STAND. COM. REP. NO. 3009

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2429
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred H.B. No. 2429, H.D. 2, 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 measure is to focus financial housing
assistance to persons who earn fifty per cent or less of the
median family income through participation in the Rent Supplement
Program (Program).

     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 to whom they are not married
          but with whom they are cohabiting;

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

     (3)  Defines a "qualified tenant" of the Program to include
          single persons regardless of age or disability or lack
          thereof;


 
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     (4)  Expands the income limits for Program participation
          from the National Housing Act requirements to include a
          "very low" income standard;

     (5)  Raises a Program tenant's rental contribution to thirty
          per cent and establishes a time-table for the
          implementation of this increase; and

     (6)  Deletes statutory provisions for establishing the
          priority of persons applying for Program participation.

     Testimony in support of this measure was received from the
Governor's Office, the Housing and Community Development
Corporation of Hawaii (HCDCH), the Hawaii Catholic Conference,
the Affordable Housing and Homeless Alliance, and The Arc of
Hawaii.

     Your Committee finds that rent supplements in Hawaii have
been extremely effective in preventing homelessness for low-
income elderly and disabled people.  However, budgetary cuts have
severely reduced this effectiveness and lead to a waiting list
for affordable, subsidized rental housing for these groups.

     Upon further consideration, your Committee amended the
measure to:

     (1)  Reinstate the requirement that a Program tenant's
          rental contribution be one-fifth of the tenant's annual
          income, in order to ensure that more of these subsidies
          remain available to those who really need it;

     (2)  Removing the section requiring increases in the rent
          contribution and the section requiring compliance with
          rent supplement program increases; and

     (3)  Authorizing the HCDCH to increase the rent contribution
          amount set forth in section 201G-234, Hawaii Revised
          Statutes, after conducting public hearings to determine
          whether or in what amount the rent contribution should
          be increased, up to a maximum of thirty per cent.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 2429, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2429, H.D. 2, S.D. 1, and be referred to the
Committee on Ways and Means.


 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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