TO QUALIFIED HOME
BUYERS. THE LOAN TAKES THE FORM
OF A SILENT SECOND MORTGAGE.
WHEN THE HOMEOWNER SELLS OR
TRANSFERS THE HOME, THEY WILL
REPAY THE ORIGINAL DOWN PAYMENT
LOAN PLUS A SHARE OF THE
APPRECIATION IN THE VALUE OF THE
HOME. THAT REPAYMENT IS THEN
USED TO OFFER A COMMENSURATE
LEVEL OF ASSISTANCE TO HELP THE
NEXT HOME BUYER TO PURCHASE
THEIR FIRST HOME. AS MANY ARE
AWARE, THE FIRST PHASE OF THE
PROGRAM ALL FUNDS WERE COMMITTED
IN ABOUT 11 DAYS. THE
DISTRIBUTION OF OUR LOANS WAS
GEOGRAPHICALLY DIVERSE, WITH
LOANS IN 53 OF THE STATE'S 58
COUNTIES. THE CENTRAL VALLEY HAD
THE MOST LOANS WITH 21, FOLLOWED
BY THE BAY AREA AT 19, THE
CAPITAL REGION AT 16. IN THE
INLAND EMPIRE AT 14. WE ALSO SAW
A MAJOR UPTICK IN LOANS IN
HARDER TO SERVE AREAS LIKE LA,
SAN DIEGO, ORANGE COUNTY AND THE
CENTRAL COAST. THE AVERAGE AGE
OF OUR DREAM FOR ALL BORROWER
WAS 36 YEARS OLD, AND OVER 55%
OF DREAM FOR ALL HEADS OF
HOUSEHOLDS IDENTIFIED AS
BELONGING TO COMMUNITIES OF
COLOR. IN TERMS OF INCOME, 21%
OF OUR DREAM FOR ALL BORROWERS
EARNED LESS THAN 80% AMI, AND
NEARLY 80% OF OUR BORROWERS
EARNED LESS THAN $150,000. WITH
CONSIDERATION TO THE VAST
OVERSUBSCRIPTION OF FUNDS THAT
WE SAW FOR PHASE ONE. AND IN
RESPONSE TO THE STATUTORY
LANGUAGE IN LAST YEAR'S BUDGET
TRAILER BILL, THE CALHFA BOARD
HAS MADE SOME KEY CHANGES FOR
PHASE TWO OF THE PROGRAM. SO THE
FIRST KEY CHANGE IS IN THE LOAN
DELIVERY AND RESERVATION
PROCESS. SO RATHER THAN THE
LENDER RESERVING THE LOAN IN
CALHFA SYSTEM, ONCE THE HOME IS
ALREADY UNDER CONTRACT, WE'VE
IMPLEMENTED A REGISTRATION
PORTAL THAT WILL ALLOW OUR
QUALIFIED BORROWERS TO
PRE-REGISTER, AND THEN WE'LL BE
USING A RANDOMIZED SELECTION
PROCESS TO SELECT THOSE
BORROWERS THAT WILL HAVE THE
OPPORTUNITY TO TAKE OUT A DREAM
FOR ALL. LOAN SELECTED
RECIPIENTS WILL THEN HAVE ABOUT
90 DAYS TO SHOP FOR A HOME TO
GET INTO CONTRACT AND RESERVE
THEIR LOAN. SO THE SECOND BIG
CHANGE IS TO THE ELIGIBILITY
CRITERIA FOR THE PROGRAM. MOST
OF OUR PROGRAMS ARE FOR FIRST
TIME HOME BUYERS, AND ALL
BORROWERS ON THE LOAN MUST STILL
MEET THE FIRST TIME HOME BUYER
CRITERIA. IN ADDITION, ONE
BORROWER ON THE LOAN MUST BE A
FIRST GENERATION BORROWER BASED
ON PHASE TWO LEGISLATIVE
REQUIREMENTS. A FIRST GENERATION
BORROWER IS DEFINED AS A
BORROWER THAT HAS NOT OWNED A
HOME IN THE UNITED STATES. IN
THE LAST SEVEN YEARS, AND THE
BORROWER'S PARENTS DO NOT
PRESENTLY, OR DID NOT AT THE
TIME OF THEIR DEATH, OWN A HOME.
A BORROWER CAN ALSO MEET THAT
PARENTAL CRITERIA IF THEY SPENT
ANY TIME IN FOSTER CARE. AS A
YOUTH. THE NEXT IS GEOGRAPHIC
BALANCE. WE'LL USE THE
PRE-REGISTERED PORTAL TO
APPORTION FUNDS TO NINE SEPARATE
REGIONS ON THE BASIS OF EACH
REGION'S SHARE OF HOUSEHOLDS IN
THE STATE. AND THEN FINALLY, WE
HAVE WE'VE INTRODUCED SEVERAL
LOAN TERMS TO TARGET THE FUNDS
TO LOWER INCOME BORROWERS,
INCLUDING LOWER INCOME LIMITS
AND $150,000 CAP ON THE LOAN
AMOUNT. IN ADDITION, WE'VE
ESTABLISHED A 95% COMBINED AND
LOAN TO VALUE REQUIREMENT
MINIMUM, WHICH MEANS THAT
BORROWERS CAN ONLY BRING ABOUT
5% OF THEIR OWN FUNDS TO THE
TABLE FOR THIS TRANSACTION. SO
THE OVERALL RESULT OF THESE
CHANGES IS THAT THE PROGRAM CAN
BE MORE PRECISE IN ITS TARGETING
OF FUNDS TO THOSE WHO NEED
ASSISTANCE, PARTICULARLY THOSE
WHO HAVE NOT BENEFITED FROM THE
INTERGENERATIONAL WEALTH
CREATING OPPORTUNITY ASSOCIATED
WITH HOMEOWNERSHIP. IN TERMS OF
PHASE TWO ROLLOUT, THE
PRE-REGISTRATION PORTAL OPENED
LAST WEDNESDAY ON APRIL 3RD AND
WILL REMAIN OPEN UNTIL APRIL
29TH AT 5 P.M. WE WILL THEN BE
CONDUCTING THE RANDOMIZED
SELECTION PROCESS IN EARLY MAY,
AFTER WHICH WE WILL BE AUDITING
THE FIRST GENERATION STATUS OF
SELECTED RECIPIENTS AND WE
EXPECT TO ISSUE INITIAL
COMMITMENTS TO BORROWERS IN
EARLY JUNE. WE'RE HAPPY TO WORK
WITH MEMBERS OF THE LEGISLATURE
TO PROMOTE THE AVAILABILITY OF
THIS PROGRAM, AND TO PROVIDE
INFORMATION TO YOUR CONSTITUENTS
. WE'VE ALREADY PROVIDED SOCIAL
MEDIA TOOLKITS, OTHER PROGRAM
COLLATERAL TO YOUR OFFICES, AND
WE'VE ALSO DONE WEBINARS WITH
SEVERAL LEGISLATORS, WE'D BE
HAPPY TO DISCUSS ANY OTHER
SUPPORT THAT WE CAN OFFER. SO
WITH THAT, I'M HAPPY TO ANSWER
ANY QUESTIONS YOU HAVE ON DREAM
FOR ALL AT THIS TIME. THANK YOU.
ANY OTHER COMMENTS? OKAY SEEING
NONE I APPRECIATE THE
PRESENTATION HERE TODAY. AND THE
OFFER, CERTAINLY SPREAD AMONGST
US, FOR THE, THE UPCOMING PERIOD
TO, TO GET OUT TO CONSTITUENTS,
I DON'T HAVE ANY QUESTIONS. I
DID WANT ON BEHALF OF OUR CHAIR,
I WANT TO PASS ON, AN INTEREST,
FOR HER TO RECEIVE MORE
INFORMATION. I SEE THE
GEOGRAPHIC DISTRIBUTION HERE FOR
THE CALIFORNIA DREAM FOR ALL
PROGRAM, BUT I THINK SHE'S
LOOKING FOR A LITTLE BIT MORE
INFORMATION ABOUT STATEWIDE
DISTRIBUTION OF THE ADU GRANTS
AND THE CALHFA GRANTS. THAT'S
SOMETHING YOU CAN PROVIDE AT A
LATER TIME. AND APPRECIATE IT.
OKAY. THANK YOU. AND THEN WITH
THAT, IS THERE ANY MEMBERS OF
THE PUBLIC ON ISSUE EIGHT? THANK
YOU. HOLLY. FOR MANY DAYS, THE
LIGHTHOUSE PUBLIC AFFAIRS, ON
BEHALF OF HABITAT FOR HUMANITY,
CALIFORNIA, FOR YEARS WE'VE BEEN
WORKING WITH THE AGENCY, LOOKING
TO TRY TO FIND A PROGRAM THAT
COULD BE RESTORED TO HELP WITH
CONSTRUCTION OF NEW OWNER
OCCUPIED HOUSING FOR LOW INCOME
FAMILIES. AND WE HAVE YET TO BE
ABLE TO RESTORE SOME OF THE
PROGRAMS. BUT WE ARE HOPEFUL
WITH RECENT CONVERSATIONS WITH
THE STAFF, THAT WE CAN TRY TO
RESTORE SOME OF THOSE THAT HAVE
EVEN OFFSET, SOME SCHOOL IMPACT
FEES IN THE PAST. AND, AND IT'S
WE'RE STILL DISAPPOINTED TO SEE
THAT THE ONLY NEW CONSTRUCTION
PROGRAM AT THE AGENCY IS RENTAL
ONLY. SO WE'RE HOPING HABITAT
FOR HUMANITY BUILDS MULTIFAMILY
HOUSING, AND WE'RE HOPING THAT
WE CAN EXPLORE. AND THE
LEGISLATURE COULD DIRECT THE
AGENCY TO START WORKING ON
INTENTIONALLY TO TRY TO CREATE A
NEW PRODUCTION, NEW CONSTRUCTION
, NEW UNITS, FOR AFFORDABLE
HOMEOWNERSHIP, FOR LOW INCOME
FAMILIES WITHIN THE CALHFA. WE
LOVE THE DREAM FOR ALL PROGRAM.
IT'S A GREAT PROGRAM, BUT AGAIN,
IT HELPS, PEOPLE JUST BY
EXISTING HOMES AND DOES NOT DO
ANYTHING TO HELP WITH THE
CRISIS, THE PRODUCTION CRISIS
THAT WE'RE IN. SO AGAIN, THANK
YOU FOR YOUR COMMENTS AND YOUR
TIME TODAY. THANK YOU. THANK YOU
FOR YOUR PRESENTATION. WE'LL BE
MOVING ON TO THE CIVIL RIGHTS
DEPARTMENT TO ADDRESS ISSUE
NUMBER NINE.
THANK YOU. I'LL LET YOU BEGIN.
GOOD AFTERNOON, ADAM ROMERO WITH
THE CIVIL RIGHTS DEPARTMENT. AND
I'D INVITE MY COLLEAGUES FROM
FINANCE TO PRESENT THIS MATTER.
YES BLAIR HUXMAN DEPARTMENT OF
FINANCE, THE 2022 BUDGET
PROVIDED APPROXIMATELY 2.3
MILLION ANNUALLY FOR THREE YEARS
AND LIMITED TURN TURM FUNDING TO
THE CIVIL RIGHTS DEPARTMENT. 1.4
MILLION OF THIS ALLOCATION WAS
FOR RESOURCES TO DECREASE THE
WAIT TIME BETWEEN COMPLAINT
INTAKES AND INVESTIGATIVE
APPOINTMENTS TO ONE MONTH, AND
TO INCREASE THE NUMBER OF
COMPLAINTS SUCCESSFULLY
CONCILIATED AND SETTLED BY
INVESTIGATORS. APPROXIMATELY
883,000 OF THE 2.3 MILLION
ALLOCATED WAS TO PROVIDE
RESOURCES AND TRAINING TO
COMMUNITIES FACING HATE
INCIDENTS OR OTHER CONFLICT OVER
DISCRIMINATORY PRACTICES AND THE
GOVERNOR'S BUDGET PROPOSES TO
WITHDRAW THE FINAL YEAR OF THE
THREE YEAR LIMITED TURN FUNDING
PREVIOUSLY COMMITTED TO THE
CIVIL RIGHTS DEPARTMENT. GIVEN
THE CURRENT GENERAL FUND OUTLOOK
FOR TOTAL COST SAVINGS OF 2.3
MILLION. THANK YOU. HAVE ANY
COMMENT? JENNY BELLA WITH THE
LAO, WE HAVE NO CONCERNS TO
RAISE WITH THE PROPOSAL AT THE
TIME. OKAY. THANK YOU. WE'LL
PASS. I DON'T HAVE ANY COMMENTS
OF MY OWN, WELL, ACTUALLY, I DO
HAVE ONE. I THINK THE, FUNDS
THAT WE WOULD BE ELIMINATING
RIGHT NOW CERTAINLY WOULD HAVE
AN IMPACT ON WAIT TIMES, ON, ON
PERFORMANCE. AND I'M WONDERING
IF THAT WAS FULLY ELIMINATED,
WHAT MIGHT THIS DO? I GUESS,
FOR, ANY OF THE, THE ABILITY TO
RECONCILE SOME OF THESE CASES
THAT ARE BEFORE THE CIVIL RIGHTS
DEPARTMENT, ARE THERE OTHER
RESOURCES OR OTHER SOURCES OF
FUNDS THAT YOU'D BE USING TO BE
ABLE TO SUPPORT SOME OF THE
OPERATION? I CAN TAKE THAT. HI,
I'M JAMIE GILLETTE, DEPUTY
DIRECTOR OF THE ENFORCEMENT
DIVISION WITH THE CIVIL RIGHTS
DEPARTMENT. UNFORTUNATELY, WE
DON'T HAVE OTHER FUNDING
AVAILABLE TO HELP WITH THAT WAIT
TIME. WE'RE ALWAYS LOOKING FOR
EFFICIENCIES, IN ORDER TO
IMPROVE OUR PROCESSES. THAT'S AN
ONGOING, EFFORT. SO WE WOULD
HOPE TO, YOU KNOW, UNCOVER SOME
MORE EFFICIENCIES ALONG THE WAY.
WE'RE ALWAYS PRIORITIZING OUR
WORKLOADS AND OUR INVESTIGATIONS
IN ORDER TO PRIORITIZE INTAKE
APPOINTMENTS WHERE WE CAN,
CURRENTLY, WE'RE RECEIVING ABOUT
1300 INTAKE FORMS PER MONTH. AND
THAT'S AN INCREASE. ABOUT TWO
YEARS AGO, WE WERE RECEIVING
ABOUT 1000 INTAKE FORMS PER
MONTH FOR COMPLAINTS. AND SO OUR
WAIT TIME IS A, YOU KNOW,
DETERMINED BY HOW MANY INTAKE
FORMS WE'RE RECEIVING BY THE
PUBLIC, HOW MANY STAFF RESOURCES
WE HAVE, SO THERE'S A LOT OF
VARIABLES. SO THE INTAKE WAIT
TIMES KIND OF GO UP AND DOWN
DEPENDING ON THOSE FACTORS, BUT
AT THIS TIME WE THINK, YOU KNOW,
WITHOUT THESE FUNDS,
UNFORTUNATELY, WE DO ANTICIPATE
WAIT TIMES TO INCREASE SOMEWHAT.
OKAY THAT'S SOMETHING THAT WE'LL
JUST TAKE, APPRECIATE AND TAKE
UNDER CONSIDERATION, WITH THAT,
DO WE HAVE ANY MEMBERS OF THE
PUBLIC ON ISSUE NUMBER NINE? ALL
RIGHT. SEEING NONE, WE
APPRECIATE YOUR UPDATE TODAY.
THANK YOU. NEXT, WE'LL BE MOVING
ON TO THE STATE TREASURER'S
OFFICE. THIS IS ISSUE NUMBER
TEN.
AND WE LOOK FORWARD TO YOUR,
OVERVIEW AND PRESENTATION. ALL
RIGHT. THANK YOU, GOOD
AFTERNOON. COMMITTEE MEMBER
WARD, I'M NATALIE GONZALEZ. I'M
THE ASSISTANT DIRECTOR OF THE
CENTRALIZED TREASURY AND
SECURITIES MANAGEMENT DIVISION
AT THE STATE TREASURER'S OFFICE,
THE BCP BEFORE YOU TODAY
INCLUDES TWO REQUESTS. OUR FIRST
REQUEST IS FOR ADDITIONAL
FUNDING DUE TO INCREASED COSTS
ASSOCIATED WITH THE USE AND
SUPPORT OF THE FIS IMAGE VISION
ITEM PROCESSING SOFTWARE. THIS
SOFTWARE IS USED TO FACILITATE
THE STATE'S DAILY CHECK
PROCESSING ACTIVITIES. THE COST
INCREASE IS DUE PRIMARILY TO THE
SHIFT FROM AN ON PREMISES LEGACY
FRAMEWORK TO A CLOUD BASED
ARCHITECTURE, AND IN ADDITION, A
CHANGE FROM A FLAT RATE BILLING
MODEL TO A VOLUME BASED BILLING
MODEL. OUR SECOND REQUEST IS FOR
BUDGET BILL LANGUAGE, WHICH WILL
MITIGATE THE CHALLENGES THE STO
HAS ENCOUNTERED WITH NEWER DGS
PURCHASING REQUIREMENTS, AND IT
WILL ENSURE THAT VENDOR
ASSOCIATED PROCUREMENTS RELATED
TO THE TREASURER'S
CONSTITUTIONAL AND LEGISLATIVE,
BANKING AND INVESTMENT
RESPONSIBILITIES WILL CONTINUE
UNINTERRUPTED. THE PROPOSED
LANGUAGE WAS AGREED UPON WITH
DGS AND IS LIMITED TO A TWO YEAR
PERIOD. DGS HAS INDICATED THAT
THEY'RE WORKING ON A STATEWIDE
SOLUTION FOR THESE TYPES OF
PROCUREMENTS, WHICH SHOULD BE
IMPLEMENTED WITHIN THE TWO YEAR
TIME FRAME REQUESTED. I THANK
YOU FOR YOUR TIME AND
CONSIDERATION OF THESE REQUESTS.
WE'RE HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE. THANK
YOU, MISS GONZALEZ. ANYTHING
FROM ELIO, WE INITIALLY RAISED
CONCERN BECAUSE THE PROPOSAL
CAME WITH TRAILER BILL LANGUAGE
THAT WE THOUGHT WAS OVERLY BROAD
. BUT AS YOU CAN SEE IN YOUR
AGENDA, THEY HAVE REVISED THAT
WITH BUDGET BILL LANGUAGE THAT
IS MORE NARROW. AND WE HAVE NO
CONCERNS WITH IT AT THIS TIME.
THANK YOU. I THINK OUR FINANCE,
GREG BRUCE FINANCE, NO CONCERNS
WITH THE REVISED BUDGET BILL
LANGUAGE. THANK YOU VERY MUCH, I
DON'T HAVE ANY QUESTIONS OF MY
OWN. I DID WANT TO NOTE, ONE
QUESTION FROM OUR CHAIR, REALLY
DIGGING IN, TO TRY TO
UNDERSTAND. WILL IT ACTUALLY
TAKE TWO YEARS FOR DGS, TO
DEVELOP SOME OF THE NEW
POLICIES? AND WHAT HAPPENS TO
THIS LANGUAGE IF, THE NEW POLICY
IS DEVELOPED IN LESS THAN TWO
YEARS? SURE, WELL, WE THOUGHT IT
WOULD BE PRUDENT TO INCLUDE A
TWO YEAR SUNSET TIME FRAME TO
ALLOW DGS THE TIME THEY NEED TO
FORMULATE AND IMPLEMENT THAT
STATEWIDE SOLUTION. IF THEY WERE
TO IMPLEMENT A SOLUTION SOONER.
THIS LANGUAGE, OF COURSE, WOULD
NO LONGER BE NECESSARY, AND WE'D
BE HAPPY TO ADD LANGUAGE TO
CLARIFY THAT ISSUE. IN THE IN
THE BUDGET BILL, LANGUAGE THAT
WOULD BE, ENCOURAGING. I THINK
THAT SHE HAD REQUESTED, IF YOU
WANT TO GET BACK TO HER
POTENTIAL LANGUAGE, TO CLARIFY
THAT, IF THE ISSUES, THE
GUIDELINES COME WITHIN THE NEXT
YEAR, THE EXEMPTION FOR TWO
YEARS FROM THE RULE WOULD NO
LONGER BE VALID. OKAY. THANK YOU
FOR THAT OFFER, ANY MEMBERS OF
THE PUBLIC ON ISSUE TEN? OKAY.
SEEING NONE, WE APPRECIATE YOUR
TESTIMONY TODAY. THANK YOU.
THANK YOU. WE'RE MOVING ON TO
THE CALIFORNIA ABLE ACT BOARD.
THIS IS ISSUE NUMBER 11. WELCOME
YOU BACK TO THE SUB FIVE AND
LOOK FORWARD TO YOUR
PRESENTATION. THANK YOU, GOOD
AFTERNOON. MY NAME IS THOMAS
MARTIN. I AM EXECUTIVE DIRECTOR
FOR CAL ABLE, THIS IS MY SEVENTH
DAY ON THE JOB, SO THAT'S MY
SUBTLE WAY OF ASKING YOU TO GO
EASY ON ME. WITH ME, I HAVE I
HAVE AN OSBORNE. SHE'S THE,
DEPUTY EXECUTIVE EXECUTIVE
DIRECTOR FOR CAL ABLE, SO, VERY
QUICK PRIMER, CAL IS A TAX
ADVANTAGED SAVINGS PROGRAM FOR
INDIVIDUALS WITH DISABILITIES,
SIMILAR TO, LIKE, SCHOLARSHARE
FOR, FOR COLLEGE SAVINGS, THE
REQUEST BEFORE YOU TODAY, HAS
HAS TWO PIECES. ONE IS AN
EXTENSION OF THE, THE LOAN
REPAYMENT PERIOD FOR CAL ABLE,
TO EXTEND TO THE END OF THE,
3132 FISCAL YEAR, AND THE SECOND
PART, PORTION OF THE BCP IS, IS
REQUESTING A WAIVER FOR INTEREST
DUE ON THE LOAN, SO WE HAVE I
UNDERSTAND THERE'S SOME SOME
QUESTIONS THAT WERE PRESENTED,
WE'D BE HAPPY TO PROVIDE MORE
DETAIL OR RESPOND TO THOSE
QUESTIONS, ANYTHING YOU LIKE.
THANK YOU. MR. MARTIN. GOOD JOB.
ON DAY SEVEN. ANYTHING FROM ELIO
OR FINANCE? OKAY. SEEING NONE.
