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Committee advances $62 million Kauhale funding package; office seeks two‑bid rule for large projects
Summary
The committee advanced HB431 (HD1) to appropriate $62 million for Kāhale projects, including $50 million targeted at Kauhale inventory and $12 million to HHFDC; the statewide office on homelessness proposed amendments requiring at least two bidders on projects over $1 million and clarifying Ohana/Kauhale fund interchangeability.
The House Committee on Housing voted to advance HB431 (HD1), a spending and program bill that would target $62 million toward Kauhale projects and related housing inventory for people experiencing homelessness and people with disabilities.
John Mizuno, director of the Statewide Office on Homelessness and Housing Solutions (SOHHS), told the committee the bill “goes unprecedented in funding 50,000,000 for our Kauhale projects along with another 12,000,000 to HHFDC” for a total of $62,000,000. Mizuno said the funds could be used for development and supportive services and called the package “the potential to make history” if it helps reduce homelessness in the state.
Witnesses including Catholic Charities of Hawaii and other service providers testified in support, saying the package funds rapid housing construction and operations as well as supportive services. Betsy Lou Larsen of Catholic Charities described the funds as addressing “immediate and rapid development of housing” and long‑term supportive housing needs.
Agency clarifications and proposed amendments: In response to committee questions about procurement and long‑term operations, Mizuno proposed two “friendly amendments” that the committee adopted as part of the HD2 drafting instructions: (1) require at least two bidders for any Kauhale project estimated to cost over $1,000,000 to promote fairness and fair market pricing; and (2) add a statutory definition clarifying that Kauhale funds shall encompass Ohana Zone funds (the office seeks to remove confusion and ensure counties continue to receive Ohana‑style funding through Kauhale appropriations). SOHHS also reported recurring operating costs are approximately 25% of project budgets and stressed land ownership would remain with public land‑holding agencies (DAGS, DLNR or HPHA) while SOHHS would manage operations.
Homelessness numbers cited: Mizuno cited the point‑in‑time count from January 2024 showing 6,389 people experiencing homelessness statewide and said chronically homeless persons number “approximately 4,400,” stressing the need for inventory beds.
Decision and votes: The committee voted to advance HB431 as HD2 with the amendments Mizuno requested; the committee recorded one recorded “no” vote (Representative Muraoka) and one reservation (Representative Keila) during decision making; the recommendation was adopted.
Next steps: HB431 will proceed with HD2 language reflecting procurement and fund‑definition amendments; committee members asked for further clarity about operations, land ownership and long‑term stewardship.
