HB351.DOC

SECTION 1. The legislature finds that there is a serious concern as to whether the State of Hawaii's public housing programs are being managed in accordance with state and federal law.

The Hawaii public housing authority is a public entity created by the legislature. The State oversees the Hawaii public housing authority through its department of human services. The Hawaii public housing authority is charged with managing federal and state public housing programs, and senior housing. It administers and is responsible for ensuring compliance with federal disability nondiscrimination laws at these facilities, including Title II of the Americans with Disabilities Act, the Rehabilitation Act, and the Fair Housing Act. The Hawaii public housing authority is also obligated to comply with the United States Housing Act and other federal and state laws and regulations that establish standards for the maintenance and conditions of public housing.

The Hawaii public housing authority has a long history of failing to comply with United States Department of Housing and Urban Development standards for public housing agencies. In 2003, after several years of finding the Hawaii public housing authority's performance inadequate and issuing corrective action orders, the United States Department of Housing and Urban Development commissioned an independent assessment of the agency. The independent assessment found that the Hawaii public housing authority suffers from a number of organizational, structural, procedural, and management weaknesses.

Following the independent assessment, in late 2003 and 2004, the federal Department of Housing and Urban Development conducted an on-site confirmatory review of the Hawaii public housing authority, using its public housing assessment system; a system that the Department of Housing and Urban Development uses to score a public housing agency's performance. Because of the Hawaii public housing authority's failing score, the Department of Housing and Urban Development designated it as a troubled or substandard agency. In its review, the Department of Housing and Urban Development identified several areas of great concern including: inadequate staffing, lack of internal controls, widespread lack of training, lack of a comprehensive maintenance plan, use of outdated physical inspection standards, high rates of uncorrected work orders, and difficulties with financial tracking and accounting. As a result of the Hawaii public housing authority's troubled status, and in accordance with the Department of Housing and Urban Development regulations, the Department of Housing and Urban Development and the Hawaii public housing authority entered into a memorandum of understanding which included performance targets, oversight, and monitoring of the Hawaii public housing authority's performance. Despite the memorandum of understanding, the Hawaii public housing authority has failed to take appropriate corrective actions to remedy its violations of state and federal laws.

For example, the Hawaii public housing authority has failed to take affirmative effective action to remedy the discriminatory barriers at many of the public housing sites. It has failed to provide basic program access to disabled residents, to create any effective system for responding to requests for reasonable modifications, or to implement those accommodations.

In addition to problems with accessibility for persons with disabilities, there are also serious deficiencies in the conditions at many public housing projects. Many public housing facilities in the State of Hawaii are characterized by leaking and bursting plumbing, lack of hot water, rat and roach infestations, nonfunctioning and dangerous elevators, overflowing and burning trash piles, toxic air filled with soot and other noxious particulate, a lack of basic fire safety equipment such as alarms, sprinklers, or fire extinguishers, and other hazardous conditions.

The conditions at Kuhio Park Terrace and Kuhio Homes are well known examples of the Hawaii public housing authority's failure to provide safe, sanitary, and disability accessible housing. In the Department of Housing and Urban Development's February 2008 inspection, Kuhio Park Terrace received a failing score of forty out of a possible one hundred points. Nineteen points were deducted for health and safety violations. Since at least 1998, the Department of Housing and Urban Development inspection reports show that Kuhio Park Terrace's building exteriors and common areas are inaccessible to persons with mobility impairments, with accessibility routes either missing or obstructed. Kuhio Homes has also consistently received a failing Department of Housing and Urban Development score of below sixty out of a possible one hundred points.

Title II of the federal Americans with Disabilities Act prohibits disability discrimination by state and local governments under 42 U.S.C. section 12132. Under Title II, "[a] public entity shall operate each service, program, or activity so that the service, program, or activity, when viewed in its entirety, is readily accessible to and usable by individuals with disabilities." 28 C.F.R. section 35.150(a). As necessary to achieve program access, structural and other changes are required. See 28 C.F.R. section 35.150(a)(1), (b)(1), (c). Structural changes were to be completed "within three years of January 26, 1992, but in any event as expeditiously as possible." See 28 C.F.R. section 35.150(c). For public entities employing fifty or more persons, a transition plan setting forth the steps necessary to complete the structural changes was due "within six months of January 26, 1992[.]" See 28 C.F.R. section 35.150(d)(1) and 28 C.F.R. section 35.150(d)(3). Further, by January 26, 1992, a public entity must "evaluate its current services, policies, and practices, and the effects thereof, that do not or may not meet the requirements of this part and, to the extent modification of any such services, policies, and practices is required, the public entity shall proceed to make the necessary modifications." 28 C.F.R. section 35.105(a). The Hawaii public housing authority has failed to meet these and other deadlines for providing housing accessible to persons with disabilities.

The legislature finds that great concerns exist as to whether the Hawaii public housing authority is complying with state and federal law. Federal law requires that at least five per cent of the units at each public housing project be accessible to persons with disabilities. According to the Hawaii public housing authority's own data, less than five per cent of these units are in fact accessible.

The purpose of this Act, therefore, is to appropriate funds to the Hawaii public housing authority to make necessary repairs, improvements, or upgrades to the public housing projects within its jurisdiction so that the projects will be in compliance with federal and state law.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for the purpose of required repairs and renovations at public housing facilities to ensure compliance with state and federal law.

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

SECTION 3. This Act shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	351
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII