HB 1428: HHFDC; Housing Counseling Agencies; ALICE Households; Report; Appropriations

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  The legislature finds that Hawaii faces a severe housing crisis, marked by high costs and a lack of supportive services for vulnerable populations.  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.  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.  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.

     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.  These services include:

     (1)  Financial education workshops that cover budgeting, credit management, and financial planning;

     (2)  Homebuyer and renter education that prepares clients for the responsibilities of homeownership or tenancy;

     (3)  One-on-one counseling that offers personalized guidance to improve financial health and housing readiness; and

     (4)  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.

     The legislature believes that investing in HUD-certified housing counseling services is a strategic and proactive approach to addressing Hawaii's housing crisis.  These services empower residents with the knowledge and resources needed to secure and maintain affordable housing, reducing the risk of eviction, foreclosure, and homelessness.  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.

     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.  Housing counseling can help families currently on public assistance as well as those on the waitlist for public assistance.  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.  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.

     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.

     SECTION 2.  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:

     (1)  The number of clients served by each housing counseling agency;

     (2)  The specific types of counseling and education services delivered;

     (3)  The outcomes achieved by clients who have received housing counseling services, such as:

          (A)  Increases in financial knowledge;

          (B)  If their current housing situation fits their housing needs;

          (C)  If they created a financial plan; and

          (D)  If they have access to the resources to reach those goals; and

     (4)  Any proposed legislation,

to the legislature no later than November 1, 2027.

     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 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:

     (1)  Expand outreach targeting underserved communities across the State;

     (2)  Enhance service delivery by providing timely and effective counseling to prevent housing crises; and

     (3)  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.

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

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; Housing Counseling Agencies; ALICE Households; Report; Appropriations

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.  Requires a report to the Legislature regarding services provided by the housing counseling agencies.  Takes effect 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  The legislature finds that Hawaii faces a severe housing crisis, marked by high costs and a lack of supportive services for vulnerable populations.  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.  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.  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.

     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.  These services include:

     (1)  Financial education workshops that cover budgeting, credit management, and financial planning;

     (2)  Homebuyer and renter education that prepares clients for the responsibilities of homeownership or tenancy;

     (3)  One-on-one counseling that offers personalized guidance to improve financial health and housing readiness; and

     (4)  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.

     The legislature believes that investing in HUD-certified housing counseling services is a strategic and proactive approach to addressing Hawaii's housing crisis.  These services empower residents with the knowledge and resources needed to secure and maintain affordable housing, reducing the risk of eviction, foreclosure, and homelessness.  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.

     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.  Housing counseling can help families currently on public assistance as well as those on the waitlist for public assistance.  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.  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.

     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.

     SECTION 2.  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:

     (1)  The number of clients served by each housing counseling agency;

     (2)  The specific types of counseling and education services delivered;

     (3)  The outcomes achieved by clients who have received housing counseling services, such as:

          (A)  Increases in financial knowledge;

          (B)  If their current housing situation fits their housing needs;

          (C)  If they created a financial plan; and

          (D)  If they have access to the resources to reach those goals; and

     (4)  Any proposed legislation,

to the legislature no later than November 1, 2027.

     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 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:

     (1)  Expand outreach by reaching underserved communities across the State;

     (2)  Enhance service delivery by providing timely and effective counseling to prevent housing crises; and

     (3)  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.

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

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

HHFDC; Housing Counseling Agencies; ALICE Households; Appropriation

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.  Requires a report to the Legislature regarding services provided by the housing counseling agencies.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  The legislature finds that Hawaii faces a severe housing crisis, marked by high costs and a lack of supportive services for vulnerable populations.  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.  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.  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.

     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.  These services include:

     (1)  Financial education workshops that cover budgeting, credit management, and financial planning;

     (2)  Homebuyer and renter education that prepares clients for the responsibilities of homeownership or tenancy;

     (3)  One-on-one counseling that offers personalized guidance to improve financial health and housing readiness; and

     (4)  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.

     The legislature believes that investing in HUD-certified housing counseling services is a strategic and proactive approach to addressing Hawaii's housing crisis.  These services empower residents with the knowledge and resources needed to secure and maintain affordable housing, reducing the risk of eviction, foreclosure, and homelessness.  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.

     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.  Housing counseling can help families currently on public assistance as well as those on the waitlist for public assistance.  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.  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.

     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.

     SECTION 2.  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:

     (1)  The number of clients served by each housing counseling agency;

     (2)  The specific types of counseling and education services delivered;

     (3)  The outcomes achieved by clients who have received housing counseling services, such as:

          (A)  Increases in financial knowledge;

          (B)  If their current housing situation fits their housing needs;

          (C)  If they created a financial plan; and

          (D)  If they have access to the resources to reach those goals; and

     (4)  Any proposed legislation,

to the legislature no later than November 1, 2027.

     SECTION 3.  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:

     (1)  Expand outreach by reaching underserved communities across the State;

     (2)  Enhance service delivery by providing timely and effective counseling to prevent housing crises; and

     (3)  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.

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

     SECTION 4.  This Act shall take effect on July 1, 2025.

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.  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.

STAND. COM. REP. NO. 1182

Honolulu, Hawaii

RE:    H.B. No. 1428

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred H.B. No. 1428, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Appropriate 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; and 

     (2)  Require a report to the Legislature regarding services provided by the housing counseling agencies.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Office of Housing and Community Development of the County of Hawaiʻi, and two individuals.

     Your Committee finds that housing counseling services are an important tool to assist individuals and families with securing and maintaining affordable housing.  Nonprofit housing counseling agencies, local banks, and real estate agents have implemented homebuyer education programs to assist with housing counseling services to ensure renters and prospective homeowners receive requisite information.  Your Committee further finds that asset limited, income constrained, employed (ALICE) households particularly benefit from housing counseling services as these services are often the difference between remaining dependent on public assistance or achieving the financial independence necessary to enter the housing market.  As housing security reduces other negative impacts from social determinants of health, ensuring access to counseling will allow residents to make informed decisions on housing options.  Accordingly, this measure ensures residents can receive crucial housing counseling while reducing the risk of eviction, foreclosure, and homelessness.

     Your Committee notes, however, that despite the benefits of housing counseling services, homeownership was attainable for most Hawaii residents in the 1950s and 1960s not because of a result of greater participation in housing counseling services, but rather, the cost of housing across the State was significantly lower relative to incomes at the time.  The State should therefore continue to also support initiatives that reduce the cost of housing for residents in the State.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     Your Committee notes that this measure contains an unspecified appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $1,500,000 for the Hawaii Housing Finance and Development Corporation to allocate to housing counseling agencies approved by the United States Department of Housing and Urban Development.

     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 H.B. No. 1428, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1428, H.D. 1, 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,

STAND. COM. REP. NO.  1125

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1428

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 1428, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Appropriate funds to the Hawaii Housing Finance and Development Corporation to enhance the capacity of Hawaii's United States Department of Housing and Urban Development-certified housing counseling agencies to provide housing counseling, renter education, homebuyer education, and eviction and foreclosure intervention to certain low- and moderate-income households; and

     (2)  Require the Hawaii Housing Finance and Development Corporation to submit a report to the Legislature regarding services provided by the certified housing counseling agencies.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Council for Native Hawaiian Advancement.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1428, H.D. 1, and recommends that it pass Third Reading.

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

STAND. COM. REP. NO.  489

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1428

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred H.B. No. 1428 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to the Hawaii Housing Finance and Development Corporation to enhance the capacity of Hawaii's United States Department of Housing and Urban Development-certified housing counseling agencies to provide housing counseling, renter education, homebuyer education, and eviction and foreclosure intervention to certain low- and moderate-income households.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaiian Community Assets; and four individuals.

     Your Committee finds that more support mechanisms are needed for the State's Asset Limited, Income Constrained, Employed (ALICE) households.  ALICE households have income above the federal poverty line but below the basic cost of living; in Hawaii forty-eight percent of households fall into the ALICE category or below.

     Your Committee further finds that providing United States Department of Housing and Urban Development-certified housing counseling agencies helps expand outreach to ALICE households and other underserved communities and ensures more residents have access to critical housing resources, and enhanced service delivery that provides timely, effective counseling to prevent housing crises like foreclosures or evictions.

     Your Committee has amended this measure by:

     (1)  Changing the appropriation to an unspecified amount;

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $2,500,000.

     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 H.B. No. 1428, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1428, H.D. 1, and be referred to your Committee on Finance.

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