HOUSE OF REPRESENTATIVES

H.B. NO.

476

THIRTIETH LEGISLATURE, 2019

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


PART I

     SECTION 1.  The legislature finds that homelessness is one of the most pressing problems in Hawaii, and it requires a robust, comprehensive, long-term solution to address Hawaii's affordable housing and homelessness crisis once and for all.

     Nearly fifty years ago, in 1970, the State of Hawaii issued a report stating that Hawaii had been experiencing a "serious housing problem for many years" which had by then "become a crisis."  In the decades since, the problem has become worse.  Over the last fifty years, the number of cost-burdened renters, those paying more than thirty per cent of their income for rent, went from less than a quarter of the population to over half of the population.  High housing costs have driven more Hawaii residents into homelessness; and Hawaii now has the highest homelessness rate in the nation.

     By making smart investments in homelessness programs and housing, using data-driven practices, and improving coordination, Hawaii has gradually begun to turn the tide on the homelessness crisis.  In 2017, Hawaii's homelessness rate went down for the first time in years, a trend that continued in 2018.  In 2018, the legislature made unprecedented levels of investment in low-income housing and homelessness programs, appropriating $200,000,000 for the rental housing revolving fund, $30,000,000 for ohana zones, and $13,500,000 for proven-effective and promising homelessness programs.

     To turn back the fifty years of growth in Hawaii's housing and homelessness crisis, investments of this scale must be made consistently in the coming years.  Hawaii must prioritize programs that are the most cost-effective and target the most vulnerable populations, such as permanent supportive housing programs that generate overall cost-savings by addressing the chronically homeless population, currently costly consumers of emergency services.  By investing $75,000,000 each year for the next ten years, Hawaii can house and provide services to all 1,600 of its chronically homeless individuals; saving over $2,000,000,000 during that ten-year period.  Initial investments in this plan should go to construction of permanent supportive housing units, while subsequent investments will go toward vouchers and services.

     Additionally, the State needs to continue to invest in low-income housing generally.  Forty-seven per cent of housing demand is for Hawaii households making under $45,000 annually.  Seventy-four per cent of housing demand is for Hawaii households making under $75,000 per year.  Funding the rental housing revolving fund to build housing at these affordability levels is critically important.

     Furthermore, to create more housing using available resources, the State needs to experiment with innovative solutions, such as using ultra-low-cost modular housing, rather than relying on traditional building methods and housing models.  The State cannot hope to radically change the housing and homelessness problems that have been growing for decades without radically changing its approach and level of investment.  The State must seek out as many vendors, architects, and builders who manufacture, sell, design, or build low-cost, modular single-family dwellings and mid-rise multiple dwellings as possible.  In addition, as part of the competitive bidding process required by procurement rules for the State, the low-cost, modular dwellings should be evaluated on the basis of safety, durability, comfort, sustainability, environmental impact considerations, construction time, flexibility, practicality, relative cost, and aesthetic appeal.

     The investments in this Act toward the development of low-income housing and prioritizing permanent supporting housing are part of a comprehensive, long-term legislative strategy to end homelessness.

     The purpose of this Act is to authorize the issuance of general obligation bonds and appropriate funds to finance the construction of housing units.

PART II

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $         or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2019-2020 to be deposited into the rental housing revolving fund.

     SECTION 3.  There is appropriated out of the rental housing revolving fund the sum of $         or so much thereof as may be necessary for fiscal year 2019-2020 for the purposes of the rental housing revolving fund as set forth in section 201H-202, Hawaii Revised Statutes; provided that one of the considerations for the use of the funds shall be on whether the housing financed in whole or in part by the funds shall use low-cost modular construction as a means of developing more housing units for lower costs than what could be accomplished using traditional construction methods.

     All housing and housing units financed and developed with funds derived from the general obligation bonds authorized pursuant to this part shall be reasonably safe, secure, and comfortable permanent private dwelling units fit for human habitation.  All individuals and families who occupy housing financed and developed pursuant to this part shall be afforded the same liberties and rights with regard to occupancy of housing according to generally-accepted norms in the United States for persons not affected by homelessness, including the reasonable expectation of privacy and the right to exclude others from the housing or dwelling unit.

SECTION 4.  The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2022, shall lapse as of that date.

     SECTION 5.  The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

PART III

     SECTION 6.  (a)  The Hawaii housing finance and development corporation shall provide loans or grants for the development of permanent supportive housing for eligible individuals and families who experience chronic homelessness pursuant to this part.

     (b)  All housing and housing units financed and developed with funds derived from the general obligation bonds authorized pursuant to this part shall be reasonably safe, secure, and comfortable permanent private dwelling units fit for human habitation.  All individuals and families who occupy housing financed and developed pursuant to this part shall be afforded the same liberties and rights with regard to occupancy of housing according to generally-accepted norms in the United States for persons not affected by homelessness, including the reasonable expectation of privacy and the right to exclude others from the housing or dwelling unit.

     (c)  An individual or family shall be eligible for permanent supportive housing financed and developed pursuant to this part if:

     (1)  The individual or at least one adult member of the household has been sleeping in a place not meant for human habitation or in an emergency shelter continuously for at least one year or has had a least four episodes of homelessness, where the individual habitually slept in a place not meant for human habitation or in an emergency shelter, in the past three years; and

     (2)  The individual or at least one adult member of the household has a disability, including severe mental illness or substance abuse.

     (d)  Supportive housing financed and developed pursuant to this part shall:

     (1)  Not require a person with a mental illness to undergo treatment as a requirement for housing;

     (2)  Not require a person with a substance abuse disorder to achieve sobriety or maintain abstinence as a requirement for housing;

     (3)  Provide robust support services for program participants that are predicated on assertive treatment rather than coercion;

     (4)  Embrace harm-reduction approaches in collaboration with prevention and early intervention approaches, including a spectrum of multiple opportunity strategies ranging from safer use to abstinence, to reduce the impact of substance abuse disorders and provide critical links to deepen the impact of and participation in available services and programs for populations at the greatest risk;

     (5)  Provide program participants with leases and tenant protections as provided by chapter 521, Hawaii Revised Statutes, and other state and federal law; and

     (6)  Permit program participants to reside in the home permanently, subject to sufficient program funding and tenant compliance with applicable law, rules, and house or program requirements, or until replacement housing is acquired.

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the Hawaii housing finance and development corporation for the development and construction of new units to be used as permanent supportive housing; provided that one of the considerations for the use of funds for permanent support housing shall be whether the housing financed in whole or in part by the funds use low-cost modular construction as a means of developing more housing units for lower costs than what could be accomplished using traditional construction methods.

     The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

PART IV

     SECTION 8.  This Act shall take effect on January 1, 2050.


 


 

Report Title:

Housing; Homelessness; Rental Housing Revolving Fund; Permanent Supporting Housing; General Obligation Bond; Appropriation

 

Description:

Authorizes the issuance of general obligation bonds and the deposit of the proceeds into to the Rental Housing Revolving Fund for construction of low-income housing. Appropriates funds for the construction of Permanent Supportive Housing units.  (HB476 HD1)

 

 

 

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