SB3018

SECTION 1. The legislature finds that homelessness continues to be one of Hawaii's most dire and persistent challenges. The legislature further finds that the solution to homelessness lies in the creation of homes that are affordable, even to individuals with very little income. However, three of the biggest barriers to creating truly affordable housing for those most in need are the high cost of construction per unit of housing; a long and unpredictable planning and permitting process that adds risk and costs for developers; and opponents to housing projects that use the difficult planning and permitting process to block unwanted projects.

Despite these obstacles, Hawaii has unique advantages that it can draw upon to end homelessness, particularly its strong sense of family and community. Many people experiencing homelessness build a community with each other where they can and are accustomed to operating like a village, relying on each other for safety and support. These supportive networks can be leveraged to create a village-style affordable housing, or kauhale, that is less costly to construct and operate. Expediting the creation of such kauhale, either through new construction or adaptive re-use of existing buildings, can help bring an end to Hawaii's homeless crisis.

The purpose of this Act is to establish a kauhale program under the Hawaii housing finance and development corporation to provide housing and services to homeless individuals and families who meet the definition of chronically homeless or are currently homeless.

SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H- Kauhale program; established. (a) There is established the kauhale program under the corporation to provide individual or shared micro housing units and services to homeless individuals and families who:

(1) Meet the definition of chronically homeless, as defined by the United States Department of Housing and Urban Development; or

(2) Are currently homeless, but do not meet the definition of chronically homeless due to a stay in temporary housing or a temporary housing voucher which has since expired.

(b) The corporation shall cooperate with any state departments or agencies and private nonprofit organizations as needed to expedite the development and operation of housing under the kauhale program, including agencies with specific expertise in construction development and agencies with specific expertise in administering homeless services. The corporation shall construct kauhale across the State, which shall be situated on public or private lands in accordance with subsection (c); provided that the corporation shall identify at least three sites on Oahu and one site on each of the islands of Hawaii, Kauai, and Maui for a kauhale.

(c) The corporation may coordinate with public or private entities, as appropriate, to develop and implement the kauhale program; provided that:

(1) If any public land under the jurisdiction of a state or county agency is determined to be suitable for use as a kauhale, the corporation shall:

(A) Work with the appropriate state or county agency that controls the land to transfer the land designated for use as a kauhale to an agency or nonprofit whose mission is more suited to the management of housing individuals who meet the definition of chronically homeless persons; and

(B) Work with the appropriate state or county agency that controls the land and its construction agency to ensure that the kauhale's infrastructure needs are met and minimize adverse impacts to the environment, including to nearshore resources such as corals, reef fish, and seabirds;

(2) Use of any private lands determined to be suitable for use as a kauhale shall be for limited purposes and require a written agreement between the private land owner; provided that the private land owner shall ensure the private lands shall be used for affordable housing in perpetuity through a deed restriction, easement, or other legally binding measure; and

(3) The kauhale communities may allow for off-the-grid technologies that can provide drinking water, electricity, and process sewage without existing infrastructure.

(d) The kauhale program may provide the following facilities and services at each site:

(1) Secure dwelling spaces that:

(A) May be private or communal;

(B) Are designed aesthetically and constructed of quality materials;

(D) Have access to adequate facilities that allow for cooking and meal preparation;

(E) Have common spaces that build community and encourage sustainability; and

(F) Include living units; provided that the size of a unit in the kauhale shall not exceed five hundred square feet with livable space not to exceed two hundred square feet but at least one hundred twenty square feet of net interior for the purposes of keeping cost low;

(2) Medical and social support services; and

(3) Transportation to appointments related to medical care or supportive services that are not available onsite.

(e) The construction of living units pursuant to section (d)(1)(F) shall be exempt from the requirements of chapter 46, to the extent that any county ordinance, rule, regulation, law, or provision that applies to any county permitting, licensing, zoning, variance, processes, procedures, fees, or any other requirements that hinder, delay, or impede the purposes of this section; provided that:

(1) All construction shall conform to drawings and plans stamped by licensed architects and engineers;

(2) Stamped drawings and plans shall be submitted to the appropriate county planning and permitting departments for informational purposes;

(3) Submitted plans shall list any deviations from existing county building codes; and

(4) No deviations from any county building codes that relate to life safety shall be allowed.

