H.B. 431 Summary

• Establishes requirements for kauhale projects funded by the state, including mandatory connections to public utilities, rent capped at 30% of area median income, competitive bidding for projects over $1,000,000, community consultation, and state right to recoup funds if misused.

• Appropriates $18,575,000 for fiscal year 2025-2026 and $24,325,000 for fiscal year 2026-2027 to the Department of Human Services for kauhale initiative operations, including development, rent supplements, support services, and wraparound services.

• Establishes the Ohana Zones Program as a permanent program within the Statewide Office on Homelessness and Housing Solutions to provide temporary housing and services to homeless individuals and families, with appropriations of $2,525,000 for fiscal year 2025-2026 and $5,855,000 for fiscal year 2026-2027.

• Requires the State Auditor to conduct a management and performance audit of the kauhale initiative and submit findings to the legislature by twenty days prior to the 2026 regular session.

• Requires quarterly reporting to the legislature on expenditures for kauhale and ohana zones initiatives and a comprehensive needs assessment by counties; changes administrative title from "Governor's Coordinator on Homelessness" to "Coordinator on Homelessness" reporting to the Director of Human Services.