RECOMMENDATIONS TO ADDRESS HAWAII S HOMELESS CRISIS On Tuesday, September 20, 2015, Hawaii s only statewide, nonprofit Department of Housing and Urban Development certified housing counseling agency, Hawaiian Community Assets, conducted a Community Solutions Forum on Homelessness. The Forum took place during the 14 th Annual Native Hawaiian Convention with the goal of identifying recommendations to address homelessness in Hawaii with a particular focus on the unique housing needs of Native Hawaiians. The following recommendations are intended to assist Governor Ige s Task Force on Homelessness in development of their comprehensive plan to address homelessness.
1 COMMUNITY SOLUTIONS FORUM ON HOMELESSNESS GOAL The goal of the Community Solutions Forum on Homelessness was conducted to identify recommendations to address homelessness in Hawaii with a particular focus on the unique housing needs of Native Hawaiians. FORMAT The Forum was structured to provide an open, democratic discussion on community-based solutions to Hawaii s homeless crisis. The Forum was facilitated by Hawaiian Community Assets Executive Director, Jeff Gilbreath. Attendees were invited to present recommendations to address the housing needs of individuals and families living on the beach, in emergency and transitional shelters, in overcrowded homes and over-priced rentals, and at-risk of foreclosure, lease cancellation, and eviction. PARTICIPANTS 54 individuals attended the Forum, including native Hawaiian beneficiaries and Hawaiian Homestead Association Leaders, former 1978 Native Hawaiian Constitutional Convention Delegates, Executive Directors and staff from nonprofit organizations, representatives from Queen Liliuokalani Children s Center, Kamehameha Schools, and Office of Hawaiian Affairs, municipal and state policy makers, national philanthropic funders, and professionals from financial institutions, government agencies, selfhelp housing providers, and home package providers. COMPREHENSIVE APPROACH Participants were encouraged to present recommendations across the spectrum of homelessness in order to formulate a comprehensive approach addressing Hawaii residents and families experiencing or at-risk of homelessness. At-Risk
2 NATIVE HAWAIIAN HOUSING NEEDS The Forum opened with a presentation by Mr. Gilbreath on Native Hawaiian housing needs based on various studies and research conducted by Federal and State agencies as well as Hawaiian Community Assets since 1996. 1996 Department of Housing and Urban Development Study Native Hawaiians have the highest percentage of housing problems (49%) of any group in the United States Native Hawaiians experience the worst housing conditions of any group in the State of Hawaii Native Hawaiians constitute approximately 30% of Hawaii s homeless population 68% of low-income native Hawaiian households experience some kind of housing problem such as affordability, overcrowding, structural quality, availability, or some combination of these problems 75% of very low-income native Hawaiian households (<50% AMI) have even more severe needs 2006 Department of Hawaiian Home Lands (DHHL) Beneficiary Study 8,832 native Hawaiians reside on Hawaiian Home Lands 26,546 native Hawaiian applicants are waiting for a lease 32,460 potential native Hawaiians who are eligible applicants 34,100 are considered low-income, at or below 80% Area Median Income 2010 Hawaiian Community Assets (HCA) Homeless Pilot Project HCA launched a pilot project to bring financial literacy/renter education, credit counseling, and financial products into transitional shelters on the Waianae Coast Funded by Administration for Native Americans and Office of Hawaiian Affairs 382 individuals served over 3 years A disproportionate percentage of Native Hawaiians reside in transitional shelters on the Waianae Coast (54%) than reside in Hawaii (22%) 10% of project participants were native Hawaiian Home Lands beneficiaries Majority of participants were families with at least 1 child Average income among Native Hawaiian participants was $1,118 per month 68% of Native Hawaiian participants lacked a minimum 580 credit score limiting their housing options
3 2010 United States Census 27.2% of native Hawaiian households in the State of Hawaii are overcrowded, compared to 8.5% of all households in Hawaii Native Hawaiians earn 16% less that all other Hawaii residents ($56k versus $67k median for all Hawaii residents) 2013 Hawaii Homeless Utilization Report Native Hawaiians are overrepresented in homeless families with 47% of families who received homeless outreach services were Native Hawaiian KEY CHALLENGES Lack of income and poor credit are key barriers to affordable housing for Native Hawaiians. Supply of housing for Native Hawaiians is made more difficult with high housing prices and few rental units available on Trust lands. The DHHL 2015 Native American Housing and Self-Determination Act (NAHASDA) Report states the program s goal is to assist at least 65 families annually by building, acquiring, or rehabilitating homes. This target is based on average accomplishments over the last several years. [DHHL] uses significant amounts of grant funds to develop and install basic infrastructure before the homes can be constructed. If DHHL assisted 65 families annually to acquire and build homes alone, it would take an estimated 408 years to reduce the native Hawaiian applicant waitlist to zero based on the number of applicants identified in DHHL s 2006 study. RESOURCES AVAILABLE DHHL currently has $42 million in NAHASDA funds available for investment in the housing needs of an estimated 34,100 eligible native Hawaiian beneficiaries living in the State of Hawaii. DHHL receives an annual NAHASDA allocation of $9 million for native Hawaiian housing services, products, and home development. HCA and partner nonprofit organizations are committed to leverage $2.1 million in funds for housing education and counseling and financial products to address the housing needs of Native Hawaiians experiencing or at-risk of homelessness. $42 MILLION AVAILABLE DHHL currently has $42 million in NAHASDA funds to invest in housing education and counseling, financial products, and affordable housing development for an estimated 34,100 eligible native Hawaiian beneficiaries living on or near Hawaiian Home Lands. DHHL receives an annual NAHASDA allocation of $9 million and unspent NAHASDA funds have the potential of being taken back by the Department of Housing and Urban Development. $2.1 million Amount committed by Native Hawaiian nonprofits toward homeless solutions
4 RECOMMENDATION 1. INVEST $10 MILLION OF NAHASDA FUNDS TO BUILD 400 ACCESSORY DWELLING UNITS. The City and County of Honolulu passed Bill 20 to allow for building of Accessory Dwelling Units on properties of 3,500-4,999 square feet (400 square foot unit) to 5,000+ (800 square foot unit). Publicprivate partnership is key to the development of ADUs on Oahu. Private partnerships have been secured between Hawaiian Community Assets, Council for Native Hawaiian Advancement, Hawaiian Homestead Associations, Hawaiian Community Development Board, Architects Hawaii, Hunt Moss Construction, Honsador Lumber, Habitat for Humanity, Waimanalo Job Corps, and Hawaii Appleseed for outreach and the development of affordable ADUs for affordable rental housing opportunities. Native Hawaiian nonprofits, Hawaiian Community Assets, Council for Native Hawaiian Advancement, and Hawaiian Community Development Board have committed $2.1 million in leverage funds to conduct outreach, deliver HUD-certified housing education and counseling, and financial products to implement this recommendation. 1. State to uphold Administrative Rules Title 10-3-34 Building Requirements which allows for the Hawaiian Homes Commission to consider building construction and options to construct on Hawaiian Home Lands. 2. State to uphold Section 208 HHCA which allows for rentals to native Hawaiians and Native Hawaiians in existing or additional dwelling. 3. Amend Native Hawaiian Housing Plan to include development of ADUs. 4. Streamline permitting by the Hawaiian Homes Commission case-by-case consideration for exemptions for compostable toilets and parking to allow for building with zero infrastructure cost. 5. Deliver HUD-certified renter and homeowner education and counseling to financially prepare homeowners and renters in building, financing, and renting ADUs. 6. Pay down construction costs of each ADU at $25,000 for low-income native Hawaiians to build 400 units, leveraging existing match savings accounts and Individual Development Accounts for housing costs related to securing rental housing, purchasing a home, or sustaining homeownership.
5 RECOMMENDATION 2. SIGN THE FHA 247 RE-NEGOTIATED MOU WITH HUD. Native Hawaiian homeowners with a FHA 247 mortgages are limited to 75% of their home equity when all other homeowners in the nation are provided access to 95% of their home equity. Home equity can be used to pay for college or career training to increase earning potential, start a small business, or weather a financial hardship to prevent foreclosure and homelessness. Qualifying native Hawaiian homeowners for mortgages according to different standards than other homeowners is a fair lending violation that can be addressed by the State Department of Hawaiian Home Lands signing the FHA 247 MOU that was re-negotiated in 2012 by acting Deputy Director Michelle Kauhane with the existing FHA Commissioner allowing for native Hawaiian homeowners to access 95% loan-to-value on their home equity. A re-negotiated MOU between the State Department of Hawaiian Home Lands and HUD would proactively address homelessness by providing economic security to an estimated 3,000 FHA 247 borrowers and increase economic development on Hawaiian Home Lands. 1. Director of the State Department of Hawaiian Home Lands to sign FHA 247 re-negotiated ensuing native Hawaiian equal access to their home equity. 2. Deliver HUD-certified housing education and counseling to assist native Hawaiian FHA 247 borrowers in utilizing their home equity to pay for college or career training to increase earning potential, start a small business, or weather a financial hardship to prevent foreclosure and homelessness. Sign FHA 247 Re-Negotiated MOU
6 RECOMMEDATION 3. LEVERAGE RENTAL HOUSING TRUST AND NAHASDA FUNDS TO DEVELOP KUPUNA AND STUDENT RENTAL HOUSING DEVELOPMENT STATEWIDE. The State Department of Hawaiian Home Lands currently has a technical assistance contract with Rural Community Assistance Corporation through HUD s Office of Native American Programs. Rural Community Assistance Corporation is a Western US regional leader in nonprofit multifamily rental housing development and has a key partnership with national multifamily rental housing expert, Rural Local Initiative Support Corporation. In addition, there are existing native Hawaiian-serving nonprofit organizations, including Hawaiian Community Development Board, Homestead Community Development Corporation, and the Nanakuli Hawaiian Homestead Community Association that have expertise in housing development on Hawaiian Home Lands and are willing to lend their expertise to develop kupuna and student rental housing. 1. Convene a working group consisting of Department of Hawaiian Home Lands, Rural Community Assistance Corporation, Rural Local Initiative Support Corporation, Hawaiian Community Development Board, Homestead Community Development Corporation, and Nankuli Hawaiian Homestead Community Association facilitated by the Governor s Office. 2. Draft and approve administrative rules for multifamily rental housing development on Hawaiian Home Lands. 3. Amend Native Hawaiian Housing Plan to include development of kupuna and student housing. 4. Contract nonprofit native Hawaiian developers and Hawaiian Homestead Associations to develop kupuna and student rental housing, including the Bowl-A-Drome property in Moiliili. 5. Leverage State Rental Housing Trust Funds with NAHASDA Funds and Low-Income Housing Tax Credits for development costs, including the cost of infrastructure. 6. Identify additional rental housing development sites for kupuna and students on Hawaiian Home Lands and on available state lands, statewide. Develop Kupuna Sign FHA 247 & Student Rental Re-Negotiated MOU Housing
7 RECOMMENDATION 4. EXPAND RENTAL HOUSING TRUST FUND INTO AFFORDABLE HOUSING TRUST FUND TO INCLUDE SUPPORT FOR SELF- HELP HOMEOWNERSHIP OPPORTUNITIES FOR VERY-LOW AND LOW- INCOME INDIVIDUALS AND FAMILIES. The need for housing should be looked at on a continuum that includes affordable rental opportunities as well as affordable homeownership opportunities for our very-low and low-income individuals and families. By creating more opportunity for affordable homeownership, our State will increase rental housing vacancies that can be filled on individuals and families residing on the beach, in emergency and transitional shelters, in overcrowded living situations, and in high-priced rentals while they wait for their lease award on Hawaiian Home Lands, for Public Housing, and/or Section 8 support. 1. Include funding for Affordable Housing Trust Fund in the Governor s Legislative Package and State of Hawaii Budget, setting aside a dedicated amount of funds in Fiscal Year 2016 for affordable homeownership development. 2. Allow nonprofit self-help housing developers access to the funds for the development of affordable homeownership projects targeting very-low and low-income individuals and families. 3. Deliver HUD-certified homebuyer education and counseling to prepare individuals and families for homeownership. 4. Offer financial products to increase the financial capacity of very-low and low-income individuals and families to secure affordable housing through self-help housing programs. Develop Kupuna Sign FHA 247 & Student Rental Re-Negotiated MOU Housing Affordable Housing Affordable Housing Affordable Housing Trust Fund Trust Fund Trust Fund
8 RECOMMENDATION 5. TARGET HUD-CERTIFIED HOUSING COUNSELING SERVICES AND FINANCIAL PRODUCTS TOWARD INDIVIDUALS ON HAWAIIAN HOME LANDS WAITLIST AND PUBLIC HOUSING AND/OR SECTION 8 WAITLISTS. There are suspected to be a significant number of native Hawaiian Home Lands beneficiaries who are also on the Public Housing and Section 8 waitlists. The Governor s Office should bring together Department of Hawaiian Home Lands, Hawaii Public Housing Authority, and County Section 8 programs with technical assistance from Office of Hawaiian Affairs and Hawaiian Community Assets to identify individuals located on the Hawaiian Home Lands waitlist as well as the Public Housing and/or Section 8 waitlists and develop a targeted strategy to deliver HUD-certified housing counseling services and financial products to increase the identified individuals capacity to rent and own homes. 1. Establish a working group consisting of Department of Hawaiian Home Lands, Hawaii Public Housing Authority, County Section 8 programs, Office of Hawaiian Affairs, and Hawaiian Community Assets and facilitated by the Governor s Office to merge lists. 2. Develop and implement plan to deliver HUD-certified renter and homebuyer and counseling services and financial products to increase the financial capacity of Native Hawaiians to rent or own homes made available through development of ADUs, kupuna and student rental housing, and affordable, selfhelp homeownership. 3. Provide match savings grants and loans to build credit and secure housing. Merge Waitlists & Create Service Plan Develop Kupuna Sign FHA 247 & Student Rental Re-Negotiated MOU Housing Affordable Housing Affordable Housing Affordable Housing Trust Fund Trust Fund Trust Fund
9 RECOMMENDATION 6. LAUNCH PILOT OUTREACH CAMPAIGN ON MAUI TO ENSURE RETENTION OF $1 MILLION IN SECTION 8 FUNDS FOR AFFORDABLE RENTAL HOUSING. In the previous fiscal year, the County of Maui was unable to spend $1 million in Section 8 funds for affordable rental housing due to lack of supply and landlords. Homeowners on Hawaiian Home Lands are able to qualify as Section 8 landlords and can assist the Counties in retaining Section 8 funds. Through an education and outreach pilot project that contracts Hawaiian Homestead Associations with HUD-certified housing counseling agencies and other providers, native Hawaiians could increase their capacity to rent rooms in their home and reduce the number of sheltered and unsheltered homeless, alleviate overcrowded housing conditions, reduce Section 8 waitlists, and significantly decrease the likelihood of foreclosure and lease cancellation on Hawaiian Home Lands which leads to homelessness. 