LITTLE BEING TARDY HERE, BUT
WELCOME TO ASSEMBLY BUDGET
SUBCOMMITTEE FIVE, INFORMATIONAL
HEARING ON HOUSING AND
PROPOSITION ONE, TITLED FROM
SURPLUS TO SHELTER. I LIKE THAT
TITLE. TRANSFORMING EXCESS STATE
OWNED PROPERTIES INTO AFFORDABLE
HOUSING. TODAY WE FACE A STARK
REALITY OVER 180,000
CALIFORNIANS ARE EXPERIENCING
HOMELESSNESS WITH THE VAST
MAJORITY GRAPPLING WITH MENTAL
HEALTH CONDITIONS OR SUBSTANCE
USE CHALLENGES. THE GOVERNOR
RECENTLY ISSUED AN EXECUTIVE
ORDER TO ADDRESS HOMELESS
ENCAMPMENTS URGENTLY AND WITH
DIGNITY. WELL, WE KNOW THESE
ENCAMPMENTS POSE SERIOUS RISKS
NOT ONLY TO THOSE RESIDING IN
THEM, BUT ALSO TO THE
SURROUNDING COMMUNITIES. WE MUST
CONFRONT A HARD TRUTH
IMPLEMENTING SUSTAINABLE
SOLUTIONS PRESENTS SIGNIFICANT
CHALLENGES. SIMPLY MOVING
INDIVIDUALS OUT OF ENCAMPMENTS
RAISES CRITICAL QUESTIONS.
SIMPLY, WHERE ARE THEY GOING?
WHO ENSURES THEY HAVE A SAFE
PLACE TO GO? WE NEED A HOLISTIC
APPROACH PERMANENT HOUSING,
MENTAL HEALTH SERVICES,
SUBSTANCE ABUSE TREATMENT AND
JOB TRAINING PROGRAMS. WE MUST
LEVERAGE ALL AVAILABLE RESOURCES
AND DEVELOP COMPREHENSIVE, LONG
TERM STRATEGY TO NOT JUST MOVE
PEOPLE, BUT TO HELP THEM REBUILD
THEIR LIVES. THIS HAS BEEN A KEY
PRIORITY FOR THIS SUBCOMMITTEE.
IN MARCH, CALIFORNIA VOTERS TOOK
A DECISIVE STEP BY APPROVING
PROPOSITION ONE. THIS MEASURE
NOT ONLY AMENDS THE MENTAL
HEALTH SERVICES ACT, BUT ALSO
AUTHORIZES A 6.4 GENERAL
OBLIGATION BOND. THESE FUNDS
WILL BE USED TO BUILD A HOUSING
TO BUILD HOUSING FOR THOSE WITH
MENTAL HEALTH, DRUG OR ALCOHOL
CHALLENGES, AND TO CREATE
FACILITIES FOR A MENTAL HEALTH
CARE AND SUBSTANCE USE
TREATMENT. THIS HEARING IS AN
OPPORTUNITY TO EXAMINE BOTH
CURRENT AND FUTURE EFFORTS TO
ADDRESS THE HOUSING CRISIS. WE
WILL FIRST LOOK AT CURRENT
INITIATIVES TO TURN EXCESS STATE
LANDS AND UNUSED STATE OFFICES
INTO HOUSING. WE WILL ALSO
RECEIVE AN UPDATE FROM THE
ADMINISTRATION ON THE
IMPLEMENTATION OF PROPOSITION
ONE BOND FUNDING FOR SUPPORTIVE
HOUSING AND MENTAL HEALTH, AND
SUBSTANCE USE DISORDER
TREATMENTS, WITH OUR FIRST
PANEL, WE'RE GOING TO GO AHEAD
AND CALL THEM UP AND WILL THEY
ARE, COMING UP. WE ARE GOING TO
WELCOME OUR, FEARLESS LEADER AND
HOUSING OUR HOUSING CHAIR. MR.
CHRIS WARD, ASSEMBLY MEMBER. AND
IF YOU WANT TO MAKE ANY OPENING
REMARKS, YOU'RE WELCOME.
APPRECIATE IT. OKAY ALL RIGHT.
WITH THAT, WE'RE IN THIS VERY
COZY ROOM, OUR FIRST PANEL, WE
ARE JOINED HERE BY JASON KENNEY,
THE CHIEF DEPUTY DIRECTOR AT THE
DEPARTMENT OF GENERAL SERVICES.
WELCOME, JASON, MEGAN KIRBY,
DEPUTY DIRECTOR OF THE HOUSING
POLICY DEVELOPMENT, DEPARTMENT
OF HOUSING AND COMMUNITY
DEVELOPMENT. BETTER KNOWN AS HCD.
AND DANIELLE FOSTER, EXECUTIVE
DIRECTOR OF CAPITAL AREA
DEVELOPMENT AUTHORITY. CAÑADA
THIS PANEL WILL PROVIDE AN
OVERVIEW, OVERVIEW AND UPDATE ON
THE STATE'S EFFORT TO TURN
EXCESS STATE OWNED PROPERTIES
INTO HOUSING AND AN UPDATE ON
ADAPTIVE REUSE PROJECT. WE WILL
ALSO RECEIVE TESTIMONY FROM
CAÑADA REGARDING A SACRAMENTO
HOUSING PROJECT COMPLETED ON
EXCESS STATE LAND, AND I WOULD
JUST ASK, AS YOU MAKE YOUR
PRESENTATIONS, IS WE ALL SPEAK
KIND OF AN INTERNAL LANGUAGE
USING WORDS LIKE HCD AND CDA AND
NOT EVERYBODY KNOWS WHAT THAT
MEANS. SO IF YOU'RE GOING TO USE
AN ACRONYM, JUST MAKE SURE YOU
EXPLAIN THAT. BUT WELCOME AND
YOU'RE WELCOME TO BEGIN. THANK
YOU, MADAM CHAIR. MY NAME IS
JASON KENNEDY. I AM THE DEPUTY
DIRECTOR FOR THE DEPARTMENT OF
GENERAL SERVICES, AND I
APPRECIATE THE OPPORTUNITY TO
PRESENT TODAY, YEAH. THE MIC
NEEDS I THINK YOU NEED EITHER
MOVE IT OR IS IT ON? ON. OKAY.
IT WAS NOT ON. ALL RIGHT, START
OVER, JASON KENNEY, CHIEF DEPUTY
DIRECTOR FOR GENERAL SERVICES.
APPRECIATE THE OPPORTUNITY TO
PRESENT HERE TODAY, YOUR STAFF
DID AN EXCELLENT JOB SUMMARIZING
THE EXCESS SITES PROGRAM AND
KIND OF OUR APPROACH AT PRESENT
AT ADAPTIVE REUSE IN THE
MATERIALS. BUT I WILL COVER BOTH
OF THOSE AND KIND OF THE
HIGHLIGHTS AS TO WHERE THINGS
SIT. WITH THAT, I'LL COVER THEM
SEPARATELY, WITH RESPECT TO THE
EXCESS SITES PROGRAM, WHEN
GOVERNOR NEWSOM ISSUED EXECUTIVE
ORDER N6 19 IN JANUARY OF 2019,
IT WAS THE FIRST TIME THAT STATE
GOVERNMENT ATTEMPTED TO
REDEVELOP STATE PROPERTY FOR
AFFORDABLE HOUSING AT ANY SORT
OF SCALE, AFTER THE 2019
EXECUTIVE ORDER WAS ISSUED, WE
DID A COMPREHENSIVE INVENTORY OF
STATE PROPERTY. GOT TO WORK ON
REDEVELOPMENT, I WILL BE THE
FIRST TO ADMIT THAT WE WERE
BUILDING THE PLANE. OUR BUILDING
THE PLANE AS WE'RE FLYING IT.
BUT WE DID REDIRECT OUR OUR
SURPLUS PROPERTY UNITS. HCD
REDIRECTED STAFF, AND WE BEGAN
REDEVELOPMENT, OUR RECORDS SO
FAR, WE ARE PROUD OF THE
BACKGROUND MATERIAL. LISTS 20
PROJECTS, WHICH IS ACCURATE IF
YOU LOOK AT IT FROM A LAND
PERSPECTIVE, LIKE, YOU KNOW, ONE
PROPERTY IS AWARDED AND BEING
REDEVELOPED, IF YOU WERE TO
COUNT THE NUMBER OF STANDALONE
DEVELOPMENTS ON THOSE SITES,
IT'S CLOSER TO 38. SO DEPENDING
ON HOW YOU WANT TO COUNT. BUT IN
TOTAL ABOUT 4850 NUMBER OF UNITS
THAT ARE IN DEVELOPMENT. AND
THAT TOTALS ABOUT 2.5 TO $2.7
BILLION IN WORK. WE HAVE ALSO,
WITH THE HELP OF THIS
SUBCOMMITTEE, CREATED A
PERMANENT OPERATING FUND FOR THE
PROGRAM BY LEVERAGING STATE
LEASE REVENUES, SO THIS PROGRAM
IS, IS SAFEGUARDED AGAINST
FUTURE BUDGET SHORTFALLS, WE'VE
ALSO, AS WE'VE BEEN LEANING INTO
HOUSING MORE AND MORE, WE HAVE
BEGUN TO PARTNER WITH ENTITIES
THAT WE NORMALLY HAVE NOTHING TO
DO WITH IN TERMS OF
REDEVELOPMENT, INCLUDING THE CSU
SYSTEM. SO WE HAVE A PROJECT
RIGHT NOW IN SAN JOSE, WHERE THE
UNIVERSITY THERE IS PREPARING TO
DEMOLISH A DGS OFFICE BUILDING
AND BUILD MUCH NEEDED FACULTY
HOUSING FOR BOTH THE SCHOOL AND
THE REGION, WE'VE WORKED WITH
THE LEGISLATURE AGAIN, INCLUDING
THIS BUDGET SUBCOMMITTEE ON SITE
SPECIFIC PIECES OF LEGISLATION
TO SELL PROPERTIES IN A HOUSING
CENTRIC WAY, INCLUDING DIRECTING
LOCAL GOVERNMENTS ON ENTITLING
PROPERTIES VIA SPECIFIC PLANS
THAT THAT IN MY EXPERIENCE, HAS
NEVER BEEN DONE BEFORE, IF YOU
COUNT THOSE LAST TWO, THAT'S
ANOTHER 35 TO 4500 ADDITIONAL
UNITS THAT ARE BEING CREATED. AS
A RESULT OF THIS
ADMINISTRATION'S EFFORTS. WE
HAVE COMPLETED AND MADE PUBLIC
THE RESULTS OF A SECOND
COMPREHENSIVE REVIEW OF STATE
PROPERTY, AND THAT IS NOW
AVAILABLE ON OUR WEBSITE AS
WELL. OF COURSE, THESE PROJECTS,
BEING AFFORDABLE HOUSING BY
THEIR NATURE, ARE ENTIRELY
DEPENDENT ON SUBSIDY. AND THAT
REALLY DOES DRIVE TIME FRAMES,
DIFFICULTIES AND DURATIONS FOR
COMPLETION, AND WILL BE THE
FIRST TO ADMIT THAT SOME OF OUR
DEVELOPERS HAVE STRUGGLED IN
THIS HYPER COMPETITIVE
ENVIRONMENT. BUT I DO THINK THE
RECORD SHOWS THAT THERE HAS BEEN
A TREMENDOUS AMOUNT OF FOCUS,
PROGRESS AND INNOVATION SHOWN BY
OUR RESPECTIVE DEPARTMENTS IN
IMPLEMENTING THE EXECUTIVE ORDER
AND I WILL SAY, THE CODIFICATION
OF THE EXECUTIVE ORDER, WHICH
THE CHAIR IS VERY FAMILIAR WITH,
NOW, IN TERMS OF ADAPTIVE REUSE
AS AN UPDATE THERE, THIS IS A
RELATED SORT OF SUBSET OF THE
EXCESS SITES PROGRAM, IT MAY BE
HELPFUL TO BEGIN BY NOTING THAT
IF YOU WERE TO LOOK AT SOME SORT
OF LIKE 3D MODEL OF EVERY PIECE
OF STATE PROPERTY, RIGHT, YOU
KNOW, RIGHT NOW YOU WOULD SEE
THAT THE VAST MAJORITY OF THAT
IS OPEN SPACE. AND IF YOU WERE
TO LOOK AND SORT OF, YOU KNOW,
FILTER DOWN TO JUST THE
PROPERTIES WITH BUILDINGS ON
THEM, YOU WOULD SEE THAT THE
VAST, VAST MAJORITY OF THOSE ARE
SINGLE STORY BUILDINGS. THINK
FIELD OFFICES, HIGHWAY PATROL
OFFICES, DMVS, EDS, THOSE SORTS
OF THINGS. YOU ALSO HAVE PRISONS
AND STATE HOSPITALS AND
DEVELOPMENTAL CENTERS AND THE
LIKE. BUT THOSE ARE FAR RARER IN
THE IN THE PANOPLY OF, OF STATE
PROPERTY. SO WHAT THAT REALLY
MEANS IS THAT FOR THE VAST, VAST
MAJORITY OF STATE PROPERTY,
ADAPTIVE REUSE IS EFFECTIVELY A
NONSTARTER. BUT THAT SAID, IN
2020, RIGHT AFTER THE START OF
THE PANDEMIC, WHILE NO ONE COULD
PREDICT WHAT WAS GOING TO HAPPEN
ON A LONG ENOUGH TIME FRAME, WE
STILL CAN'T, WE REALIZED IT WAS
PROBABLE, AT LEAST, THAT SOME OF
OUR BUILDINGS WOULD PROVE
UNNECESSARY, EVEN IF THE STATE
TRANSITIONED AWAY FROM EMERGENCY
TELEWORK SIMPLY TO HYBRID. SO WE
COMMISSIONED A STUDY OF THREE
OFFICE BUILDINGS IN SACRAMENTO
AND THE GOAL WAS TWOFOLD. FIRST,
TO IDENTIFY WHETHER OR NOT THOSE
BUILDINGS THEMSELVES WOULD BE
QUALITY CANDIDATES FOR ADAPTIVE
REUSE. BUT IN INVESTIGATING
THAT, WE WANTED TO UNDERSTAND
WHAT MADE A BUILDING SUITABLE
FOR REUSE OR NOT, AT THE
CONCLUSION OF THAT STUDY, WE
ALSO SURVEYED THE MARKETPLACE,
AND WHAT WE REALIZED IS THAT
THERE WERE A NUMBER OF DESIGN
FIRMS OUT THERE WHO WERE
CREATING PRODUCTS THAT ALLOWED
YOU TO SORT OF QUICKLY ASSESS,
MAYBE A REGION, A PORTFOLIO
REALLY, REALLY HIGH LEVEL THUMBS
UP, THUMBS DOWN FOR ADAPTIVE
REUSE AND BUILDINGS. BUT NOTHING
GOT, IN BETWEEN THAT AND A SUPER
GRANULAR INFRASTRUCTURE STUDY,
THERE WAS A GAP IN THE
MARKETPLACE. AND SO WE USE THE
LESSONS LEARNED IN 2020 TO
COMMISSION A Ã ADAPTIVE REUSE
TOOL THAT WE STILL THINK IS THE
FIRST OF ITS KIND THAT LEVERAGES
THE FINDINGS OF THOSE STUDIES.
IN 2022, ASSEMBLY BILL 2592 WAS
PASSED, WHICH REQUIRED US TO
LOOK AT OUR BUILDINGS FOR
ADAPTIVE REUSE POTENTIAL. IN
2023, WE RECEIVED FUNDING TO
FURTHER EVALUATE BUILDINGS
BEYOND THE THREE THAT WE
INITIALLY STUDIED OUT OF OUR OWN
SUPPORT FUNDS. THAT YEAR, ALSO,
WE NOT COINCIDENTALLY AWARDED
THOSE THREE INITIALLY STUDIED
BUILDINGS TO A DEVELOPER FOR
ADAPTIVE REUSE AS PART OF THE
$2,023, 13 BUILDINGS WERE
EVALUATED. WE SELECTED THEM IN
PART BECAUSE OF THEIR POTENTIAL
TO BE EXCESS, BUT ALSO BECAUSE
IF WE HAD, SAY, THREE BUILDINGS
IN A REGION AND HYPOTHETICALLY,
IF WE KNEW THAT MAYBE WE WERE
GOING TO GIVE UP ONE IN THE
FUTURE, WE WANTED TO KNOW WHICH
ONES WERE GOING TO BE ADAPTIVE
RELEASE, ADAPTIVE REUSE ENABLED
TO PRIORITIZE GETTING OUT OF
THAT BUILDING AS OPPOSED TO THE
OTHER ONES, SO OF THOSE 13
BUILDINGS, ULTIMATELY TEN WERE
DETERMINED TO BE UNSUITABLE.
THREE WERE DETERMINED TO BE
SUITABLE FOR A VARIETY OF
REASONS, BUT IN SOME, AS IT
STANDS FOR ADAPTIVE REUSE, WE
HAVE THREE BUILDINGS AWARDED. WE
HAVE WE KNOW WHICH ONE OF OUR
BUILDINGS IN OUR PORTFOLIO WOULD
BE BEST CONVERTED IF THEY WERE
TO BE DETERMINED TO BE NOT
NECESSARY. AND WE HAVE A RAPID
ASSESSMENT TOOL THAT WE DEPLOY
ANYTIME WE MAKE A BUSINESS
DECISION ABOUT THE REUSE OF ONE
OF OUR BUILDINGS IN THE FUTURE,
I AM SURE THAT EVERYTHING I JUST
SAID PROMPTED A TON OF QUESTIONS,
WHICH I'M HAPPY TO ANSWER IN DUE
TIME, BUT I'LL TURN IT OVER TO
MY COLLEAGUE AT HCD, MEGAN.
THANK YOU. THANK YOU SO MUCH FOR
TALKING TO US ABOUT THIS TODAY.
AND WE OBVIOUSLY LIKE SHARING,
IT'S A LITTLE POINT OF PRIDE, I
THINK, FOR JASON MYSELF, THE
WORK THAT WE PUT INTO THIS, SO
HCD PARTNERS WITH DGS ON THIS.
WE FUNCTION AS THE AFFORDABLE
HOUSING EXPERTS IN THE, IN THIS
PARTNERSHIP. AND SO WE'RE REALLY
THERE. HELPING LOOK AT HOW DOES
THIS LAND PLAY INTO ALL OF THE
STEPS THAT MAKE AFFORDABLE
HOUSING COME TO BE, AND SO,
WE'RE, OUR ROLE IN THE EXCESS
SITES, IS, IS TO MAKE THOSE
PARTNERSHIPS HAPPEN BETWEEN THE
AFFORDABLE DEVELOPMENT COMMUNITY
AND THESE SITES. BUT ALSO WE'RE
A BIG PART OF EVALUATING THE
PORTFOLIO. SO OF THE PROPOSALS
THAT COME TO IN FRONT OF US. AND
SO THE EXCESS WORK, WE REQUIRE
THAT AT LEAST 20% OF THE TOTAL
UNITS ON ANY OF THESE, THESE
STATE LAND SITES ARE AVAILABLE
TO LOWER INCOME HOUSEHOLDS. SO,
YOU KNOW, THAT'S WHERE THE WONKY
TERMS GET STARTED. BUT THAT'S
WHAT WE CALL 80% AREA MEDIAN
INCOME. AND BELOW. SO BASICALLY
THOSE THAT ARE BELOW THE MIDDLE
PART OF THE MARKET, AND THERE
MUST BE 10% OF THE HOMES HAVE TO
BE AFFORDABLE TO THOSE,
HOUSEHOLDS THAT ARE, VERY LOW
INCOME. SO AT 50% OF THE AREA
MEDIAN INCOME, OR ABOUT HALF OF
WHAT THE MIDDLE INCOME FOR THAT
COMMUNITY ARE, THOSE COMBINED
THOUGH. SO IF YOU'RE SAYING
THOSE ARE IN ADDITION TO SO
THOSE ARE IN ADDITION TO AND IT
DOESN'T STOP THERE. THE
SELECTION PROCESS THAT WE USE
ARE TOP PRIORITY IN THAT IS
FINANCIALLY FEASIBLE
DEVELOPMENTS THAT HAVE THE
GREATEST DEPTH AND BREADTH OF
AFFORDABILITY. SO AT THIS POINT,
WE'VE NEVER HAD ANY DEVELOPMENTS
COME FORWARD TO US, WANTING TO
BE BELOW THAT, THEY'VE ALL
EXCEEDED THAT. SO THE AVERAGE,
THE AVERAGE OF ALL OF OUR UNITS
COMBINED IS 47% AREA MEDIAN
INCOME. SO LIKE THAT, LIKE THE
SAMPLE PERSON, WE'D BE SERVING
MAKES ABOUT HALF OF WHAT MIDDLE
INCOME WOULD BE, FOR, FOR
WHATEVER COMMUNITY IT'S IN, AND
WE HAVE 953 OF THOSE UNITS,
THAT, THAT SERVE LOWER INCOME
HOUSEHOLDS, WE HAVE 600 OF THOSE
UNITS THAT SERVE THE EXTREMELY
LOW INCOME HOUSEHOLD, DYNAMIC.
