HB791

SECTION 1. The legislature finds that affordable housing is an urgent issue of public concern across the State. The legislature notes that Act 279, Session Laws of Hawaii 1992, established a two-year homeless assistance pilot project, known as the Hale Kokua project, to provide incentives and assistance to private homeowners in the city and county of Honolulu who set aside existing dwelling units, or constructed new or improved existing dwelling units, to rent to families or individuals classified as homeless under the project for a period of five years. Subsequently, Act 167, Session Laws of Hawaii 1998, reinstated the Hale Kokua program as a permanent program under the housing and community development corporation of Hawaii that provided incentives and assistance to private homeowners throughout the State who set aside existing dwelling units, or constructed or renovated dwelling units, for rental for a period of five years by families or individuals classified as employed but homeless. In 2006, the Hale Kokua program was placed under the Hawaii public housing authority by Act 180, Session Laws of Hawaii 2006; however, the program was later repealed.

The legislature further finds that homelessness is a statewide concern. This issue is complex and requires continuous resources and coordinated effort at all levels of government and the community. Among the options in addressing homelessness and the lack of affordable housing in the State is a housing assistance program that authorizes grants and monthly rental subsidies to private property owners who set aside any existing rental space or improve or construct a dwelling unit for the purpose of renting their units to families or individuals who are homeless.

The purpose of this Act is to address the lack of affordable housing in the State by:

(1) Establishing a housing assistance program, to be carried out by a housing assistance program coordinator, that provides state grants and rental subsidies to private property owners who set aside existing accessory dwelling units or construct or improve accessory dwelling units on their properties and rent the units to families or individuals who are homeless;

(2) Establishing a housing assistance program commission to support the housing assistance program; and

(3) Appropriating funds for the housing assistance program.

SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:

"§346- Housing assistance program. (a) There is established within the department a housing assistance program.

(b) The housing assistance program shall:

(1) Provide state grants and state rental subsidies to private property owners, in a county with a population greater than five hundred thousand, who set aside existing accessory dwelling units, construct new accessory dwelling units, or improve existing accessory dwelling units on their properties for rental for a period of five years by families or individuals classified as homeless under the housing assistance program;

(2) Be implemented by a housing assistance program coordinator, who shall be appointed by the director, with the assistance of the housing assistance program commission;

(3) Be administered by the director, who shall adopt standards and develop a long-term framework necessary to implement the housing assistance program statewide after its initial phase; and

(4) Prioritize placing homeless families who have been homeless in the State the longest and have been living in parks, cars, campgrounds, on the streets, or other public areas, into rental accessory dwelling units made available under the housing assistance program.

(c) Assistance to any qualified property owner providing rental housing to any homeless tenant under the housing assistance program for a period of five years shall include but not be limited to at least one of the following:

(1) The payment of up to $ as a state grant to offset the cost of constructing any separate structure upon the premises of the owner's property in preparation for use as an accessory dwelling unit under the housing assistance program;

(2) The payment of up to $ as a state grant to offset the cost of renovating, improving, or building any adjoining addition upon the premises of the owner's property in preparation for use as an accessory dwelling unit under the housing assistance program;

(3) The payment of a $ monthly state rent subsidy to supplement the monthly rental payments made by the homeless tenant;

(4) Real property tax waivers or rate reductions proposed by the housing assistance program coordinator and approved by the council of the county in which the property is located;

(5) Zoning and building code exemptions applicable to the construction of adjoining or separate accessory dwelling units on the owner's property; provided that any construction of adjoining or separate accessory dwelling units on the owner's property shall comply with all county zoning and building ordinances and codes and all other county permitting requirements; provided further that the county, by ordinance, may establish minimum development and construction standards for these accessory dwelling units and procedures for approval thereto; and

(6) Other incentives consistent with the purposes of the program that are adopted by the housing assistance program coordinator to incentivize and facilitate the participation of property owners in the housing assistance program.

(d) Any private property owner that withdraws from the housing assistance program prior to the expiration of years from the time the property owner commences participation in the program or leaves an accessory dwelling unit for more than one year shall return any state grant for construction or renovation improvements within days of the date of withdrawal. The department may assess a property owner a penalty of up to three times the rental amount received for each month the property owner receives a rental subsidy during which time the accessory dwelling unit is vacant or the accessory dwelling unit is rented to an individual or family who does not meet the requirements of the housing assistance program. The housing assistance program coordinator shall act to recover the grant, including but not limited to filing liens against the real property of withdrawing property owners. The respective county government whose jurisdiction includes the rental site shall determine the disposition of any additional accessory dwelling unit constructed with the grant.

(e) The director shall adopt rules, pursuant to chapter 91, necessary to effectuate the purpose of the housing assistance program; provided that any rules adopted before , shall be exempt from the public notice and public hearing requirements of chapter 91.

(f) Nothing in this section shall be deemed to delegate or detract in any way from the functions, powers, and duties prescribed by law for any other department or agency of the State or counties, or interrupt or preclude the direct relationships of any department or agency in the performance of its functions, powers, and duties.

§346- Housing assistance program commission. (a) There is established the housing assistance program commission, which shall consist of at least fourteen members to provide oversight over the housing assistance program, including the provision of grants and subsidies and advisory assistance to the housing assistance program coordinator in implementing the program.

(b) The members of the housing assistance program commission shall comprise the following members or their respective designees:

(1) The director of human services, who shall serve as an ex officio, voting member and chairperson of the committee;

(2) The director of labor and industrial relations;

(3) The director of health;

(4) The director of taxation;

(5) The superintendent of education;

(6) The executive director of the Hawaii public housing authority;

(7) The executive director of the Hawaii housing finance and development corporation;

(8) The governor's coordinator on homelessness;

(9) The director of the department of planning and permitting of the relevant county;

(10) The executive director of the real property assessment division of the relevant county;

(11) One representative who shall be appointed by the governor;

(12) One representative who shall be appointed by the mayor of the relevant county;

(13) One representative from a nonprofit organization, who shall be appointed by the president of the senate;

(14) One representative from a nonprofit organization, who shall be appointed by the speaker of the house of representatives; and

(15) Other individuals that the housing assistance committee deems necessary.

The members of the housing assistance program commission shall serve without compensation but shall be reimbursed for necessary expenses, including travel expenses, incurred in the performance of their duties.

§346- Housing assistance program coordinator. (a) The director shall appoint a housing assistance program coordinator to implement the housing assistance program. The housing assistance program coordinator may be assisted by one administrative assistant and one clerical staff member, both of whom shall be appointed by the director without regard to chapter 76. The housing assistance program coordinator, with the approval of the director, may contract with private entities to carry out the duties and responsibilities of the housing assistance program.

(b) Under the supervision of the director, the duties of the housing assistance program coordinator shall include:

(1) Carrying out the requirements of the housing assistance program;

(2) Developing and adopting the requirements and qualifications, registration, background check, initial screening, and follow-up post-placement procedures necessary to determine the housing assistance program's ability to make rental payments and the need for social services and referrals for homeless families and individuals in order to qualify as tenants under the program. The housing assistance program coordinator shall prioritize the placement of homeless families living in parks, cars, campgrounds, on the streets, or other public areas, into rental accessory dwelling units under the program;

(3) Developing and adopting the requirements, qualifications, and registration procedures necessary for property owners who provide rental housing to qualified homeless tenants; provided that priority shall be given to property owners not requesting construction grants;

(4) Developing appropriate waivers of liability and adopting procedures necessary to place qualified tenants who are homeless with property owners participating in the housing assistance program; provided that each participating property owner shall have the opportunity to conduct interviews and make the final tenant selection from a list of prospective tenants compiled by the housing assistance program coordinator;

(5) Establishing the procedures and requirements necessary for the disbursement of building improvement grants and rental subsidies to property owners participating in the housing assistance program;

(6) Working with the relevant county to develop and propose uniform incentives, including real property tax waivers or reductions and exemptions in zoning or building code requirements, to encourage and facilitate the participation of property owners;

(7) Monitoring the financial status and progress of recovery of the homeless tenants and cooperating with other agencies in establishing and coordinating self-help, job training, and other self-improvement programs for persons who are homeless;

(8) Promoting and assisting in the development of employer-employee relationships between homeless tenants and participating property owners, including but not limited to tenant caretaker, housekeeper, or groundskeeper employment situations;

(9) Assisting homeless families and individuals wishing to return or relocate to out-of-state locations with the relocation process;

(10) Securing financial, in-kind, and administrative assistance from law enforcement and other state and county agencies and the private sector to implement the housing assistance program;

(11) Securing funding assistance from federal agencies and programs involved in housing development, job training, or homeless assistance;

(12) Reporting monthly to the housing assistance program commission; and

(13) Monitoring the overall progress of the housing assistance program and collecting annual statistics on the numbers of homeless individuals, homeless families, and homeless children housed by the program, using measurement systems that are aligned with national surveys and studies on homelessness.

(c) The housing assistance program coordinator shall prepare interim reports on the status of the housing assistance program in each year after the first year of the program's operation, which shall be submitted to the legislature no later than twenty days prior to the convening of each regular session while the program is in existence. The reports shall include the annual statistics required by subsection (b)(13) and other relevant information.

(d) The housing assistance program coordinator shall prepare a final report on the housing assistance program after the program has ended. The housing assistance program coordinator shall submit the report, which shall contain findings and recommendations, including recommendations on ways to encourage participating property owners to commit to further participation in the program and details of the framework needed to implement the project statewide, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of ."

SECTION 3. 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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of this Act.

The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2023, and shall be repealed on June 30, 2029; provided that the housing assistance program commission shall be repealed on June 30, 2025, or upon approval of two thousand accessory dwelling units pursuant to this Act, whichever is sooner.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	791
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII