STAND. COM. REP. NO. 1097

Honolulu, Hawaii

RE:    S.C.R. No. 31

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Education and Housing, to which was referred S.C.R. No. 31 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A MANAGEMENT AND FINANCIAL AUDIT OF THE HAWAII PUBLIC HOUSING AUTHORITY'S MAINTENANCE CONTRACTS,"

begs leave to report as follows:

     The purpose of this measure is to request the Auditor to conduct a management and financial audit of the Hawaii Public Housing Authority's maintenance contracts and to investigate reports of disrepair, noncompliance with the Americans with Disabilities Act, and other concerns of residents; and report the findings and recommendations to the 2010 Legislature.

     Testimony in support of this measure was submitted by two private organizations.  One state agency submitted testimony in opposition.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that while the Hawaii Public Housing Authority has made improvements to its management in recent years, considerably more work remains to correct past deficiencies.  Your Committee has heard from the Authority that the year 2008 inspections by the Department of Housing and Urban Development revealed that four asset management projects failed to meet federal requirements for physical condition of the projects, including two managed by private contractors and two managed by Hawaii Public Housing Authority staff, and that it may be more prudent to focus the audit on specific projects that require the most immediate attention.

     Your Committee has amended this measure by:

     (1)  Amending the title to read:  REQUESTING THE AUDITOR TO CONDUCT A REVIEW OF THE PERFORMANCE OF THE MANAGEMENT OF THE PUUWAI MOMI AND WEST OAHU ASSET MANAGEMENT PROJECTS (KNOWN AS AMP 30 AND AMP 44) TO COMPARE THE PERFORMANCE OF STATE OPERATED AND PRIVATELY OPERATED PUBLIC HOUSING PROPERTIES; AND TO DETERMINE THE RELATIVE CONTRIBUTIONS OF FUNDING LEVELS, MISMANAGEMENT, AND TENANT AND VISITOR ACTIONS TO THE FAILURE TO MEET STANDARDS;

     (2)  Adding Whereas clause language referencing current management procedures, the results of year 2008 inspections by the Department of Housing and Urban Development, and the status of maintenance at Palolo Housing and Kuhio Park Terrace;

     (3)  Amending the scope of the audit as reflected in the title of the measure; and

     (4)  Adding to the scope of the audit, a request to the Auditor to undertake a broader review of the process by which the Authority currently evaluates management and maintenance contracts.

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 31, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 31, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Education and Housing,

____________________________

NORMAN SAKAMOTO, Chair