AND THEN 224 OF THOSE UNITS ARE
DIRECTLY SERVING. WILL WILL
DIRECTLY SERVE, AN INDIVIDUAL OR
A FAMILY THAT IS COMING FROM
EXPERIENCING HOMELESSNESS, AND
SO THESE THESE DEVELOPMENTS ARE
HAPPENING ALL ALL OVER THE STATE,
AND, YOU KNOW, I REALLY SEE THIS
AS US HAVING SKIN IN THE GAME AS
A STATE, LIKE WE ARE SAYING, YOU
KNOW, YOU'RE ALWAYS GOING TO
NEED MULTIPLE FINANCING SOURCES
TO MAKE AN AFFORDABLE HOUSING
DEVELOPMENT COME TOGETHER. THIS
PIECE OF LAND CAN FUNCTION AS
ONE OF THOSE SOURCES, IT'S AND
THAT IS GOING TO STRETCH ALL
THOSE DOLLARS WE HAVE IN THE
OTHER PLACES JUST THAT LITTLE,
MUCH FURTHER. AND WE DID
SOMETHING CREATIVE. I THINK,
THROUGH WE CREATED THE LOCAL
GOVERNMENT MATCHING GRANT
PROGRAM, AND WHAT THAT ALLOWED
US TO DO WAS SORT OF ENCOURAGE
FURTHER PARTNERSHIP HERE. SO WE
SAID, FOR THOSE, THOSE
DEVELOPERS THAT THAT HAVE BEEN
AWARDED THESE SITES, WE KNOW
YOU'RE OFF GOING AND SEEKING
YOUR FINANCING. WE KNOW YOU
STILL NEED TO GET THERE, AND SO
THE LOCAL GOVERNMENT MATCHING
GRANT PROGRAM WORKED WHERE WE
SAID, IF YOU CAN WORK WITH YOUR
LOCAL GOVERNMENT TO BRING
SOMETHING ELSE TO THE TABLE,
WE'LL MATCH THAT. AND WE WEREN'T
SAYING THAT THAT HAD TO BE
DOLLARS BECAUSE THE LOCAL
GOVERNMENTS CAN ENCOURAGE
HOUSING TO HAPPEN IN A WIDE
VARIETY OF WAYS SO THAT COULD BE
DEFERRED FEES. IT COULD BE
DONATED LAND, DANIEL FOSTER IS
ONE OF OUR SUCCESS STORIES THERE
FROM HER PRIOR. PRIOR LIFE, AND,
IT COULD ALSO BE IT COULD ALSO
BE FUNDING. AND SO, THROUGH
THAT, WE WERE ABLE TO ENCOURAGE
EVEN MORE SORT OF LIKE
EXPEDITIOUS GETTING ALONG THE
LINE, IN THAT WAY AND SORT OF
MODEL THE WAY I THINK FOR OUR
LOCAL GOVERNMENT PARTNERS,
SHOWING WHAT IT'S LIKE TO SORT
OF APPROVE THESE THINGS QUICKLY
GET THINGS TOGETHER, AND, YOU
KNOW, WE'RE NOW AT A PHASE
WHERE, SUGAR PINE VILLAGE AND
TAHOE, ITS FIRST PHASE IS GOING
TO BE MOVE IN READY BEFORE THE
END OF THE YEAR, OUR, OUR
RIVERSIDE, MULBERRY SENIOR
DEVELOPMENT AND OUR LOCAL HERE
SACRAMENTO, 44 ARDEN WAY
APARTMENTS ARE BOTH BREAKING
GROUND AND BEGINNING
CONSTRUCTION, RIGHT NOW. AND WE
WERE THRILLED BEYOND BELIEF TO
HAVE FOUR MORE DEVELOPMENTS,
JUST, JUST LAST WEEK BE AWARDED
TAX CREDITS, WHICH MEANS THEY
CAN MOVE TO THIS FINAL PHASE OF
CLOSING THEIR LOANS AND BREAKING
GROUND. SO THOSE THOSE ARE ALL
BIG PIECES OF THE PUZZLE FOR US.
AND JUST THE LAST PIECE I'LL ADD
TO THE MAP THAT WE'RE SO
GRATEFUL, TO, TO CHAIR FOR IS,
THAT HCD REALLY TOOK A SPECIAL
ROLE IN THE MAP THIS GO ROUND,
AND WE APPLIED ALL OF THE
AFFORDABLE HOUSING FINANCE
CRITERIA THERE. SO WE KNOW THAT
THE SITES THAT WERE ADDED TO THE
MAP HERE ARE NOT JUST GOOD FROM
A DEVELOPMENT PERSPECTIVE OF
HOUSING GENERALLY, BUT THEY
FOLLOW THE POLICY PRINCIPLES
THAT ARE AFFORDABLE HOUSING
PROGRAMS REQUIRE. SO WE KNOW
THEY'RE SET UP WELL TO BE
SUCCESSFUL THERE. THEY NEED TO
BE, YOU KNOW, NEAR TRANSIT, NEAR
AMENITIES, THAT KIND OF THING.
AND SO, YOU KNOW, WE WERE YOUR,
YOUR DISTRICT, MADAM CHAIR,
THERE WERE THREE NEW SITES THAT
ARE ADDED TO THE MAP, POST THAT
ANALYSIS. SO THAT'S THAT'S
SOMETHING EXCITING THAT WE'RE,
WE'RE WORKING ON AND WE'VE, WE
LOVE THE PARTNERSHIP. WE WANT TO
KEEP DOING IT. AND LIKE I SAID,
IT'S, WE THINK IT'S AN IMPORTANT
ROLE THAT THE STATE PLAY IN, AND
SHOWING WE'RE WILLING TO, TO
EXPEDITE HOUSING IN THIS
PARTICULAR WAY. SO WHERE IS THAT
LIST OF THE NEW PROJECTS, WE
HAVE A MAP. IT'S INTERACTIVE,
BUT WE CAN GET YOU DETAILED
LISTS AS WELL. BUT, YES, THAT'S
THAT LAUNCHED, I BELIEVE, JULY,
JULY 1ST. YEAH. THANK YOU. AND
THANK YOU TO DANIELLE. OKAY.
OKAY GOOD. THIS ONE'S ON. HI.
GOOD AFTERNOON, MADAM CHAIR AND
COMMITTEE, I'M DANIELLE FOSTER.
I'M THE EXECUTIVE DIRECTOR OF
KEDAH, THE CAPITAL AREA
DEVELOPMENT AUTHORITY, WHICH IS
A JOINT POWERS AUTHORITY OF THE
CITY OF SACRAMENTO AND THE STATE
OF CALIFORNIA. SO THANK YOU FOR
HAVING CAÑADA, I, PRIOR TO THIS
WAS IN THE ROLE OF HOUSING
POLICY MANAGER FOR THE CITY OF
SACRAMENTO AND HAVE WORKED A LOT
IN LOCAL GOVERNMENT. SO I GOT TO
INTERACT WITH THE EXCESS SITE
PROGRAM AT THE LOCAL LEVEL AS
WELL AS WAS MENTIONED. AND IT'S
SUCH A CREATIVE PROGRAM AND
REALLY HELPED FURTHER AFFORDABLE
HOUSING AND IS HELPING FURTHER
AFFORDABLE HOUSING, AT KATO, WE
ALSO HAVE A NONPROFIT ARM THAT
WE USE, OUR CAPITAL AREA
COMMUNITY DEVELOPMENT
CORPORATION, AND WE UTILIZED
THEM IN THE DEVELOPMENT OF
SONRISA. I PASSED OUT A HANDOUT,
TWO HANDOUTS, ONE THAT DETAILS
SONRISA WITH SOME PICTURES, AND
THEN A SECOND HANDOUT ON KEDAH.
JUST AS ADDITIONAL INFORMATION
ON OUR PORTFOLIO, WE WERE
HONORED TO BE IDENTIFIED AS THE
FIRST AFFORDABLE HOUSING
DEVELOPER IN THIS PROGRAM, THE
EXCESS SITE PROGRAM. AND WE
DEVELOPED THE SITE WITH CDFI
DEVELOPMENT USING THE TYPICAL
MYRIAD OF AFFORDABLE HOUSING,
STACKED FINANCING. SO INCLUDING
THE SITE LEASE THROUGH DGS, WE
ALSO USED FUNDING THROUGH HCD
FOR TRANSIT ORIENTED
DEVELOPMENT. WE USED THE FEDERAL
TAX CREDIT PROGRAM AND GOT A
PRIVATE EQUITY PARTNER, AND WE
ALSO GOT PRIVATE FINANCING
THROUGH JPMORGAN CHASE FOR BOTH
OUR CONSTRUCTION AND PERMANENT
FINANCING LOANS. AS WELL AS
DIRECT LOCAL SUBSIDY FUNDS THAT
WE HAD AT KEDAH AND WORKED WITH
OUR LOCAL MUNICIPAL ENERGY
COMPANY, SMUD, TO GET SOME
ENERGY FUNDS TO THE PROJECT AS
WELL. SO GATHERING THESE SOURCES
TAKES TIME AND IT TOOK TIME
HERE, BUT WITH THE LAND AND THE
LOCAL SUBSIDIES, THE PROJECT WAS
ABLE TO COMPETE WELL FOR THE
OTHER FUNDING SOURCES. AND AS
MEGAN MENTIONED, NOW THEY HAVE
TAKEN THE STEP TOWARDS THE LOCAL
GOVERNMENT GRANT MATCHING GRANT
PROGRAM THAT WASN'T IN PLACE FOR
THIS ONE, BUT IT HAS DEFINITELY
HELPED ON FUTURE PROJECTS. AND
WHEN I WAS AT THE CITY OF
SACRAMENTO, WE WERE ABLE TO
ACTUALLY PROVIDE LAND, THAT
ALLOWED FOR A PROJECT TO
INCORPORATE ADDITIONAL UNITS.
ABOUT 22 ADDITIONAL UNITS AND
CHILD CARE SERVICES ON SITE. SO
WE FELT LIKE THAT WAS A BIG WIN
FOR THE COMMUNITY AND THE DEL
PASO AREA, WHERE IT WAS MUCH
NEEDED, AT THIS SITE, WE WERE
ABLE TO BUILD 58 UNITS AND
INCLUDE A COMMUNITY JOB CENTER
AND CHARTER SCHOOL ON SITE. SO
ON THE FIRST FLOOR WE HAVE ABOUT
1300FT² THAT IS RUN THROUGH THE
SACRAMENTO EMPLOYMENT AND
TRAINING AGENCY AND HIGHLANDS
COMMUNITY CHARTER SCHOOL, WHERE
THEY CAN ACTUALLY HELP PEOPLE
GET GEDS OR PREPARE FOR JOBS AND
INTERVIEWS AND THOSE TYPES OF
THINGS. SO THIS WAS A GREAT
ASSET TO THIS COMMUNITY, WHEN
LOOKING AT THE AFFORDABLE
HOUSING LEVELS FOR THE PROJECT,
WE'RE OF COURSE LOOKING AT THE
BALANCE OF MEETING LOCAL NEEDS,
MEETING REQUIREMENTS OF
PROGRAMS. BUT PROVIDING FOR A
MIXED INCOME COMMUNITY THAT CAN
SERVE A RANGE OF HOUSEHOLDS,
SCORE WELL FOR FUNDING AND ALSO
CONTINUE TO SUPPORT BOTH THE
DEBT THAT WE NEED TO PAY FOR AND
THE OPERATING EXPENSES OVERALL.
SO IN KEEPING WITH THE GOALS OF
THE EXCESS SITE PROGRAM, SONRISA
REALLY WORKED TO DEMONSTRATE
SOME INNOVATION, BOTH WITHIN
SACRAMENTO AND THE STATE OF
CALIFORNIA. AS IT RELATES TO
BOTH AFFORDABLE HOUSING
DEVELOPMENT AND HOUSING
DEVELOPMENT OVERALL, AND TO
HIGHLIGHT SOME OF THOSE
INNOVATIONS, WE WERE FOCUSED ON
A MICRO UNIT CONCEPT. SO ALL OF
THE UNITS ARE ABOUT 260FT²,
STUDIO UNITS, JUST TO MAXIMIZE
THE NUMBER OF HOUSING. BUT WE
BALANCED THAT WITH LARGE WINDOWS
TO GET LOTS OF NATURAL LIGHT. WE
PROVIDE A MURPHY BED TO MAKE
SURE IT'S A VERY LIVABLE
SITUATION. IT'S A GREAT LAYOUT
FOR THAT, IT WAS THE FIRST ALL
ELECTRIC DEVELOPMENT IN
SACRAMENTO PRIOR TO US HAVING
LOCAL REQUIREMENTS FOR THAT,
AND, YOU KNOW, MANY CITIES ARE
HAVING THAT CONVERSATION, BUT
THIS WAS AN OPPORTUNITY FOR US
TO PARTNER WITH SMUD ON
PREPARING THEM. AND US FOR THOSE
REQUIREMENTS, THAT INCLUDED
INDUCTION COOKING. AND WE'VE
DONE EDUCATION WITH OUR
RESIDENTS ON THAT AND PROVIDED
POTS AND PANS THROUGH SMUD. SO
TOOK STEPS TO REALLY FURTHER ALL
ELECTRIFICATION THERE, WE
INCORPORATED CROSS-LAMINATED
TIMBER OR CLT IS WHAT IT'S ALSO
CALLED. AND THAT'S A PRODUCT
THAT REDUCES CARBON. AND IT ALSO
CAN SPEED UP THE DEVELOPMENT
PROCESS, IN THE WAY THAT IT GOES
UP QUICKLY BECAUSE THERE ARE
LARGE PANELS OF TIMBER, THERE'S
NO ON SITE PARKING, WHICH IS
STILL, SOMETHING THAT PROJECTS
ARE KIND OF HESITANT TO DO
DOWNTOWN. SO IT WAS AN
OPPORTUNITY FOR US TO PUSH THAT
INNOVATION FORWARD. ON THE
ABILITY TO HAVE NO ON SITE
PARKING. AND WE PROVIDE TRANSIT
PASSES THROUGH THE FUNDING WE
GOT THROUGH HOUSING AND
COMMUNITY DEVELOPMENT. AND THEN
WE ALSO HAVE ANOTHER TWO THIRDS
OF RESIDENTS THAT WALK THAT WALK
AND BIKE, TO AND FROM THE SITE,
WE CONTINUE TO WORK WITH LOCAL
SERVICE PROVIDERS AND NONPROFITS
ON SUPPORTIVE SERVICES AND WE
INCORPORATED DROUGHT TOLERANT
NATIVE PLANTS. REALLY FOCUSING
ON REDUCING WATER USAGE AT THE
SITE. SPECIFICALLY, THE
AFFORDABILITY IN THIS PROJECT IS
ABOUT 38%. AT 40% OF THE AREA
MEDIAN INCOME IN BELOW. SO
WITHIN THAT VERY LOW INCOME
MARK, ANOTHER 50% ARE AT VERY
LOW INCOME. THE 50% THRESHOLD
AND THE REMAINING 12% ARE AT 60%
OF THE AREA MEDIAN INCOME IN
SACRAMENTO. SO THIS MEANS THAT
WE'RE SERVING HOUSEHOLDS FROM
APPROXIMATELY $33,000 A YEAR TO
$50,000 IN GROSS ANNUAL INCOME.
BUT THEN WE ALSO HAVE TENANTS.
ABOUT 30% OF OUR TENANTS ARE
INCOMES LESS THAN THAT, AT
20,000 OR LESS, BECAUSE THEY ARE
LEVERAGING OTHER PROGRAMS THAT
CAN HELP THEM PAY THE RENT, LIKE
VOUCHER PROGRAMS AND SERVICE
PROVIDERS THAT ASSISTANCE WITH
WITH RENT, WE ALSO IN CREATING
THESE RENTS, WE'RE LOOKING AT
THE UTILITY COSTS. AND GIVEN THE
SIZE OF THE UNITS AND THE ENERGY
EFFICIENCY, THE UTILITY COSTS A
MONTH PER EACH MONTH AT SONRISA
FOR A RESIDENT IS ONLY $54. SO
THAT ALLOWS THE RENTS TO BE EVEN
MORE AFFORDABLE. SO SONRISA ALSO
IS VERY ACCESSIBLE AND SERVES
TENANTS WITH DISABILITIES. IN
ABOUT A THIRD OF OUR UNITS, AND
WE PROVIDE ON SITE, SUPPORTIVE
SERVICES THROUGH COMMUNITY
RESIDENT SERVICES AND A LOCAL
GROUP CALLED STEPUP THAT ALSO
WORKS IN SOUTHERN CALIFORNIA. SO
LESSONS WE LEARNED THROUGH THIS,
AND IT SOUNDS LIKE A LOT OF
THESE ARE ALREADY BEING
INCORPORATED, WHICH IS REALLY
EXCITING TO SEE, ONE OF THEM WAS
JUST THE ABILITY TO LEVERAGE
ADDITIONAL RESOURCES AND
MATCHING THE LOCAL GOVERNMENT
RESOURCES, AS IS ALREADY BEING
DONE THROUGH HOUSING AND
COMMUNITY DEVELOPMENT. THAT
REALLY HELPS THE GOVERNMENT, THE
DEVELOPMENT SMOOTH, MOVE QUICKLY
AND BE COMPETITIVE FOR OTHER
FUNDING SOURCES. SO THAT'S
GREAT, OUR NEED AND ABILITY TO
CONTINUE CREATING COMMUNITY
THROUGH PROPERTY MANAGEMENT,
WHICH WE KNOW BUT JUST CONTINUES
TO BE SOMETHING I WANT TO UPLIFT
AND HIGHLIGHT. AND RESIDENT
SERVICES IS PARAMOUNT TO THE
SUCCESS OF THESE SITES AND
INNOVATION, YOU KNOW, SOMETIMES
CREATES SOME CHALLENGES AND
LESSONS, HAVING MICRO UNITS
CREATED SOME CHALLENGES AROUND
THE MARKET STUDY AND TRYING TO
GET SOME OF THE REQUIREMENTS
COMPLETED FOR FUNDING SOURCES.
SO I THINK JUST RECOGNIZING THE
NEED FOR FLEXIBILITY WHEN WE'RE
LOOKING AT INNOVATION,
THRESHOLDS THAT WE WERE ABLE TO
OVERCOME, BUT JUST SOMETIMES
CHALLENGES THAT POP UP. AND TO
KEEP IN MIND THAT FURTHERING
THESE CREATIVE APPROACHES TO
DEVELOPMENT CAN PROVIDE A SAFE
PLACE FOR THIS NEW TECHNOLOGY TO
BE TRIED AND UPLIFTED AND THAT
WILL HAVE A GREATER IMPACT ON
BOTH LOCAL AND STATEWIDE HOUSING
CRISIS. SO, THANK YOU FOR THE
OPPORTUNITY TO SPEAK ON THIS
PROGRAM. WE ARE VERY EXCITED TO
BE PARTNERING ON A FUTURE
PROJECT IN THE PROGRAM, AND
CONTINUE TO LOOK AT IT AS A
GREAT RESOURCE. THANK YOU, THAT
IS ALL THREE OF YOUR
TESTIMONIES, AND I'M GOING TO GO
AHEAD AND OPEN IT UP TO
QUESTIONS FROM ANY OF OUR
MEMBERS. AND I'M SORRY, ASSEMBLY
MEMBER MATHIS, I DID NOT
INTRODUCE YOU OR GIVE YOU AN
OPTION TO MAKE COMMENTS SO YOU
CAN ASK IN YOUR QUESTIONS OR
MAKE WHICHEVER COMMENTS YOU
LIKE. WELCOME BACK. SURE. GREAT.
THANK YOU, MADAM CHAIR. THANK
YOU FOR THE PRESENTATIONS TODAY.
OBVIOUSLY SOMETHING THAT, YOU
KNOW, WE'RE JUST A SMALL NUMBER
OF LEGISLATORS THAT, PROBABLY
REPRESENT A MUCH LARGER NUMBER
OF OUR COLLEAGUES WHO ARE, YOU
KNOW, TRYING TO PAY EVEN MORE
CLOSE ATTENTION TO MAXIMIZING
THE OPPORTUNITIES THAT WE HAVE
FOR STATE RESOURCES. BOTH
DOLLARS AND LAND, WANT TO, YOU
KNOW, AGAIN, EXTEND MY PERSONAL
GRATITUDE FOR OUR ONGOING WORK
TOGETHER AS WE'RE TRYING TO
TEASE OUT BOTH SITE SPECIFIC BUT
ALSO PROGRAM, DESIGN THAT CAN
HELP US TO IMPROVE UPON LESSONS
LEARNED. AND I'M GRATEFUL FOR
BOTH YOUR EXCITEMENT AND PASSION
TO SORT OF WORK ON THE EXECUTIVE
ORDER AND THEN FOLLOW THAT UP
WITH, YOU KNOW, LEGISLATIVE
DIRECTION AND OTHER SUPPORT THAT
YOU HAVE THAT YOU NEED FROM US,
TO BE ABLE TO JUST REALLY DO ALL
WE CAN DO. AND IT'S INTERESTING
WHEN WE LOOK IN SOME OF THIS
BACKGROUND HERE THAT YOU KNOW,
WE SAY WHEN WE START WITH 44,000
STATE PARCELS AND I GET A LOT OF
THOSE ARE REMNANT OR THEY'RE,
YOU KNOW, LANDS THAT ARE YOU
KNOW, DISTANT FROM URBAN CENTERS
AND, YOU KNOW, NOT CONDUCIVE TO
WHERE WE WANT TO PLACE HOUSING
OPPORTUNITIES. AND YOU KIND OF
WHITTLE IT DOWN. AND THERE'S A
NATURAL I WENT THROUGH THE SAME
EXERCISE ON CITY COUNCIL TO
WHERE WE HAD A LOT OF STATE,
CITY EXCESS LANDS, BUT, YOU
KNOW, THEY WERE REMNANT PARCELS
OR THEY JUST THEY DIDN'T REALLY
WORK. AND SO I UNDERSTAND HOW
THAT WHITTLES DOWN. BUT THEN WE
GET DOWN TO 114 EXCESS SITES,
AND THEN OF THOSE 20 UNDER
DIRECTION UNDER UNDER
DEVELOPMENT TODAY, AND ONES THAT
ARE, AS YOU SAID, DEPENDENT ON
SUBSIDY. RIGHT. WE GOT TO FIND
THE MONEY, WE GOT TO FIND
PARTNERSHIPS TO PULL IT
TOGETHER. AND I GUESS I WANTED
TO SEE IN THAT YOU'RE WORKING
WITH WHAT YOU HAVE TODAY, THE
GUIDELINES. AND YOU KNOW, BEST
PRACTICES THAT WE HAVE TODAY AND
THE RESPONSIBILITIES TO THE
PUBLIC INTEREST TO MANAGE THESE
LANDS WELL AND GET THE MOST FOR
OUR MONEY OVER TIME. AND SO A
COUPLE OF QUESTIONS, I GUESS, IS
AS YOU'RE GOING THROUGH THIS
EXPERIENCE AND MAYBE THINKING
ABOUT HOW DO WE EVOLVE THIS TO
ACCELERATE AND GROW OUR STATE'S
POTENTIAL FOR USE ON THESE
LANDS? AND ONE QUESTION I HAVE
IN MIND IS KIND OF RECOGNIZING
MY OWN EXPERIENCES. I'M THINKING
ABOUT, YOU KNOW, OTHER
DEPARTMENT LANDS, YOU KNOW, HAVE
YOU HAD YOU'RE TAKING A LOT OF
DGS, RIGHT, TO SORT OF, YOU
KNOW, WE'RE LOOKING ACROSS AND
SAY, WHO WOULD BE LIKE THE ONE
RIGHT PLACE TO BE ABLE TO TAKE
LEADERSHIP ON THIS ROLE? THANK
YOU FOR THAT, BUT HOW ARE YOU
FINDING AS YOU ARE ENGAGING WITH
OTHER DEPARTMENTS OR AGENCIES AS
WELL, WHEN THEY SAY NO, THIS IS
PARKS LAND OR THIS IS DMV LAND
OR THIS IS THIS IS IN OUR
BUCKET, DO WE DO YOU HAVE THE
AUTHORITIES YOU NEED OR DO YOU
NEED IMPROVEMENTS AND THE
ABILITY TO WORK ACROSS STATE
AGENCIES TO MAXIMIZE AND
ACCELERATE WHAT SHOULD BE A
SHARED GOAL? YEAH, I'LL I'LL
I'LL START ON THAT. I THINK IT'S
A TOTALLY FAIR QUESTION. ONE OF
THE PRIOR BEFORE THE EXECUTIVE
ORDER. AND I'LL ALSO COMMENT ON
THE CODIFICATION BECAUSE IT WAS
ANOTHER STEP IN THAT SAME
DIRECTION, THE WAY THE STATUTORY
SCHEME WORKED WAS EVERY
DEPARTMENT HELD PROPERTY IN
TRUST FOR THEIR OWN MISSION AND
PURPOSE. AND WHEN THEY DEIGNED
TO TELL US THAT THEY DIDN'T NEED
ANY MORE, THEN WE GET TO DO
SOMETHING WITH IT. AND THERE IS
ZERO INCENTIVE FOR DEPARTMENTS
TO DO THAT. ZERO INCENTIVE, THEY
DON'T GET TO POCKET ANY MONEY AS
A DEPARTMENT IF THE PROPERTY IS
SOLD, MAYBE, MAYBE, MAYBE
THERE'S SOME BENEFIT IF WE LEASE
IT OUT FOR THEM. BUT FOR THE
MOST PART, IT'S BETTER FOR THEM
TO KEEP IT THAN NOT UNLESS
THEY'RE LOSING MONEY AND LIKE,
WARM SHUTDOWN OR SOMETHING. AND
SO WHAT THE EXECUTIVE ORDER DID
WAS SAID, ALL RIGHT, WELL LET'S
DO THAT PROACTIVE LOOK TO SEE
WHO MIGHT BE HOLDING ON TO
PROPERTIES THAT THEY SHOULDN'T,
AND SO THAT WAS HUGE, THE
CODIFICATION OF THE EXECUTIVE
ORDER MADE THAT A EVERY FOUR
YEAR PROCESS, WHATEVER THE TERM
FOR THAT IS, AND THE GOAL THERE
OBVIOUSLY IS TO SAY YOU KNOW,
OBVIOUSLY ADMINISTRATIONS
CHANGED DIRECTORS AND APPOINTEES
CHANGE DEPARTMENTAL DIRECTION
CHANGES. AND SO NOT LETTING IT
SIMPLY BE, WELL, SOME DIRECTOR
14 YEARS AGO SAID NO, THEREFORE
IT'S NO, IT'S, IT'S CONSTANTLY
REFRESH THIS. AND I THINK THAT
THAT IS THAT HAS BEEN A HUGE
STEP IN THE RIGHT DIRECTION.
IT'S ALSO EMPOWERED US TO HAVE
SOME HARD CONVERSATIONS WITH
SOME OF THE DEPARTMENTS. IF YOU
IT'S KIND OF HARD TO TELL FROM
THE LIST AND THE HANDOUT, BUT
SOME OF THE PROPERTIES ON THERE,
YOU KNOW, THERE'S A PROJECT IN
SAN QUENTIN THAT WAS FORMER CDCR
EXCESS PROPERTY. IT WAS OUTSIDE
OF THEIR BUFFER OF THEIR BUFFER,
AND THAT IS, GOING TO GO TO
ESSENTIAL WORKFORCE HOUSING AND
TEACHER HOUSING TO STOP THEM
FROM HAVING TO SHUT DOWN
CLASSROOMS. RIGHT THERE'S A
PROJECT AT ATASCADERO THAT IS ON
STATE HOSPITAL PROPERTY, AND SO
THOSE CONVERSATIONS WOULD NEVER
HAVE BEEN POSSIBLE HAD IT NOT
BEEN FOR THE EXECUTIVE ORDER AND
THE CODIFICATION OF IT WITH THE
CHAIR'S BILL, I THINK THE
CHALLENGE WITH HAVING A MUCH
MORE CENTRALIZED APPROACH THAN
THAT IS TWOFOLD. ONE, WE HAVE NO
IDEA WHAT THE ACTUAL OPERATIONAL
NEEDS ARE FOR THOSE DEPARTMENTS
TO SERVE THEIR LOCAL
CONSTITUENCIES. THINKING ABOUT
DMV AS AN EXAMPLE, THE OTHER
PIECE IS TO VACATE A PROPERTY.
WOULD GENERALLY REQUIRE FUNDING
FOR THEM TO DO SOMETHING, AND
DEPENDING ON THE STATE OF THEIR
FUND, THE OVERALL BUDGET, YOU
KNOW, IF IT'S A $40 MILLION DMV
PROJECT TO REPURPOSE THAT
PROPERTY, IT'S A CHUNK OF CHANGE
THAT HAS TO GO SOMEWHERE. WHAT
WE HAVE BEEN DOING WITH
DEPARTMENTS, AS YOU KNOW, AS
WELL, FOR EXAMPLE, THERE'S A
THERE'S A PROJECT IN SAN
FRANCISCO RIGHT NOW THAT IS IN
THE PROCESS OF BEING FINALIZED,
THAT WILL HOPEFULLY MARRY
HOUSING WITH THE DMV. AND SO
WE'RE LOOKING AT THESE AS MUCH
AS WE CAN AS PROTOTYPES, SO WE
DEMONSTRATE THE PROOF OF CONCEPT
AND THEN HAVE THE ABILITY TO
SORT OF REPLICATE THROUGHOUT.
THE LAST THING I WOULD SAY IS,
YOU KNOW, IN TERMS OF THAT
WINNOWING PROCESS. ABSOLUTELY
BEACHES, MOUNTAINS, FORESTED
LANDS, LAKES, THINGS LIKE THAT,
THOSE ARE NEVER GOING TO BE
SUITABLE. BUT WHAT WHAT HCD, DUE
TO THEIR CREDIT IS, IS REALLY I
MEAN, IF YOU IF YOU LOOK AT OUR
PROGRAM AND YOU LOOKED AT ALL
THE FUND SOURCES THAT GET
TAPPED, TAX CREDITS IS
UBIQUITOUS. IT'S ALMOST ON EVERY
SINGLE ONE OF THEM. AND THAT TAX
CREDIT PROGRAM ALSO GENERALLY
INFORMS MANY OF THE OTHER
SUBSIDY PROGRAMS THAT EXIST OUT
THERE. SO THEY ACTUALLY CREATED
AN AUTOMATED ALGORITHM, WHICH WE
COULD DO TO LOCAL PROPERTIES IF
THEIR SHAPE FILES, THAT FIRST
ALL SCREENS OUT, THINGS LIKE
SUPERFUND SITES, IT'S ABLE TO
ACTUALLY GEOGRAPHICALLY REDUCE,
THE DEVELOPABLE PORTION OF THE
PARCEL TO MAKE SURE THERE'S AT
LEAST A MINIMUM VIABILITY THERE.
AND THEN IT APPLIES TAX CREDIT
FINANCING, SCORING TO LOOK AT
VIABILITY. AND SO WE'RE ABLE TO
SAY TO MEGAN'S POINT, THIS, THIS
PARCEL HERE, IT WOULD SCORE
COMPETITIVELY ENOUGH IN ORDER TO
BE AWARDED A PROJECT ACROSS
MULTIPLE SUBSIDIES. AND SO
THAT'S ACTUALLY WHAT DROVE THE
CONVERSATIONS WITH THE
DEPARTMENTS. IT'S A SMALLER
UNIVERSE THAN YOU WOULD THINK,
BUT IT ABSOLUTELY IN THIS DATA
INFORMED WAY AND BEING ABLE TO
AUTOMATE THAT AND UPDATE IT OVER
TIME MEANS THAT EVERY SINGLE
TIME SOMEONE SAYS I DON'T NEED
PROPERTY ANYMORE, WHETHER IT'S
CALTRANS OR CDCR OR WHOEVER
ELSE, IT AUTOMATICALLY NOW GOES
THROUGH THAT SCREEN. AND IF IT'S
HOUSING SUITABLE, WE ARE WE'RE,
ADDING IT TO THE MAP AND
DEVELOPING IT THAT WAY. THAT'S
REALLY ENCOURAGING TO HEAR. I
GET EXACTLY WHAT YOU'RE SAYING.
AND I THINK THAT'S EXACTLY THE
DATA DRIVEN AND STRATEGIC WAY TO
BE ABLE TO IDENTIFY SITES. AND
ONCE THAT KIND OF MEETS THAT
CRITERIA AND EVERYTHING, BE
CREATIVE AND THINK ABOUT WAYS TO
SORT OF BREAK DOWN BARRIERS AND
PASS PRECEDENT, TO GET TO. YES,
I'M REMINDED TOO, I HAD NOTHING
TO DO WITH HOUSING, BUT WE HAD
AN EXPERIENCE IN SAN DIEGO,
BETWEEN PARKS AND
TRANSPORTATION, WHERE WE BUILT A
NEW TRANSPORTATION HEADQUARTERS.
IT'S BEAUTIFUL. IT'S AN OLD TOWN
ALSO IN MY DISTRICT. AND ACROSS
THAT WAY, WE ALSO KNEW THAT WE
WANTED TO HAVE A NEW ADDITION TO
THE STATE PARKS AREA. AND IT
TOOK SEVEN YEARS TO TRANSFER THE
PROPERTY FROM THE TRANSPORTATION
BUCKET TO THE PARKS BUDGET. WHY?
BECAUSE PARKS HAD NO MONEY TO
PAY TRANSPORTATION FOR THE LAND.
CONSTITUENTS DIDN'T CARE. THEY
WERE LIKE THAT STATE, THAT STATE
LIKE JUST MAKE IT HAPPEN, AND SO
THESE ARE THINGS THAT, YOU KNOW,
AS LEGISLATORS, WE'RE TRYING TO
BE HELPFUL TO, YOU KNOW, THINK
ABOUT, YOU KNOW, 21ST CENTURY
CONTEXT ABOUT, YOU KNOW, BEING
MORE EFFICIENT WITH, WITH, WITH
ALL, WITH ALL PROPERTIES. AND
I'M WONDERING MAYBE KIND OF
TAKING A STEP BEYOND THAT AND
MAYBE BRINGING Kò TO IN THE LOOP
AS WELL, TOO, IF WE'RE THINKING
ABOUT WAYS TO THINK ABOUT LOCAL
HOUSING AGENCIES OR SPECIAL JBA
PARTNERSHIPS, IF THAT'S ALSO
SOMETHING THAT YOU'RE DOING AS
YOU'RE LOOKING THROUGH THESE,
YOU KNOW, SORT OF MINIMALLY
SCREENED AREAS AND NOT JUST
LIMITING OURSELVES TO WHAT STATE
AGENCIES CAN DO ON THEIR OWN,
BUT WHERE THE PARTNERSHIP
OPPORTUNITIES MIGHT EXIST. SO AT
THE RISK OF MONOPOLIZING, LET ME
LET ME START THERE, TOO. 100%, I
MENTIONED IN MY, IN MY REMARKS
THAT THERE ARE PROPERTIES THAT
WE ARE WE PURSUED SITE SPECIFIC
LEGISLATION TO SELL AS OPPOSED
TO REDEVELOP UNDER THIS PROGRAM
AS A LEASE. AND THE REASON FOR
THAT, FOR THE MOST PART, IS
BECAUSE THE AMOUNT OF STAFF
EFFORT IT WOULD TAKE TO
REDEVELOP THOSE PROPERTIES
PIECEMEAL OVER, YOU KNOW, IT'D
BE IT'D BE 20 PROJECTS ON A, ON
A 100 ACRE SITE, AND IT WOULD
HAPPEN OVER 15 YEARS. AND SO WE
WOULD LITERALLY HAVE TO SHUT
DOWN THE WHOLE PROGRAM AND
REDIRECT STAFF TO GO DO ONE
SITE. AND SO IN THOSE INSTANCES,
YOU KNOW, AND THIS IS
PARTICULARLY TRUE FOR THE
DEVELOPMENTAL CENTERS, THE
STATUTE THAT HAS GOT PUT IN
PLACE GENERALLY THROUGH TRAILER
BILL, AGAIN, THANKS TO THE
BUDGET SUBS, HAS GIVEN VERY
SPECIFIC DIRECTION TO LOCAL
GOVERNMENTS TO RE ENTITLE THE
PROPERTIES IN A HOUSING SPECIFIC
WAY BECAUSE THE PROPERTIES ARE
ALMOST NEVER ENTITLED FOR
HOUSING, THEY'RE GENERALLY
INSTITUTIONAL SETTINGS, AND
GIVES US THE ABILITY TO SAY YOU
DID A BAD JOB AND PULL IT AWAY
FROM THEM, BUT THEN SELL IT IN
ACCORDANCE WITH THAT. AND SO
THAT'S ANOTHER WAY OF MAKING
SURE THAT THE THERE'S A
PARTNERSHIP AND THAT THERE IS A
HOUSING CENTRIC OUTCOME WITHOUT
HAVING TO CRIPPLE THE PROGRAM OR
ASK YOU ALL FOR TEN NEW STAFF.
AND SO THAT'S KIND OF, YOU KNOW,
I THINK THERE'S AN ABSOLUTE
WORLD IN WHICH THAT THAT CAN
HAPPEN. K DOES A GREAT EXAMPLE
OF AN EXISTING PARTNERSHIP IN
THIS AREA. THIS IS NOT THE FIRST
HOUSING PROJECT THEY'VE DONE.
IT'S NOT THE LAST, THEY'VE BEEN
VERY SUCCESSFUL IN IT. AND THE
CAPITAL AREA. SO I THINK THOSE
SORTS OF PARTNERSHIPS ARE THE
ONLY WAY THIS REALLY SCALES IN
A, IN A MEANINGFUL WAY. DID YOU
HAVE ANYTHING TO ADD THROUGH
YOUR EXPERIENCE. AND THEN YOU
FURTHERMORE HAD PARTNERED WITH
LOCAL, YOU KNOW, A MYRIAD RIGHT
OF BOTH PUBLIC AND PRIVATE
INVESTMENTS AS WELL TO, TO MAKE
IT HAPPEN. YEAH, I WOULD SAY
BOTH ON THE, THE LOCAL LEVEL.
WHEN I WAS AT THE CITY, WE WERE
LOOKING AT SITES, WITH DGS AND
TRYING TO FIGURE OUT WHERE THE
CITY COULD OFFER LAND THAT WAS
ADJACENT TO SITES LIKE WE DID AT
ARDEN, AND STRATEGIZE THAT WAY.
AND THEN NOW AT KATA. YET WE
CONTINUE TO THINK ABOUT, OKAY,
WHAT ARE WHAT ARE PARCELS THAT
WOULD WORK FOR BOTH US AND THE
PROGRAM AND, AND THINK THROUGH
AND TALK THROUGH THOSE. YEAH.
AND THEN ON THE ON THE KIND OF
ECONOMIC SIDE OF THINGS, AS
EXPENSIVE AS THINGS ARE, I
REMEMBER MY FIRST YEAR HERE, I
HAD A BILL THAT WAS TRYING TO BE
ABLE TO AUTHORIZE THE, FOR, FOR
PURPOSES OF PRODUCING AFFORDABLE
HOUSING, USING EXCESS
TRANSPORTATION LANDS. FOR
PARTNERSHIP, BEING ABLE TO
REDUCE THE VALUE OF THAT LAND TO
AN ACQUISITION VALUE AS OPPOSED
TO A FAIR MARKET VALUE, IT SAVES
A HUGE LOT ON AND RAISES
PROBABLY THE VIABILITY OF
SOMETHING PENCILING OUT, I KNOW
WHY THAT WASN'T SUCCESSFUL, BUT,
YOU KNOW, MAYBE THROUGH ANOTHER
EXAMPLE, YOU KNOW, THINKING, YOU
KNOW, DO WE ONLY NEED 100%
AFFORDABLE HOUSING BECAUSE WE
ALSO NEED MARKET RATE HOUSING,
RIGHT? IF WE'RE GOING TO BE ABLE
TO BUILD THE UNITS THAT WE NEED
TO STABILIZE WORKFORCE HOUSING
TO, AND DO WE HAVE CONSTRAINTS?
SO OF COURSE WE WANT TO
PRIORITIZE AFFORDABLE HOUSING
AND PRIORITIZE DEEPLY AFFORDABLE
HOUSING. BUT IS THAT A
CONSTRAINT AS WELL IN THE
OPPORTUNITIES THAT YOU'RE
SEEING? NO, NO, NO. GREAT GREAT
TIPS. I ALSO MENTIONED IN MY AND
BY THE WAY, IF I'M MONOPOLIZING,
PLEASE. OKAY, BUT I MENTIONED IN
MY REMARKS, WELL, ACTUALLY, I
DIDN'T ACTUALLY CUT IT. THERE
WAS ONE MORE THING THAT WE WORK
WITH THE BUDGET SUBS TO DO,
WHICH WAS AMEND OUR LEASING
AUTHORITY. IT USED TO ACTUALLY
BE FOR HOUSING MUCH MORE
PRESCRIPTIVE. AND WHAT WE FOUND
WAS THAT IN ORDER TO MAXIMIZE
NUMBER OF UNITS, BE ABLE TO
TAILOR THINGS TO AREAS AND IN
SOME CASES JUST GENERATE MORE
AFFORDABLE UNITS. A DIFFERENT
SPECTRUM. SO YOU COULD MAYBE GET
150 UNITS. IT WAS 100%
AFFORDABLE, BUT YOU COULD GET
300 UNITS AND 500 UNITS OF
MARKET ON THE SAME SITE. IF YOU
DID AN 80 OVER 20 DEAL. RIGHT,
AND SO OUR LEASING AUTHORITY,
THAT'S WHY MEGAN MENTIONED, YOU
KNOW, THOSE ARE THE FLOORS THAT
THE LEASING AUTHORITY NOW ALLOWS
THAT IN SAN DIEGO, OUR FORMER
STATE OFFICE BUILDING, IT'S 11
STORY BUILDING SURROUNDED BY 30
TO 40 STORY TOWERS. AND THERE'S
A LITERALLY A DEAD PARKING LOT
ACROSS THE STREET THAT WE OWN,
THAT IS AWARDED TO A DEVELOPER
WHO'S CONTEMPLATING 241 STORY
TOWERS AND ABOUT 1500 UNITS,
COMPLIANT WITH WITH THE WITH THE
AUTHORITY, EXCEEDS IT. THE
THERE'S A DECENT WORKFORCE
COMPONENT THAT'S ACTUALLY
SUBSIDIZED BY THE MARKET RATE
UNITS. AND SO IT AND THEY'RE
THEY'RE NOT PLANNING ON PULLING
DOWN THESE THESE HYPER
COMPETITIVE SUBSIDIES. SO IT'S A
GREAT EXAMPLE I THINK OF A WAY
YOU CAN LEVERAGE PROPERTY TO
REALLY DEVELOP IN A DIFFERENT
WAY. THANK YOU. I'M GLAD YOU
BROUGHT UP THAT EXAMPLE BECAUSE
IT MAYBE IT WILL BE KIND OF A
FINAL POINT ON ON JUST A CLOSING
STATEMENT, IS THE TIME IT TAKES
TO GET SOMETHING DONE. I MEAN,
THE STATE PROPERTY DOWNTOWN SAN
DIEGO IS STILL IN THE SAME
CONDITION AS WHEN I VACATED. IT
WAS TOLD TO GET OUT OF THERE.
IN, THE FALL OF 2022, AND SO I
DO KNOW THAT, YOU KNOW,
DEVELOPMENTS, ESPECIALLY AT THAT
INTENSITY, YOU KNOW, TAKE TIME
AND RESPONSIBLY AS WE'RE
THINKING ABOUT STATE RESOURCES,
YOU KNOW, WE WANT TO DO IT
RIGHT. AND MAXIMIZE POTENTIAL,
BUT ARE YOU SEEING THE NEED TO,
FURTHER REFINE OUR PROCESSES TO
HELP MAYBE TRY TO CONSOLIDATE
SOME OF THESE PINCH POINTS IN
THE TIMELINES OF DEVELOPMENT
AND, YOU KNOW, GET TO MORE
DESIGN, BUILD OPPORTUNITIES,
WORK FOR WAYS OF LOCAL STATE
PARTNERSHIPS OR PRIVATE PUBLIC
PARTNERSHIPS THAT THAT HELP
THINGS DEVELOP FASTER, YES, I
MEAN, I THINK AND JASON CAN ADD
ONTO THIS TOO, BUT JUST I WANTED
TO JUMP IN TO SAY, YOU KNOW, I
THINK SOMETHING WE'RE TRYING TO
DO IN THIS PROGRAM IS
INNOVATION, BUT WHERE THAT
MATTERS. AND SO PART OF
INNOVATION IS THAT LIKE SOME,
YOU'RE DOING IT FOR A PURPOSE,
RIGHT? YOU'RE DOING IT BECAUSE
IT'S GOING TO HAPPEN FASTER.
YOU'RE DOING IT BECAUSE IT'S
GOING TO LEAD TO A COST
ADVANTAGE IN SOME WAY. BUT
INNOVATION, IT CAN'T JUST BE FOR
NO REASON. BUT LIKE SOMETIMES
YOU DO AN INNOVATIVE THING AND
YOU LEARN SOME STUFF, YOU KNOW,
AND SO I THINK SOME OF THESE
YOU'LL SEE LIKE LIKE THE, THE WE
DID AN INNOVATIVE THING. WE
THOUGHT, WE THOUGHT IT WOULD
LEAD TO A CERTAIN OUTCOME. AND I
WOULD SAY IN THAT CASE LIKE, YOU
KNOW, WE'RE WE'RE STILL
EXPLORING THIS IS SOMEBODY WHO'S
TRYING TO DO SOMETHING VERY
DIFFERENT FROM A FINANCING SPACE
TO TRY AND TAKE PRESSURE OFF OF
THE STATE SYSTEM. AND THAT'S
THAT'S GOING TO TAKE SOME TIME
TO WORK THROUGH AND, AND
INVESTIGATE. AND, AND EXPLORE.
AND WE HAVE HAD CASES NOT THAT
ONE, BUT OTHER PLACES WHERE
WE'VE DONE SOMETHING WE'VE
PURSUED A REALLY INNOVATIVE
APPROACH. YOU KNOW, SAY AROUND
MODULAR HOUSING OR SOMETHING.
AND THEN THAT COST THAT, YOU
KNOW, WHERE WE WERE DOING THAT
BECAUSE IT WAS SUPPOSED TO HAVE
A SPEED AND A COST ADVANTAGE.
AND THEN THE CONTRACTOR, THEY
WERE WORKING WITH THAT SORT OF
SPEED AND COST ADVANTAGE
DISAPPEARED. SO YOU KNOW, HEY,
WE TRIED SOMETHING. WE'RE GOING
TO READJUST BECAUSE LIKE,
SOMETIMES INNOVATION IS GOING TO
GIVE US EXACTLY WHAT WE WANT.
SOMETIMES IT'S GOING TO GIVE US
A LITTLE BIT OF WHAT WE WANT,
BUT WE LEARN A LOT. AND THEN
SOMETIMES WE'RE GOING TO PIVOT
BACK TO A DIFFERENT APPROACH.
WE'RE NOT GOING TO MAKE WE'RE
NOT GOING TO MAKE RASH DECISIONS
IN THIS PROGRAM JUST FOR THE
SAKE OF INNOVATION. SO I'D SAY
THAT'S A THAT'S SOMETHING JASON
AND I BOTH MODEL FOR OUR TEAMS
IN. THIS IS LIKE TRY NEW STUFF,
IN THE INTEREST OF SOMETHING
IMPORTANT FOR THE ENDING, THE
HOUSING CRISIS. BUT IF IT'S NOT
WORKING, LET'S, LET'S LET'S TRY
SOMETHING ELSE. AND SO I THINK
THAT'S, THAT'S SOME SOMETIMES
THE DELAYS ARE GOING TO BE JUST
THAT THEY'RE GOING TO BE LESSONS
LEARNED. GREAT. ADDING ON TO
THAT, I THINK THERE IS A LITTLE
BIT OF A IF YOU DO, IF YOU DON'T
TYPE SCENARIO, BECAUSE THOSE,
THOSE AFFORDABLE HOUSING
SUBSIDIES ARE THEY'RE HYPER
COMPETITIVE. I MEAN, PERFECT
SCORE AND A GREAT TIEBREAKER AND
YOU HAVE A CHANCE. WHEREAS, FOR
THE SAN DIEGO DEVELOPMENT JUST
KIND OF USING IT AS AN EXAMPLE,
YOU KNOW, THAT'S THAT'S
PRIMARILY LOOKING AT AT STANDARD
INTEREST RATES. RIGHT? AND SO
FAST FORWARD OR GO BACK IN TIME,
YOU KNOW, FIVE YEARS, IT'S A LOT
MORE VIABLE TO DO THAT THAN IT
IS. YOU KNOW, TODAY THAT PROJECT
WOULDN'T WORK IN SACRAMENTO. AND
SO IT IS ABSOLUTELY SORT OF
DEPENDING ON THE PATH YOU GO,
YOU'RE EITHER SUBJECT TO
MACROECONOMIC CONDITIONS WHICH
ARE GOOD OR BAD, OR YOU'RE
SUBJECT TO SOME OF THESE HYPER
COMPETITIVE SUBSIDIES. THERE
ISN'T REALLY A SILVER BULLET,
UNFORTUNATELY, AND SO IT IS IT
IS HARD TO NAVIGATE. YEAH WELL,
THANK YOU AGAIN FOR, YOU KNOW,
BOTH THE INNOVATION THAT, YOU
KNOW, YOU'VE BEEN COMMITTED TO
FOR YEARS, YOU KNOW, THE INPUT
TODAY AS WELL. JUST KNOW THAT,
YOU KNOW, WE ARE HUNGRY TO BE
PARTNERS IN TRYING TO BE ABLE TO
SUPPORT YOU IN ANY WAY, TO
ACCELERATE WHAT YOU'RE, WHAT
YOU'RE DOING THROUGH YOUR
OFFICES AND, YOU KNOW, KIND OF
BREAK DOWN SOME OF THESE
BARRIERS AND HELP YOU MAKE
THINGS, MAKE HOUSING HAPPEN
FASTER. THANK YOU. SO I HAVE A
FEW QUESTIONS AND COMMENTS. ON
YOUR I THINK IT WAS YOUR FIRST
STATEMENT YOU WERE TALKING, DO
WE HAVE A TOTAL NUMBER OF, UNITS
THAT HAVE BEEN BUILT ON STATE
PROPERTY? I KNOW THAT YOU
MENTIONED, WE HAVE THOUSANDS,
BUT THEN A CLOSER LOOK, THERE'S
REALLY 20 THAT YOU SAW, AND NOW
THREE. THAT MIGHT BE ADAPTIVE.
SO SORRY. AM I GETTING MY LIST
MIXED UP HERE? YEAH. LET ME LET
ME CLARIFY. SO, FIRST AND
FOREMOST, LET'S MAKE SURE WE'RE,
WE'RE JUST ALIGNING ON TERMS. SO
THE, THE, THE HANDOUT WHICH IS
DERIVED FROM OUR WEBSITE. SO NO
ISSUE WITH WHATSOEVER, FOCUSES
AROUND A PROPERTY. SO SOUTH LAKE
TAHOE IS A FANTASTIC EXAMPLE.
IT'S A RATHER LARGE SITE IN
TAHOE. IT IS FOUR PHASES. SO
FOUR DIFFERENT DEVELOPMENTS ON
THAT SAME PROPERTY FOR THE
PURPOSES OF SEEKING FINANCING
FOR THE PURPOSES OF THE
REGULATORY AGREEMENTS AND GROUND
LEASES, YOU COULD THERE ARE FOUR
DIFFERENT PROJECTS, BUT IT'S ONE
PROPERTY. SO WHAT YOU'RE LOOKING
AT IN THAT LIST IS THE PROPERTY.
IF YOU WERE TO BREAK THEM UP
INTO THE SEPARATE DEVELOPMENTS
ON SAID PROPERTY, THAT'S WHERE
YOU GO FROM 20 TO ABOUT 38. IF
WE'RE IF WE'RE TALKING ABOUT AND
THE REASON WHY THAT'S AN
IMPORTANT DISTINCTION IS
OBVIOUSLY BECAUSE THEY'RE
PHASED, THEY GET DEVELOPED IN
DIFFERENT TIMELINES. SO IN
TAHOE, AS AN EXAMPLE, THEY ARE
FINISHING THEIR FIRST PHASE NEXT
MONTH. THE SECOND PHASE WILL BE
CONSTRUCTED, THIS FISCAL YEAR.
ONE MORE SHOULD BE BREAKING
GROUND THIS FISCAL YEAR. AND THE
FOURTH PHASE IS A LITTLE BIT
FURTHER OUT. SO IT IS KIND OF
HARD TO TALK ABOUT THE NUMBERS.
GIVEN HOW THE FINANCING
STRUCTURE ACTUALLY WORKS FOR THE
PROJECTS. BUT THAT SAID, THE
SUNRISER PROJECT IS DONE. DONE.
LET ME MAKE SURE I DON'T MISLEAD
YOU, AS I SAID, TAHOE TWO HAS
TWO UNDER CONSTRUCTION NOW, SO
ONE OF WHICH WILL BE COMPLETED
LITERALLY NEXT MONTH, AND SO
THAT'S ABOUT 60 TO 80 UNITS IF
MEMORY SERVES THERE, REEDLEY
JUST FINISHED. WE DON'T LISTED
ON OUR WEBSITE BECAUSE THE GRAND
OPENING IS NOVEMBER, BUT THAT
PARTICULAR ONE IS ANOTHER 50
UNITS, SO THOSE ARE THE ONES
THAT ARE DONE, AND THEN THERE'S
AGAIN TAHOE PHASE TWO IN
CONSTRUCTION, SACRAMENTO ART AND
WAYS IN CONSTRUCTION NOW, AS
WELL AS THE RIVERSIDE CAL FIRE
PROJECT. AND THEN THERE ARE SIX
MORE THAT ARE SLATED TO BREAK
GROUND THIS YEAR, SO IN TERMS OF
COMPLETED, WE COULD USE, YOU
KNOW, ROUGHLY, 200 WOULD BE A
FAIR NUMBER. JUST ROUNDING,
WITH, MUCH MORE IN CONSTRUCTION.
IT'S GOING TO BE A BIG YEAR.
YES. THE NEXT 12 MONTHS IS A BIG
YEAR FOR THE PROGRAM. SO THEN
LOOKING AT THE SONRISA, YOU SAID
THAT THERE'S 58 UNITS, AND I
KNOW THE PROJECT VERY WELL. AS I
WALK BY IT ALMOST EVERY DAY, AND
LIVE VERY CLOSE TO THAT. BUT HOW
MANY PEOPLE ARE IN THESE UNITS
AS THEIR STUDIOS ARE YOU SEEING
TWO, THREE FAMILIES OR DO YOU
HAVE AN ESTIMATE, OR IS THERE
EVEN A LIMIT ON THAT, WE DO LOOK
AT HOUSEHOLD SIZE WHEN WE'RE
BRINGING PEOPLE IN JUST TO MAKE
SURE IT'S LIVABLE, WE DO HAVE I
THINK WE'RE AT 72 PEOPLE RIGHT
NOW IN 58 UNITS. WE HAVE A LOT
OF SINGLES, WE HAVE SOME
COUPLES, AND WE ACTUALLY HAVE,
ALSO SINGLE PARENTS. SO A PARENT
AND A CHILD IN UNITS. SO IT'S A
VARIETY OF HOUSING TYPES,
HOUSEHOLD TYPES. SO YOU
MENTIONED A CHARTER SCHOOL BEING
THERE. IN THAT SPACE, HOW MANY
STUDENTS DO YOU HAVE FROM THAT?
THAT WOULD REQUIRE A SCHOOL ON
SITE. SO IT'S A CHARTER SCHOOL
THAT WORKS WITH ADULTS.
PRIMARILY. OKAY. YEAH.
HIGHLANDS. AND THEY'RE REALLY
FOCUSED ON THE GED SIDE OF THAT
EQUATION. I THOUGHT YOU WERE
LIKE IT WAS AN ELEMENTARY
SCHOOL. OKAY. AND IT IS OPEN TO
THE COMMUNITY. I SHOULD SAY.
IT'S A IT'S A COMMUNITY OFFERING.
HOW DOES CADA, LET PEOPLE KNOW
ABOUT EITHER FUTURE PROJECTS
THAT ARE COMING ONLINE OR
CURRENT OPENINGS WITHIN YOUR
CADA SYSTEM? THAT'S A GREAT
QUESTION. SO WE DO SOME
TRADITIONAL ADVERTISING. THROUGH
ZILLOW AND THROUGH ALL OF THE
STANDARD KIND OF OUTREACH
PRACTICES. BUT WE WORK MOSTLY
WITH OUR COMMUNITY PARTNERS TO
MAKE SURE THAT PEOPLE ARE AWARE,
A LOT OF SERVICE PROVIDERS HOPE
COOPERATIVES STEP UP. JUST A LOT
OF OUR LOCAL SERVICE PROVIDERS
THAT ARE WORKING WITH FOLKS THAT
ARE EITHER AT RISK OR COMING OUT
OF HOMELESSNESS, OR JUST LOOKING
FOR AFFORDABLE HOUSING, WE ALSO
ADVERTISE THROUGH THE SACRAMENTO
HOUSING AND REDEVELOPMENT AGENCY
TO VOUCHER HOLDERS ON THE
WEBSITE. THEY USE THE AFFORDABLE
HOUSING .COM WEBSITE, AND PEOPLE
CAN GET ON OUR WAITING LISTS AND
VISIT OUR WEBSITE DIRECTLY AS
WELL, BECAUSE I UNDERSTOOD AT
ONE POINT YOU HAD LIKE A FIRST
COME, FIRST SERVE, LIKE JANUARY
1ST, IS THAT STILL OPERATING
WHERE UNITS OPEN UP AND THEN
PEOPLE WAIT IN LINE? IS THAT
STILL HAPPENING AT SOME POINTS
IN THE HOUSING CRISIS, WE'VE HAD
PEOPLE WAIT IN LINE. I WOULD SAY
NOW, AND WITH SONRISA
SPECIFICALLY, PEOPLE WERE
INTERESTED DURING CONSTRUCTION
AND THEY WENT TO A WEBSITE AND
FILLED OUT A PRE-APPLICATION AND
BECAME PART OF OUR LIST. AND
WE'VE HAD AN ONGOING WAIT LIST
FOR THAT SITE IN PARTICULAR. SO
SOMEBODY'S INTERESTED IN ANY K
TO UE UNIT, INCLUDING SONRISA.
