STAND. COM. REP. NO. 1129-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2504

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 2504, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC HOUSING AUTHORITY,"

begs leave to report as follows:

The purpose of this measure is to establish and appropriate funds for the Landlord Incentive Program Special Fund to provide rent reimbursement incentives and reimburse landowners who participate in Hawaii Public Housing Authority voucher programs.

Your Committee received testimony in support of this measure from the Governor's Coordinator on Homelessness, State Council on Developmental Disabilities, Hawaii Public Housing Authority, Hawai‘i State Coalition Against Domestic Violence, Catholic Charities Hawai‘i, Partners In Care, Hawai‘i Association of REALTORS, AF3IRM Hawai‘i, and Hawai‘i Health & Harm Reduction Center. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that low-income individuals experience great difficulty in finding affordable rentals due to the lack of affordable rental housing units. Your Committee further finds that reimbursement incentives and protections against excessive property damage will help increase the inventory of affordable housing in the State by encouraging more landlords to participate in rental housing voucher programs. However, your Committee believes that a more extensive approach to incentivizing participation in rental housing voucher programs is necessary to effectively address the lack of affordable housing inventory in the State. H.B. 1752, H.D. 3 (Regular Session of 2022) achieved this by:

(1) Establishing the Housing Choice Voucher Landlord Incentive Program to provide financial incentives for landlords to participate in the Tenant-Based Assistance Housing Choice Voucher Program under Section 8 of the United States Housing Act of 1937 and appropriating funds for these incentives;

(2) Requiring the Hawaii Public Housing Authority to adopt or amend rules that require inspections of leased dwelling units under the Section 8 Housing Choice Voucher Program within fifteen days after receipt of an owner's or landlord's inspection request; and

(3) Establishing and appropriating funds for inspector and specialist positions within the Hawaii Public Housing Authority for inspections and other aspects related to the Section 8 Housing Choice Voucher Program.

Your Committee further believes that the approach in H.B. 1752, H.D. 3 is preferable as it provides the Hawaii Public Housing Authority more authority in creating a more attractive rental housing voucher program for landlords, thereby increasing the affordable rental housing inventory in the State.

Accordingly, your Committee has amended this measure by:

(1) Deleting its contents and inserting the contents of H.B. 1752, H.D. 3; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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 S.B. No. 2504, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2504, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

NADINE K. NAKAMURA, Chair