MY ONLY COMMENT, ON BEHALF OF
THE CHAIR, DIGGING IN A LITTLE
BIT TO THE SURCHARGE FOR THE
ACCOUNTS, HOW MUCH IS EXPECTED
TO BE GENERATED BY THE SURCHARGE
? AND WHEN DO YOU ANTICIPATE
THAT THAT, WOULD END FOR ACCOUNT
MAINTENANCE? SURE SO THE SO THE
SURCHARGE IS AN ONGOING
SURCHARGE, SO THERE'S NO THE
STATE ADMINISTRATION FEES AND
ONGOING FEE, THAT'S WHAT HELPS
FUND THE PROGRAM EFFECTIVELY, SO
THERE'S NO THERE'S NO END DATES
IN MIND, RIGHT NOW. SO FOR THIS
FISCAL YEAR, THE FEE IS GOING TO
GENERATE A LITTLE OVER $300,000,
THAT'S GOING TO GROW AS MORE
ACCOUNTS ARE ADDED TO THE
PROGRAM. SO THE PROJECTION RIGHT
NOW IS THAT IT'D BE MORE THAN $1
MILLION BY THE 28, 28, 29 FISCAL
YEAR, AGAIN, THAT'S THAT'S A
PROJECTION. SO IT CONTINUED TO
GROW FROM THERE. OKAY. THANK
YOU. THE AMOUNT THAT WE ARE
SEEKING, WE MIGHT WAIVE WHAT IS
WHAT WOULD THAT COME OUT TO. AND
IS THAT OTHERWISE FROM A BUDGET
POINT OF VIEW, IMPACTING OUR
GENERAL FUND, SURE. SO, THAT
AMOUNTS, THAT AMOUNTS
APPROXIMATELY. DO YOU REMEMBER
THE EXACT AMOUNT? IT'S, BECAUSE
IT COMES OUT TO ABOUT 800, ABOUT
$900,000 TOTAL ACROSS ACROSS THE
LIFESPAN OF ALL OF THE LOANS
BETWEEN, THE INITIATION TO, TO
3132. OKAY. THANK YOU. I DON'T
HAVE ANY FURTHER QUESTIONS. ARE
THERE ANY MEMBERS OF THE PUBLIC
ON ISSUE NUMBER TEN? OKAY, OR.
EXCUSE ME, ISSUE NUMBER 11,
SEEING NONE. OKAY. THANK YOU FOR
YOUR PRESENTATION. THANK YOU. WE
ARE MOVING FORWARD TO, I
BELIEVE, OUR LAST ITEM AND THIS
IS THE CALSAVERS RETIREMENT
SAVINGS BOARD WITH ISSUE NUMBER
12. WELCOME. AND WE LOOK FORWARD
TO YOUR PRESENTATION. GOOD
AFTERNOON. THANK YOU. COMMITTEE
MEMBER WARD. MY NAME IS DAVID
TAKATS AND I AM THE EXECUTIVE
DIRECTOR FOR CAL SAVERS, OUR
REQUEST TODAY IS FOR $12 MILLION
IN A GENERAL FUND LOAN IN $2
MILLION INCREMENTS OVER THE NEXT
SIX YEARS TO CONTINUE TO ROLL
OUT AND GROW THE CALSAVERS
RETIREMENT SAVERS BOARD PROGRAM,
WITH YOUR PERMISSION, I'D LIKE
TO TAKE JUST A FEW MINUTES TO DO
AN OVERVIEW OF THE PROGRAM TO
SET SOME CONTEXT. FINE. GREAT.
SO CAL SAVERS, FORMERLY KNOWN AS
SECURE CHOICE, IS A FIRST OF ITS
KIND PROGRAM THAT WAS SIGNED
INTO LAW IN 2016 AND OFFICIALLY
ROLLED OUT IN 2019. CALSAVERS
EXISTS TO ADDRESS THE STARK
REALITY THAT MILLIONS OF GET
ACCESS TO A SIMPLE IRA STYLE
PLAN THAT SAVES 5% OF THEIR
PAYCHECK ON THEIR BEHALF,
ESCALATING 1% PER YEAR UP TO A
MAX OF 8. THE MONEY IS
PROFESSIONALLY MANAGED ON THEIR
BEHALF FOR EMPLOYERS, FOR THE
BUSINESS OWNERS, THERE ARE NO
OUT OF POCKET COSTS. THERE'S NO
EMPLOYER MATCHING CONTRIBUTIONS,
AND THEY DON'T HAVE ANY
FIDUCIARY LIABILITY. AND THOSE
ARE ALL THE THINGS THAT
TRADITIONALLY HAVE KEPT,
ESPECIALLY SMALLER EMPLOYERS
FROM OFFERING RETIREMENT PLANS
LIKE 401 K'S. HOWEVER, IF THEY
DO PREFER TO OFFER A PRIVATE
SECTOR PLAN, THIS LEGISLATION,
THIS PROGRAM DOES ALLOW FOR
THAT. IN FACT, WE CONSIDER THAT
A WIN. THE WHOLE GOAL IS JUST TO
HAVE MORE CALIFORNIA WORKERS
SAVING FOR THEIR OWN RETIREMENT.
