STAND. COM. REP. NO. 193

Honolulu, Hawaii

RE: S.B. No. 340

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 340 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds to the Department of Human Services for the Hawaii Public Housing Authority (HPHA) to rehabilitate, remodel, renovate, and repair an unspecified amount of housing units.

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

Your Committee finds that many public housing units in the State were constructed over fifty years ago. HPHA has a current capital improvement backlog upwards of $800,000,000 and additional funding is needed to keep public housing units safe, decent, and sanitary for habitation. Your Committee recognizes that the amount of federal subsidies HPHA is eligible to receive depends on the occupancy of certain public housing units.

Your Committee notes that during the public hearing on this measure, testimony indicated that the average cost to rehabilitate and modernize a public housing unit is $79,215, and as of January 31, 2023, HPHA is seeking to repair and upgrade two hundred fifty-five public housing units statewide, comprised of one hundred fifty-four units in the City and County of Honolulu, fifty-six units in Maui County, nineteen units for Hawaii County, and twenty-six units in Kauai County. Based on these figures, HPHA estimates that an appropriation of $20,200,000 is necessary to ensure that its public housing units comply with the Americans with Disabilities Act and other federally mandated improvements.

Furthermore, according to testimony received by your Committee, because the appropriations in this measure lapse on June 30, 2025, HPHA requests that the rehabilitation and modernization of these two hundred fifty-five public housing units be performed without regard to chapter 76, Hawaii Revised Statutes, relating to civil service law, as this exemption would allow HPHA to facilitate the completion of the repairs and upgrades before the appropriations lapse.

Accordingly, your Committee has amended this measure by:

(1) Inserting an appropriation amount of $20,200,000 for fiscal years 2023-2024 and 2024-2025 for the rehabilitation, remodeling, renovation, and repair of two hundred fifty-five housing units;

(2) Authorizing the Hawaii Public Housing Authority to

contract out the repair and maintenance of these housing units without regard to chapter 76, Hawaii Revised Statutes; and

(3) Specifying that the Hawaii Public Housing Authority,

rather than the Department of Human Services, expend the funds appropriated by this measure.

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. 340, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 340, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair