HB1744

SECTION 1. The legislature finds that homelessness is one of the most pressing problems in Hawaii. Hawaii has the highest homelessness rate in the nation, which is driven by insufficient affordable housing. Through improved coordination and investment in proven programs such as housing first, Hawaii is turning the tide in the homelessness crisis. In 2017, Hawaii saw its first reduction in the rate of homelessness in years. However, given the magnitude of homelessness in the State, Hawaii must continue to increase investments in housing and other supports to fully address homelessness.

Chronic homelessness is distinct from other forms of homelessness and refers to an individual with a disability who has been continuously homeless for a year or more or has experienced at least four or more occasions of homelessness over the past three years that add up to at least twelve months. The unaddressed problem of chronic homelessness is a particularly costly problem for Hawaii, and one that puts a heavy burden on the State's health care and emergency service systems. Addressing chronic homelessness across the State will result in significant cost savings for health care and emergency services systems and create a solid foundation for addressing other forms of homelessness.

According to the 2020 Oahu homeless point-in-time count conducted by Partners in Care, Oahu had 4,448 sheltered and unsheltered homeless persons. Furthermore, nearly one in four homeless adults were considered chronically homeless. The legislature further finds that permanent supportive housing is the best way to address chronic homelessness. Permanent supportive housing is an approach to homelessness that integrates permanent, affordable rental housing with best practice community-based supportive services to allow individuals and households who have serious and long-term disabilities such as mental illnesses, developmental disabilities, physical disabilities, substance use disorders, and chronic health conditions to maintain stable housing in the community.

The legislature finds that an initial investment of $325,000,000 is needed to cover the costs for development and construction of approximately nine hundred permanent supportive housing units as well as the first year of operational costs for the units, permanent supportive housing vouchers, and permanent supportive housing services. After that initial investment, annual expenditures of approximately $43,500,000 are expected to cover the ongoing operational costs of the permanent supportive housing services.

The purpose of this Act is to:

(1) Authorize the issuance of general obligation bond proceeds to the Hawaii public housing authority to begin the development and construction with a qualified developer or operator of permanent supportive housing units to meet the needs of chronically homeless individuals in the State; and

(2) Prioritize competitive federal low-income housing tax credits for the construction of these units.

SECTION 2. The Hawaii housing finance and development corporation shall designate and give first priority of any applicable competitive federal low-income housing tax credits allowed under section 42 of the Internal Revenue Code of 1986, as amended, that are needed for the construction of permanent supportive housing units developed and constructed pursuant to this Act to the Hawaii public housing authority, the developer or operator partnered with the Hawaii public housing authority for the construction of these housing units, or both.

SECTION 3. (a) To promote the quick construction of permanent supportive housing units authorized under this Act, the Hawaii public housing authority shall be exempt from chapter 103D, Hawaii Revised Statutes.

(b) The Hawaii public housing authority shall include the status of the development and operation of permanent supportive housing units authorized under this Act in its annual report to the legislature required pursuant to section 356D-20, Hawaii Revised Statutes.

(c) The department of land and natural resources shall assist the Hawaii public housing authority by providing suitable public lands for this project.

(d) The Hawaii public housing authority may partner with other appropriate government and non-government entities to ensure that sufficient and appropriate services are accounted for in the development and operation of permanent supportive housing units.

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $25,100,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2022-2023 for the initial phase of development and construction of up to nine hundred four permanent supportive housing units to meet the needs of chronically homeless individuals and families.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 5. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2024, shall lapse as of that date.

SECTION 6. This Act shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________

Report Title:

Chronically Homeless; Permanent Supportive Housing; Low-income Housing Tax Credit; General Obligation Bonds; Hawaii Public Housing Authority

Description:

Authorizes the issuance of general obligation bonds for the development and construction of permanent supportive housing to address the needs of chronically homeless individuals and families. Requires the Hawaii housing and finance development corporation to give first priority of any competitive federal low-income housing tax credits to the Hawaii public housing authority for construction of permanent supportive housing units.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

HOUSE OF REPRESENTATIVES	H.B. NO.	1744
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII