SB2225

SECTION 1. The legislature finds that the homeless and affordable housing crises continue to be two of the State's most significant and challenging social problems.

The most recent estimate of the total number of homeless persons in the State is six thousand twenty-nine on any given day. In addition, the Hawaii Homeless Point-in-Time Study of 2003 found that over four thousand of these homeless persons are unsheltered. This is indicative of the limited shelter space available in the State.

Also troubling is the fact that a staggering thirty-seven per cent of the unsheltered homeless are individuals of Hawaiian or part-Hawaiian ancestry. Equally troubling is the fact that on any given day, there are eight hundred thirty-eight homeless children in the State. None of these numbers reflect the number of people who are considered hidden homeless or those who are at-risk of homelessness.

Housing, in general, is a critical issue for many residents in Hawaii, where the costs of homeownership and rental are increasing. The prospect of making high mortgage payments and saving enough money for the downpayment and closing costs needed to buy a home at current market prices is a formidable challenge. Even higher income families must often seek help from relatives to overcome this obstacle. More needs to be done to increase the inventory of and ensure that residents have access to affordable housing as well.

To assist in alleviating these problems, the legislature enacted Act 222, Session Laws of Hawaii 2007, the Housing Omnibus Act, which placed priority on sheltering the homeless and providing more affordable housing opportunities for Hawaii's citizens. The legislature recognizes the meaningful solutions provided by Act 222, and seeks with this Act, to further ameliorate Hawaii's housing and homeless problems.

The purpose of this Act is to extend the sunset date for the allocation of the conveyance tax to the rental housing trust fund to June 30, 2013, and provide funding for various affordable, public housing, and homeless programs.

SECTION 2. Act 100, Section 30, Session Laws of Hawaii 2006, as amended by Act 222, Session Laws of Hawaii 2007, is amended to read as follows:

"SECTION 30. This Act shall take effect on July 1, 2006; provided that on June 30, [~~2008,~~] 2013, section 21 shall be repealed and section 247-7, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the approval of this Act."

SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $25,000,000 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 2008-2009, to be paid into the rental housing trust fund created in section 201H-202, Hawaii Revised Statutes.

SECTION 4. There is appropriated out of the rental housing trust fund the sum of $25,000,000 or so much thereof as may be necessary for fiscal year 2008-2009 for the planning, development, and construction of affordable housing in cooperation with private and nonprofit developers.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $30,000,000 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 2008-2009 for housing development programs.

The sum appropriated shall be paid into the dwelling unit revolving fund created in section 201H-191, Hawaii Revised Statutes, and expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2008-2009 to assist developers in contracting for third party review and certification, including but not limited to inspections, discretionary permits, and ministerial permits, to expedite the processing and issuance of building permits for affordable housing projects; provided that, in order to qualify for funding under this section, an affordable housing project shall offer not less than forty per cent of all units, whether rental or for-sale, in leasehold or fee simple, at prices or rents that are affordable to persons earning eighty per cent or less of the area median income as determined by the United States Department of Housing and Urban Development.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 7. (a) The legislature finds that public housing projects are continuing to deteriorate due to a lack of timely maintenance and repair. As a consequence, housing units are in danger of becoming or have already become uninhabitable.

Additional repair and maintenance funding is needed to supplement the Hawaii public housing authority’s annual recurring repair and maintenance budget. Currently, the public housing authority receives $1,500,000 annually for repair and maintenance; however, these funds are insufficient to keep public housing units in decent, sanitary, and livable conditions. An additional $2,000,000 for repair and maintenance is required this year, and for all subsequent years, in order for the authority to satisfactorily maintain these vital housing resources.

(b) There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2008-2009 for the Hawaii public housing authority to conduct repair and maintenance on public housing projects.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 8. The director of finance is authorized to issue general obligation bonds in the sum of $40,200,000 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 2008-2009 for the Hawaii public housing authority to conduct capital improvement projects to repair and renovate public housing.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 9. (a) The legislature finds that improved safety measures are needed at public housing projects. While the 2007 Hawaii state legislature appropriated general funds for public housing security needs, additional funding is required to sufficiently address the arduous security problems plaguing housing projects. It is the intent of this legislature to continue the work begun in the 2007 regular session by appropriating funds for security in order to protect physical public housing property as well as create a safer environment for public housing tenants and the surrounding community.

(b) There is appropriated out of the general revenues of the State of Hawaii the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2008-2009 for providing security in public housing projects.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 10. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,300,000 or so much thereof as may be necessary for fiscal year 2008-2009 to the Hawaii public housing authority for outreach or support services, or both, to unsheltered homeless, at-risk homeless, and those residing in homeless facilities, including emergency shelters, pursuant to the purchase of service agreements under chapter 42F, Hawaii Revised Statutes. This appropriation shall be used for the provision of continual operational funds to provide matching funds for shelter plus care grants and supportive housing programs and operational funds for nonprofit agencies to develop affordable housing.

The sum appropriated shall be expended by the Hawaii public housing authority for purposes of this Act.

SECTION 11. The director of finance is authorized to issue general obligation bonds in the sum of $32,000,000 or so much thereof as may be necessary, and the same sum, or so much as may be necessary, is appropriated for fiscal year 2008-2009 to the Hawaii public housing authority for homeless facilities, emergency shelters, and transitional shelters, as defined by section 356D-121, Hawaii Revised Statutes, on the islands of Oahu and Hawaii.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 12. The appropriations made in sections 3, 4, 5, 7, 8, 9, 10, and 11 of this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all appropriations that are unencumbered as of June 30, 2011, shall lapse as of that date into the appropriate fund.

SECTION 13. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 15. This Act shall take effect on July 1, 2008; provided that section 2 of this Act shall take effect on June 29, 2008.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2225
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII