WHEREAS, it is the policy of both the state and federal government to foster and encourage economic self-sufficiency for families living in federal low income housing; and

WHEREAS, families who qualify for federal housing assistance pay thirty per cent of their adjusted earned income for housing; and

WHEREAS, it has been alleged that, in some respects, it may be economically more advantageous for families in federal low income housing to be on public assistance than to be employed at a subsistence rate, often referred to as being one of the working poor; and

WHEREAS, in these housing projects, a working poor family must pay federal and state taxes, social security, medical insurance, and expenses associated with working, such as transportation, leaving the family with a smaller percentage of available funds from its monthly cash flow once the rent and these subsistence expenses have been paid; and

WHEREAS, in these housing projects, it has been alleged that families on public assistance have a greater percentage of cash flow after their subsistence expenses and rent have been paid; and

WHEREAS, if such a disparity exists, it does nothing to encourage families on public assistance in public housing to become economically self-sufficient, and in fact would encourage them to stay on public assistance for the maximum time possible; and

WHEREAS, such a disparity would create a psychological barrier for the working poor and discourage them from maintaining their economic self-sufficiency, as opposed to leaving their jobs and qualifying for public assistance; and

WHEREAS, an investigation needs to be made of this alleged inequality and its impact on working poor families and on families on public assistance trying to become economically self-sufficient; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, that the Housing and Community Development Corporation of Hawaii is requested to investigate the allegations of financial inequities between working poor families and families receiving public assistance in federal low income housing, and quantify the inequities, if any, between the two groups; and

BE IT FURTHER RESOLVED that the Corporation is requested to submit its findings and conclusions at least twenty days prior to the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Business, Economic Development and Tourism, and the Executive Director of the Housing and Community Development Corporation of Hawaii.

Report Title:

HCDCH, Investigate Housing Inequalities