JUST A QUICK NOTE ON SOME OF OUR
KEY STATS TO KNOW ABOUT THE SIZE
AND GROWTH OF THE PROGRAM. SO
WE'RE VERY CLOSE TO HAVING A
HALF OF A MILLION FUNDED SAVER
ACCOUNTS NOW. SO 499,000
INDIVIDUAL PEOPLE IN CALIFORNIA
HAVE BEGUN SAVING FOR THEIR
RETIREMENT, WE HAVE ACCUMULATE
OR THOSE FOLKS HAVE ACCUMULATED
$857 MILLION IN ASSETS UNDER
MANAGEMENT, WHICH IS MORE THAN
DOUBLED IN JUST THE LAST 18
MONTHS. SO WE'RE REALLY SORT OF
HITTING OUR STRIDE WITH THE
PROGRAM NOW. IT'S A MATTER OF
ECONOMIES OF SCALE AND BUILDING
AND COMPOUNDING THE GROWTH, WE
HAVE 135,000 BUSINESS BUSINESSES
, EMPLOYERS THAT HAVE
REGISTERED, AND NEARLY 50,000
BUSINESSES THAT HAVE STARTED
FACILITATING PAYROLL DEDUCTIONS.
SO 50,000 BUSINESSES THAT BEFORE
THIS PROGRAM HAD NO RETIREMENT
PLAN IN PLACE FOR THEIR WORKERS
NOW HAVE ONE AND HAVE ACTUALLY
STARTED MOVING MONEY INTO REAL
ACCOUNTS. THE AVERAGE BALANCE IS
RELATIVELY LOW. IT'S $1,700 PER
PERSON, BUT THAT'S UP 10% IN
JUST THREE MONTHS. THIS IS A NEW
PROGRAM. SO BUILDING AND
GROWING, IN THE BUDGET CHANGE
REQUEST BEFORE YOU TODAY, WE'RE
REQUESTING $12 MILLION TAKEN IN
$2 MILLION PER YEAR INCREMENTS
OVER SIX YEARS. THESE FUNDS ARE
INTENDED TO COMPLETE THE LOAN
REQUIRED TO START UP THIS
PROGRAM. WE DO CONSIDER
OURSELVES STILL IN STARTUP. WE
ARE CURRENTLY BEGINNING
MARKETING TO THE LARGEST WAVE OF
EMPLOYERS, WHICH WE CALL MICRO
BUSINESSES. CURRENTLY. TODAY THE
MANDATE FOR THIS PROGRAM IS ONLY
FOR BUSINESSES WITH FIVE OR MORE
EMPLOYEES. BY THE END OF 2025,
SO 20 MONTHS FROM NOW, IT WILL
APPLY TO BUSINESSES WITH AS FEW
AS ONE EMPLOYEE, WHICH IS
ANOTHER 440,000 BUSINESSES. SO
JUST AN ENORMOUS AMOUNT OF VERY
SMALL COMPANIES. AND WE HAVE A
MANDATE TO REACH ALL OF THEM IN
THE NEXT 20 MONTHS. AND THAT'S
WHAT THIS MONEY WILL BE FOR,
THIS WILL ALLOW US TO FUND OUR
EXISTING STAFF, DO EMPLOYER
COMPLIANCE ENFORCEMENT SERVICES
THROUGH OUR PARTNER, THE
FRANCHISE TAX BOARD, WORK WITH
OUR EXTERNAL CONSULTANTS,
PRODUCE, MARKETING,
ADMINISTRATIVE AND OVERHEAD
COSTS. AND THE FASTER WE GROW
THE PROGRAM. AND THIS IS SORT OF
THE MAIN LINE HERE, THE MORE
SAVERS WE HAVE SAVING MORE
MONEY, THE FASTER WE'LL BE ABLE
TO BE FULLY SELF-SUSTAINING.
BECAUSE WE ARE EXCLUSIVELY
FUNDED BY VERY, VERY SMALL FEES
FROM THE SAVER ACCOUNTS. JUST
FIVE BASIS POINTS. SO THE MORE
PEOPLE THAT WE GET SAVING MORE
MONEY, THE FASTER WILL BE
SELF-SUSTAINED AND BE ABLE TO
PAY BACK THIS LOAN. HAPPY TO
TAKE ANY QUESTIONS. THANK YOU.
