HOUSE OF REPRESENTATIVES

H.C.R. NO.

131

TWENTY-SECOND LEGISLATURE, 2003

H.D. 2

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

REQUESTING A MANAGEMENT AND FINANCIAL AUDIT OF THE HOUSING AND COMMUNITY DEVELOPMENT CORPORATION OF HAWAII’S FEDERAL SECTION 8 VOUCHER PROGRAM.

 

 

WHEREAS, safe and affordable housing should be a basic human right and the federal government has expanded its supply of rent subsidies such as Section 8 vouchers; and

WHEREAS, many landlords and realtors have singled out Section 8 program recipients as undesirable tenants and have criticized the program itself as inflexible, cumbersome, time-consuming, and slow to respond; and

WHEREAS, Section 8 recipients include a disproportionate share of women and children, undermining current fair housing laws prohibiting discrimination based on sex, marital status, familial status, and age; and

WHEREAS, landlords and realtors oppose legislation that would create a protected class of individuals based on their income level and their status as recipients of government assistance; and

WHEREAS, the Legislature believes that if landlords and realtors do not want another statutory prohibition on class discrimination, then they should not treat all Section 8 recipients as a class of tenants to be shunned entirely, as evidenced by direct advertising and blanket refusals to even show rentable properties; and

WHEREAS, the Housing and Community Development Corporation of Hawaii's (HCDCH) mission is to serve as a catalyst to provide residents with affordable housing and shelter opportunities in a balanced and supportive environment without discrimination; and

WHEREAS, HCDCH's goal is to increase and preserve rental housing opportunities for low-income households and special need groups in independent and supportive living environments; and

WHEREAS, HCDCH should effectively be addressing the housing needs of Hawaii's residents, but low-income individuals and families still face direct discrimination and do not currently receive enough guidance or support; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, the Senate concurring, that the Auditor is requested to perform a management and financial audit of the United States Department of Housing and Urban Development's (HUD) Section 8 voucher program administered by HCDCH to include but not be limited to determining the following:

(1) The number of vouchers issued by the State and counties in a fiscal year;

(2) The number of vouchers that are unused or have expired in a fiscal year and the number of vouchers that are returned as a result;

(3) The amount of federal funds and administrative fees that HCDCH loses as a result of unused or expired vouchers;

(4) The amount of time it takes HCDCH to process a housing assistance payments contract, inspect a prospective rental unit for compliance with HUD housing quality standards, and remit the first month's rent payment to the landlord; and

(5) The amount that HCDCH has paid to landlords as a penalty for late remittances of monthly housing assistance payments;

and

BE IT FURTHER RESOLVED that in the event that federal funds are released to HUD to contract for an independent management and performance audit of the Section 8 program administered by HCDCH, the Auditor has the discretion to either defer or discontinue with the audit as requested in this resolution; and

BE IT FURTHER RESOLVED that HCDCH convene a Task Force composed of, but not limited to, representatives from the following:

(1) The United States Department of Housing and Urban Development;

(2) Realtor associations;

(3) Property management firms;

(4) Homeless and affordable housing advocates, including those organizations providing pro bono legal services to the indigent;

(5) All county public housing agencies; and

(6) Rental subsidy recipients

to improve the delivery of governmental resources to recipients and develop incentives for landlords to participate in rental assistance programs; and

BE IT FURTHER RESOLVED that the Task Force determine the appropriate changes to be made to the Section 8 program to allow for greater flexibility in lease terms as well as improve efficiency and other areas of concern; and

BE IT FURTHER RESOLVED that the Task Force examine adopting stringent penalties against subsidy recipients who cause damage to rental units, including ineligibility to further participate in rental subsidy programs; and

BE IT FURTHER RESOLVED that the Task Force examine the issue of HCDCH reimbursing landlords for property damage in cases where the subsidy recipient has no assets and the landlord has received a court judgement; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, Executive Director of the Housing and Community Development Corporation of Hawaii, Fair Housing Officer of the City and County of Honolulu, Administrator of the Hawaii County Office of Housing and Community Development, Director of the Maui County Department of Housing and Human Concerns, Administrator of the County of Kauai Housing Agency, President of the Hawaii Association of Realtors, Executive Director of the Affordable Housing and Homeless Alliance and the Secretary of Housing and Urban Development.