This was provided as background in the October 2001 Special Session. Note that it was later determined that use of the grant-in-aid mechanism recommended is only available during a "regular" session of the legislature. HB/SB 17, Relating to Economic Emergency, provides emergency powers which can be exercised by the Governor to speed disbursement of funds.

EMERGENCY FOOD AND SHELTER ASSISTANCE
I. SUMMARY OF NEED, PURPOSE AND APPROACH
II. BACKGROUND INFORMATION ON NEED
III. BACKGROUND INFORMATION ON EXISTING EMERGENCY FOOD AND SHELTER SYSTEM

IV. ESTIMATED FUNDING NEEDED FOR A FIVE-MONTH PERIOD
V. GRANT-IN-AID MECHANISM

I. SUMMARY OF NEED, PURPOSE AND APPROACH
In the current economic environment, the State must take measures to provide emergency food and shelter assistance to stabilize the situations of individuals and families negatively affected by the economic downturn due to the September 11, 2001 attacks. Assisting those who have become underemployed or unemployed as a result of the economic downturn in Hawaii will help these individuals and families retain their current housing, search for new employment, and return to self-sufficiency as soon as possible. The currently Emergency Food and Shelter Program of the Federal Emergency Management Agency is a proven mechanism for preventing hunger and homelessness. Although there is discussion in Congress about providing additional emergency food and shelter dollars to states suffering as a result of the economic impacts of the September 11 attacks, immediate local action is needed to provide interim assistance, as federal dollars are not currently available. The existing distribution mechanism can be activated quickly using a grant-in-aid authorized by Chapter 42F, Hawaii Revised Statutes.

II. BACKGROUND INFORMATION ON THE NEED
1. The ability to pay for food, rent, mortgage and utilities has declined for thousands of individuals and families who have lost jobs or had reductions in wages or hours due to the economic downturn following the September 11, 2001 attacks. The target population for this appropriation for emergency food and shelter assistance (including rent and mortgage assistance and utilities) are those individuals who currently have housing but whose ability to pay for that housing has declined significantly because they are now unemployed or underemployed due to the economic downturn following the September 11, 2001 attacks.
2. Prior to September 11, 2001, individuals and families in Hawaii already struggled to maintain adequate housing. Increasing layoffs and reductions of hours since September 11 have placed many at risk for homelessness. Past studies have reported that many working families in Hawaii are only one or two paychecks from homelessness because of their marginal incomes. Layoffs and reductions of hours since September 11 have placed many at risk for homelessness. Homelessness is associated with other serious negative health and social consequences; therefore, if it can be prevented, it should be.
3. Existing government housing and housing assistance programs are not currently able to meet the demand for housing and will be unavailable to assist those who are underemployed or unemployed by the current economic downturn. All deep subsidy programs for housing are funded by the federal government. Over 8,000 people are on the wait list for vouchers administered by the state and approximately 5,000 are on the wait list for vouchers administered by the counties. Those recently made under- or unemployed by the aftermath of September 11 would be at the bottom of the lists, even if they were able to qualify, and so will not be helped in the near future by these programs.
4. The total dollar amount available for the state's rental assistance program was insufficient to meet demand prior to September 11, 2000, and the low dollar cap per month, even if funds were available, would likely be insufficient to allow people to keep their current housing. The current dollar cap for the rental subsidy program administered by the Housing and Community Development Corporation of Hawaii is $160. Current fair market rental rates (including rent and utilities) are much higher than the subsidy provided by the current state system. According to the federal Department of Housing and Urban Development, fair market rent for a 2-bedroom unit is $840 in Honolulu, $696 in Hawaii County, $1,133 in Maui County, and $1,077 in Kauai County.

III. BACKGROUND INFORMATION ON EXISTING EMERGENCY FOOD AND SHELTER SYSTEM
The best strategy to help the newly unemployed and underemployed workers is to provide immediate help with food and to enable them to maintain their current housing while they seek to increase and stabilize their income. The Federal Emergency Management Agency has an established comprehensive local delivery system that can be used for this purpose.
1. FEMA's Emergency Food and Shelter Program ("EFSP"), specifically designed to assist people facing non-disaster emergencies, is a public/private partnership that provides an outstanding model for meeting the needs of individuals in financial crisis. The EFSP National Board has representatives from the Salvation Army, American Red Cross, Catholic Charities USA, Council of Jewish Federations, the United Way of America, and the National Council of Churches. Each county in the state also has a local board whose membership mirrors the National Board. These local boards determine how to use EFSP funds in their communities.
2. With the support of the United Ways in their counties, these local boards administer the program and monitor program compliance. In early 2001, the local boards advertised the availability of funds, established local priorities, and selected the agencies to receive EFSP funding. Sixteen agencies on Oahu, ten agencies on the island of Hawaii, six agencies on Kauai, and eighteen agencies on Maui were selected to receive and distribute EFSP funds. Each of the county food banks, Hawaii Foodbank, Maui Food Bank, Inc., The Kauai Foodbank, and Hawaii Island Food Bank, currently receive EFSP funds.
3. Although Hawaii's $708,742 in FEMA EFSP dollars were exhausted in October, the program's statewide network of agencies remains intact and could serve to distribute state dollars to affected individuals.
4. The local EFSP agencies are experienced in screening applicants for emergency needs and assuring immediate response for food and shelter. The primary criterion for receiving assistance is that there is a bona fide emergency need for food or shelter.
5. Given the very difficult employment market in Hawaii, it would be reasonable to assume that people seeking the opportunity to increase their income by seeking new or additional jobs will need more than one month's assistance. However, since most will have some form of partial income, such as unemployment insurance, the assistance needed may be limited in both time and amount in order to maximize the number of people assisted.

IV. ESTIMATED FUNDING NEEDED FOR A FIVE-MONTH PERIOD
A five-month estimate of the statewide need for emergency food and shelter assistance is $5,643,311. This estimate is based on past experience in the EFS program, the assumptions noted below, and the limited information currently available regarding the present unemployment situation in the state.

Emergency Food and Shelter Assistance for Five-Month Period

County	Food	Shelter	Total
Honolulu	$ 400,000	$ 2,863,388	$ 3,263,388
Hawaii	$ 150,000	$582,066	$ 732,066
Maui	$ 100,000	$1,047,979	$ 1,147,979
Kauai	$ 150,000	$349,898	$ 499,898
Total	$ 800,000	$4,843,331	$ 5,643,331

1. To maintain flexibility in the application of the dollars, the total dollars should be distributed as a block of funds and not restricted by category (food, rent/mortgage or utilities).
2. The five-month estimate assumes:
The same proportion of unemployed seeking assistance for rent/mortgage and for utilities in the next five months as Honolulu county experienced in five months in 2001
Projected numbers of unemployed based on the percentage increase in unemployment insurance claims by county
Setting of a policy allowing individuals to access monthly assistance dollars for four months each during this period of instability in the job market
3. Based on the most current information available from the department of business, economic development and tourism and the department of labor and industrial relations, the number of unemployed has dramatically increased since the September 11, 2001 attacks:
August 2001 Unemployed Unemployment Rate
Honolulu 17,100 4%
Big island 4,850 6.8
Maui County 3,200 4.2
Kauai 2,050 6.7
27,200 4.5%

Week's claims for unemployment by County For the week ending October 14, 2000 For the week ending October 13, 2001 Increase in unemployment claims
Honolulu 4,867 9,762 200%
Hawaii 1,296 2,235 173%
Maui 861 2,517 290%
Kauai 609 971 159%
Total Statewide Claims 8,122 16,073 198%

4. Based on the doubling of total statewide claims for unemployment, it is reasonable to anticipate that the increase in individuals needing emergency food or shelter assistance has significantly increased, if not doubled. It should be noted that there is an undetermined and growing number of underemployed (those whose wages have been cut or hours reduced); therefore, any estimate of need for emergency assistance based solely on increases in unemployment is likely significantly underestimated.
5. In the five-month period from April to October 2001 on Oahu alone, EFSP subsidies were provided to 575 clients in the form of rent/mortgage assistance ($285,360) to keep them from being evicted from their homes. An additional 147 clients on Oahu received utility payment assistance ($18,500). Many others residing on Oahu were also served through mass shelter programs (over $60,000) and the distribution of food by the Hawaii Foodbank ($100,000).
6. In every county, the total allocation of EFSP dollars was exhausted within approximately 6 months, leaving no dollars available to respond to the increased demand following September 11. In 2001, Hawaii received EFSP dollars statewide as follows:
County 2001 Emergency Food and Shelter Dollars
Hawaii $137,738
Honolulu $474,602
Kauai $52,129
Maui $44,273
Total $708,742

V. GRANT-IN-AID MECHANISM
The grant-in-aid authority provided under Chapter 42F of the Hawaii Revised Statutes is the fastest, most flexible way to implement emergency food and shelter assistance through the existing EFSP infrastructure of agencies and distribute dollars quickly to eligible individuals.
1. A single grant-in-aid can be made to the Aloha United Way ("AUW"). AUW staffs the Oahu Emergency Food and Shelter Program Board, also designated by FEMA as the statewide board for the purposes of administering the State Set Aside funds that in 2001 went to Maui County. The Aloha United Way is willing to receive state funds and distribute them to the existing network of EFSP agencies in all counties. The existing network includes each of the four county food banks.
2. In the alternative, The Salvation Army, which is designated as an EFSP participating agency in each county, and that holds state contracts relating to the provision of food and shelter services, could receive and distribute the funds to the EFSP system of agencies.
3. In the alternative, a grant in aid for the shelter portion of dollars could be given to the Aloha United Way and separate grants in aid for food assistance could be given to the food banks in each county (Hawaii Foodbank, Maui Food Bank, Inc., The Kauai Foodbank, and Hawaii Island Food Bank).