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HB1428
HOUSE OF REPRESENTATIVES
H.B. NO.
1428
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING
TO HOUSING
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that Hawaii
faces a severe housing crisis, marked by high costs and a lack of supportive
services for vulnerable populations.
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Despite emergency proclamations aimed at accelerating housing
development, essential support mechanisms for asset limited, income
constrained, employed (ALICE) households, or households with income above the
federal poverty line but below the basic cost of living, and those below this
threshold remain insufficient.
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In 2022,
40.5 per cent of Hawaii households were cost-burdened, spending more than
thirty per cent of their income on housing, compared to the national average of
32.5 per cent.
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Moreover, approximately
forty-eight per cent of Hawaii's households fall into the ALICE category or
below, struggling to meet basic needs due to high living costs and stagnant
wages.
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The
legislature further finds that housing counseling agencies certified by the
United States Department of Housing and Urban Development (HUD) provide
critical services that empower individuals and families to achieve and sustain
housing stability.
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These services
include:
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(1)
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Financial education workshops that cover budgeting,
credit management, and financial planning;
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(2)
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Homebuyer and renter education that prepares
clients for the responsibilities of homeownership or tenancy;
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(3)
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One-on-one counseling that offers personalized
guidance to improve financial health and housing readiness; and
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(4)
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Eviction and foreclosure intervention that
assists clients in crisis to avoid displacement.
These services are essential for preventing
homelessness and promoting long-term housing stability, especially for
low-income populations.
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The
legislature believes that investing in HUD-certified housing counseling
services is a strategic and proactive approach to addressing Hawaii's housing
crisis.
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These services empower residents
with the knowledge and resources needed to secure and maintain affordable
housing, reducing the risk of eviction, foreclosure, and homelessness.
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By equipping individuals and families with
critical financial education, counseling on credit, and assistance navigating
housing options, the State can help support a more stable and resilient
community.
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The
legislature also finds that housing counseling can assist ALICE households to
create housing related goals, identify resources available to attain those
goals, and develop action plans to have a safe and decent home in Hawaii,
whether through renting or purchasing.
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Housing counseling can help families currently on public assistance as
well as those on the waitlist for public assistance.
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Many families on public assistance are afraid
to advance in their careers or accept additional employment for fear of losing
the funds received for rent and food due to income limits for these programs,
which hinders their contribution to the workforce needs in the greater
community, as well as the opportunity for them to transition off public
assistance and allow another needy family to access government resources.
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Housing counseling provides support to
develop an action plan and gain confidence to transition from utilizing public
assistance to self-sustainability, allowing limited government resources to
help more households, while filling vacant positions as these individuals start
working to their full potential.
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Accordingly,
the purpose of this Act is to appropriate funds to the Hawaii housing finance
and development corporation to enhance the capacity of Hawaii's HUD-certified
housing counseling agencies to provide housing counseling, renter education, homebuyer
education, and eviction and foreclosure intervention to ALICE households.
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SECTION
2.
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The Hawaii housing finance and
development corporation shall submit a report of its findings and
recommendations regarding housing counseling agencies that received funds
pursuant to section 3 of this Act, including:
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(1)
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The number of clients served by each housing
counseling agency;
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(2)
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The specific types of counseling and education
services delivered;
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(3)
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The outcomes achieved by clients who have
received housing counseling services, such as:
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(A)
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Increases in financial knowledge;
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(B)
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If their current housing situation fits their
housing needs;
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(C)
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If they created a financial plan; and
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(D)
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If they have access to the resources to reach
those goals; and
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(4)
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Any proposed legislation,
to the legislature no later than November 1, 2027
.
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SECTION 3.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of $2,500,000 or so much thereof as may
be necessary for fiscal year 2025-2026 and the same sum or so much thereof as
may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and
development corporation to allocate to housing counseling agencies certified by
the United States Department of Housing and Urban Development to:
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(1)
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Expand outreach by reaching underserved
communities across the State;
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(2)
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Enhance service delivery by providing timely
and effective counseling to prevent housing crises; and
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(3)
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Support households with an income at or below
one hundred forty per cent of the area median income, also known as asset limited,
income constrained, employed, or ALICE, households.
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The sums
appropriated shall be expended by the Hawaii
housing finance and development corporation for the purposes of this Act.
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SECTION 4.
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This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
HHFDC; Housing Counseling Agencies; ALICE Households
Description:
Appropriates
funds for the Hawaii Housing Finance and Development Corporation to allocate to
housing counseling agencies certified by the United States Department of
Housing and Urban Development to provide housing counseling services.
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Requires a report to the Legislature
regarding services provided by the housing counseling agencies.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.