HCR149 HD1

WHEREAS, the availability of clean, safe, and decent housing can play a significant role in an individual's emergence from poverty; and

WHEREAS, much of the Hawaii Public Housing Authority's (HPHA) inventory of affordable housing projects is nearly 60 years old and in a state of disrepair and deterioration; and

WHEREAS, an IBM study conducted nearly six years ago determined that more than $600,000,000 in repairs were needed to bring the State's stock of public housing up to standard; and

WHEREAS, the current estimate for repair and renovation of the State's 50 public housing projects is over $5,000,000,000; and

WHEREAS, the limitation in resources has been compounding the problem of deteriorating public housing as cost-cutting efforts have resulted in both the acquisition of minimal quality infrastructure and an inability to maintain that infrastructure on an ongoing basis; and

WHEREAS, any solution to the existing public housing crisis must provide for long-term sustainability; and

WHEREAS, new United States Department of Housing and Urban Development guidelines will mandate asset based management beginning July 1, 2008, that will, in part, grant subsidies on a project by project basis depending upon the self-sufficiency of each project; and

WHEREAS, the State of Hawaii can no longer afford to continue building public housing, but must make every effort to ensure what inventory it does have is viewed as transitional housing; and

WHEREAS, the repair and renovation of existing public housing will require financial resources far beyond the State's capacity; and

WHEREAS, financial resources from the private sector are needed to be leveraged with the use of federal and state low-income housing tax credits and the use of Hawaii's allocation of federal private activity bonds to finance the repair and renovation of Hawaii's public housing inventory; and

WHEREAS, it is critical that the public/private partnership include private sector developers and financial institutions that are stakeholders in the Hawaii community, and that have demonstrated a commitment to building affordable and low-income housing in the State; and

WHEREAS, as the Hawaiian economy begins to slow along with the rest of the nation, it is also critical that repair and renovation of the State's public housing inventory be undertaken with local building trades that will provide local employment over the coming years; and

WHEREAS, the Legislature recognizes that the HPHA Board, in its efforts to provide lower income families with decent, safe, and sanitary housing, has been actively exploring ways to accomplish the renovation and repair of the State's public housing inventory; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the Senate concurring, that HPHA is urged to issue a request for proposals to form a public/private partnership for the purpose of reconstructing, renovating, and repairing HPHA's inventory of public housing projects; and

BE IT FURTHER RESOLVED that the request for proposals be issued as soon as possible with a goal of proceeding with the renovation of the first housing project no later than the end of 2009, and that the selection process give priority to stakeholders in the community and to those who have demonstrated a commitment to building affordable and low-income housing, and who have the expertise to leverage resources such as federal and state low-income housing tax credits and federal private activity bonds to finance the repair and renovation of the public housing inventory; and

BE IT FURTHER RESOLVED that the request for proposals give priority to proposals that demonstrate the financial capacity to address the scale of the public housing repair and renovation crisis; and

BE IT FURTHER RESOLVED that HPHA consider the application of sections 356D-12 and 356D‑44, Hawaii Revised Statutes, in issuing the request for proposals; and

BE IT FURTHER RESOLVED that should HPHA need additional legislation or resources, that it advise the Legislature of such needs at least 20 days prior to the convening of the Regular Session of 2010; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chair and Executive Director of the Hawaii Public Housing Authority.

Report Title:

Hawaii Public Housing Authority; Request for Proposals

HOUSE OF REPRESENTATIVES	H.C.R. NO.	149
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII