STAND. COM. REP. NO. 2442

Honolulu, Hawaii

RE: S.B. No. 3121

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3121 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC HOUSING AUTHORITY,"

begs leave to report as follows:

The purpose and intent of this measure is to make housekeeping amendments to various sections of the Hawaii Revised Statutes to incorporate the definition of "housing project" to align with previous amendments.

Your Committee received testimony in support of this measure from the Hawaii Public Housing Authority.

Your Committee finds that the Hawaii Public Housing Authority (HPHA) has a mandate to provide adequate and affordable housing, economic opportunity, and suitable living environments for low-income families and individuals. Past public housing concentrated poverty in certain urban neighborhoods, resulting in a variety of negative impacts to the residents. In response, the United States Department of Housing and Urban Development (HUD) is now encouraging the construction of mixed-income housing in more diverse neighborhoods as a way to deconcentrate poverty and promote stable, healthy communities. Further, the inclusion of income blind, unsubsidized units reduces the burden on taxpayers by reducing the gap financing needed for subsidized units. This measure will therefore help to reduce concentration of poverty and contribute to the economic and social diversity and stability of the community as a whole.

Your Committee further finds that following the conversion of a federal public housing property into a mixed finance redevelopment, HPHA will be required to execute a Mixed Finance Annual Contributions Contract with HUD. Under this agreement, the HPHA would be required to ensure that sufficient reserves are maintained to support the operation and maintenance of the project units. These financial reserves ensure that the affordable housing units in the project remain affordable throughout the life of the Master Development Agreement, and not just for a limited period of time. Therefore, this measure clarifies statutory references to provide for preserving the long-term affordability of redeveloped housing units.

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. 3121 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

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

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STANLEY CHANG, Chair