1. County of Maui to contract Hawaiian Homestead Associations to conduct outreach campaigns on Maui to encourage their community members to become qualified Section 8 landlords. 2. Hawaiian Homestead Associations to partner with Hawaiian Community Assets, Legal Aid Society of Hawaii, financial institutions, and County of Maui Section 8 program to conduct outreach that includes access to HUD-certified housing education and counseling services, financial products, Hawaii Tenant- Landlord Code training, and Section 8 program information. Merge Waitlists & Create Service Plan Develop Kupuna Sign FHA 247 & Student Rental Re-Negotiated MOU Housing Affordable Housing Affordable Housing Affordable Housing Trust Fund Trust Fund Trust Fund Maui Section 8 Maui Section 8 Maui Section 8 Outreach Pilot Outreach Pilot Outreach Pilot
10 RECOMMENDATION 7. EXPAND STATE DEPARTMENT OF HAWAIIAN HOME LANDS HOMEOWNERSHIP ASSISTANCE AND FINANCIAL LITERACY EDUCATION PROGRAM TO DELIVER HUD-CERTIFIED RENTER, HOMEBUYER, AND HOMEOWNER EDUCATION TO ALL HAWAIIAN HOME LANDS BENEFICIARIES STATEWIDE. According to DHHL s 2006 Study of Hawaiian Home Lands beneficiaries, there are 34,100 low-income native Hawaiians (80% AMI) residing in the State of Hawaii who could qualify for HUD-certified housing education and counseling funded with NAHASDA funds. Expansion of the State Department of Hawaiian Home Lands use of NAHASDA funds to include HUD-certified renter, homebuyer, and homeowner education and counseling to all eligible native Hawaiian beneficiaries could provide the education and attention necessary to increase their financial capacity to rent or own homes, uiltimately supporting all recommendations made during the Community Solutions Forum on Homelessness. 1. Amend Native Hawaiian Housing Plan to include funding of HUD-certified renter, homebuyer, and homeowner education for all eligible native Hawaiian beneficiaries residing in the State of Hawaii. 2. Contract HUD-certified housing counseling agencies that are able to provide leverage funds to deliver services and offer financial products that will increase the financial capacity of NAHASDA eligible native Hawaiian beneficiaries to rent or own homes. Merge Waitlists & Create Service Plan Targeted HUD Targeted HUD Targeted HUD Targeted HUD Services & Services & Services & Services & Products Products Products Products Develop Kupuna Sign FHA 247 & Student Rental Re-Negotiated MOU Housing Affordable Housing Affordable Housing Affordable Housing Trust Fund Trust Fund Trust Fund Maui Section 8 Maui Section 8 Maui Section 8 Outreach Pilot Outreach Pilot Outreach Pilot
11 RECOMMENDATION 8. BUILD HOMES WITH KAHANA VALLEY FAMILIES AND IDENTIFY OTHER FAMILIES WITH STATE LEASES OUTSIDE OF HAWAIIAN HOME LANDS. There are families in areas across the state, including Kahana Valley on Oahu, who have state leases outside of Hawaiian Home Lands that are in desperate need of housing. To date, these unique leases have created barriers to families being able to build and finance homes and address their housing needs. 1. Convene working group consisting of Kahana Valley families, Department of Land and Natural Resources, Habitat for Humanity, and Hawaiian Community Assets facilitated by the Governor s Office to establish an action plan to build homes with Kahana Valley families. 2. Identify other families with state leases outside of Hawaiian Home Lands and setup meetings to address their housing needs accordingly. Merge Waitlists Address Kahana & Create Service Valley Family Plan Housing Needs Targeted HUD Targeted HUD Targeted HUD Targeted HUD Services & Services & Services & Services & Products Products Products Products Develop Kupuna Sign FHA 247 & Student Rental Re-Negotiated MOU Housing Affordable Housing Affordable Housing Affordable Housing Trust Fund Trust Fund Trust Fund Maui Section 8 Maui Section 8 Maui Section 8 Outreach Pilot Outreach Pilot Outreach Pilot