THEY COULD CONTACT QUITA AND GET
ON A WAITING LIST FOR ANY UNIT
THAT COMES UP. ABSOLUTELY. WE DO
CLOSE AND OPEN WAITING LIST FROM
TIME TO TIME JUST BECAUSE THEY
CAN GET VERY LONG AND WE DON'T
WANT PEOPLE TO HAVE UNREASONABLE
EXPECTATION. BUT OUR WAITING
LISTS ARE OPEN RIGHT NOW FOR
SONRISA AND OTHER SITES AND
DIFFERENT SITES HAVE DIFFERENT
REQUIREMENTS. SO THAT'S WHY WE
HAVE LISTS FOR EACH SITE. ALL
RIGHT. SO GOING BACK TO THE
THREE PROJECTS THAT YOU ANALYZED
FOR, ADAPTIVE REUSE, ARE YOU YOU
MENTIONED THERE WERE SEVERAL.
YOU GOT DOWN TO A LIST OF THREE.
ARE THOSE, GOING TO BE UNDER
CONSTRUCTION OR WHERE ARE WE ON
THAT PROCESS? YEAH. SO JUST,
AGAIN, HOPEFULLY MAKING SURE
THERE'S ALIGNMENT AND
UNDERSTANDING. THERE WERE THREE
THAT WERE INITIALLY STUDIED.
THOSE ARE AWARDED. THEN THERE
WAS A SUBSEQUENT STUDY OF 13 IN
WHICH WE LOOKED AT AN ADDITIONAL
13, AND THEN WE GOT DOWN TO
THREE. THOSE PROJECTS ARE NOT IN
THE PIPELINE FOR AWARD AS THEY
ARE CURRENTLY IN USE, THERE ARE
TWO TOWERS IN SACRAMENTO. ONE'S
IN OAKLAND, ONE IS IN,
RIVERSIDE, AND SO AS SORT OF THE
STATE CONTINUES TO DO ITS RETURN
TO WORK AND HYBRIDIZATION OF
TELEWORK, WE ARE REASSESSING OUR
OCCUPANCY, WE ALSO THIS IS AN
IMPORTANT CONSIDERATION. WE ALSO
DO A REAL ESTATE PORTFOLIO
REVIEW. IT'S EITHER EVERY YEAR
OR TWO YEARS DEPENDING. I MEAN,
WE KIND OF SKIPPED IN THE
PANDEMIC FOR OBVIOUS REASONS,
BUT GENERALLY IT'S EVERY YEAR.
AND PART OF WHAT WE DO THERE IS
WE LOOK AT THE COST OF A BOND
FINANCED RENOVATION OF THE
BUILDINGS THAT NEED THEM,
COMPARED TO WHAT A SIMILAR TERM
IN LEASE SPACE IN THE AREA WOULD
LOOK LIKE. AND TO THE EXTENT
THAT IT'S MORE COST EFFECTIVE TO
VACATE A BUILDING, THAT'S WHEN
WE MAKE THE DECISION ONE WAY OR
THE OTHER. SO BETWEEN
UTILIZATION OF THESE BUILDINGS
SORT OF NORMALIZING OUT US
LOOKING AT WHAT ELSE IS IN THE
AREA AND NEEDING TO DO SOME
RENOVATIONS TO BRING PEOPLE IN,
WE THEN DO THE COST EFFECTIVE
ANALYSIS, AND IF IT'S COST
EFFECTIVE TO GET THEM OUT, WE
WOULD GENERALLY DECLARE THE
BUILDINGS EXCESS TAKE A WHILE TO
GET THEM OUT, BUT CONCURRENT TO
THAT, WE WOULD OFFER THEM UP FOR
HOUSING, ADAPTIVE REUSE OR
DEMOLITION AND NEW CONSTRUCTION
DEPENDING ON WHAT IS MORE COST
EFFECTIVE AND GENERATES THE BEST
NUMBER OF UNITS WITH THE
GREATEST BREADTH AND DEPTH OF
AFFORDABILITY. OF COURSE. OKAY
AND, SOME OF YOU HAVE HEARD ME
TALK ABOUT THIS MANY TIMES, SO
YOU WON'T BE SURPRISED. BUT, ON
OUR STATE HOSPITALS, OR FORMER,
DISABLED DEVELOPMENTAL CENTERS,
WE HAVE SEVERAL IN THE STATE,
AND DEPENDING ON WHICH
JURISDICTION YOU LIVE IN, I NOW
HAPPEN TO REPRESENT NOT ONLY
ORANGE COUNTY, BUT PARTS OF LA.
AND WE HAVE TWO VERY DIFFERENT,
THOUGHT APPROACHES TO, ONE WOULD
BE FAIRVIEW AND THE OTHER, AND I
THINK IT'S NORWALK, STATE
HOSPITAL. SO BECAUSE YOU HAVE
VERY DIFFERENT LEADERSHIP IN
BOTH COUNTIES IN THE LOS ANGELES
PART OF THE DISTRICT, YOU HAVE
FIVE SUPERVISORS WHO HAVE ARE
INITIATING A VERY AGGRESSIVE
PLAN TO, PUT FORTH MENTAL HEALTH,
HOUSING, FORMER FOSTER YOUTH,
TYPES OF HOUSING, OTHER TYPES OF,
AFFORDABLE HOUSING AND SEEM TO
BE WORKING VERY AGGRESSIVELY TO
MAKE THAT HAPPEN. ON THE OTHER
HAND, YOU HAVE FAIRVIEW
DEVELOPMENTAL CENTER, WHICH,
SEEMS 118 ACRES, AND THERE SEEMS
TO BE QUITE A BIT OF LOCAL MINDS
TO DO. VERY LITTLE THERE CAN WE
SPEAK TO HOW THIS LOOKS ACROSS
THE STATE AND WHAT LOCAL
JURISDICTIONS THERE INPUT ON
STATE LAND AND DO WE FORESEE
REIMAGINING THE STATE HOSPITALS
FOR WHAT WE ARE GOING TO HAVE A
VERY CRITICAL USE, WHICH IS,
BEDS FOR SOME OF OUR, CARE COURT
PATIENTS. AND OTHERS. YEAH,
THAT'S A THAT'S A VERY BIG
QUESTION, I WILL TRY TO DO
JUSTICE TO IT WITHOUT
OVERSIMPLIFYING. SO A COUPLE OF
KEY DISTINCTIONS BETWEEN THOSE
TWO SITES IN PARTICULAR. SO
METROPOLITAN STATE HOSPITAL IN
NORWALK IS STILL A FULLY ACTIVE
MENTAL I'M SORRY, ADULT FORENSIC
INSTITUTION, AND SO THE CAMPUS
IS STILL FULLY IN USE, THERE ARE
PORTIONS OF THE PROPERTY,
PARTICULARLY ON THE NORTHWEST
SIDE. THAT ARE ARE OLDER
BUILDINGS. THEY'RE ACTUALLY KIND
OF QUASI HISTORIC, SEMI DERELICT
BUILDINGS, AND THEY'RE USED FOR
LIKE, SWING SPACE AND STORAGE
AND THOSE SORTS OF THINGS. AND
SO WHAT THE COUNTY HAS ASKED TO
DO IS TO RENOVATE SIX OF THOSE
BUILDINGS SPECIFICALLY FOR
PERMANENT SUPPORTIVE HOUSING,
INTERIM YOUTH HOUSING AND ACUTE
PSYCHIATRIC CARE, WHICH WE'RE
WORKING WITH THEM ON. THE
DEPARTMENT OF STATE HOSPITALS
HAS ACKNOWLEDGED THAT THOSE
PARTICULAR BUILDINGS ARE, ARE
ARE ABLE TO BE REUSED. THEY
DON'T HAVE ANY FORESEEABLE USE
FOR THEM, AND SO IT'S A SMALL
PORTION OF THE CAMPUS THAT'S
BEING REDEVELOPED THAT WAY. THE
FAIRVIEW DEVELOPMENTAL CENTER,
IT'S UNDER THE JURISDICTION OF
THE DEPARTMENT OF DEVELOPMENTAL
SERVICES. THEY HAVE DECLARED THE
PROPERTY EXCESS. THEY'VE SHUT
DOWN THE CENTER, THERE IS SOME
STATE REUSE THAT'S HAPPENING
THERE, THERE'S A PROJECT FOR CAL
OES, AND DDS HAS EXPRESSED SOME
NEED FOR ADDITIONAL HOUSING FOR
THOSE WITH DEVELOPMENTAL
DISABILITIES. PARTICULARLY MORE
COMPLEX CASES. AND SO SOME OF
THAT IS GOING TO BE REDEVELOPED
SEPARATELY ANYWAYS. BUT FOR THE
BALANCE OF THE SITE, THEY HAVE
SAID THEY DON'T NEED IT ANYMORE,
AND SO THAT WOULD BE AN EXAMPLE
OF A SITE IN WHICH THE AMOUNT OF
PHASED DEVELOPMENT THERE WOULD
PROBABLY TAKE MOST OF OUR
PROGRAMS, RESOURCES TO, TO
REDEVELOP. AND SO THAT'S THE
REASON WHY THERE WAS SPECIFIC
LEGISLATION THAT FACILITATED A
SALE OF THE PROPERTY, IT DIRECTS
COSTA MESA TO DO A SPECIFIC
PLAN, BUT IT ALSO PROVIDES GOALS
THAT GOVERN THE PLAN. IT'S AN
AFFORDABLE HOUSING, PRIORITIZED
SPECIFIC PLAN. IT INCLUDES A
FULL ENVIRONMENTAL REVIEW, 200
UNITS OF PERMANENT SUPPORTIVE
HOUSING, AND A MINIMUM OF 1500
UNITS IS THE GOAL. AT PRESENT,
THEY HAVE THREE SCENARIOS THAT
ARE GOING THROUGH THE PUBLIC.
THE SMALLEST NUMBER OF UNITS IS
2300, THE BIGGEST IS 4000. I
PERSONALLY THINK THE 2300 IS
MORE LIKELY, BUT THAT IS, 575
UNITS AT VERY LOW 375 OR 345 AT
LOW 690, AT AT AT MODERATE AND
THEN 690 ABOVE THAT. SO
SUBSTANTIALLY, AFFORDABLE
HOUSING IN TERMS OF THOSE
NUMBERS, AND SO ONCE THE
SPECIFIC PLAN IS, IS A LITTLE
MORE DONE, WE WOULD THEN SELL
THE PROPERTY TO A DEVELOPER
INSTEAD OF LEASING IT. WE WOULD
THEIR DEVELOPMENT WOULD BE
GOVERNED BY THE PLAN, AND WE
WOULD RESTRICT THE PROPERTY TO
ENSURE THAT THAT DEVELOPMENT
HAPPENS IN ACCORDANCE WITH WITH
WHAT WE'RE SELLING THE PROPERTY
FOR, SO THAT'S THAT'S WHY THAT'S
GOING ON A DIFFERENT BOUT. IT'S
NOT THAT THE LOCALS HAVE CONTROL
OVER IT. IF THEY WERE TO
COMPLETELY TURN AROUND AND SAY,
YOU KNOW WHAT, YEAH, WE WANT THE
WHOLE THING TO BE COMMERCIAL OR
OPEN SPACE TOMORROW. WE WOULD
THANK THEM AND THEN WE WOULD DO
SOMETHING ELSE WITH IT. BUT THE
DIRECTION AND STATUTE WAS TO DO
LARGELY WHAT WE WOULD HAVE DONE,
BUT IT KIND OF PUTS THE ONUS ON
THEM AND ALLOWS US TO SELL AS
OPPOSED TO MULTIPLE PHASED
LEASES ON THE PROPERTY. AND LAST
POINT, I PROMISE, PART OF THAT
IS BECAUSE THE IT'S REALLY A
MASTER PLAN COMMUNITY AT THAT
POINT. I MEAN, THE AMOUNT OF
INFRASTRUCTURE WORK RELATED,
JUST ABOUT EVERY SINGLE PIECE OF
INFRASTRUCTURE ON THAT CAMPUS IS
EITHER DEAD OR CENTRALIZED. AND
SO CONNECTING TO NEW WASTEWATER
REQUIRES A DOWNSTREAM UPGRADE TO
THE PLANT, NEW UTILITIES. I
MEAN, IT'S NOT INSIGNIFICANT.
AND SO THE COMPLEXITY OF DOING
THAT, IS REALLY BEST DONE WITH
SOMEBODY WHO HAS CONTROL OVER
THE WHOLE SITE AND CAN PHASE IT
ACCORDINGLY AND DEFRAY THE
COSTS. ACCORDING AGAINST ALL THE
PHASES. ALL RIGHT. THANK YOU,
ANY OTHER QUESTIONS BEFORE WE
START OUR NEXT PANEL? WE
APPRECIATE THE WORK YOU'RE
DOING. WE KNOW IT'S NOT EASY. WE
KNOW IT'S COMPLICATED. IT'S
VITAL. AND, AS YOU HAVE SEEN
FROM MANY LEGISLATORS, BEING
COURAGEOUS AND, INNOVATIVE AND,
TIMELY, ARE THE GOALS FOR MANY
PEOPLE WHEN IT COMES TO
IMPLEMENTING THESE MAJOR STATE
INITIATIVE INITIATIVES. BUT WE
THANK YOU FOR ALL YOU'RE DOING.
THANK YOU. THANK YOU, WE'RE
GOING TO CALL UP OUR NEXT PANEL.
OUR NEXT PANEL IS AN OVERVIEW.
AND IMPLEMENTATION UPDATE OF
PROPOSITION ONE BONDS FINANCING
FOR HOUSING AND MENTAL HEALTH,
AND DRUG OR ALCOHOL TREATMENT,
AND THIS PANEL, WE ARE JOINED BY
RYAN MILLER, WHO IS THE
PRINCIPAL FISCAL AND POLICY
ANALYST FROM THE CALIFORNIA
LEGISLATIVE ANALYST'S OFFICE. WE
HAVE JENNIFER SEAGER, DEPUTY
DEPUTY DIRECTOR FOR FINANCIAL
ASSISTANCE FOR STATE PROGRAMS,
DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT, LINDA
HARRINGTON, ASSISTANT STATE
MEDICAID DIRECTOR, DEPARTMENT OF
CARE SERVICES AND, DO YOU SAY
MARLISE MARLISE PEREZ COMMUNITY
SERVICES? DIVISION CHIEF,
DEPARTMENT OF CARE SERVICES, AND
WE WILL START WITH THE LOUGH
FIRST. GOOD AFTERNOON, CHAIR
MEMBERS. RYAN MILLER FROM THE
LEGISLATIVE ANALYST'S OFFICE.
WE'VE BEEN ASKED TO PROVIDE A
BRIEF OVERVIEW OF PROPOSITION
ONE, AND THEN WE'LL TURN IT OVER
TO REPRESENTATIVES FROM THE
ADMINISTRATION TO PROVIDE MORE
DETAIL CONCERNING ITS
IMPLEMENTATION, PROP PROPOSITION
1 TO 2. MAIN THINGS. FIRST, IT
MADE BROAD CHANGES TO THE MENTAL
HEALTH SERVICES ACT. BUT SECOND,
WHICH IS MORE OF THE FOCUS OF
TODAY'S DISCUSSION, AND WAS,
ENACTED IN AB 531, WAS A $6.4
BILLION GENERAL OBLIGATION BOND,
TO BUILD BEHAVIORAL HEALTH
INFRASTRUCTURE AND TO BUILD
HOUSING FOR PEOPLE WITH
BEHAVIORAL HEALTH CHALLENGES,
ROUGHLY TWO THIRDS OR SO, A
LITTLE BIT OVER TWO THIRDS OR
4.4 BILLION OF THE BOND PROCEEDS
WILL GO TO THE BEHAVIORAL HEALTH
CONTINUUM INFRASTRUCTURE PROGRAM,
ALSO KNOWN AS B CHIP, THAT'S
ADMINISTERED BY THE DEPARTMENT
OF HEALTH CARE SERVICES, THE B
CHIP PROGRAM WAS CREATED IN THE
2021 BUDGET. AND HAS PROVIDED OR
IS PROVIDING ABOUT $1.7 BILLION.
THAT WAS INITIALLY A MIX OF
MOSTLY STATE GENERAL FUND, BUT
ALSO SOME FEDERAL PANDEMIC
RELIEF DOLLARS, THE GENERAL
OBLIGATION BOND PROCEEDS WILL BE
IN ADDITION TO THAT AMOUNT THAT
WAS INITIALLY APPROPRIATED IN
2021. B CHIP PROVIDES GRANTS TO
LOCAL GOVERNMENTS, TRIBES,
NONPROFITS, AND FOR PROFIT
COMPANIES, TO CONSTRUCT, ACQUIRE
OR RENOVATE FACILITIES FOR THE
PURPOSES OF PROVIDING BEHAVIORAL
HEALTH SERVICES, THE REMAINING,
ALMOST ONE THIRD OR ABOUT $2
BILLION OF THE BOND PROCEEDS
WILL GO TO THE DEPARTMENT OF
HOUSING AND COMMUNITY
DEVELOPMENT TO BUILD HOUSING FOR
INDIVIDUALS EXPERIENCING OR AT
RISK OF HOMELESSNESS, AND THAT
ALSO HAVE BEHAVIORAL HEALTH
CHALLENGES. OF THAT, ABOUT $2
BILLION, ABOUT HALF OR $1
BILLION WILL BE SET ASIDE
SPECIFICALLY FOR VETERANS, AND
SO WITH THAT, I'LL TURN IT OVER
TO THE ADMINISTRATION TO PROVIDE
MORE DETAIL ABOUT THE
IMPLEMENTATION OF THE BOND. ALL
RIGHT. WELCOME. THANK YOU FOR
BEING HERE. GOOD AFTERNOON.
THANK YOU, MADAM CHAIR, AND
MEMBERS OF THE COMMITTEE, MY
NAME IS JENNIFER SEAGER. I
APPRECIATE THE OPPORTUNITY THIS
AFTERNOON TO PROVIDE A BRIEF
OVERVIEW OF THE PERMANENT
SUPPORTIVE HOUSING COMPONENT OF
THE BEHAVIORAL HEALTH
INFRASTRUCTURE BOND ACT. AS WAS
PREVIOUSLY MENTIONED, THERE'S
APPROXIMATELY $2 BILLION IN
FUNDING AVAILABLE. OF THAT, JUST
OVER $1 BILLION WILL BE TARGETED
TO VETERANS, WHICH WILL BE
DESIGNED AND IMPLEMENTED IN
COLLABORATION WITH OUR PARTNERS
AT CALVERT. 922 MILLION WILL BE
FOR CALIFORNIANS EXPERIENCING
HOMELESSNESS, BUT NOT EXCLUSIVE
TO VETERANS. THE NEW PROGRAM,
AND WE'RE CALLING IT HOMEKEY
PLUS, WILL BE MODELED AFTER
HCD'S EXISTING HOME Kò PROGRAM
AND BUILD UPON ITS SUCCESS IN
GETTING UNITS BUILT VERY QUICKLY
AND EFFICIENTLY TO HOUSE
CALIFORNIANS AT RISK OF AND
EXPERIENCING HOMELESSNESS. SINCE
2021, THE HOME Kò PROGRAM HAS
FUNDED MORE THAN 250 PROJECTS,
PROVIDING 15,319 UNITS WITH A
LIFETIME ESTIMATED NUMBER OF
CALIFORNIAN HOUSEHOLDS TO BE
SERVED OVER THE LIFETIME OF
THOSE PROJECTS, TOPPING MORE
THAN 167,000. SO SIMILAR TO
HOMEKEY, HOMEKEY PLUS WILL SERVE
EXTREMELY LOW INCOME INDIVIDUALS
AND HOUSEHOLDS EXPERIENCING OR
AT RISK OF HOMELESSNESS. WE'RE
GOING TO FOCUS ON SPEED. WE'RE
LOOKING TO GET UNITS UP AND
AVAILABLE WITHIN 12 MONTHS OF
FUNDING, AND WE'RE GOING TO
REQUIRE AT LEAST FIVE YEARS OF
SUPPORTIVE SERVICES FUNDING.
