SB773 SD1.DOC

PART I

FINDINGS AND PURPOSE

SECTION 1. The legislature finds that the American Recovery and Reinvestment Act of 2009 combines tax relief and government spending totaling $787,000,000,000 to jump start the nation's economy. Hawaii will be eligible to receive a portion of this federal funding through formula grants and competitive applications. The legislature further finds that the federal funds could supplement the State's continued efforts to assist the homeless, rehabilitate aging public housing stock, and preserve and build affordable housing.

Through the American Recovery and Reinvestment Act of 2009, Hawaii is projected to receive:

(1) HOME Investment Partnerships Program. $9,600,000 to enable state and county government, in partnership with community-based organizations, to acquire, construct, and rehabilitate affordable housing and provide rental assistance to poor families;

(2) Public Housing Capital Fund. $16,300,000 for public housing agencies to address a backlog in capital needs, especially those improving energy efficiency in aging buildings; and

(3) Homelessness Prevention Fund. $6,200,000 for short-or medium-term rental assistance, first and last months rental payment, or utility payment.

The expanded home buyer tax credit will be available for home purchases after December 31, 2008. Hawaii's first-time home buyers will benefit from an increase in the current credit from $7,500 to $8,000, the expiration date has been extended from July 1, 2009, to December 1, 2009, and the repayment requirement eliminated. In addition, the prohibition against combining the tax credit with mortgage revenue bonds has been lifted.

Hawaii will compete for a portion of the $2,000,000,000 in rental assistance for full-year payments to owners receiving section 8 project-based rental assistance, and an additional $2,000,000,000 directed to the Neighborhood Stabilization Program.

The purpose of this Act is provide funding for various affordable housing, public housing, and homeless programs; provided that the funding amounts are subject to change if the programs in this Act receive funding through the American Recovery and Reinvestment Act of 2009.

PART II

RENTAL HOUSING TRUST FUND

SECTION 2. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent shall be paid into the land conservation fund established pursuant to section 173A-5;

(2) [~~Thirty~~] Fifty per cent shall be paid into the rental housing trust fund established by section 201H-202; and

(3) Twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources in the following priority:

(A) To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;

(B) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and

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 2009-2010 to be deposited 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 2009-2010 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.

PART III

DWELLING UNIT REVOLVING FUND

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $50,000,000 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 2009-2010 to be deposited into the dwelling unit revolving fund created in section 201H-191, Hawaii Revised Statutes.

SECTION 6. There is appropriated out of the dwelling unit revolving fund the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2009-2010 for housing development programs.

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

PART IV

PERMITTING AND PROCESSING

SECTION 7. 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 2009-2010 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.

PART V

MAINTENANCE, REPAIRS, AND RENOVATIONS

SECTION 8. 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. 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.

The purpose of this part is to appropriate an additional $2,000,000 for repair and maintenance to satisfactorily maintain these vital housing resources.

SECTION 9. 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 2009-2010 for repair and maintenance of public housing projects.

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

SECTION 10. 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 2009-2010 for 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.

PART VI

SECURITY; PUBLIC HOUSING PROJECTS

SECTION 11. 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.

The purpose of this part is 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.

SECTION 12. 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 2009-2010 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.

PART VII

HOMELESS; SERVICES AND SHELTER

SECTION 13. 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 2009-2010 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 14. 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 2009-2010 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.

PART VIII

GENERAL

SECTION 15. The appropriations made in sections 3, 4, 5, 6, 9, 10, 12, 13, and 14 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, 2012, shall lapse as of that date into the appropriate fund.

SECTION 16. 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 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 18. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	773
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII