STAND. COM. REP. NO. 1287

Honolulu, Hawaii

RE: H.B. No. 431

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred H.B. No. 431, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Appropriate funds for the continued operation of the Kauhale Initiative and authorize those funds to be used for the Ohana Zones Pilot Program; and

(2) Establish and appropriate funds into and out of the Supportive Housing Special Fund.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; State Council on Developmental Disabilities; Department of Human Services; Statewide Office on Homelessness and Housing Solutions; Office of Hawaiian Affairs; Office of Housing and Community Development of the County of Hawaiʻi; Office of Housing of the City and County of Honolulu; Hawaiʻi State Youth Commission; Catholic Charities Hawaiʻi; Hawaiʻi Health & Harm Reduction Center; Hawaii Substance Abuse Coalition; Maui Chamber of Commerce; Hawaii Young Adults in Transition; Hawaiʻi Community Foundation; Pacific Housing Assistance Corporation; Hawaiʻi Appleseed Center for Law & Economic Justice; Easterseals Hawaii; Young Democrats of Hawaiʻi; Democratic Party of Hawaiʻi; The Institute for Human Services, Inc.; and four individuals.

Your Committees received comments on this measure from the Department of Budget and Finance and State Procurement Office.

Your Committees find that to meet the State's needs for long-term solutions to homelessness and the risk of homelessness, it is necessary for the State to develop the capacity of the Hawaii Housing Finance and Development Corporation to work with developers to create additional supportive housing units. Your Committees further find that both the Ohana Zones Pilot Program and the Kauhale Initiative aim to provide supportive housing and services with an emphasis on community-based solutions. This measure provides funding for the continued implementation of the Ohana Zones Pilot Program and the Kauhale Initiative, in addition to funding for the Hawaii Housing Finance and Development Corporation for the development, operation, and maintenance of affordable, supportive housing projects and the provision of supportive services, to further expand affordable housing inventory and supportive services for individuals experiencing or at the risk of homelessness throughout the State.

Your Committees have amended this measure by:

(1) Deleting language that would have allowed funds appropriated for the continued implementation of the Kauhale Initiative to be used for the Ohana Zones Pilot Program established under Act 209, Session Laws of Hawaii 2018;

(2) Deleting language that would have allowed:

(A) The Governor to transfer all or a portion of the appropriations for the continued implementation of the Kauhale Initiative to the Governor's designated executive branch departments or agencies, including the Statewide Office on Homelessness and Housing Solutions, for expenditures incurred to implement the Kauhale Initiative; and

(B) The Governor's designated executive branch departments or agencies to expend the transferred appropriations for the performance of their duties under the Kauhale Initiative;

(3) Deleting language that would have provided that if funds appropriated for the continued implementation of the Kauhale Initiative are used to contract for the procurement of building services and projects related to the Kauhale Initiative, there shall be at least two bidders for any kauhale project estimated to be over $1,000,000;

(4) Inserting a blank appropriation amount for the continued implementation of the Ohana Zones Pilot Program established under Act 209, Session Laws of Hawaii 2018;

(5) Deleting language that would have established a Supportive Housing Special Fund to be administered by the Hawaii Housing Finance and Development Corporation;

(6) Deleting language that would have made appropriations into and out of the Supportive Housing Special Fund;

(7) Inserting a blank appropriation amount to be expended by the Hawaii Housing Finance and Development Corporation for the development, operation, and maintenance of affordable, supportive housing projects and the provision of supportive services for households with special needs who reside in the supportive housing projects;

(8) Amending the legislative findings of part III to reflect its amended purpose;

(9) Amending section 1 to reflect its amended purpose; and

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

Your Committees note that this measure contains unspecified appropriation amounts. Your Committees respectfully request that the Office of the Governor provide to your Committee on Ways and Means the amounts necessary for the continued implementation of the Kauhale Initiative and Ohana Zones Pilot Program respectively, and the development, operation, and maintenance of affordable supportive housing projects and the provision of support services for households with special needs who reside in the supportive housing projects by the Hawaii Housing Finance and Development Corporation, should your Committee on Ways and Means choose to deliberate on this measure.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 431, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 431, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair