STAND. COM. REP. NO. 1443

Honolulu, Hawaii

RE: H.B. No. 476

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 476, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the issuance of general obligation bonds for the construction of housing units; and

(2) Require, and appropriate funds for, the Hawaii Housing Finance and Development Corporation to provide loans or grants for the development of permanent supportive housing units.

Your Committee received testimony in support of this measure from the Governor's Coordinator on Homelessness, Hawaii Housing Finance and Development Corporation, Hawaii Kai Homeless Task Force, Partners in Care, Hawaiian Community Assets, Faith Action for Community Equity, HOPE Services Hawaii, Catholic Charities Hawai‘i, Hawai‘i Health and Harm Reduction Center, ALEA Bridge, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Share Your Mana, and three individuals.

Prior to decision making on this measure, your Committee made available for public review a proposed S.D. 1, which amends this measure by deleting its contents and inserting the contents of Senate Bill No. 351, S.D. 1 (Regular Session of 2019), which:

(1) Prohibits advertising or subletting a public housing unit and housing subject to an owner or renter occupancy requirement under chapters 201H, 206E, and 356D, Hawaii Revised Statutes, for rental purposes; and

(2) Requires county police departments to enforce the prohibition.

Your Committee received testimony in support of the proposed S.D. 1 from the Hawaii Public Housing Authority and Hawaii Housing Finance and Development Corporation. Your Committee received testimony in opposition to the proposed S.D. 1 from the Hawai‘i Association of REALTORS.

Your Committee finds that the lack of affordable housing units for residents exacerbates the continuous problem of homelessness in the State. Your Committee further finds that regardless of the severe lack of affordable housing units for the low-income population, there have been cases of individuals renting or subletting public housing units or housing units that are subject to a rental agreement or renter occupancy requirement that is specifically targeted for low-income or affordable housing individuals and families. This practice allows individuals to financially gain from rental income derived from these units and also removes available housing stock from those who most need it, particularly one of the over 8,800 families who are on the waitlist for public housing. The proposed S.D. 1 promotes fairness in housing opportunities by deterring those who are inclined to violate the occupancy limitations of certain housing units.

Your Committee has amended this measure by adopting the proposed S.D. 1 and further amending the measure by:

(1) Including county agencies, in addition to state agencies and private project owners and their managing agents, as an authorized entity to advertise or publicize a housing program of the Hawaii Housing Finance and Development Corporation; and

(2) Inserting an effective date of upon approval.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 476, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 476, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair