HOUSE OF REPRESENTATIVES	H.B. NO.	2659
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

relating to housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that persons with severe persistent mental illness often require specialized residential services.  However, the high cost of housing creates a shortage of available homes for these individuals, and often, the severely mentally ill become homeless.  The legislature further finds that the development of project-based housing as a bridge to permanent housing is difficult to develop due to high costs.

     Accordingly, the purpose of this Act is to authorize the use of the rental housing revolving fund and dwelling unit revolving fund moneys for rent subsidies, and to provide for permanent housing, bridge housing, and specialized residential services for persons with serious mental illnesses.

     SECTION 2.  Section 201H-191, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§201H-191[]]  Dwelling unit revolving fund.  There is created a dwelling unit revolving fund.  The funds appropriated for the purpose of the dwelling unit revolving fund and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited in the revolving fund.  The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering housing development programs, and for carrying out the purposes of housing development programs, including but not limited to the expansion of community facilities constructed in conjunction with housing projects, permanent primary or secondary financing, and supplementing building costs, federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for housing projects.  The proceeds in the revolving fund shall also be used to provide specialized residential services and rent subsidies for residential housing, including multi-family units, apartments, residential houses, or other types of housing for residents who qualify for social security disability benefits and are diagnosed with a life-long, serious mental illness."

     SECTION 3.  Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans or grants for rental housing projects in the following order of priority:

     (1)  Projects or units in projects that are allocated low‑income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:

         (A)  At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and

         (B)  The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;

          provided that the corporation may establish rules to ensure full occupancy of fund projects; [and]

     (2)  Mixed-income rental projects or units in a mixed‑income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income[.]; and

(3) Residential housing, including multi-family units, apartments, residential houses, or other types of housing, and specialized residential services, for residents who qualify for social security disability benefits and are diagnosed with a life-long, serious mental illness."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Revolving Funds; Rent Subsidies, Loans, Grants

Description:

Requires funds in the dwelling unit revolving fund and the rental housing revolving fund to be used to provide rent subsidies, loans, or grants to persons who qualify for social security disability benefits and are diagnosed with life-long, serious mental illnesses.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.