ANY COMMENTS FROM ELLIOTT OR
VICE? GREAT, THANK YOU FOR,
FIRST OF ALL, THE WORK THAT
WE'RE DOING TO GROW THIS
PROGRAM, I CAN UNDERSTAND THE
VALUE THAT IT'S GOING TO HAVE
FOR TODAY AND FUTURE
CALIFORNIANS TO BE ABLE TO SAVE
FOR THEIR FUTURE, SOMETHING
DEEPLY NECESSARY AS MORE
INDIVIDUALS ARE IN NEED OF
RETIREMENT SECURITY, THIS IS A
FANTASTIC OPTION. AND CERTAINLY
THE LEGISLATURE IS HERE IN
PARTNERSHIP TO BE ABLE TO SPREAD
THE WORD, TO BE ABLE TO, HELP
PEOPLE CONNECT WITH THIS
OPPORTUNITY, HAVE NO QUESTIONS
OF MY OWN. ARE THERE ANY MEMBERS
OF THE PUBLIC WISHING TO ADDRESS
THIS ISSUE OR ANY ISSUE? ONE
LAST CALL THAT WAS COVERED TODAY
. THAT'S MY CUE. GOOD AFTERNOON,
MR. CHAIR. I'M SANTOSH SAIRAM,
REPRESENTING THE STOP AAPI HATE
COALITION. THE COALITION TRACKS
AND RESPONDS TO HATE ACTS
AGAINST ASIAN AMERICAN AND
PACIFIC ISLANDER INDIVIDUALS IN
THE US. SINCE THE START OF THE
PANDEMIC, WE'VE HAD OVER 11,000
REPORTS OF HATE ACTS NATIONWIDE,
WITH A MAJORITY OF THOSE HATE
ACTS OCCURRING RIGHT HERE IN OUR
HOME STATE OF CALIFORNIA. WITH
OVER 4000 REPORTS IN 2021, THE
LEGISLATURE AND THE GOVERNOR
PRIOR IN THE STATE BUDGET, A
MEANS TO ADDRESS THE RACIALLY
MOTIVATED HATE AND INJUSTICE
THAT WAS OCCURRING IN OUR
COMMUNITY. SINCE THEN, WE'VE
WORKED CLOSELY AND REGULARLY
WITH THE CALIFORNIA CIVIL RIGHTS
DEPARTMENT TO ADDRESS HATE AND
HARM IN ALL COMMUNITIES, NOT
JUST OUR OWN. MOST RECENTLY,
WHEN THERE WAS THE HORRIFIC MASS
SHOOTING IN HALF MOON BAY, THE
GOVERNOR HIMSELF CALLED STOP
AAPI HATE AND ASKED US TO
RESPOND. AND WE DID. WE
MOBILIZED AND PROVIDED A RAPID
RESPONSE TO THAT COMMUNITY WITH
LANGUAGE ACCESS SERVICES,
COORDINATION OF MENTAL HEALTH
PROVIDERS, AND EVEN RAISING
MONEY FOR THE AFFECTED FAMILIES
AND COMMUNITIES. I KNOW THE
STATE FACES A HUGE DEFICIT AND
HARD DECISIONS ARE IN FRONT OF
YOU, BUT THE WORK IS NOT DONE.
HATE CONTINUES TO BE ON THE RISE
ACROSS MANY COMMUNITIES IN
CALIFORNIA. THE STOP AAPI HATE.
WE RESPECTFULLY REQUEST THAT OUR
STATE FUNDING BE RENEWED SO WE
COULD CONTINUE THIS WORK, AND IT
COULD BE ADMINISTERED THROUGH
THE CALIFORNIA CIVIL RIGHTS
DEPARTMENT. THANK YOU. THANK YOU
FOR YOUR TIME. GOOD AFTERNOON,
CHAIR MARTIN RADOSEVICH. ON
BEHALF OF UNITED WAY OF GREATER
LOS ANGELES. I'M SPEAKING IN
SUPPORT OF A $20 MILLION BUDGET
REQUEST TO FUND THE LA COUNTY
AFFORDABLE HOUSING SOLUTIONS
AGENCY. UNITED WAY LA WAS A
SPONSOR OF SB 679, WHICH CREATED
LA CASA AS WELL. AND WE ARE ALSO
A PLEASED TO SPONSOR THIS
REQUEST, WHICH IS BEING WHICH IS
BEING SUPPORTED BY LA CASA AS
WELL. IT WOULD FUND SOME
INNOVATIVE PILOT PROGRAMS AND
REALLY HELP EXPEDITE AND ROLL
OUT THIS AGENCY VERY QUICKLY AND
EXPEDITIOUSLY AS WELL. AND THEY
ARE DOING THEIR OWN. THEY'RE
ACTIVELY SEEKING SOME, THEY'RE
ACTIVELY SEEKING SOME FUNDING.
SO ANYWAY, WITH THAT, I'LL WRAP
IT UP. JUST WANTED TO HIGHLIGHT
THAT REQUEST. AND WE DID SEND A
LETTER FOR IT AS WELL. THANK
YOU. AND SEEING NO OTHER MEMBERS
OF THE PUBLIC WISHING TO ADDRESS
THE SUBCOMMITTEE, I WANT TO
THANK OUR PANELISTS, BOTH WITH
US AND THOSE PRIOR FOR
EVERYONE'S TESTIMONY HERE TODAY.
WE HAVE A LOT OF HARD DECISIONS
IN FRONT OF US, AND CERTAINLY A
LOT TO INTERNALIZE ABOUT THE
IMPACTS THAT WE'RE HAVING
THROUGH THESE DECISIONS, WITH
THAT, SUBCOMMITTEE IS ADJOURNED.
THANK YOU. THANKS.