Bill Text: HI HB431 | 2025 | Regular Session | Amended
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 42-0)
Status: (Introduced) 2025-02-21 - Bill scheduled to be heard by FIN on Monday, 02-24-25 12:00PM in House conference room 308 VIA VIDEOCONFERENCE. [HB431 Detail]
Download: Hawaii-2025-HB431-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
431 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
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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 Hawaii has the highest homelessness rate per capita in the nation. The 2024 Point In Time Count showed a total of 6,389 people experiencing homelessness in the State. The majority of the homeless are on Oahu with 4,494, followed by Hawaii with seven hundred eighteen, Maui with six hundred fifty-four, and Kauai with five hundred twenty-three homeless individuals. Between 2023 and 2024, there was a twelve per cent increase in the number of people experiencing homelessness on Oahu. Sixty-two per cent of Oahu's homeless were unsheltered, and thirty-eight per cent were sheltered.
The legislature under Act 209, Session Laws of Hawaii 2018, established the ohana zones pilot program, which initially appropriated $30,000,000 to fund nonprofit and county government programs aimed to reduce homelessness. Act 128, Session Laws of Hawaii 2019, expanded the use of ohana zone funds to include private lands and appropriated $2,000,000 for the construction of modular temporary units, renovation of existing structures on public lands, or creation of infrastructure to make land suitable for temporary housing. The ohana zones pilot program was extended from 2021 to 2023. The legislature finds that in addition to the six mandated housing sites in the ohana zones pilot program, fourteen additional programs were established.
Act 235, Session Laws of Hawaii 2022, further extended the ohana zones pilot program through June 30, 2026, and provided an additional $15,000,000 to fund services. In 2023, the legislature also set aside $5,000,000 to fund a supportive housing pilot program designed to address individuals with special housing needs, including individuals with alcohol or drug addiction; individuals transitioning from incarceration; youth aging out of foster care; domestic violence survivors; veterans; individuals with intellectual, developmental, physical disabilities, or mental illness; frail elderly; and chronically homeless individuals. In 2023, the legislature also set aside $25,000,000 to fund the kauhale initiative to create deeply affordable spaces for housing and healing the houseless. At that time, kauhale was defined as "communal living spaces, with modest housing units for individual households and shared space for cooking, eating, recreation, growing food, and engaging in group activities". As proposed, kauhale was envisioned as "prefabricated homes, or other modest, low-cost housing unit", but "could also be created in an existing apartment, dormitory, or office building, so long as there is communal space and an investment in building communal responsibility." Over time, the kauhale initiative has evolved to a range of responses for homeless individuals and families and those at risk of homelessness. Kauhale now include temporary, time-limited options such as emergency shelter, medical respite, and mobile outreach and navigation, as well as long-term solutions such as supportive housing and affordable housing targeting extremely low-income households.
The legislature further finds that among the important principles of the State's kauhale initiative is building partnerships between government and community, providing affordable spaces for housing and healing, and fostering belonging and responsibility. Every kauhale is a partnership between government and community with flexible state funding used to empower community champions to fill resource gaps where needed.
The legislature also finds that to ensure there is capacity within the State to meet the needs for long-term solutions to homelessness and the risk of homelessness, it is necessary for the State to develop the capacity of its affordable housing financing and development agency to work with developers to create additional supportive housing units.
Accordingly, the purpose of this Act is to:
(1) Appropriate funds for the continued implementation of the kauhale initiative; and
(2) Create the supportive housing special fund to assist the Hawaii housing finance and development corporation to facilitate the development of mixed-income rental housing projects in which some or all the units are targeted to special needs individuals or families who require supportive services.
PART II
SECTION 2. 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 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for the continued operation
of the kauhale initiative, including expenses related to:
(1) The development and operation of kauhale;
(2) The provision of project-based rent supplement payments;
(3) The provision of support services for qualified individuals and families in kauhale;
(4) Staffing and related costs to administer the kauhale initiative;
(5) Addressing basic needs of individuals and families experiencing homelessness;
(6) Wrap around services;
(7) Social and health care services;
(8) Transportation; and
(9) Other services with the goal of alleviating poverty and transitioning individuals and families experiencing homelessness or housing instability into supportive or affordable housing;
provided that funds appropriated under this part may be used for the ohana zones pilot program established under Act 209, Session Laws of Hawaii 2018, as amended by Act 128, Session Laws of Hawaii 2019, as amended by Act 235, Session Laws of Hawaii 2022.
