Bill Text: HI SCR115 | 2021 | Regular Session | Amended
Bill Title: Requesting The University Of Hawaii To Examine And Assess The Reasonableness And Feasibility Of The Current Policies, Standards, Rules, Guidelines, And Procedures Governing The University Housing Program.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2021-04-08 - Report adopted. referred to the committee(s) on FIN as amended in HD 1 with none voting aye with reservations; none voting no (0) and Representative(s) McDermott excused (1). [SCR115 Detail]
Download: Hawaii-2021-SCR115-Amended.html
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THE SENATE |
S.C.R. NO. |
115 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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SENATE CONCURRENT
RESOLUTION
REQUESTING THE UNIVERSITY OF HAWAII TO EXAMINE AND ASSESS THE REASONABLENESS AND FEASIBILITY OF THE CURRENT POLICIES, STANDARDS, RULES, GUIDELINES, AND PROCEDURES GOVERNING THE UNIVERSITY HOUSING PROGRAM.
WHEREAS, the University of Hawaii is the only system of public education in Hawaii that is supported by state funds, uses public land set aside for university purposes, and is continually supported by other public resources; and
WHEREAS, the
University of Hawaii at Manoa University Housing Program offers rental housing to
new employees during their initial years of employment; and
WHEREAS, the
University Housing Program consists of three housing projects located in Manoa,
Oahu Rental Projects, that are managed by Locations Property Management LLC; and
WHEREAS, concerns have been raised over the administration of the Oahu Rental Projects, including its policies on eligibility criteria, rent, and duration of tenancy, and the University of Hawaii's enforcement thereof; and
WHEREAS, according to a report produced by the University of Hawaii Office of Internal Audit (University Internal Audit) in November 2019 (2019 Audit Report), and in previous reports issued in December 2010 and February 2013, the University Internal Audit identified various issues relating to the University Housing Program's noncompliance with the policies of the Board of Regents of the University of Hawaii and the Internal Revenue Code (IRC), including the program's historical failure to enforce the maximum term of stay resulting in low housing turnover; potential violation of section 119(d) of the IRC by failing to report the difference between the market value rent and the lower rent charged as the tenant-faculty's gross income and withholding applicable taxes therefrom; and lack of policies and procedures pertaining to the subleasing of faculty rental housing; and
WHEREAS, according to the 2019 Audit Report, the Board of Regents of the University of Hawaii revised its policies governing the University Housing Assistance Program in October 2014 to address the issues raised by the University Internal Audit in 2013 and 2014; and
WHEREAS, Board of Regents Policy 9.209 provides that the purpose of the Oahu Rental Projects is to serve as temporary transitional housing for newly recruited university personnel; and
WHEREAS, according to the 2019 Audit Report, the University of Hawaii started sending out notices in May 2014 to tenants of the Oahu Rental Projects who had exceeded the maximum term of tenancy to vacate their units within one year from the receipt of the notice, and as of August 2019, the waitlist has decreased to forty people, compared to one hundred eighty-one people in January 2013; and
WHEREAS, the one-year period to vacate is too long, especially considering the fact that as of June 30, 2019, approximately one third of the Oahu Rental Projects tenants were still exceeding the maximum term of their tenancy, despite having forty people on the waitlist; and
WHEREAS, section 6 of article X of the Hawaii State Constitution, which grants the Board of Regents of the University of Hawaii exclusive jurisdiction over the internal structure, management, and operation of the University, specifically provides that the power of the Legislature to enact laws of statewide concern shall not be limited and that the Legislature shall have the exclusive jurisdiction to identify laws of statewide concern; and
WHEREAS, the University of Hawaii's decision to grant University rental housing to its faculty results in the long-term commitment of public resources to the faculty; and
WHEREAS, it is a matter of statewide concern to ensure that public resources expended for the University Housing Program are properly administered pursuant to reasonable policies, standards, rules, guidelines, and procedures; now, therefore,
BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2021, the House of Representatives concurring, that the University of Hawaii, with the oversight of the Chairperson of the Board of Regents of the University of Hawaii, is requested to examine and assess the reasonableness and feasibility of the current policies, standards, rules, guidelines, and procedures governing the University Housing Program; and
BE IT FURTHER RESOLVED that the University of Hawaii and the Chairperson of the Board of Regents of the University of Hawaii are requested to submit a report of their findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2022; and
BE IT FURTHER RESOLVED that the report is requested to include, at minimum:
(1) A matrix of the properties constituting the Oahu Rental Projects and information on their tenants, including:
(A) Value of each type of unit as assessed by the City and County of Honolulu Real Property Assessment Division, appraised market value, tax-free monthly rent amount, monthly rent amount charged to tenant-faculty, and taxable gross income (if any);
(B) Whether the unit is occupied as of September 1, 2021; and
(C) Tenant information for each unit, including:
(i) Priority, rank, status, and faculty category, e.g., Priority, 1; Rank, 3; Status, Tenure-Track Faculty; Faculty Category, Researcher;
(ii) Tenancy start date and scheduled end date, including information on the number of lease extensions and date of notice of termination of lease, if issued; and
(iii) Whether the tenant-faculty owns an interest in any other residential real property on Oahu;
(2) The University of Hawaii's efforts in bringing the rents for the Oahu Rental Projects in line with fair market rent;
(3) The number of tenants given IRS Form W-2, Wage and Tax Statement for taxable benefit under section 119 of the IRC;
(4) An assessment of the current policies, standards, rules, guidelines, and procedures governing the University Housing Program, including the reasonableness, necessity, and feasibility of the eligibility criteria and maximum duration of tenancy permitted. The assessment is requested to include:
(A) The history, background, and reasoning behind the University of Hawaii's adoption of the existing policies, standards, rules, guidelines, and procedures, including when they were adopted, whether there have been amendments, and if so, the dates of and the reasonings behind the amendments;
(B) A detailed analysis on the reasonableness, necessity, and feasibility of the eligibility criteria for the Oahu Rental Projects, which does not preclude its tenants from owning real property outside of Oahu;
(C) The historical assessment of whether the policies, standards, rules, guidelines, and procedures are being adhered to by the University of Hawaii and tenant-faculty, and if not, the reason for the non-adherence;
(D) A historical assessment of the process and basis by which the President of the University of Hawaii approves or denies lease extension requests beyond the maximum lease term, including the number of lease extensions granted in the past ten years, the number of applicants on the waitlist at the time a lease extension was granted, the criteria for determining the priority between lease extension requests and applicants on the waitlist with newer initial appointment dates, and a determination of whether extensions should be given only if there is no waiting list;
(E) The person responsible for enforcing the University of Hawaii policies and terms and conditions of the lease; and
(F) The process by which the University of Hawaii monitors and verifies the University and the tenant faculty's compliance with University policies and the terms and conditions of the lease;
(6) A proposed policy setting forth a reasonable time period by which tenants must vacate the premises after exceeding their maximum lease term that is shorter than one year and compatible with general practices pertaining to hold-over tenants of fixed-term rental agreements; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the University of Hawaii System and Chairperson of the Board of Regents of the University of Hawaii.
University of Hawaii; University Housing
Assistance Program; Faculty Rental Housing; Policies; Eligibility Criteria;
Maximum Term; Examination and Assessment; Report