WHILE THE INITIAL ARE THOSE
STILL GOING TO BE THE MOTEL OR
HOTEL TYPE OF PROPERTIES? YES,
THAT WILL BE AN ELIGIBLE USE,
BUT NOT EXCLUSIVE TO THAT. YEAH,
WHILE THE INITIAL SEED MONEY ON
THE OPERATIONS WILL BE A
REQUIREMENT, THE PROGRAM WILL BE
COLLABORATING CLOSELY WITH OUR
STATE AND LOCAL BEHAVIORAL
HEALTH COLLEAGUES TO PROMOTE AND
ENCOURAGE THE LONG TERM
SUSTAINABILITY OF THE PROJECTS.
AND WHILE THE MENTAL HEALTH
SERVICES ACT HAS ALWAYS BEEN
AVAILABLE FOR HOUSING SUPPORT,
THE BEHAVIORAL HEALTH SERVICES
ACT, WHICH MY COLLEAGUES WILL
SPEAK TO, REALLY STRENGTHENS THE
USE OF THIS TOOL BY REQUIRING
30% OF COUNTY ALLOCATIONS TO BE
USED FOR HOUSING INTERVENTIONS,
WHICH COULD BOTH BE USED FOR
RENTAL SUBSIDIES AND FOR FUNDING
TO PAY FOR SUPPORTIVE SERVICES.
AND THEN ADDITIONALLY, THERE IS
35% OF THE COUNTY ALLOCATIONS
THAT ARE AVAILABLE FOR FULL
SERVICE PARTNERSHIPS AND COULD
ALSO BE USED TO SUPPORT THESE
HOME KEY PLUS PROJECTS ANNUALLY.
THESE SOURCES CAN TRANSLATE TO
IMPORTANT COUNTY SUPPORT THAT
CONNECTS HEALTH AND HOUSING
OUTCOMES, SO AS DCS AND OUR
OTHER PARTNERS RELEASE
GUIDELINES ON THIS FOR COUNTIES
WILL BE SUPPORTIVE, SUPPORTING
IN REALLY CLOSELY FOLLOWING WHAT
THEY DO AND WORK IN
COLLABORATION TO YOUR POINT ON
THE ELIGIBLE USES, HOME Kò PLUS
WILL PROVIDE APPLICANTS WITH THE
FLEXIBILITY TO TAKE ADVANTAGE OF
OPPORTUNITIES SPECIFIC WITHIN
THEIR COMMUNITIES, RESULTING IN
THE SPEEDY ACQUISITION, THAT
INCLUDES THE ACQUISITION,
REHABILITATION OF THE MOTELS,
HOTELS AND OTHER SITES AND
ASSETS THAT COULD BE CONVERTED
TO PERMANENT SUPPORTIVE HOUSING,
AS WELL AS NEW CONSTRUCTION. HCD
IS ACTIVELY WORKING ON THE
DESIGN AND BUILD OUT OF THE
PROGRAM. WE'RE CURRENTLY
ENGAGING WITH STATE AGENCY
PARTNERS AND STAKEHOLDERS TO
INFORM THE PROGRAM DESIGN. WE
HAVE DEVELOPED A FACT SHEET AND
I HAVE COPIES FOR YOU HERE
TODAY, WHICH I WOULD LIKE TO
PROVIDE, THAT WILL BE AVAILABLE
ON OUR WEBSITE IN THE NEXT
COUPLE OF DAYS. IN LATE JUNE, WE
DID SEND OUT A DEMAND SURVEY, TO
POTENTIAL APPLICANTS, AND WE'RE
WORKING TO SCHEDULE SMALL GROUP
LISTENING SESSIONS. THANK YOU.
THE PLAN IS TO RELEASE A NOFA
ANNOUNCING THE AVAILABILITY OF
THE FULL 2 BILLION IN FUNDING IN
NOVEMBER, AND WE WOULD
ANTICIPATE THEN ACCEPTING
APPLICATIONS IN EARLY 2025 AND
THEN HAVE AWARDS ANNOUNCED
BEGINNING IN SUMMER 2025. AND
THERE'S A LITTLE MORE OF A
DETAILED TIMELINE ON THE BACK OF
THAT FACT SHEET. WILL THERE BE?
AND SORRY, I HOPE YOU DON'T MIND
ME JUST JUMPING IN. WILL THERE
BE, THIS THIS ALLOCATION BE DONE
REGIONALLY OR WILL IT BE DONE
JUST WHOEVER DECIDES TO APPLY?
BECAUSE I KNOW THAT'S BEEN AN
ISSUE WHERE SOME CITIES
AGGRESSIVELY OR I SHOULD SAY
COUNTY CITIES AGGRESSIVELY
APPLY. SAN FRANCISCO, LOS
ANGELES, AND THEN OTHERS DON'T
APPLY AT ALL. AND SO THAT SHIFTS
NOT ONLY THE SUPPORT SERVICES TO
ONE REGION AND THEN MANY OTHERS.
SOMETIMES IT'S ACTUALLY AN
INTENTIONAL DECISION TO NOT
APPLY, BECAUSE IF YOU DON'T
APPLY AND YOU DON'T HAVE THE
HOUSING, YOU DON'T NECESSARILY
HAVE TO HOUSE THESE INDIVIDUALS.
SO IS THERE ANY THOUGHT INTO
THAT? YEAH. IT WILL IT WILL
MIRROR WHAT WE'RE DOING
CURRENTLY IN THE HOME Kò
PROGRAM, WHICH IS TO HAVE
REGIONAL ALLOCATIONS AND
REGIONAL KIND OF TARGETS, AND WE
HAVE AN OPEN APPLICATION PERIOD.
AND WE HOLD THOSE REGIONAL
TARGETS FOR, A CERTAIN DEDICATED
PERIOD OF TIME. AND THAT IF WE
DON'T GET SUFFICIENT
APPLICATIONS WITHIN THOSE
REGIONS, THEN THEY WOULD ROLL
OVER TO A GENERAL POT. SO YES,
WE WILL HAVE ABSOLUTELY REGIONAL
TARGETS, BUT IN THE LANGUAGE OF
THE LEGISLATION, WAS THERE ANY,
ENCOURAGEMENT TO MAKE SURE EVERY
JURISDICTION IS A HOST TO THESE
TYPES OF CARE COURT? OR IF YOU
WANT TO SAY, PROP ONE BEDS?
YEAH, SO THIS WOULD BE FOR THE
PERMANENT SUPPORTIVE HOUSING
COMPONENT AND ALL LOCAL
GOVERNMENTS WOULD DEFINITELY BE
AVAILABLE, WOULD BE ELIGIBLE TO
APPLY AND ENCOURAGE TO APPLY.
YES OKAY. I'M JUST TRYING TO GET
MORE AT IS THERE ANY WAY TO, NOT
JUST ENCOURAGE, BUT TO ASK THAT
LOCAL GOVERNMENTS BE PART OF
THIS SOLUTION? BECAUSE I'VE SEEN
TOO OFTEN IN MY TENURE HERE,
WHICH IS NOW A DECADE THAT SOME
JURISDICTIONS ARE FULLY INVESTED
WITH THE SPIRIT OF WHAT WE'RE
TRYING TO DO AND TO HOUSE PEOPLE
WITH MANY, MANY, WHETHER IT'S
MENTAL HEALTH, SCHIZOPHRENIA,
OTHER ISSUES, AND OTHERS ARE
ABSOLUTELY, AVOIDING AND
DELAYING AND DOING VERY LITTLE.
SO TRYING TO GET AT IS THERE ANY
PART OF THE LEGISLATIVE LANGUAGE
OR THROUGH HCD I KNOW THROUGH
HOUSING ELEMENTS, THEY'RE
SUPPOSED TO BE, LANGUAGE THAT
CITIES PRESENT SAYING THAT THEY
HAVE SOME KIND OF
RESPONSIBILITY, BUT IS THERE
REALLY? SO I THINK PART OF THAT
WILL COME INTO PLAY, AND I'LL
LET MY COLLEAGUE ALSO TALK ABOUT
THAT WITH SOME OF THE PLANS THAT
ARE GOING TO BE DEVELOPED AND
REQUIRED UNDER, THE BEHAVIORAL
HEALTH SERVICES ACT FUNDS, WHICH
WOULD A PORTION OF THOSE FUNDS
HAVE TO BE USED, HAVE TO BE USED
FOR HOUSING INTERVENTIONS. SO
THERE IS A REQUIREMENT THAT THEY
ARE ALLOCATING THESE THESE FUNDS
FOR THE PURPOSES THAT WE'RE
SETTING UP WITHIN THE HOMEKEY
PLUS PROGRAM. SO YES, THERE IS
THAT, IT DOESN'T HAVE TO BE THE
HOMEKEY PLUS PROGRAM, BUT THEY
WOULD DEFINITELY HAVE TO BE
USING THOSE FOR HOUSING
SERVICES. THANK YOU. YES, THANK
YOU FOR THIS Tð. YES. ALL RIGHT.
THAT'S IT. NEXT THANK YOU. THANK
YOU. SO OUR COLLEAGUE HERE FROM
THE LAO PROVIDED A GREAT
BACKGROUND. SO I'M GOING TO JUST
KIND OF SKIM THROUGH SOME OF
THIS BECAUSE I HAVE A LOT I WANT
TO BRING FORWARD WITH SOME OF
THE QUESTIONS YOU HAD AROUND OUR
CURRENT BEHAVIORAL HEALTH
CONTINUUM INFRASTRUCTURE
PROGRAM, WHICH I'M JUST GOING TO
CALL B CHIP. BUT ALSO THE BOND.
AND THEN SOME OF THE HOUSING
FUNDING UNDER HRSA THAT OUR
COLLEAGUES AT HCD HAVE BEEN
TALKING ABOUT AS WELL. SO OF THE
BOND WE CALL THIS BOND B CHIP.
AND SO AS WAS MENTIONED, WE HAVE
A LITTLE OVER $4 BILLION THAT IS
BEING ADMINISTERED THROUGH DHCS.
AND SO THIS FUNDING IS GOING TO
BE ADMINISTERED SIMILAR TO OUR
CURRENT B CHIP PROGRAM. AND
PROPOSITION ONE POINTED RIGHT TO
THAT STATUTE. SO THE SAME
REQUIREMENTS, A LOT OF THE SAME
REQUIREMENTS APPLY. AND SO IT'S
TO BUILD OUT LOCAL BEHAVIORAL
HEALTH TREATMENT SLOTS AND ALSO
RESIDENTIAL BEDS. SO ONE
DIFFERENCE IS THIS IS NOT
HOUSING. IT IS FOR TREATMENT
ACCESS. AND SO DHCS ESTIMATES
THAT THE BOND B CHIP WILL FUND
6800 RESIDENTIAL TREATMENT BEDS
AND PROVIDE OVER 26,700
OUTPATIENT SLOTS ACROSS
CALIFORNIA. AND SO WE'VE ALREADY
RELEASED OUR BOND B CHIP ROUND
ONE LAUNCH READY, AND THAT IS
GOING TO BE COMPETITIVE
COMPETITIVELY, AWARDING OVER $3
BILLION. AND ONCE AGAIN, THIS IS
TO ACQUIRE AND REHABILITATE REAL
ESTATE ASSETS, TO EXPAND THE
CONTINUUM OF BEHAVIORAL HEALTH
SERVICES. SO OF THIS AMOUNT OF
THIS 3.3 BILLION, 1.47 BILLION
IS DESIGNATED BY THE LAW FOR
CITIES AND COUNTIES TO APPLY
FOR. THIS IS REALLY THE CEILING,
NOT THE CEILING. EXCUSE ME? THE
FLOOR. THEY CAN BE AWARDED ABOVE
THAT. AND THEN 30 MILLION IS
DESIGNATED FOR TRIBAL ENTITIES.
AND THAT IS THE SAME. THEY CAN
BE AWARDED MORE THAN 30 MILLION
AS WELL. BUT THIS IS A SET ASIDE
FOR LOCAL GOVERNMENT ENTITIES.
AND THEN THE REMAINING 1.8
BILLION IS AVAILABLE TO ALL THE
ENTITIES. AND THAT INCLUDES THE
CITIES, THE COUNTIES, THE TRIBAL
ENTITIES, NONPROFIT AND FOR
PROFIT. SO WE RELEASED OUR
REQUEST FOR APPLICATION ON JULY
17TH. SO IT IS OUT THERE RIGHT
NOW FOR FOLKS TO BE APPLYING AND
SO PRIOR TO THE RELEASE OF THE
RFA, WE HELD OUR FIRST BOND B
CHIP PUBLIC LISTENING SESSION ON
APRIL 19TH. AND THEN WE RELEASED
INITIAL POLICY GUIDANCE ON ALL
OF THE BOND B CHIP ROUNDS OF
FUNDING. AND THAT IS IN OUR
PROGRAM UPDATE. AND THAT WAS
RELEASED MAY 14TH. SO OUR ROUND
ONE APPLICATIONS ARE DUE
DECEMBER 13TH. AND THEN OUR
AWARD ANNOUNCEMENTS ARE
ANTICIPATED FOR THE SPRING OF
2025, UNDER THE BOND B CHIP FOR
FUNDING AWARDS. I KNOW THE
COMMITTEE HERE ASKED ABOUT HOW
WE ARE AWARDING THESE. WE ARE
PRIORITIZING REGIONAL MODELS OR
COLLABORATIVE PARTNERSHIPS. THAT
INCLUDES PUBLIC PRIVATE
PARTNERSHIPS. THAT'S AIMED AT
CONSTRUCTING, RENOVATING AND OR
EXPANDING COMMUNITY BASED
SERVICES, AS WELL AS PROJECTS
THAT USE LIKE A CAMPUS STYLE
MODEL THAT HAS DIFFERENT LEVELS
OF THE CONTINUUM OF CARE. RIGHT?
THEY'RE ALL ON ONE CAMPUS, SO AN
INDIVIDUAL CAN MOVE THROUGH
THOSE SERVICES MORE EASILY. AND
THEN ALSO WE HAVE A FOCUS ON
RESIDENTIAL TREATMENT
FACILITIES. THERE IS ALSO TO
YOUR QUESTION EARLIER, THERE'S A
GEOGRAPHIC DISTRIBUTION OF HOW
EACH AREA CAN APPLY FOR THE
FUNDING. SO WE HAVE LIKE A
BALANCE OF STATE FUNDING. SO OUR
NORTHERN PARTNERS CAN, YOU KNOW,
APPLY FOR THAT FUNDING. SO IT IS
A GEOGRAPHICAL SPREAD NOT ONLY
OF WHO CAN APPLY, BUT HOW THE
FUNDING IS AWARDED AS WELL. AND
THEN AS IN OUR PRIOR B CHIP
ROUNDS, THE FUNDING IS INTENDED
TO EXPAND BEHAVIORAL HEALTH
TREATMENT CAPACITY. IT CAN'T BE
PRESERVING EXISTING CAPACITY OR
FUND TREATMENT SERVICES. THIS IS
REALLY FOR THAT BRICKS AND
MORTAR INFRASTRUCTURE. AND THEN
GRANTEES HAVE TO COMMIT TO SERVE
MEDI-CAL BENEFICIARIES. SO AND
WE ANTICIPATE RELEASING THE BOND
B CHIP ROUND TWO UNMET NEEDS RFA
IN MAY OF 2025. SO FOR OUR CHIP
PROGRAM TO DATE, WE HAVE
AWARDED, AS WAS STATED EARLIER,
CLOSE TO $1.7 BILLION THROUGH
FIVE ROUNDS OF FUNDING. AND THIS
WAS TO ADDRESS KEY GAPS IN THE
BEHAVIORAL HEALTH CONTINUUM OF
SERVICES FOR OUR ROUNDS THREE
THROUGH FIVE. THESE ARE REALLY
SET ON INFRASTRUCTURE, AND WE
AWARDED FUNDING TO SUPPORT 130
BEHAVIORAL HEALTH INFRASTRUCTURE
PROJECTS. AND ONCE AGAIN, KIND
OF LIKE IN OUR FIRST PANEL,
THESE ARE PROJECTS THEY COULD
HAVE MULTIPLE FACILITIES ON EACH
PROJECT. IN FACT, WE HAVE ONE
PROJECT THAT HAS EIGHT DIFFERENT
FACILITIES. IN ONE PROJECT
ALONE. AND SO THAT
INFRASTRUCTURE PROJECTS, THEY'RE
PROJECTED TO COMPLETE THE
CONSTRUCTION IN THE NEXT THREE
YEARS, ALL AT VARIOUS STAGES OF
COMPLETION. 30 PROJECTS ARE
PROJECTING CONSTRUCTION
COMPLETION IN 2024. AND SO
THERE'S DIFFERENT AWARDS ACROSS
DIFFERENT TYPES OF ENTITIES.
WE'VE AWARDED FROM BROWNS THREE
THROUGH FIVE, 41 COUNTY, ONE
COUNTY KIND OF OTHER WHERE THEY
HAVE A PARTNERSHIP, TWO CITY
PROJECTS, EIGHT TRIBAL ENTITIES,
69 NONPROFIT AND NINE FOR
PROFIT. AND WE HAVE MORE
INFORMATION ON OUR WEBSITE AND
OUR DATA DASHBOARD. SO WITH ALL
OF THESE PROJECTS, EXPECTED TO
ADD OVER 2600 RESIDENTIAL
TREATMENT BEDS AND SERVE OVER
280,000 INDIVIDUALS IN
OUTPATIENT SETTINGS, WE ALSO HAD
IN OUR ROUND ONE FUNDING, WE
AWARDED $185 MILLION FOR CRISIS
CARE MOBILE UNITS. WE AWARDED 16
MILLION IN TRIBAL PLANNING
GRANTS AND LAUNCH READY PROJECTS
WAS OVER $500 MILLION. SO I'LL
CLOSE THE SECTION AROUND B CHIP,
BUT JUST WITH A FEW EXAMPLES OF
PROJECTS TO DATE. SO APRIL OF
THIS YEAR WAS OUR FIRST OPENING
OF OUR FIRST B CHIP PROJECT. IT
WAS WITH TAHOE FOREST HOSPITAL
DISTRICT IN NEVADA COUNTY, AND
THEY BEGAN PROVIDING HOSPITAL
BASED OUTPATIENT TREATMENT
SERVICES. AND IN THREE MONTHS OF
OPERATION, THEY HAVE EXCEEDED
THE PROJECTED NUMBER OF
INDIVIDUALS THEY ANTICIPATED TO
SERVE, AND SO THEY'RE ALREADY AT
OVER 600 INDIVIDUALS THAT
THEY'VE SERVED, AND THEN A
SECOND PROJECT WAS A PAVING THE
WAY IN LOS ANGELES COUNTY. THEY
CELEBRATED A RIBBON CUTTING IN
APRIL AND MAY. THIS BISHOP
FUNDED WELLNESS CENTER WILL
PROVIDE SUPPORT TO INDIVIDUALS
IMPACTED BY THE JUSTICE SYSTEM.