(f) Contracts, leases, or agreements of sale entered into by the corporation pursuant to the kauhale program shall be exempt from the requirements of chapters 103D, 103F, and 104 and any county codes related to procurement.

(g) The corporation may employ persons for the kauhale program who are exempt from chapters 89 and 89C.

(h) Any appropriations by the legislature for the kauhale program shall be exempt from sections 37-41, 37-74(d)(1), and section 40-66; provided that any transfers or changes pursuant to section 37-74(d) shall be considered authorized transfers or changes for purposes of section 34-74(d)(1).

(i) Any meetings by the corporation regarding the kauhale program shall be exempt from the requirements of chapter 92, to the extent that any notice requirements or any other provisions of chapter 92 may delay the expeditious action, decision, or approval of the corporation for the purposes of this section.

(j) The state historic preservation division shall prioritize the review of projects under the kauhale program and shall complete its review of the projects within forty-five days of initiating the review. If a review of a project under the kauhale program is not completed by the state historic preservation division within forty-five days of the division initiating its review, the project shall be exempt from chapter 6E; provided that the developer for the project shall commission historical, cultural, and archaeological background research and a field inspection report by a licensed archaeologist; provided further that the report shall:

(1) Define the likelihood that historic or cultural assets may be affected by the project;

(2) Make cultural resource management recommendations if historical or cultural assets are likely to be affected by the project; and

(3) Shall be submitted to the state historic preservation division for informational purposes.

(k) Projects shall be exempt from the land use requirements under chapter 205; provided that the site plan for the development of a project shall include measures to conform with the purposes of the original classification of the land on which the project is to be built.

(l) Projects under the kauhale program shall be exempt from chapter 343 if the developer of the project, prior to its development, commissions a phase I environmental site assessment by a licensed environmental professional and the assessment finds no recognized environmental conditions or identifies recognized environmental conditions, to be remediated prior to development.

(m) The kauhale program shall be exempt from the requirements of chapters 171, 205A, 206E, and 346, and sections 102-2, 103-2, 103-53, 103-55, 105-1 to 105-10, and 464-4.

(n) The corporation shall establish the following:

(1) The criteria that the corporation will use to evaluate potential kauhale locations;

(2) A monthly timetable of milestones that the corporation expects to meet in establishing the kauhale;

(3) The specific, measurable, attainable, reasonable, and time-based performance measures that the corporation expects to meet at the end of each fiscal year;

(4) The evaluation criteria and process that the corporation intends to use each year when reviewing the success and sustainability of the kauhale; and

(5) The monitoring and oversight controls that the corporation will have over the kauhale to identify, address, and prevent possible fraud, waste, and abuse and ensure compliance with federal, state, and local laws.

(o) There is established a community advisory committee for the kauhale program to advise and assist the corporation, which shall comprise the following members appointed by the governor in the manner provided in section 26-34:

(1) Two nonprofit developers of affordable housing;

(2) Two nonprofit homeless services providers; and

(3) Two individuals who are currently experiencing or have experienced homelessness within twenty-four months prior to appointment.

(p) The corporation shall submit reports to the legislature no later than twenty days prior to the convening of each regular session, beginning with the regular session of 2023.

(q) The report submitted no later than twenty days prior to the convening of the regular session of 2023 shall include the following information:

(1) A summary and explanation of the process that the corporation engaged in to identify possible kauhale locations; and

(2) A summary of the information required under subsection (n).

(r) The reports submitted no later than twenty days prior to the convening of each regular session following the regular session of 2023 shall include the following information:

(1) The milestones established pursuant to subsection (n) that were met by the corporation and kauhale established during the fiscal year;

(2) An evaluation of the kauhale to determine whether the objectives set have been met or exceeded;

(3) Any proposed changes that need to be made to the performance measures used to assess the achievement of the kauhale program goals; and

(4) An assessment of the impact of the kauhale model on the homelessness problem in the State.

(s) As used in this section, "kauhale" means individual or shared micro housing units and services to homeless individuals and families who meet the definition of chronically homeless, as defined by the United States Department of Housing and Urban Development."

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 2022-2023 to establish and administer the kauhale program pursuant to this Act.

The sum appropriated shall be expended by the Hawaii housing development corporation.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 2 shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3018
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII