Authorizes the issuance of general obligation bonds for the repair, renovation, and construction of low-income housing. Requires the Housing and Community Development Corporation of Hawaii (HCDCH) to submit a five-year plan relating to repairs, renovations, and construction of low-income units, and an annual report thereafter. Requires HCDCH to add no fewer than ten percent in addition units by December 31, 2008. (SB1852 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the demand for low-income housing in Hawaii outweighs the supply. Currently, there is a waiting period from two to five years for low-income housing for both state and federal low-income housing projects. Despite the scarcity of low-income housing, there are a number of vacant state and federal low-income housing units that are currently uninhabitable. If repaired and renovated, these units would be available for applicants on the low-income housing waiting lists, reducing the State's affordable housing shortage.

The legislature further finds that funds for the modernization of federal housing projects are available to low-income housing agencies through capital fund program grants administered by the United States Department of Housing and Urban Development. Grant moneys are designated for improvements to federal low-income housing units, including redesigning, reconstructing, and reconfiguring public housing projects, reducing vacancy, and demolishing and replacing existing low-income housing units.

The purpose of this Act is to:

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $          or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2005-2006 for the purpose of repairing and renovating vacant low-income housing units and constructing new low-income housing units.

SECTION 3. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2008, shall lapse as of that date.

SECTION 4. The sums appropriated shall be expended by the housing and community development corporation of Hawaii for the purposes of this Act.

SECTION 5. Section 201G-44, Hawaii Revised Statutes, is amended to read as follows:

"§201G-44 Administration of state [low income] low-income housing projects and programs. (a) The corporation may construct, develop, and administer property or housing for the purpose of state [low income] low-income housing projects and programs.

(b) The corporation shall submit a five-year plan to the legislature relating to repairs, renovations, and construction of low-income housing units no later than twenty days prior to the convening of the regular session of 2006, and an annual report thereafter.

(c) The corporation shall apply for federal funds through capital fund program grants administered by the United States Department of Housing and Urban Development and may issue bonds in accordance with part III to complete the repairs to the vacant low-income housing units as required in this section.

(d) The corporation shall increase the total number of units in its housing supply, as of the effective date of this Act, by no fewer than ten per cent to be available for rent no later than December 31, 2008. The additional units shall include new, renovated, and housing units dedicated to section 8 certificate vouchers.

(e) The corporation may issue bonds in accordance with part III to complete construction of low-income housing units as required by this section.

[(b)] (f) The corporation shall adopt necessary rules in accordance with chapter 91 including the establishment and collection of reasonable fees for administering the projects or programs and to carry out any state program under [[]subsection[]] (a)."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2005.