STAND. COM. REP. NO. 2219

Honolulu, Hawaii

RE: S.B. No. 2677

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Human Services and Housing, to which was referred S.B. No. 2677 entitled:

"A BILL FOR AN ACT RELATING TO HOMELESSNESS,"

beg leave to report as follows:

The purpose and intent of this measure is to establish the Long-Term Rental Assistance Pilot Program for individuals who are over sixty-two years of age and are homeless or at imminent risk of becoming homeless to be administered by the Hawaii Public Housing Authority.

Your Committees received testimony in support of this measure from the Hawaii Public Housing Authority, Governor's Coordinator on Homelessness, Catholic Charities Hawai‘i, Partners in Care,

AARP Hawai‘i, Hawai‘i Health & Harm Reduction Center, Change AGEnts Hawaii, Hawaii Family Caregiver Coalition, Free Access Coalition, and seven individuals. Your Committees received testimony in opposition to this measure from the State Procurement Office. Your Committees received comments on this measure from the Department of Budget and Finance and Executive Office on Aging.

Your Committees find that homelessness is one of the most pressing problems in Hawaii. Nearly one-third of Hawaii households who rent their residences are severely housing-cost burdened, meaning that over half of their monthly income goes to rent and utilities. As the housing prices in Hawaii continue to skyrocket, the housing cost burden is particularly heavy for seniors who are on a fixed income, such as those receiving Social Security or disability benefits, with limited family support. This measure creates a rent subsidy program to assist Hawaii's kupuna who are experiencing heavy housing cost burdens.

Your Committees note the testimony from the State Procurement Office raising concerns over the exemption from the Hawaii Public Procurement Code provided to the Hawaii Public Housing Authority in selecting a qualified non-profit organization to administer the program. Your Committees also note testimony from Catholic Charities Hawai‘i suggesting that the age criteria for the program be amended to match the age criteria for many senior affordable rental projects, which is sixty-two years of age and older.

Your Committees have also reviewed the testimony of the Department of Budget and Finance expressing concerns regarding this measure's possible effect on the State's obligation to adhere to the maintenance of effort requirements as a recipient of Elementary and Secondary Schools Emergency Relief funds under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Recovery Plan Act of 2021. Your Committees find that this issue raises concerns that merit further consideration and respectfully request that your Committee on Ways and Means further examine those issues and concerns raised by the testimonies on this measure.

Accordingly, your Committees have amended this measure by:

(1) Amending the age criteria for the Long-Term Rental Assistance Pilot Program from "over sixty-two years of age" to "sixty-two years of age or older";

(2) Deleting the exemption from the Hawaii Public Procurement Code provided to the Hawaii Public Housing Authority in selecting a qualified non-profit organization to administer the pilot program;

(3) Clarifying that the Hawaii Public Housing Authority is required to submit a report to the Legislature of its findings and recommendations, including any proposed legislation, regarding the pilot program no later than one month prior to the convening of the regular sessions of 2023, 2024, and 2025;

(4) Inserting an effective date of December 31, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2677, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2677, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ STANLEY CHANG, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair