Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Hawaiian Affairs, to which was referred H.B. No. 73, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to appropriate funding for state homeless assistance programs and self-help housing construction.

Testimony in support of this measure was submitted by the Department of Community Services of the City and County of Honolulu, Hawaii County Economic Opportunity Council, Hawaii State Commission On The Status Of Women, Hawaii Catholic Conference, Kalihi-Palama Health Center, American Friends Service Committee, Mental Health Association In Hawaii, Institute For Human Services, Partners In Care, and Affordable Housing And Homeless Alliance. The Housing and Community Development Corporation of Hawaii and an individual requested amendments to the measure.

Restoring and maintaining adequate funding for homeless assistance programs is critical to preventing homelessness in the State, particularly at a time when many families are losing their welfare cash benefits and are unable to meet their housing costs. This measure makes an appropriation to fund emergency shelters and new shelters, and to subsidize transitional housing for families that have lost their welfare benefits.

This measure also repeals the Hale Kokua Program, a program that was intended to provide construction grants and rent subsidies to property owners who provide or construct housing for the homeless employed. Your Committees received testimony from HCDCH supporting the repeal of the program in order to allow limited state resources to be utilized for other homeless assistance programs.

Finally, this measure establishes the Kikala-Keokea Housing Revolving Fund and makes an appropriation for the fund and for other housing-related costs related to providing housing on Kikala-Keokea leasehold property.

The purpose of the revolving fund is to provide low interest home construction loans for Kikala-Keokea homestead lessees who are unable to secure conventional financing. The lessees are former residents of Kalapana whose homes were destroyed by the lava flows ten years ago and more than three-fourths of whom have incomes below eighty per cent of the median income. Loans provided by the fund will enable the lessees to build their own homes and will help to reestablish the displaced Native Hawaiian community.

Your Committees note that while this measure presently makes only nominal appropriations for the above purposes, the measure is being referred to the Committee on Ways and Means for a fuller review and discussion of the appropriate funding amounts.

Your Committees have amended this measure by making technical, nonsubstantive amendments for purposes of clarity and style.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 73, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 73, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.