SB1551

SECTION 1. The legislature finds that supportive housing is an innovative and proven solution to some of the nation's toughest community problems. It combines affordable housing with access to services to help special needs populations, such as chronic homeless individuals and families, individuals with intellectual, developmental, physical or severe mental disabilities, individuals transitioning from incarceration, emancipated foster youth, individuals with an alcohol or drug addiction, and frail elderly individuals, live more stable and productive lives.

According to the Corporation for Supportive Housing, a nonprofit organization that has impacted over two hundred thousand individuals in more than three hundred cities across forty-eight states and the U.S. Virgin Islands, supportive housing generates significant cost savings to public systems. Cost studies in six different states and cities found that supportive housing results in tenants' decreased use of shelters, hospitals, emergency rooms, jails and prisons. One case study found that an eighty-five-unit supportive housing facility in Charlotte, North Carolina, which serves individuals with extensive histories of homelessness and a disabling condition (mental health and substance abuse disorders, chronic health disorders, physical disabilities, and developmental disabilities), effectively ended homelessness for eighty-one per cent of its tenants. This significant housing stability rate is consistent with other permanent supportive housing models across the country. Moreover, there were significant reductions to emergency room visits (eighty-one per cent), hospital stays (sixty-two per cent), ambulance calls (seventy-six per cent), and for tenants involved with the criminal justice system, reductions in arrests (eighty-two per cent) and nights in jail (eighty per cent).

Supportive housing also helps build strong, healthy communities by improving the safety of neighborhoods, beautifying city blocks with new or rehabilitated properties, and increasing or stabilizing property values over time.

According to studies from Hawaii Pathways Project and the city and county of Honolulu's housing first program, supportive housing has shown similar positive impacts as in other jurisdictions. Supportive housing benefits include:

(1) For individuals, improved housing retention, health, and quality of life;

(2) For systems, reduced burdens and costs on already stretched public systems, such as public safety and emergency medical services; and

(3) For the community, decreased crime rates and increased or no impact on property values.

The purpose of this Act is to establish a supportive housing pilot program with the goal of increasing and maintaining supportive housing opportunities for individuals with special needs.

SECTION 2. (a) There is established the supportive housing pilot program, within the statewide office on homelessness and housing solutions, to provide and maintain affordable, permanent housing and services for individuals and families with special needs.

(b) The statewide office on homelessness and housing solutions shall collaborate with the Hawaii housing finance and development corporation, Hawaii public housing authority, and various state, county, and community agencies to implement the pilot program.

(c) The Hawaii housing finance and development corporation shall assist in the development of a rental housing project or projects in which some or all of the units are targeted to special needs individuals or families who require supportive services and with household incomes at or below thirty per cent of area median income. The Hawaii housing finance development corporation may establish rules and qualification criteria for the award of supportive housing projects without regard to chapter 91, Hawaii Revised Statutes.

(d) The Hawaii public housing authority shall implement project-based rent supplement payments of approximately $500 a month, to fill the gap between the flat rents needed to cover project financing, operating, maintenance, or other costs, and an amount that targeted residents can afford; provided that the Hawaii public housing authority may enter into memoranda of agreements with the counties or specialized nonprofit organizations as necessary to implement this subsection. The Hawaii public housing authority shall be exempt from chapter 103D, Hawaii Revised Statutes, in selecting a qualified nonprofit organization to administer the rent supplement payments and may, without regard to chapter 91, Hawaii Revised Statutes, establish rules and qualification standards for participants of the supportive housing program.

(e) The statewide office on homelessness and housing solutions shall administer supportive services that assist the residents participating in the pilot program to retain housing, improve their health status, and maximize their ability to live and, when possible, work in the community. Support services may include, mental health, substance abuse, counseling, and daily living activities. The supportive services funding of approximately $800 per month is intended to be matched with federal medicaid funds. The statewide office on homelessness and housing solutions may enter into memoranda of agreement with the counties or specialized nonprofit organizations as necessary to implement this section. The statewide office on homelessness and housing solutions shall be exempt from chapter 103D, Hawaii Revised Statutes, in selecting a qualified nonprofit organization to administer the supportive service payments and may, without regard to chapter 91, Hawaii Revised Statutes, establish rules and qualification standards for participants of the supportive housing program.

(f) The statewide office on homelessness and housing solutions shall develop an information system for the standardized collection of client-level data and data on the provision of housing and services to individuals and families in need of or in supportive housing. The information system will assist stakeholders in measuring the need for supportive housing and assessing and improving the effectiveness of the pilot program.

(g) The Hawaii housing finance and development corporation, Hawaii public housing authority, and statewide office on homelessness and housing solutions shall submit a joint interim report of its findings and recommendations, including any proposed legislation, regarding the supportive housing pilot program to the legislature by December 1, 2023, and a final report of its findings and recommendations by December 1, 2024.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 to be deposited into the rental housing revolving fund established in section 201H-202, Hawaii Revised Statutes.

SECTION 4. There is appropriated out of the rental housing revolving fund the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 for:

(1) Supportive housing projects or supportive housing units in rental projects targeted for special needs individuals and families who require supportive services and with household incomes at or below thirty per cent of the median family income; and

(2) One full-time equivalent (1.0 FTE) permanent housing finance specialist I position.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act; provided that the appropriation shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided further that any moneys not awarded as of June 30, 2025, may be used for other rental housing projects pursuant to paragraph 201H-202(e)(1), Hawaii Revised Statutes; provided further that all moneys from the appropriation that are unencumbered as of June 30, 2026, shall lapse on that date.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $14,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 for:

(1) Contracts, not to exceed twenty years, with new supportive housing rental projects or supportive housing rental units in rental projects for project-based rent supplement payments for the pilot program; and

(2) One full-time equivalent (1.0 FTE) permanent housing public housing specialist position.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act; provided that the appropriation shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided further that all moneys from the appropriation that are unencumbered as of June 30, 2026, shall lapse on that date.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,500,000 or so much thereof as may be necessary for fiscal year 2023-2024 for:

(1) The provision of support services for qualified individuals and families in new supportive housing; and

(2) One full-time equivalent (1.0 FTE) permanent position.

The sum appropriated shall be expended by the statewide office on homelessness and housing solutions for the purposes of this Act; provided that the appropriation shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided further that all moneys from the appropriation that are unencumbered as of June 30, 2026, shall lapse on that date.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2023-2024 for the development of a supportive housing information system.

SECTION 8. This Act shall take effect on June 30, 3000.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1551
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII