Report Title:

Housing Omnibus Bill

 

Description:

Extends the sunset date for the allocation of conveyance tax revenues to the rental housing trust fund for five years and changes the allocation to sixty-five per cent; requires the Hawaii housing finance and development corporation to create an affordable housing inventory registry and to report annually on expenditures from the rental housing trust fund; exempts special purpose revenue bonds issued to assist in the development of low‑ and moderate‑income housing projects from the procurement code; and appropriates funds for various homeless and housing programs and projects. (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

150

TWENTY-FOURTH LEGISLATURE, 2007

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

RELATING TO HOUSING.

 

 

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

 


PART I. FINDINGS AND PURPOSE

SECTION 1. The legislature finds that the homeless and affordable housing crises continue to be two of the State's most significant and challenging social problems.

The most recent estimate of the total number of homeless persons in the State is six thousand twenty-nine on any given day. In addition, the Hawaii Homeless Point-in-Time Study of 2003 found that over four thousand of these homeless persons are unsheltered. This is indicative of the limited shelter space available in the State.

Also troubling is the fact that a staggering thirty-seven per cent of the unsheltered homeless are individuals of Hawaiian or part-Hawaiian ancestry. Equally troubling is the fact that on any given day, there are eight hundred thirty-eight homeless children in the State. None of these numbers reflect the number of people who are considered hidden homeless or those who are at-risk of homelessness.

Housing, in general, is a critical issue for many residents in Hawaii, where the cost of homeownership and rentals are increasing. The prospect of making high mortgage payments and saving enough money for the downpayment and closing costs needed to buy a home at current market prices is a formidable challenge. Even higher income families must often seek help from relatives to overcome this obstacle. More needs to be done to increase the inventory of, and ensure that residents have access to, affordable housing, as well.

The legislature recognizes that meaningful solutions to Hawaii's housing and homeless problems must be found.

The purpose of this Act is to:

(1) Provide funding for various homeless shelters and transitional housing programs and services;

(2) Require the Hawaii housing finance and development corporation to create an affordable housing inventory registry and to report annually to the legislature on expenditures from the rental housing trust fund;

(3) Extend the sunset date for the allocation of a percentage of conveyance tax revenues to the rental housing trust fund to June 30, 2012;

(4) Exempt special purpose revenue bonds that are issued to assist in the development of low‑ and moderate‑income housing projects from the procurement code; and

(5) Provide funding for various affordable and public housing programs.

PART II. THE HOMELESS

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for the fiscal year 2007-2008 for homeless facilities, emergency shelters, and transitional shelters, as defined by section 356D-121, Hawaii Revised Statutes.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this section.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary for fiscal year 2008-2009 to provider agencies, as defined by section 356D-121, Hawaii Revised Statutes, who offer outreach or support services, or both, to unsheltered homeless, at risk homeless, and those residing in homeless facilities, including emergency shelters and transitional shelters.

The sums appropriated shall be expended by the department of human services for the purposes of this section.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary for fiscal year 2008-2009, to provide matching funds for the United States Department of Housing and Urban Development homeless assistance program, including shelter plus care and other supportive housing programs.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

PART III. AFFORDABLE AND PUBLIC HOUSING

SECTION 5. Section 39A-282, Hawaii Revised Statutes, is amended to read as follows:

"[[]39A-282[]] Department powers in the development of low- and moderate-income housing. [In addition to powers that it may now have, the] (a) The department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department shall include [but are not limited to the following]:

(1) Notwithstanding [and without compliance with] section 103‑7[, but] and chapter 103D, with the approval of the governor, to:

(A) Enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party; and

(B) Enter into and carry out any agreement whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party;

(2) To issue special purpose revenue bonds pursuant to and in accordance with this part;

(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the project;

(4) As security for the payment of the principal, premium, if any, and interest of the special purpose revenue bonds issued for this project, to:

(A) Pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which the bonds are issued;

(B) Pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to the project or the special purpose revenue bonds;

(C) Pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to the project; or

(D) Any combination of the foregoing;

(5) To extend or renew any project agreement or any other agreement related to the project agreement; provided that any renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for the extension or renewal contained in a project agreement or related agreement theretofore approved by the governor; and

(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part.

(b) When the department finances or refinances a project by the issuance of special purpose revenue bonds as contemplated by this part, the State shall not exercise the power of eminent domain to acquire a project or any part of the project for lease or transfer to a project party, nor shall the State operate a project on behalf of a project party."

SECTION 6. Section 201H-6, Hawaii Revised Statutes, is amended to read as follows:

"[[]201H-6[]] Housing advocacy and information system. (a) The corporation, with the assistance of other agencies of the State and counties with related responsibilities, shall develop and maintain a housing advocacy and information system to aid the corporation in meeting the needs and demands of housing consumers.

(b) In establishing and maintaining the housing advocacy and information system, the corporation shall conduct market studies, engage in community outreach, and solicit recommendations from, and statistics and research developed by, agencies of the United States, the State, the counties, private research organizations, nonprofit community groups, trade associations, including those of the construction and real estate industries, departments, individuals at the University of Hawaii, and housing consumers.

(c) The corporation shall analyze the information received and make recommendations to the appropriate agencies and developers.

(d) The corporation, through the housing advocacy and information system, shall act as a clearinghouse for information relating to housing conditions, needs, supply, demand, characteristics, developments, trends in federal housing programs, and housing laws, ordinances, rules, and regulations.

(e) The housing advocacy and information system may be used by housing researchers, planners, administrators, and developers and shall be coordinated with other housing research efforts. The corporation shall maintain a current supply of information, including means to gather new information through surveys, contracted research, and investigations.

(f) The corporation, through the housing advocacy and information system, shall develop and maintain an affordable housing inventory registry to identify:

(1) Affordable housing projects developed by the corporation utilizing moneys in the rental housing trust fund or the dwelling unit revolving fund;

(2) State and federal public housing projects identified by the Hawaii public housing authority;

(3) United States Department of Housing and Urban Development Region 9 federally supported and privately managed housing projects; and

(4) State and county lands that may be developed for affordable housing, as defined in section 201H-57(b)."

SECTION 7. Act 100, Session Laws of Hawaii 2006, is amended by amending section 30 to read as follows:

"SECTION 30. This Act shall take effect on July 1, 2006; provided that on June 30, [2007,] 2012, section 21 shall be repealed and section 247-7, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the approval of this Act."

SECTION 8. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"247-7 Disposition of taxes. All taxes collected each fiscal year under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent shall be paid into the land conservation fund established pursuant to section 173A-5;

(2) [Fifty] Sixty-five per cent shall be paid into the rental housing trust fund established by section [201G‑432;] 201H-202; and

(3) Twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources in the following priority:

(A) To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;

(B) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and

(C) The youth conservation corps established under chapter 193."

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, to be deposited in the rental housing trust fund.

SECTION 10. There is appropriated out of the rental housing trust fund the sum of $           or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary for fiscal year 2008-2009 for the planning, development, and construction of affordable housing in cooperation with private and nonprofit developers.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this section.

SECTION 11. The Hawaii housing finance and development corporation shall submit a report to the legislature no later than twenty days prior to the convening of the 2008 regular session, and shall submit a report to the legislature no later than twenty days prior to the convening of each regular session thereafter. The report shall include an accounting of the expenditures made from the rental housing trust fund and the Hawaii housing finance and development corporation's progress with its plan to develop for-sale units and rental units.

SECTION 12. The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary the proceeds of which are appropriated for fiscal year 2007-2008 to be deposited in the dwelling unit revolving fund.

SECTION 13. There is appropriated out of the dwelling unit revolving fund the sum of $           or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary for fiscal year 2008-2009 for the planning, development, and construction of four thousand affordable housing units in cooperation with private developers.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this section.

SECTION 14. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2007-2008 for the repair and maintenance of existing federal and state public housing buildings.

The sum appropriated shall be expended by the Hawaii public housing authority for the purpose of this section.

SECTION 15. The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary the proceeds of which are appropriated for fiscal year 2007-2008 for the purpose of capital improvement projects.

The sum appropriated shall be expended by the Hawaii public housing authority for the purpose of this section.

SECTION 16. The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary the proceeds of which are appropriated for fiscal year 2007-2008 for the repair and maintenance of elevators in existing federal and state public housing buildings.

The sums appropriated shall be expended by the Hawaii public housing authority for the purposes of this section.

PART IV.

SECTION 17. The appropriations made in sections 12, 15, and 16 of this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all appropriations that are unencumbered as of June 30, 2010, shall lapse as of that date.

SECTION 18. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 19. This Act shall take effect on July 1, 2007; provided that section 7 of this Act shall take effect on June 29, 2007.