Creates the special needs housing special fund to be used to provide supportive housing for persons with mental illness and substance abuse addictions. Appropriates moneys to the fund.

A BILL FOR AN ACT

SECTION 1. The legislature finds that current facilities and programs that provide special needs housing for persons with mental illness and substance abuse addictions have neither the funds nor the capacity to offer services to all those in need. A conservative estimate based on the 1999 Homeless Needs Assessment Study suggests that between five hundred fifty and eight hundred mentally ill homeless persons are in need of affordable housing. Given the present waiting lists for Honolulu’s Safe Haven, as many as two additional Safe Haven facilities are needed on the island of Oahu alone to address the homeless problem of those with mental illness.

In addition, the Strategic Planning Action Work Group for Homeless Persons With Serious Mental Illness recommends further development of three types of residential rehabilitation: special supported housing, twenty-four-hour group homes, and eight-to-sixteen-hour group homes. Partners In Care, a statewide coalition of homeless service providers, has prioritized other needed services for the homeless population, such as supportive housing for people with addictions within a framework of multiple diagnoses.

The legislature further finds that state and county governments suffer unnecessary financial burdens when mainstream public support systems, such as prisons, hospitals, and emergency rooms, become the primary mechanism for treating acutely and chronically ill homeless persons. Studies show that these ad hoc approaches to the mentally ill and substance abusing homeless population exceed the cost of outright treatment by tens of thousands of dollars per capita each year. Ad hoc approaches that fail to comprehensively address mental illness, substance abuse, and homelessness, will most likely prove unsustainable.

The legislature further finds that linking housing services with mental health and substance abuse treatment is necessary to provide mentally ill homeless persons with the support needed to maintain housing and to ensure that homeless persons returning to more independent housing are able to adjust to the new responsibilities. Community-based mental health housing services will facilitate the State’s efforts to comply with a federal court stipulation and order that requires the state hospital to provide adequate treatment in certain matters relating to patient care and safety. As part of the compliance efforts, the department of health is presently downsizing the state hospital to provide more community residential care, including housing services.

The legislature further finds that there is great need in the State for supportive housing that comprehensively addresses mental illness and substance abuse in the homeless population.

The purpose of this Act is to create a special needs housing special fund to provide supportive housing for persons with mental illness and substance abuse addictions in the homeless population.

SECTION 2. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201G-   Special needs housing special fund. (a) There is established in the state treasury a special fund to be known as the special needs housing special fund, that shall be used to provide funds for purchase, renovation, or construction of supportive housing for persons with mental illness and substance abuse addictions in the homeless population.

(b) All moneys in the fund shall be provided from legislative appropriations, gifts, donations, and grants from public agencies and private persons.

(c) All interest earned or accrued on money deposited in the fund shall become part of the fund. The fund shall be administered by the corporation."

SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

"§36-27 Transfers from special funds for central service expenses. Except as provided in this section, and notwithstanding any other law to the contrary, from time to time the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

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 2001-2002, to be paid into the special needs housing special fund established in section 201G-  , Hawaii Revised Statutes.

SECTION 6. There is appropriated out of the special needs housing special fund the sum of $          , or so much thereof as may be necessary for fiscal year 2001-2002, for the purposes of this Act.

SECTION 7. The sums appropriated shall be expended by the housing and community development corporation of Hawaii for the purposes of this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2001.