Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 246 entitled:

begs leave to report as follows:

The purpose of this bill is to allow the State Rent Supplement Program (SRSP) to serve a larger number of the low-income households eligible for assistance under the program, by appropriating an additional $1,300,000 in fiscal year 2001-2002, and $1,500,000 for fiscal year 2002-2003, to fund the SRSP.

Testimony in support of this measure was provided by the Hawaii State Commission on the Status of Women, City and County of Honolulu Department of Community Services, Institute for Human Services, Inc., Partners in Care, Salvation Army, Family Treatment Services, American Friends Service Committee, Hawaii Catholic Conference, Catholic Charities Elderly Services, Affordable Housing and Homeless Alliance, and a private individual. Testimony supporting the intent of this measure was submitted by the Housing and Community Development Corporation.

SRSP provides qualified persons a housing subsidy of $160 per month. Over the last six years, funding for SRSP has been cut almost in half, from $3,200,000 in 1995 to $1,700,000 in 2000. In addition, in 2000, SRSP was further limited by statute to persons with very low incomes.

Without SRSP, families may become homeless and thereby lose the stability needed for a successful transition to self sufficiency. Your Committee finds that the length of the SRSP wait list should be reduced, not only because housing subsidies are less costly for society, but also because there is a definite future need to increase and thereby restore funding to SRSP.

This is the fifth, and last year of benefits for many families under welfare reform. Of the families subject to the welfare cut-off date, 55 percent were working as of August 2000, but were earning a mean income of only $486. Yet 77 percent were living in housing rented on the private market, where the fair market rent for a two-bedroom apartment is $859. Your Committee finds that without the assistance of a program like SRSP, these families will soon join those who are homeless in Hawaii.

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. 246 and recommends that it pass Second Reading and be referred to the Committee on Finance.