AND SO ADDITIONAL BISHOP
SPONSORS HAVE CELEBRATED
DIFFERENT MILESTONES AND EVENTS
OVER THE PAST FEW MONTHS,
INCLUDING GROUNDBREAKING
CEREMONIES, DEDICATIONS, RIBBON
CUTTINGS AND GRAND OPENINGS,
WITH MORE EVENTS BEING
SCHEDULED. AND SO THE NEXT
PORTION I WANT TO TALK ABOUT IS
THE BEHAVIORAL HEALTH SERVICES
ACT. UNDER PROPOSITION ONE AND
PROVIDE A LITTLE BACKGROUND ALSO
ON BRIDGE HOUSING, BECAUSE THAT
IS A KEY PIECE OF PROPOSITION
IMPLEMENTATION AS WELL. AND SO
ONE OF THE KEY CHANGES IN THE
BEHAVIORAL HEALTH SERVICES ACT
IS THE DEDICATION OF THE 30% OF
FUNDING FOR HOUSING
INTERVENTIONS. AND THIS IS
OVERSEEN BY COUNTY BEHAVIORAL
HEALTH DEPARTMENTS. AND THEN
ALSO THERE ARE UPDATED
REQUIREMENTS FOR LOCAL
STAKEHOLDER ENGAGEMENT. SO DHCS
HAS BEEN ENGAGING STAKEHOLDERS
AND CONDUCTING EXTENSIVE
ANALYSIS. DEVELOP THE KEY
POLICIES TO GOVERN THE USE OF
THE FUNDS OF THE MHSA AND OF
COURSE, THE BOND ACT, WHICH I'VE
PREVIOUSLY MENTIONED. AND SO THE
CRITERIA OUTLINED IN THE WELFARE
AND INSTITUTIONS CODE FOR
HOUSING INTERVENTIONS THAT MAY
BE FUNDED WITH DOLLARS ARE
BROAD. THE ADDITIONAL GUIDANCE
THAT DHCS WILL DEVELOP RELATED
TO HOUSING SUPPORTS IS INTENDED
TO BOLSTER A RANGE OF MENTAL
HEALTH AND SUBSTANCE USE
DISORDER NEEDS AND PROVIDE
STABLE CARE COORDINATED HOUSING
TO IMPROVE HEALTH OUTCOMES FOR
CALIFORNIANS. SO IN THAT WHHIC
CODE, IT HAS HOUSING
INTERVENTIONS REALLY DEFINED, AS
JENNIFER HAD MENTIONED, RENTAL
SUBSIDIES, OPERATING SUBSIDIES,
SHARED HOUSING, INCLUDING
RECOVERY HOUSING, FAMILY
HOUSING. ALSO, THE NONFEDERAL
SHARE FOR MEDI-CAL TRANSITIONAL
RENT BENEFIT, OTHER HOUSING
SUPPORTS DEFINED BY DHCS AND THE
COMMUNITY SUPPORTS POLICY GUIDE,
PROJECT BASED HOUSING
ASSISTANCE, INCLUDING MASTER
LEASING, CAPITAL DEVELOPMENT
PROJECTS WHERE COUNTIES CAN USE
UP TO 25% OF THAT, 30% IN THAT
HOUSING BUCKET, TO SUPPORT
CAPITAL DEVELOPMENT OF HOUSING
TO SERVE THE ELIGIBLE
POPULATION. SO IN ORDER TO
MAXIMIZE AVAILABLE FUNDING,
COUNTY BEHAVIORAL HEALTH
DEPARTMENTS MAY NOT USE
BEHAVIORAL HEALTH SERVICE ACT
FUNDS FOR HOUSING INTERVENTIONS
THAT ARE ALREADY COVERED BY
MEDI-CAL, BY THE MEDI-CAL
MANAGED CARE PLAN, PER THE
HEALTH, WELFARE, AND
INSTITUTIONS CODE. DHCS IS
CURRENTLY CONDUCTING A RANGE OF
PUBLIC STAKEHOLDER ENGAGEMENT
FORUMS TO SOLICIT AND GATHER
FEEDBACK, WHICH WILL BE CRITICAL
AS THE DEPARTMENT CONTINUES TO
DEVELOP THE POLICY NOT ONLY
AROUND HOUSING INTERVENTIONS,
BUT AROUND THE LARGER BèC BUCKET.
AND A PUBLIC LISTENING SESSION
WILL BE HELD IN THE FALL OF
2024, WHICH WILL HAVE HOUSING
INTERVENTIONS AS A KEY TOPIC.
AND THEN DHCS WILL RELEASE THE
POLICY GUIDANCE FOR HOUSING
INTERVENTIONS IN EARLY 2025. BUT
HOWEVER, PRIOR TO THE
IMPLEMENTATION OF BSSA IN JULY
OF 2026, COUNTIES CAN UTILIZE
HOUSING RESOURCES AVAILABLE TO
THEM NOW THROUGH THE BEHAVIORAL
HEALTH BRIDGE HOUSING PROGRAM.
BRIDGE HOUSING FUNDS HAVE BEEN
AWARDED TO COUNTY BEHAVIORAL
HEALTH AGENCIES AND TRIBAL
ENTITIES TO OPERATE BRIDGE
HOUSING SETTINGS TO ADDRESS THE
IMMEDIATE HOUSING NEEDS OF
PEOPLE EXPERIENCING HOMELESSNESS
WHO HAVE SERIOUS BEHAVIORAL
HEALTH CONDITIONS, INCLUDING
SERIOUS MENTAL ILLNESS AND OR
SUBSTANCE USE DISORDER. TO DATE,
UNDER ROUND ONE, OVER 900
MILLION WAS AWARDED TO COUNTY
BEHAVIORAL HEALTH DEPARTMENTS.
THIS IS PROJECTED TO CREATE 3200
BEDS UNDER INFRASTRUCTURE
FUNDING, AND CLOSE TO 7000 BEDS
UNDER OPERATIONAL FUNDING. UNDER
ROUND TWO, OVER 50 MILLION HAS
BEEN AWARDED TO 16 TRIBAL
ENTITIES. THIS FUNDING INCLUDES
FIVE GRANTEES THAT RECEIVE
PLANNING GRANTS AND 11 GRANTEES
THAT RECEIVE IMPLEMENTATION
GRANTS, INCLUSIVE OF BOTH
INFRASTRUCTURE AND OPERATIONAL
FUNDING, AND THEN UNDER THE
RECENTLY AWARDED ROUND THREE,
132,000,000.5 MILLION WAS
AWARDED TO TEN COUNTY BEHAVIORAL
HEALTH DEPARTMENTS TO COMPLEMENT
AND INCREASE THE ACTIVITIES
THEY'RE CONDUCTING THROUGH ROUND
ONE. THIS FUNDING IS PROJECTED
TO CREATE APPROXIMATELY 121. 2
MILLION BED NIGHTS FOR PEOPLE
EXPERIENCING HOMELESSNESS WHO
HAVE SERIOUS BEHAVIORAL HEALTH
CONDITIONS. AND THEN THE FINAL
117.5 MILLION IN FUNDING FOR
BRIDGE HOUSING IS EXPECTED FOR
ALLOCATION IN 2526. THANK YOU.
THANK YOU. NEXT, I'M JUST HERE
TO SUPPORT AND PROVIDE ANSWERS
TO QUESTIONS. OKAY, OUR
COLLEAGUE JUST LEFT OFF. I DO
HAVE A QUESTION ON THE VETERANS
TYPE OF HOUSING. WHAT ARE YOU,
IMAGINING WITH THAT TYPE OF. I
THOUGHT YOU SAID $1 BILLION TO
GO TO VETERANS HOUSING. WHAT
WOULD THAT LOOK LIKE? SO IT
COULD BE THE SAME TYPES OF
ELIGIBLE USES, SO IT COULD BE
THE ACQUISITION OF MOTELS,
HOTELS. IT COULD BE NEW
CONSTRUCTION. IT COULD BE
CONVERSION OF EXISTING
PROPERTIES TO RESIDENTIAL
PROPERTIES, SO IT CAN BE A WIDE
RANGE OF THINGS. EVERYTHING THAT
WOULD BE ELIGIBLE UNDER THE NON
VETERANS COMPONENT WOULD ALSO BE
ELIGIBLE FOR THE VETERANS. AND
THEN ANYBODY CAN ANSWER, AND I
DON'T KNOW IF SHE LEFT HCD, ONE
OF THE THINGS THAT WE'VE SEEN
OVER THE GOOD HANDFUL OF YEARS,
WHETHER IT'S THE LAST FIVE
YEARS, BUT MAYBE, MAYBE MORE, IS
THE ESCALATION OF PRICES IN
THESE UNITS AS, WHETHER IT'S
MOTEL HOTEL OWNERS, OTHER PEOPLE
WHO HOLD LAND THAT MIGHT BE
AVAILABLE FOR THESE TYPES OF
USES, THAT PRICE INCREASE OF
COURSE, THE PRICE PER UNIT, SOME
OF THE ESTIMATES ARE ABOUT
$700,000 PER UNIT. IS THERE ANY
WAY, TO AGAIN RELOOK AT HOW
WE'RE BUILDING THESE UNITS, THE
TIME FRAME, THE TIMELINE AND THE
COST, BECAUSE SOME OF EVEN THE
NOFAS LOOK TO BE ABOUT A YEAR
FROM THE TIME OF THE LISTING
SESSION TO THE TIME OF THE
GRANTS AWARDED. AND THEN YOU
LOOK OUT AT HOW LONG IT'S GOING
TO TAKE TO NOT ONLY, FIND THE
LAND, BUT TO DO THE, BUILDING ON
IT. SO WE'RE LOOKING AT A 2 OR 3
YEAR PROCESS FOR THESE MAYBE
INITIAL BEDS AND THEN WHAT KIND
OF PRICE COST ARE WE TALKING
ABOUT? ARE THERE ANY THOUGHTS ON
THAT? SO ACTUALLY, UNDER THE
EXISTING HOMEKEY PROGRAM, WE ARE
TARGETING SPEED AND EFFICIENCY,
AND WE HAVE SEEN OVER THE
IMPLEMENTATION OF THAT PROGRAM,
THE REDUCTION IN THE TOTAL COST
PER UNIT ACROSS THE BOARD.
RIGHT, MUCH, IT'S SIGNIFICANTLY
LOWER THAN WHAT YOU WOULD
TYPICALLY SEE IN A NEW
CONSTRUCTION STICK BUILT TYPE
PROJECT. RIGHT? WITH THE
CONVERSION, WE'RE ACTING WITH
SPEED IN PURCHASING THE
PROPERTIES, RIGHT? SO WE DON'T
HAVE THE HOLDING COSTS, AND
DOING THE RENOVATIONS. SO THERE
ARE MULTIPLE WAYS THAT WE'RE
ATTACKING THE COST ALREADY. IN
THE ORIGINAL PROGRAM DESIGN OF
THE HOMEKEY PROGRAM, WHICH WILL
THEN FLOW INTO THE HOMEKEY,
PLUS, WHAT WOULD BE THE AVERAGE
COST PER UNIT OF RENOVATION FOR
LIKE, SAY, A MOTEL CONVERSION? I
DON'T HAVE THAT OFF THE TOP OF
MY HEAD, BUT THAT'S ABSOLUTELY
SOME INFORMATION WE HAVE READILY
AVAILABLE, AND I CAN GET THAT TO
YOU. HUM, HUM. YEAH. AND I CAN
ALSO ADD IN WITH THE BRIDGE
HOUSING. WE DO HAVE A LIMIT ON
THE COST PER UNIT, WHEN I
APOLOGIZE, I THINK IT'S AROUND
115, BUT WE COULD PROVIDE YOU
WITH THAT EXACT COST. BUT WHAT'S
GREAT ABOUT THE BRIDGE HOUSING
IS THAT IS $1 BILLION. NOW THAT
BEHAVIORAL HEALTH DEPARTMENTS
HAVE THAT CAN PROVIDE THE
IMMEDIATE HOUSING, IT REALLY IS
THE BRIDGE INTO THE BèC THAT'S
GOING TO HELP THEM BUILD OUT,
SINCE THEY CAN ALSO ADD IN
INFRASTRUCTURE AND TO YOUR
POINT, NOT EVERY TENANT WANTS TO
TAKE SOMEONE WITH A BEHAVIORAL
HEALTH CONDITION. AND SO REALLY
HAVING TO LOOK LOCALLY OF WHO
WILL ACCEPT INDIVIDUALS, BUT
ALSO COUNTIES ARE LOOKING AT
ADDING TO HOUSING THAT THEY HAVE
LOCALLY FOR EITHER, YOU KNOW,
DIFFERENT ENTITIES THAT PROVIDE
HOUSING FOR BEHAVIORAL HEALTH
NOW UNDER THE MENTAL HEALTH
SERVICES ACT OR OTHER SOURCES OF
FUNDING, BUT REALLY BROADENING
THAT OUT AND BUILDING OUT THAT
CAPACITY. AND THERE HAVE BEEN
EXAMPLES UNDER BRIDGE HOUSING,
FRESNO OPENED UP AND DID A MOTEL
CONVERSION JUST FOR INDIVIDUALS
FOR BEHAVIORAL HEALTH. AND ONCE
AGAIN, THEY DO HAVE TO
PRIORITIZE THOSE CARE CORE
INDIVIDUALS THAT YOU MENTIONED
EARLIER IN THE BRIDGE HOUSING
SETTINGS TO MAKE SURE THAT
THEY'RE RECEIVING THE HOUSING
THAT THEY NEED. SO WE'RE REALLY
EXCITED THAT WE HAVE THIS
INTERIM FUNDING, REALLY, THAT IS
ALREADY OFF THE GROUND. THAT'S
GOING TO HELP BRIDGE INTO BèC.
SO TRYING TO BE AS PRAGMATIC AND
AS POSITIVE AS POSSIBLE, AS
THESE PROJECTS START TO MOVE
FORWARD, HOMEKEY PLUS, MY
CONCERN IS, IS IT STILL GOING TO
BE, ULTIMATELY UP TO THE LOCAL
GOVERNMENTS TO APPROVE THESE,
TYPE OF PROJECTS WITHIN THEIR
CITIES OR COUNTY, I SHOULD SAY,
BUT MOSTLY LOCAL GOVERNMENT,
BECAUSE I DO HAVE THIS FEAR THAT
WE GET INTO THIS NIMBYISM, WHICH
IS GREAT TO DO IT OVER HERE, BUT
NOT HERE. AND HOW LONG DOES THAT
ADD ON TO NOT ONLY THE PROJECT,
BUT ACTUALLY HOUSING THE PEOPLE?
BECAUSE WITH THE ENCAMPMENT,
SUPREME COURT DECISION, WE
ALREADY KNOW THAT THERE ARE
EFFORTS TO GO BACK TO, WHETHER
IT'S ARRESTING OR MOVING PEOPLE
FROM ONE PLACE TO ANOTHER. AND
IF WE'RE IN THIS HOLDING PATTERN
OF ONE, TWO, THREE, FOUR YEARS
BEFORE WE SEE THESE DOLLARS OUT
INTO THE COMMUNITIES AND THEN
THE HOUSING BUILT IN THIS NEXT
TWO, THREE YEARS, THOSE ARE THE
CONCERNS THAT THAT VOICE GETS
LOUDER AND LOUDER OF WE DON'T
WANT THAT TYPE OF INDIVIDUAL IN
OUR COMMUNITY, EVEN IF IT'S HAS
ON SITE SERVICES, EVEN IF IT'S,
YOU KNOW, PROGRAMED AS LIKE,
SAY, WITH SONRISA, WE HAVE SOME
VERY GOOD MODELS, BUT THAT THAT
IS. ARE YOU THINKING ABOUT THAT
TYPE OF PUBLIC OUTREACH, HOW
YOU'RE GOING TO BE WORKING WITH
LOCAL COMMUNITIES, THOSE TYPE OF
THINGS? YEAH. AND WE'LL BE
DEFINITELY BUILDING OFF OF, LIKE
ALL OF THE TECHNICAL ASSISTANCE,
STRATEGIES THAT WE'VE DEVELOPED,
DOING, PRE-APPLICATION
CONSULTATIONS, THERE ARE MANY
THERE ARE VARIOUS STREAMLINING
PROVISIONS THAT WILL BE
INCORPORATED INTO THE DESIGN OF
THE PROGRAM, AS WELL. AND AGAIN,
WE'RE LOOKING TO GET THESE UNITS
UP AND RUNNING AND OCCUPIED AS
QUICKLY AS POSSIBLE. SO
READINESS WILL BE A, A
SIGNIFICANT CRITERIA IN
DETERMINING HOW WE AWARD THESE
FUNDS AS WELL. THEN I WOULD JUST
LIKE TO ADD REALLY QUICKLY,
UNDER BèC, ALL COUNTIES ARE
REQUIRED TO SUBMIT A COUNTY
INTEGRATED PLAN TO THE
DEPARTMENT, AND THAT FIRST PLAN
WILL BE DUE IN JUNE OF 2026. AND
IN THAT PLAN, THEY'RE GOING TO
HAVE TO BE, FIRST OF ALL,
WORKING WITH THEIR LOCAL
STAKEHOLDERS AND DEVELOPMENT OF
THE PLAN. AND IT'S REALLY BEEN
EXPANDED OUT. WHO NEEDS TO BE AT
THAT TABLE, NOT ONLY THE MENTAL
HEALTH COLLEAGUES, BUT ALSO
SUBSTANCE USE, BUT ALSO HOUSING
AND ALL THESE OTHER LOCAL
PARTNERS. SO THEY'RE GOING TO BE
PLANNING THESE EFFORTS AND THEN
THAT HAS TO GO THROUGH THEIR
COUNTY BOARD. BUT ONCE AGAIN,
THAT 30% OF THAT FUNDING IS JUST
FOR HOUSING INTERVENTION. SO
THERE'S REALLY GOING TO BE A
DIFFERENT SET OF ACCOUNTABILITY
AT THE LOCAL LEVEL. BUT THEN
THOSE PLANS ARE GOING TO BE
COMING UP TO DCS FOR OUR REVIEW
AND APPROVAL, WHICH WE HAVEN'T
HAD THAT ABILITY EITHER. AND SO
THERE'S REALLY GOING TO BE JUST
DIFFERENT PARTS OF
ACCOUNTABILITY AT THE LOCAL
LEVEL AND AT THE STATE LEVEL
THAT HAVEN'T BEEN IN PLACE,
ESPECIALLY AROUND HOUSING AND
HAVING THE FOLKS THAT ARE GOING
TO BE INTERESTED IN APPLYING FOR
THE HOMEKEY PLUS FUNDS BE PART
OF THOSE CONVERSATIONS IS GOING
TO BE A CRITICAL FIRST STEP, AND
WE'LL BE ENCOURAGING OUR
POTENTIAL APPLICANTS TO ENGAGE
EARLY AND DEVELOP THOSE
RELATIONSHIPS, FOR MY COLLEAGUE
THAT LEFT, BUT I'LL GIVE YOU AN
OPTION IF YOU HAVE A QUESTION OR
ANYTHING BEFORE THEN. THANK YOU,
MADAM CHAIR. I THINK ONE OF THE
BIGGEST THINGS THAT I'VE GOTTEN
FEEDBACK ON FROM MY DISTRICT,
AND WE DO THE STAKEHOLDER
MEETINGS AND EVERYTHING IS THE
NEED FOR MORE INTERVENTION FUNDS
BECAUSE IT'S WE DON'T NEED TO
INCREASE THE HOMELESSNESS. WE
NEED TO MAKE SURE THAT THOSE
THAT ARE ON THAT BORDERLINE
AREN'T BECOMING HOMELESS BECAUSE
IT'S LIKE, HOW DO HOW DO YOU
REDUCE THE POPULATION? AND IT'S
LIKE, YOU STOP THAT CHAIN. SO
WITH THE INTERVENTION SIDE, I
KNOW YOU'RE JUST MENTIONING IT.
WHAT DO YOU SEE AS A POTENTIAL
TO INCREASE ACCESS FOR THAT?
BECAUSE THAT'S REALLY, YOU KNOW,
SOMETHING TRAGIC HAPPENED TO
SOMEBODY'S LIFE. THEY GOT TO GET
BACK ON THEIR FEET AND THEY
DON'T NEED TO BE, YOU KNOW, DOWN
BY THE RIVER WITH THEIR KIDS OR
TRYING TO GET INTO A HOME THAT'S
PACKED FULL, OR FAMILIES BEING
SEPARATED BECAUSE OF IT. AND THE
INTERVENTION SIDE IS WHAT
PREVENTS THAT AND KEEPS FAMILIES
WHOLE AND KEEPS FAMILIES
TOGETHER. SO HOW DO WE DO MORE
OF THAT? YEAH, I COULD START
WITH THAT WITH THE BEHAVIORAL
HEALTH. YEAH. AND YOU GUYS
MENTIONED THE MEDI-CAL SIDE OF
THAT AND THAT'S NO PROBLEM.