The sums appropriated shall be expended by the office of the governor for the purposes of this part.
Notwithstanding any other law to the
contrary, the governor may transfer all or a portion of the appropriation in
this part to the governor's designated executive branch departments or
agencies, including the statewide office on homelessness and housing solutions,
for expenditures incurred to implement the kauhale initiative.
The governor's designated executive branch departments or agencies may expend any appropriation transferred pursuant to this part for the performance of their duties under the kauhale initiative.
If funds appropriated pursuant to this part are used to contract for the procurement of building services and projects related to the kauhale initiative, there shall be at least two bidders for any kauhale project estimated to be over $1,000,000.
PART III
SECTION 3. The legislature finds that combining affordable housing with access to services to help special needs populations, such as individuals with alcohol or drug addiction; individuals transitioning from incarceration; youth aging out of foster care; domestic violence survivors; veterans; individuals with intellectual, developmental, physical disabilities, or mental illness; frail elderly; and chronically homeless individuals, live more stable and productive lives.
The legislature further finds that the Hawaii housing finance and development corporation administers various programs to finance mixed-income rental housing developments. Creating a new financing tool specifically for supportive housing will enable the Hawaii housing finance and development corporation to facilitate the development of supportive housing units in stand-alone projects or integrated in mixed-income rental housing projects.
The purpose of this part is to:
(1) Establish a supportive housing special fund to be administered by the Hawaii housing finance and development corporation;
(2) Appropriate funds to support the development, operation, and maintenance of supportive housing, as well as the provision of supportive services; and
(3) Establish, within the Hawaii housing finance and development corporation, one full-time equivalent (1.0 FTE) housing finance specialist I position to help with the administration of the supportive housing special fund.
SECTION 4. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
" . Supportive Housing Special Fund
§201H- Supportive housing special fund. (a) There is established a supportive housing special fund to be administered by the corporation for the purpose of developing, operating, and maintaining affordable, permanent housing and the provision of supportive services for individuals or families with special needs.
(b) Moneys in the fund may be used:
(1) To make loans to finance the development, pre-development, construction, acquisition, preservation, or substantial rehabilitation of supportive housing projects;
(2) To make project-based rental assistance payments;
(3) To make payments for supportive services for households residing in the supportive housing projects; and
(4) For other housing services or activities as provided in rules adopted by the corporation without regard to chapter 91.
(c) The fund may include sums appropriated by the legislature, private contributions, proceeds from repayment of loans, interest, fees, other returns, and moneys from other sources.
(d) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the fund; provided that moneys in the fund shall not be used to finance day-to-day administrative expenses of the projects allotted moneys from the fund.
(e) The corporation shall consult with the counties and community-based organizations to leverage funds and obtain input on selection of projects.
(f) The corporation may contract with other executive branch departments or agencies, the counties, or private or nonprofit organizations as necessary for the provision of supportive housing and services. The corporation shall be exempt from chapter 103D in selecting a qualified private or nonprofit organization to assist with the development and maintenance of supportive housing and provision of rental assistance and supportive services. The corporation may, without regard to chapter 91, establish rules and qualification standards for participants of the supportive housing program.
(g) The corporation may establish, revise, charge, and collect a reasonable service fee, as necessary, in connection with its financing, services, and approvals under this subpart. The fees shall be deposited into the supportive housing special fund.
(h) The corporation shall submit a report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded using moneys from the supportive housing special fund.
§201H- Additional powers. The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities conferred."
SECTION 5. 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 2025-2026 and
the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the supportive housing special fund.
SECTION 6. There is appropriated out of the supportive housing special fund the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and
the same sum or so much thereof as may be necessary for fiscal year 2026-2027
to be expended as follows:
(1) $ for the financing of the development, operation, and maintenance of affordable, supportive housing projects and the provision of supportive services for households with special needs who reside in the supportive housing projects; and
The sums appropriated shall be expended by
the Hawaii Housing finance and development corporation for the purposes of this
part.
PART IV
SECTION 7. This Act shall take effect on June 29, 3000; provided that sections 2, 5, and 6 shall take effect on July 1, 3000.
Report Title:
Housing; Kauhale Initiative; Ohana Zones Pilot Program; Supportive Housing Special Fund; Appropriation
Description:
Appropriates funds for the continued operation of the Kauhale Initiative and authorizes those funds to be used for the Ohana Zones Pilot Program. Establishes and appropriates funds into and out of the Supportive Housing Special Fund. Effective 6/29/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
