Bill Text: HI HCR47 | 2023 | Regular Session | Introduced

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Bill Title: Requesting The Hawaii Housing Finance And Development Corporation To Provide A Report To The Legislature About Barriers To Creating Truly Affordable Housing In Hawaii.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2023-03-10 - Referred to HSG, FIN , referral sheet 18 [HCR47 Detail]

Download: Hawaii-2023-HCR47-Introduced.html

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HOUSE OF REPRESENTATIVES	H.C.R. NO.	47
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

requesting the hawaii housing finance and development corporation to provide a report to the legislature about barriers to creating TRULY affordable housing in hawaii.

 

 

 

     WHEREAS, there is a severe shortage of housing in Hawaii that residents earning prevailing wages can reasonably afford; and

 

     WHEREAS, according to the National Low Income Housing Coalition's Out of Reach 2022 report, a minimum wage employee must work one hundred twenty-three hours per week to afford a one-bedroom apartment in the islands; and

 

     WHEREAS, the United States Department of Housing and Urban Development defines "affordable housing" as "housing on which the occupant is paying no more than thirty percent of gross income for housing costs, including utilities"; and

 

     WHEREAS, a household's gross income generally cannot exceed one hundred forty percent of the area median income to qualify for affordable housing; the actual income limit is dependent on household size; and

 

     WHEREAS, the median income is defined as the midpoint of a region's income distribution, where half of the families earn more than the median and half earn less than the median; and

 

     WHEREAS, housing affordability in Hawaii is most often expressed as the housing price-to-income ratio, with the price of an "affordable" home expressed on a scale where one hundred forty percent of the area median income or below is considered a "below market" rate and thus "affordable"; and

 

     WHEREAS, the current formula used to set the sales price of "affordable" for-sale homes is outdated and fails to take into consideration factors such as the high cost of living and high market prices of housing in Hawaii; and

 

     WHEREAS, the housing price guidelines set by the United States Department of Housing and Urban Development are not applicable to developments that do not use federal subsidies; and

 

     WHEREAS, the outdated formulas are heavily based on mortgage interest rates and, given the existing low-interest rate environment, the sales prices may not be affordable to local area residents and, in many locations, often even exceed market prices; and

 

     WHEREAS, by way of example, a two-bedroom home in the City and County of Honolulu with a price of over $1,000,000 could potentially qualify as "affordable" under current guidelines; and

 

     WHEREAS, if the State and counties want to provide housing that local residents can afford on typical wages earned in Hawaii, the definition of "affordable" sales prices needs to more accurately reflect what local households can realistically afford, taking into consideration homeowners' association fees, insurance, utilities, transportation, cost of living, access to low-interest rates, and other factors; and

 

     WHEREAS, the coronavirus disease 2019 pandemic jeopardized the financial security of thousands of working families who required rental and housing relief to sustain their access to shelter; and

 

     WHEREAS, according to the Hawaii Budget and Policy Center, the provision of affordable homes and rental units requires the State to treat housing as a basic necessity and human right, rather than primarily as a vehicle for investment and wealth building; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, the Senate concurring, that the Hawaii Housing Finance and Development Corporation is requested to provide a report to the Legislature about barriers to creating truly affordable housing in Hawaii; and

 

     BE IT FURTHER RESOLVED that the report is requested to include information about methodologies for determining what qualifies as "affordable" in Hawaii in comparison to states and municipalities with similarly high costs of living; and

 

     BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is urged to consult with additional government agencies and advocacy organizations in the preparation of its report, including the respective counties' housing department, office, or agency; Hawaii Appleseed Center for Law and Economic Justice; and Hawaii Alliance for Community Based Economic Development; and

 

     BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2024; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation; head of each county's respective housing department, office, or agency; Executive Director of the Hawaii Appleseed Center for Law and Economic Justice; and Executive Director of the Hawaii Alliance for Community Based Economic Development.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

HHFDC; Affordable Housing; Barriers; Report