YEAH. THAT'S THAT'S GREAT. BUT
SOMETIMES THAT'S NOT ENOUGH.
SURE SO WITH BEHAVIORAL HEALTH
SERVICE ACT FUNDING, A FEW
THINGS ARE IN PLAY. FIRST OF
ALL, THAT 30% HOUSING BUCKET,
50% DOES NEED TO BE SPENT
TOWARDS THE CHRONICALLY
HOMELESS. BUT THE REST OF THE
FUNDING ELIGIBILITY INCLUDES
OBVIOUSLY, THEY NEED TO HAVE A
BEHAVIORAL HEALTH CONDITION, AND
BUT WHEN YOU'RE SPEAKING ABOUT A
FAMILY, IT MIGHT BE A MOM OR A
DAD, BUT THEN THERE'S FAMILY
HOUSING THAT CAN BE SUPPORTED
FOR THE ENTIRE FAMILY, SO THAT
50% OF THAT BUCKET IS AVAILABLE
FOR THOSE THAT ARE AT RISK OF
HOMELESSNESS OR EXPERIENCING
HOMELESSNESS. AND THEN THAT
OTHER 50% IS FOR THE CHRONICALLY
HOMELESS TO REALLY ENSURE THAT
WE'RE SERVING THEM AS WELL. SO
THAT IS ONE PIECE OF IT. BUT
ALSO, YOU MENTIONED MEDI-CAL AND
WE HAVE THE LINKAGES TO OUR
TRANSITIONAL RENT COMMUNITY
SUPPORTS OTHER. LET ME REPHRASE.
SURE. NO QUESTION. SINCE WE DO
HAVE BUDGET TRAILER BILLS THAT
ARE BEING WORKED ON, WHAT DO WE
NEED TO DO AS A LEGISLATIVE BODY
IN THESE TRAILER BILLS TO
INCREASE MORE ACCESS ON THE
INTERVENTION SIDE? I THINK,
ASSEMBLYMEMBER, ARE YOU ASKING
WHAT IT WOULD TAKE TO CHANGE THE
ALLOCATION THAT IS CURRENTLY IN
STATUTE, AS WE'RE LOOKING AT
DOING THE BUDGET TRAILER BILLS,
WHAT DO WE NEED TO CHANGE TO
ALLOW YOU TO GET MORE ACCESS FOR
THE INTERVENTION SIDE? I THINK
ONE OF YOU MENTIONED, RENT
SUBSIDY AS FAR AS ASSISTANCE.
AND I KNOW IN THE CAL AIM
PROGRAM, AT LEAST THROUGH
CALOPTIMA IN ORANGE COUNTY,
THEY'RE ACTUALLY ALLOWING, RIGHT
NOW, 5000. SHE JUST SAID ONLY
30%. AND IT'S, WE'RE PUTTING 50%
OF OUR MONEY TOWARDS PEOPLE WHO
ARE CHRONICALLY HOMELESS, WHICH
WE ALSO KNOW THERE'S A
PERCENTAGE OF THAT POPULATION
THAT CHOOSES TO BE HOMELESS,
THAT REFUSES THE SERVICES THAT
CONTINUES TO REFUSE SERVICES,
WHICH IS WHY THE GOVERNOR JUST
MADE HIS ORDER. AND IT WAS LIKE,
HEY, WE GOT TO CLEAN THIS UP.
YOU CAN'T CHOOSE TO LIVE THIS
WAY. NOWHERE, NOWHERE ELSE ON
THE PLANET DOES A GOVERNMENT
ALLOW PEOPLE TO CHOOSE TO JUST
CHRONICALLY BE HOMELESS. BUT WE
NEED TO ENSURE THAT POPULATION
DOESN'T INCREASE AND WE REALLY
NEED TO MAKE SURE THAT FAMILIES
AREN'T ENDING UP OUT ON THE
STREETS BECAUSE WE'VE GOT
INFLATION AND WE HAVE EVERYTHING
ELSE THAT'S HAPPENING. WE SEE IT
EVERY DAY. WE HEAR ABOUT IT
EVERY DAY. JUST JUST ASK ANYBODY
THAT WORKS. CONSTITUENT SERVICES.
HOW DO WE MAKE SURE THAT THESE
GOVERNMENT TAXPAYER DOLLARS ARE
MAKING SURE WE'RE NOT ENDING UP
WITH MORE FAMILIES BEING
HOMELESS? WHAT DOES THIS BODY
NEED TO DO TO MAKE SURE THAT
MONEY CAN MOVE TO HELP MORE
FAMILIES FROM ENDING UP ON THE
STREETS? SO I WOULD JUST I WANT
TO I WANT TO MAKE A
CLARIFICATION. SO THE 30% THAT
WE'RE TALKING ABOUT IS VERY
SPECIFIC TO THE HRSA FUNDING.
WHEN WE ARE TALKING ABOUT CAL
AIM UNDER THE MEDI-CAL PROGRAM
AND THE CALOPTIMA PROGRAM THAT
YOU'RE SPEAKING ABOUT, THAT'S
ACTUALLY SEPARATE FROM THESE
DOLLARS AND IS NOT PART OF THESE
30% DOLLARS. SO THESE ARE
PROGRAMS THAT WE HAVE IN PLACE
TODAY. AND IN FACT, IN EVERY
COUNTY IN THE STATE OF
CALIFORNIA, ALL OF OUR MEDI-CAL
MANAGED CARE PLANS HAVE TAKEN UP
WHAT WE CALL THAT THE HOUSING
TRIO, WITHIN THE COMMUNITY
SUPPORTS BUCKET. SO FOR THOSE
INDIVIDUALS THAT MEET THOSE
CRITERIA, THE PLANS ARE ABLE TO
PROVIDE, HOUSING, NAVIGATION,
TENANCY SUPPORT SERVICES TO HELP
SUPPORT THOSE INDIVIDUALS. SO
SEPARATE AND APART FROM ANY
FUNDING THAT WE'RE TALKING ABOUT
UNDER PROPOSITION ONE, WE HAVE
THAT ABILITY. ADDITIONALLY, WE
HAVE IN FRONT OF THE FEDERAL
GOVERNMENT RIGHT NOW AS PART OF
BOTH THE BEHAVIORAL HEALTH
CONNECT, DEMONSTRATION WAIVER,
AS WELL AS AN AMENDMENT TO OUR
EXISTING CAL AIM WAIVER, THE
ABILITY TO HAVE TRANSITIONAL
RENT BE APPROVED AS WELL, WHICH
WOULD ALLOW THE MEDI-CAL MANAGED
CARE PLANS TO PROVIDE UP TO SIX
MONTHS OF RENT ASSISTANCE FOR
INDIVIDUALS THAT MET THOSE
REQUIREMENTS. SO WE ARE LOOKING
TO, AGAIN, IT'S THAT CONTINUUM
OF SERVICES THAT WE'RE LOOKING
TO BE ABLE TO PROVIDE AND TO
BRAID THAT FUNDING IN WAYS THAT
ALLOW FOR MORE SERVICES TO BE
PROVIDED. AND FOR US TO REALLY
LOOK THERE, BRAID THAT FUNDING.
WHAT DO YOU NEED FROM US TO BE
ABLE TO DO MORE BRAIDING? SO I
JUST LIKE TO MAYBE AUGMENT WHAT
SHE WAS SAYING ABOUT EXISTING
RESOURCES. RIGHT, AND JUST, MAKE
CLEAR THAT THIS, THIS, THE 30%
THAT'S GOING TO BE AVAILABLE
UNDER THE BEHAVIORAL HEALTH
SERVICES ACT DOLLARS, THAT'S
ADDITIVE. RIGHT, AND THERE ARE
ALREADY A LOT OF CRITICAL
RESOURCES THAT HAVE BEEN
DELIVERED THROUGH THIS YEAR'S
STATE BUDGET, RIGHT THROUGH THE
HAT PROGRAM AND OTHER PROGRAMS
THAT ARE GOING INTO COUNTY ONE
FOR A LONG TIME. RIGHT, RIGHT.
THAT ARE GOING INTO COUNTIES.
AND HCD RECENTLY TOOK OVER THOSE
PROGRAMS. AND TO YOUR POINT ON
LIKE ACCOUNTABILITY AND HOW
THOSE DOLLARS ARE BEING SENT
SPENT, WE'RE SPENDING A LOT OF
TIME, YOU KNOW, LIKE DIGGING
INTO THE ACCOUNTABILITY, HELPING
LOCAL JURISDICTIONS IMPLEMENT
THOSE DOLLARS THAT ADDRESS THEIR
NEEDS. SO THIS IS GOING TO BE
ONE COMPONENT OF THOSE DOLLARS.
RAPID REHOUSING, THE RENTAL
HOUSING SUBSIDIES THAT YOU
MENTIONED, THOSE ARE ALL
ELIGIBLE USES THAT SPEAK TO THAT
CONTINUUM. AND IT'S JUST FINDING
AT WHAT POINT WITHIN THAT
CONTINUUM WE CAN REACH, FOLKS.
SO DO YOU NEED MORE FLEXIBILITY
IN THAT SYSTEM FOR REACHING OUT
OR I MEAN, WHAT HOW DO YOU
IMPROVE THIS? YEAH, IT'S AN
INTERESTING QUESTION, AND I'D
LIKE TO MAYBE THINK ABOUT IT A
LITTLE BIT, BUT I APPRECIATE THE
OPPORTUNITY TO KIND OF GIVE YOU
AN ASK OF WHAT YOU CAN DO TO
HELP US. AND I THINK WE COULD
PROBABLY COME UP WITH SOME
THINGS AND DEFINITELY FOLLOW UP
WITH YOU, BUT BECAUSE IT'S, YOU
KNOW, WE LOOK AT THE STATE MAPS
AND YOU KNOW, WE GOT ALL THE
BLUE DOTS AND IT'S LIKE, THAT'S
GREAT. THERE'S THIS, THIS
SECTION CALLED THE SAN JOAQUIN
VALLEY THAT HAS NOTHING. AND
IT'S ONE OF THE AREAS THAT HAS,
YOU KNOW, PER CAPITA, THE
HIGHEST POVERTY RATIOS IN THE
ENTIRE STATE. YEAH AND SO WHEN
THE AVERAGE INCOME IS ABOUT
22,000 A YEAR AND IT'S, YOU
KNOW, WE GET BUSSES FULL OF
HOMELESS PEOPLE FROM ALL OVER
THE PLACE THAT DROP PEOPLE IN
OUR NEIGHBORHOODS. AND, YOU
KNOW, WE HAVE THE RIVER, WE HAVE
GOOD WEATHER, WE HAVE ALL THESE
THINGS, BUT WE HAVE OTHER PEOPLE
THERE THAT ARE STRUGGLING. AND
WE NEED THAT FLEXIBILITY TO MAKE
SURE WE DON'T END UP WITH MORE
PEOPLE THAT ARE HOMELESS. AND
THAT'S THAT'S WHY I ASKED THE
QUESTION, BECAUSE IT'S NOT WHEN
WE GET THE CONSTITUENT CALLS AND
IT'S, YOU KNOW, A MOTHER CRYING
RIGHT BEFORE SCHOOL SAYING, HEY,
I DON'T KNOW HOW TO KEEP THE
ROOF OVER MY HEAD. AND I'VE GOT
TO TAKE KIDS SCHOOL SHOPPING.
AND I GOT TO DO ALL THESE
THINGS. WHAT DO YOU TELL THOSE
PEOPLE, SO IT'S MAKING SURE THAT
WE HAVE THAT FLEXIBILITY TO
ENSURE THAT THOSE FAMILIES ARE
KEPT TOGETHER AND KEPT WHOLE. I
WANT TO APPRECIATE MY
COLLEAGUES, LINE OF QUESTIONING.
I THINK THE BIG WORD THERE IS
PREVENTION IN THE SENSE OF HOW
DO WE, KEEP PEOPLE THAT ARE
ALREADY HOUSED? CONTINUE TO KEEP
THEM HOUSED, TO NOT ADD TO, SOME
OF THE SCENARIOS WE'VE SEEN THAT
THESE NUMBERS KEEP ELEVATING. I
DO KNOW, AS YOU WERE SAYING, THE
VERY DIFFERENT BUCKETS OF MONEY
THAT WE'RE TALKING ABOUT, WE'RE
TALKING ABOUT, IF YOU WANT TO
SAY THE NEW MONEY, VERSUS WHAT'S
EXISTING, AND THERE ARE SOME,
INNOVATIVE WAYS THAT SOME OF
THE, I WAS MENTIONING CAL ARE
USING FUNDS, ONE THAT HAS BECOME
REALLY A VERY IMPORTANT TOOL.
I'M NOT SURE IF YOU ALWAYS HEAR
THESE NARRATIVES LOCALLY, BUT AS
MY COLLEAGUE WAS SAYING, IS WE
OFTEN WILL GET CALLS AT THE END
WHEN SOMEBODY'S BEING EVICTED.
MAYBE IT'S BEEN 2 OR 3 MONTHS IN
THE PROCESS, BUT NOW SOMEBODY'S
CALLING OUR STATE OFFICE. MAYBE
THEY'VE ALREADY TRIED TO
NAVIGATE LOCAL NONPROFITS
WHEREVER, BUT SOMETIMES WE GET
THESE EMERGENCY CALLS IN.
SERIOUSLY. THIS YEAR IT WAS THE
A FEW DAYS BEFORE THANKSGIVING.
AND WHAT DO YOU DO WHEN IT'S
LIKE THERE'S SIX PEOPLE, SIX
DIFFERENT FAMILIES IN FULLERTON?
AND SO I CALLED CAL OPTIMA
BECAUSE IT WAS LIKE, OKAY, WHO
DO I CALL? I COULD CALL THE
COUNTY SUPERVISOR, WHICH WE DID,
AND OTHERS, AND WE MADE A FEW
CALLS AND THEY SAID, YOU KNOW,
ONE OF THE THINGS, OF COURSE,
THEY HAVE TO BE A QUALIFY, BUT
THEY ARE NOW ABLE TO PROVIDE
THESE FUNDS. LIKE YOU SAID, SOME
OF THE SIX MONTH UP TO SIX
MONTHS, THE OTHER AREA THAT I'VE
SEEN A VERY IMPORTANT SUPPORT
SYSTEM IS SOMETIMES IN ACTUALLY
IN ANAHEIM, WHERE I REPRESENT
BIG DISNEYLAND, WHICH I AM
PRIVILEGED TO REPRESENT, THEY
CALL THEM THE MOTEL FAMILIES OR
THE MOTEL KIDS. THERE WAS
ACTUALLY A CNN DOCUMENTARY ABOUT
THEM THAT HOW DO WE HAVE? AND
ONE OF THE WEALTHIEST AREAS,
FAMILIES THAT ARE LIVING IN
MOTELS, NOT HOMEKEY, BUT JUST
MOTELS WEEK AFTER WEEK. AND
THEY'RE PAYING. THEY ARE PAYING
FOR THAT, WEEKLY ALLOTMENT. AND
IT'S BECAUSE THEY CANNOT SAVE UP
THE $5,000 FOR THE FIRST AND
LAST MONTH RENT. SO NOW THIS IS
SOMETHING, BETWEEN I THREE THINK
THREE AND 5000 THAT THEY CAN
GET, SUPPORT FOR IN ORDER TO
MOVE OUT OF THOSE, APARTMENTS
AND INTO AN APARTMENT. SO THESE
ARE LITTLE THINGS WE'VE HAD TO
DIG DEEP TO FIND THEM. IT IS WHY
THE LINE OF QUESTIONING THAT I
HAVE HAD OVER SEVERAL YEARS IS,
IS ALWAYS ABOUT HOW DO WE GET
INFORMATION TO SOMETIMES THE
MOST VULNERABLE WHO AREN'T
SITTING AT THE TABLE, HOW DO WE
GET ACCESS TO THE SERVICE
PROVIDERS? SO THEY KNOW THESE
THINGS AND THEY CAN SAY, OKAY,
WELL, WE HAVE THIS, THIS MIGHT
NOT WORK FOR THEM, BUT THIS
COULD WORK FOR THEM, BECAUSE
THOSE ARE REALLY, REALLY VERY,
VERY VALUABLE. ALL THE PROCESSES
THAT YOU'RE GOING TO PUT FORWARD
FOR CITIES AND COUNTIES TO
ACCEPT THESE STATE DOLLARS ARE,
OF COURSE, IMPERATIVE. BUT
UNDERSTANDING THE PEOPLE THAT
YOU'RE TRYING TO ACCESS, WHETHER
IT'S A RETURNING VETERAN WHO I'M
SURE THEY HAD AN ORIENTATION OF
ALL THE THINGS THAT THEY CAN
ACCESS, BUT WHEN THEY COME BACK
MAYBE SIX MONTHS, A YEAR LATER,
THEY MANY TIMES DON'T HAVE THAT
AT THEIR FINGERTIPS. SO I THINK
WHAT'S REALLY CRITICAL IS
THREADING THIS NEEDLE OR
BRAIDING, IF WE WANT TO SAY IT,
THAT WAY, AND MAKING SURE THAT
THESE CRITICAL FUNDS, WHETHER
THEY ARE IN THE PROP ONE OR IN
EXISTING FUNDS, THAT WE'RE USING
THEM WITH URGENCY, WE'RE USING
THEM, WHOEVER WE HAVE OUT THERE
ON OUR COMMUNICATIONS TEAMS ARE
GETTING THAT INFORMATION TO THE
PROVIDERS. AS QUICKLY AS
POSSIBLE, BECAUSE ALL TOO OFTEN
AS A TEACHER FOR OVER 25 YEARS,
THOSE WERE THE KIND OF THINGS
THAT WOULD COME IN, ONTO OUR
PLATE A FEW DAYS BEFORE A
HOLIDAY OR WHATEVER. AND
SOMETIMES THERE IS A VOUCHER
THAT A NONPROFIT WILL HELP GET.
BUT IT'S REALLY WHAT DO WE HAVE
IN LINE FROM THE STATE THAT WE
CAN EASILY ACCESS? BECAUSE
THAT'S THAT'S THE THING WE CAN
HAVE A LOT OF SERVICES, BUT IF
WE CAN'T ACCESS THEM, THEN
SOMETIMES WE ARE PUSHING PEOPLE
OUT ONTO THE STREETS, BUT THIS
IS VERY VALUABLE. I KNOW IT'S A
HUGE LIFT. IT'S A NEW CHAPTER
FOR YOU ALL, AND, WE'RE I'M
EXCITED AND HOPEFUL, AND, AS I
ENTER MY LAST TERM, THAT WE ARE
GOING TO START TO SEE SOME
RELIEF OUT THERE, REALLY ON THE
STREETS IS WHAT WE'RE SAYING.
BUT WE KNOW YOU'RE WORKING ON
IT, ALL DAY, EVERY DAY. AND WE
APPRECIATE THAT. ANY FINAL
COMMENTS? I WANT TO THANK OUR,
CONSULTANTS HERE FOR PUTTING
THIS TOGETHER AND FOR THOSE OF
YOU WHO HAVE BEEN WITH US, THANK
YOU SO MUCH.
ALL RIGHT. SO WE ARE THANKING
OUR PANELISTS FOR JOINING, AND
WE'RE GOING TO OPEN THE HEARING
FOR PUBLIC COMMENT. KIND OF A
QUIET DAY IN PUBLIC COMMENTS
HERE, I WANT TO THANK YOU AGAIN
TO OUR PANEL, OUR PANELISTS, THE
ADMINISTRATION AND MEMBERS OF
THE PUBLIC FOR PARTICIPATING AND
WE ARE ADJOURNED.