REPORT TITLE:
Affordable Housing


DESCRIPTION:
Requires 50% of the expenditures from the homes revolving fund
and the dwelling unit revolving fund, to be used for units which
are affordable to persons and families with incomes at or below
30% of the median income level. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        290
THE SENATE                              S.B. NO.           S.D.1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO HOUSING.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that there are more than
 
 2 100,000 people who are homeless on our streets or part of the
 
 3 hidden homeless who rely on relatives or friends for housing.
 
 4 The need for affordable housing among those with incomes less
 
 5 than fifty per cent of the median income level average more than
 
 6 8,800 households statewide.  Statistics from the Hawaii housing
 
 7 authority show that more than 12,000 homeless people are served
 
 8 by state programs every year, and the number continues to
 
 9 increase.
 
10      However, the crisis in affordable housing is greatest among
 
11 extremely low income households, with incomes less than thirty
 
12 per cent of the median income level.  Nearly two-thirds of these
 
13 households cannot afford their housing payments.  For example,
 
14 seniors receiving only supplemental security income, and families
 
15 with children who earn incomes at or near the minimum wage, all
 
16 face challenges to find housing they can afford.
 
17      The legislature further finds that the State's reserve
 
18 housing funds, the use of homes revolving fund and the dwelling
 
19 unit revolving fund, do not have any income targeting in the use
 
20 of their funds, and the funds may be used to assist families with
 

 
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 1 any income level.  
 
 2      The purpose of this Act is to require the homes revolving
 
 3 fund and the dwelling unit revolving fund to devote at least
 
 4 fifty per cent of their expenditures in each two-year period, to
 
 5 be for units which are affordable to persons or families with
 
 6 incomes at or below thirty per cent of the median income level.
 
 7      SECTION 2.  Section 201G-402, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (b) to read as follows:
 
 9      "(b)  Moneys on deposit in the homes revolving fund shall be
 
10 expended by the corporation, subject to the following conditions
 
11 and limitations:
 
12      (1)  Any expenditure from the homes revolving fund shall be
 
13           made only upon the approval of the governor, after the
 
14           board of directors of the corporation has determined
 
15           that the purposes and amounts for which the moneys are
 
16           to be applied are consistent with the purposes of this
 
17           section;
 
18      (2)  Expenditures of advances from the general fund
 
19           authorized by section 201G-401 may be made by the
 
20           corporation from time to time with the approval of the
 
21           director of finance, who may establish procedures and
 
22           prescribe rules for controlling the expenditure and
 
23           encumbrance of those funds;
 

 
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 1      (3)  Expenditures from the proceeds of general obligation
 
 2           bonds, revenue bonds, other evidences of indebtedness
 
 3           of the State as may be authorized, or from sources in
 
 4           excess of the amount advanced from the general fund
 
 5           under section 201G-401, may be expended with the
 
 6           approval of the corporation's board of directors for
 
 7           any authorized purpose, and with the approval of the
 
 8           director of finance and the governor, for any
 
 9           authorized purpose; [and]
 
10      (4)  Moneys from the homes revolving fund shall not be used
 
11           for mortgage loans or to pay administrative
 
12           expenses[.]; and
 
13      (5)  At least fifty per cent of the expenditures for
 
14           construction, or acquisition and rehabilitation of
 
15           rental housing units in each two year period,
 
16           commencing with fiscal year 2000, shall be expended on
 
17           units which are affordable to persons and families with
 
18           incomes at or below thirty per cent of the median
 
19           income level.  The corporation shall submit an annual
 
20           report documenting compliance with this paragraph to
 
21           the legislature twenty days prior to the convening of
 
22           each regular session, commencing with the regular
 
23           session of 2001."
 

 
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 1      SECTION 3.  Section 201G-411, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "201G-411  Dwelling unit revolving fund.  (a)  There is
 
 4 created a dwelling unit revolving fund.  The funds appropriated
 
 5 for the purpose of the dwelling unit revolving fund and all
 
 6 moneys received or collected by the corporation for the purpose
 
 7 of the revolving fund shall be deposited in the revolving fund.
 
 8 The proceeds in the revolving fund shall be used to reimburse the
 
 9 general fund to pay the interest on general obligation bonds
 
10 issued for the purposes of the revolving fund, for the necessary
 
11 expenses in administering subpart F, part II, and for carrying
 
12 out the purposes of subpart F, part II, including but not limited
 
13 to the expansion of community facilities constructed in
 
14 conjunction with housing projects, and aaaaaaa
 
15 supplementing building costs, federal guarantees required for
 
16 operational losses, and all things required by any federal agency
 
17 in the construction and receipt of federal funds for housing
 
18 projects.
 
19      (b)  At least fifty per cent of fund money committed for
 
20 construction, or acquisition and rehabilitation of rental housing
 
21 units in each two year period, commencing with fiscal year 2000,
 
22 shall be expended on units which are affordable to persons and
 
23 families with incomes at below thirty per cent of the median
 

 
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 1 income level.  The corporation shall submit an annual report
 
 2 documenting compliance with this subsection to the legislature
 
 3 twenty days prior to the convening of each regular session,
 
 4 commencing with the regular session of 2001."
 
 5      SECTION 4.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 5.  This Act shall take effect upon its approval