HB1744 SD1

SECTION 1. The legislature finds that homelessness is one of the most pressing problems in Hawaii. Hawaii has one of 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, with a qualified developer or operator, to begin the development and construction of permanent supportive housing units to meet the needs of chronically homeless individuals and families and other vulnerable populations in the State;

(2) Authorize the Hawaii housing finance and development corporation to consider any application from the Hawaii public housing authority or partner, or both, for competitive federal low-income housing tax credits for the construction of these units; and

(3) Establish a five-year homelessness triage center pilot program to be administered by the department of human services, to assist homeless adults with serious mental illness, chronic medical conditions, or chronic substance abuse issues access appropriate treatment, shelter, care, and housing by providing temporary shelter and referral services.

SECTION 2. The Hawaii housing finance and development corporation may consider any application from the Hawaii public housing authority, a developer or operator partnered with the Hawaii public housing authority for the construction of applicable housing units, or both, for 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.

SECTION 3. (a) 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.

(b) The department of land and natural resources shall assist the Hawaii public housing authority by providing suitable public lands for permanent supportive housing units to be constructed pursuant to this Act.

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

SECTION 4. (a) There is established a five-year homeless triage center pilot program to be administered by the department of human services. The purpose of the homeless triage center shall be to provide temporary shelter and referral services for homeless individuals with serious mental illness, chronic medical conditions, or chronic substance abuse. The pilot program shall assist homeless adults to access appropriate treatment, shelter, care, and housing.

(b) The homeless triage center pilot program shall cease to exist on June 30, 2027.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $ 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 and other vulnerable populations; provided that any funds appropriated pursuant to this section shall be in addition to and shall not supplant any portion of the base budget of the Hawaii public housing authority.

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

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2022-2023 for the establishment, implementation, and administration of the homeless triage center pilot program established under this Act.

The sum appropriated shall be expended by the department of human services for the purposes of this Act and may be used for necessary administrative and other costs of implementation, including funding for one full-time equivalent (1.0 FTE) planner or specialist position.

SECTION 7. 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 8. This Act shall take effect on December 31, 2050; provided that sections 5 and 6 of this Act shall take effect on July 1, 2022, and section 4 of this Act shall be repealed on June 30, 2027.

Report Title:

Chronically Homeless; Vulnerable Populations; Permanent Supportive Housing; Low-Income Housing Tax Credit; General Obligation Bonds; Homelessness Triage Center Pilot Program; Hawaii Public Housing Authority; Hawaii Housing Finance and Development Corporation; Department of Human Services

Description:

Authorizes the issuance of general obligation bond proceeds to the Hawaii Public Housing Authority to begin the development and construction of permanent supportive housing units to meet the needs of chronically homeless individuals and families and other vulnerable populations in the State. Authorizes the Hawaii Housing Finance and Development Corporation to consider any application from the Hawaii Public Housing Authority or partner, or both, for competitive federal low-income housing tax credits for the construction of these units. Establishes the five-year Homelessness Triage Center Pilot Program to be administered by the Department of Human Services, to assist homeless adults with serious mental illness, chronic medical conditions, or chronic substance abuse issues access appropriate treatment, shelter, care, and housing by providing temporary shelter and referral services. Appropriates funds. Effective 12/31/2050. (SD1)

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		H.D. 2
STATE OF HAWAII		S.D. 1