STAND. COM. REP. NO. 272-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2429
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred H.B. No. 2429 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HOUSING AND COMMUNITY
     DEVELOPMENT CORPORATION OF HAWAII,"

begs leave to report as follows:

     The purpose of this bill is to make amendments to the Rent
Supplement Program (Program).  Specifically, this measure:

     (1)  Conforms the definition of "qualified resident" in
          section 201G-128, Hawaii Revised Statutes (HRS), with
          section 201G-112, HRS, to include persons living with
          other household members, with whom they are not married
          but are cohabitating;

     (2)  Includes "very low" income households or persons
          earning fifty percent or less of the median family
          income, as Program participants;

     (3)  Enables eligible single persons, who are not elderly or
          disabled, to participate in the Program; and

     (4)  Phases in an increase in the tenant's rent contribution
          from twenty percent to thirty percent of the tenant's
          annual income.

     The Housing and Community Development Corporation, the
Governor's Office, Catholic Charities Elderly Services, Hawaii

 
 
                                 STAND. COM. REP. NO. 272-00
                                 Page 2

 
Catholic Conference, the Legal Aid Society of Hawaii, and the
Affordable Housing and Homeless Alliance testified in support of
this measure.

     Your Committee finds that increasing the Program's
participation levels will help prevent homelessness among persons
with very low incomes.  However, with a waitlist of approximately
1,900 to 2,000 individuals, a waiting period of two to three
years, and funding that has decreased from $3,200,000 in 1995 to
$1,900,000 as of the fiscal year ending June 1999, your Committee
is concerned over any further cuts to the Program.

     Your Committee has amended this measure by:

     (1)  Deleting provisions to the maximum allowable income
          priorities in section 201G-235, HRS, because allowing
          participation of very low income families in the
          Program makes these priorities inapplicable; and

     (2)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2429, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 2429, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair