REPORT TITLE:
Special Needs Housing Fund


DESCRIPTION:
Creates the special needs housing special fund to be used to
provide supportive housing for persons with mental illness and
substance abuse addictions.  Authorizes $5,000,000 in general
obligation bonds, provided the private sector provides a 20%
match. (SB2579 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2579
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                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:

 1      SECTION 1.  The legislature finds that current facilities
 
 2 and programs that provide special needs housing for persons with
 
 3 mental illness and substance abuse addictions have neither the
 
 4 funds nor the capacity to offer services to all those in need.  A
 
 5 conservative estimate based on the 1999 Homeless Needs Assessment
 
 6 Study suggests that between five hundred fifty and eight hundred
 
 7 mentally ill homeless persons are in need of affordable housing.
 
 8 Given the present waiting lists for Honolulu's Safe Haven, as
 
 9 many as two additional Safe Haven facilities are needed on the
 
10 island of Oahu alone to address the homeless problem of those
 
11 with mental illness.
 
12      In addition, the Strategic Planning Action Work Group for
 
13 Homeless Persons With Serious Mental Illness recommends further
 
14 development of three types of residential rehabilitation:
 
15 special supported housing, twenty-four-hour group homes, and
 
16 eight-to-sixteen-hour group homes.  Partners In Care, a statewide
 
17 coalition of homeless service providers, has prioritized other
 
18 needed services for the homeless population, such as supportive
 
19 housing for people with addictions within a framework of multiple
 
20 diagnoses.
 

 
Page 2                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      The legislature also finds that state and county governments
 
 2 suffer unnecessary financial burdens when mainstream public
 
 3 support systems, such as prisons, hospitals, and emergency rooms,
 
 4 become the primary mechanism for treating acutely and chronically
 
 5 ill homeless persons.  Studies show that these ad hoc approaches
 
 6 to the mentally ill and substance abusing homeless population
 
 7 exceed the cost of outright treatment by tens of thousands of
 
 8 dollars per capita per year.  Ad hoc approaches that fail to
 
 9 comprehensively address mental illness, substance abuse, and
 
10 homelessness will most likely prove unsustainable.
 
11      Therefore, linking housing services with mental health and
 
12 substance abuse treatment is necessary to provide mentally ill
 
13 homeless persons with the support needed to maintain housing and
 
14 to ensure that homeless persons returning to more independent
 
15 housing are able to adjust to their new demands.  The legislature
 
16 further finds that there is great need in the State for
 
17 supportive housing which comprehensively addresses mental illness
 
18 and substance abuse in the homeless population.
 
19      The purpose of this Act is to:
 
20      (1)  Create a special needs housing special fund; and
 
21      (2)  Authorizing general obligation bonds to provide
 
22           supportive housing for persons with mental illness and
 
23           substance abuse addictions in the homeless populations.
 

 
Page 3                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      SECTION 2.  Chapter 201G, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "§201G-    Special needs housing special fund.  (a)  There
 
 5 is established in the state treasury a special fund to be known
 
 6 as the special needs housing special fund, which shall be used to
 
 7 provide supportive housing for persons with mental illness and
 
 8 substance abuse addictions in the homeless population.
 
 9      (b)  All moneys for the fund shall be provided from gifts,
 
10 donations, and grants from public agencies and private persons.
 
11      (c)  All interest earned or accrued on money deposited in
 
12 the fund shall become part of the fund.  The fund shall be
 
13 administered by the corporation."
 
14      SECTION 3.  The director of finance is authorized to issue
 
15 general obligation bonds in the sum of $5,000,000, or so much
 
16 thereof as may be necessary, and the same sum, or so much as may
 
17 be necessary, is appropriated for fiscal year 2000-2001 to
 
18 provide supportive housing for persons with mental illness and
 
19 substance abuse addictions in the homeless populations; provided
 
20 that no funds shall be made available under this Act unless the
 
21 private sector provides twenty per cent for the purpose for which
 
22 this sum is appropriated.
 

 
 
 
Page 4                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      SECTION 4.  The appropriation made for capital improvement
 
 2 projects authorized in this Act shall not lapse at the end of the
 
 3 fiscal year for which the appropriation is made; provided that
 
 4 all appropriations that are unencumbered as of June 30, 2001,
 
 5 shall lapse as of that date.
 
 6      SECTION 5.  The sum appropriated shall be expended by the
 
 7 housing and community development corporation of Hawaii for the
 
 8 purpose of this Act.
 
 9      SECTION 6.  New statutory material is underscored.
 
10      SECTION 7.  This Act shall take effect on July 1, 2000.