STAND. COM. REP. NO. 1299

Honolulu, Hawaii

, 2023

RE: S.B. No. 1040

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 1040, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOMELESSNESS,"

begs leave to report as follows:

The purpose of this measure is to establish and appropriate funds for a Rent-with-Option-to-Purchase Pilot Program, under the Department of Hawaiian Home Lands, on the Leeward Coast of Oahu to provide native Hawaiian beneficiaries who are homeless, or on the verge of being homeless, with certain housing units and services.

Your Committee received testimony in support of this measure from the State Council on Mental Health, Opportunity Youth Action Hawai‘i, and three individuals. Your Committee received comments on this measure from the Department of Hawaiian Home Lands, Hawai‘i Emergency Management Agency, and one individual.

Your Committee finds that homelessness is one of the State's most pressing issues and a persistent challenge, particularly among native Hawaiians. Native Hawaiians are disproportionately affected by homelessness at a higher rate than any other ethnicity in the State. Your Committee further finds that reducing the number of native Hawaiians experiencing, or on the verge of, homelessness may be more effective and help a greater number of beneficiaries if the focus is on offering temporary transitional housing instead of a rent-to-own option.

Accordingly, your Committee has amended this measure by:

(1) Changing the Rent-with-Option-to-Purchase Pilot Program to the Native Hawaiian Supportive Housing Pilot Program to provide individual or shared micro housing units and services to certain native Hawaiian beneficiaries;

(2) Deleting language that would have required the Department of Hawaiian Home Lands to establish any terms, conditions, and requirements to facilitate the transfer of ownership of a unit and the exercise of the option to purchase the unit;

(3) Requiring the Department of Hawaiian Home Lands to create and make available financial education programs to participants in the Pilot Program;

(4) Clarifying that the Pilot Program shall not be implemented with funds from any subsequent Act appropriating funds for the purposes of Act 279, Session Laws of Hawaii 2022;

(5) Changing the effective date to June 30, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1040, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1040, S.D. 2, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

TROY N. HASHIMOTO, Chair