HB1428 HD1

SECTION 1. The legislature finds that Hawaii faces a severe housing crisis, marked by high costs and a lack of supportive services for vulnerable populations. Despite emergency proclamations aimed at accelerating housing development, essential support mechanisms for Asset Limited, Income Constrained, Employed (ALICE) households, or households with income above the federal poverty line but below the basic cost of living, and those below this threshold remain insufficient. In 2022, 40.5 per cent of Hawaii households were cost-burdened, spending more than thirty per cent of their income on housing, compared to the national average of 32.5 per cent. Moreover, approximately forty-eight per cent of Hawaii's households fall into the ALICE category or below, struggling to meet basic needs due to high living costs and stagnant wages.

The legislature further finds that housing counseling agencies certified by the United States Department of Housing and Urban Development (HUD) provide critical services that empower individuals and families to achieve and sustain housing stability. These services include:

(1) Financial education workshops that cover budgeting, credit management, and financial planning;

(2) Homebuyer and renter education that prepares clients for the responsibilities of homeownership or tenancy;

(3) One-on-one counseling that offers personalized guidance to improve financial health and housing readiness; and

(4) Eviction and foreclosure intervention that assists clients in crisis to avoid displacement.

These services are essential for preventing homelessness and promoting long-term housing stability, especially for low-income populations.

The legislature believes that investing in HUD-certified housing counseling services is a strategic and proactive approach to addressing Hawaii's housing crisis. These services empower residents with the knowledge and resources needed to secure and maintain affordable housing, reducing the risk of eviction, foreclosure, and homelessness. By equipping individuals and families with critical financial education, counseling on credit, and assistance navigating housing options, the State can help support a more stable and resilient community.

The legislature also finds that housing counseling can assist ALICE households to create housing related goals, identify resources available to attain those goals, and develop action plans to have a safe and decent home in Hawaii, whether through renting or purchasing. Housing counseling can help families currently on public assistance as well as those on the waitlist for public assistance. Many families on public assistance are afraid to advance in their careers or accept additional employment for fear of losing the funds received for rent and food due to income limits for these programs, which hinders their contribution to the workforce needs in the greater community, as well as the opportunity for them to transition off public assistance and allow another needy family to access government resources. Housing counseling provides support to develop an action plan and gain confidence to transition from utilizing public assistance to self-sustainability, allowing limited government resources to help more households, while filling vacant positions as these individuals start working to their full potential.

Accordingly, the purpose of this Act is to appropriate funds to the Hawaii housing finance and development corporation to enhance the capacity of Hawaii's HUD-certified housing counseling agencies to provide housing counseling, renter education, homebuyer education, and eviction and foreclosure intervention to ALICE households.

SECTION 2. The Hawaii housing finance and development corporation shall submit a report of its findings and recommendations regarding housing counseling agencies that received funds pursuant to section 3 of this Act, including:

(1) The number of clients served by each housing counseling agency;

(2) The specific types of counseling and education services delivered;

(3) The outcomes achieved by clients who have received housing counseling services, such as:

(A) Increases in financial knowledge;

(B) If their current housing situation fits their housing needs;

(D) If they have access to the resources to reach those goals; and

(4) Any proposed legislation,

to the legislature no later than November 1, 2027.

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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to allocate to housing counseling agencies certified by the United States Department of Housing and Urban Development to:

(1) Expand outreach by reaching underserved communities across the State;

(2) Enhance service delivery by providing timely and effective counseling to prevent housing crises; and

(3) Support households with an income at or below one hundred forty per cent of the area median income, also known as Asset Limited, Income Constrained, Employed, or ALICE, households.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1428
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII