HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 201G-128, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "201G-128  Exception of current owners in corporation
 5 owner of a multifamily dwelling unit in a project sponsored by
 6 the corporation to apply for the purchase of a larger dwelling
 7 unit in a project sponsored by the corporation if the applicant's
 8 current family size exceeds the permissible family size for the
 9 applicant's current dwelling unit, as determined by prevailing
10 county building or housing codes.  The applicant shall be
11 required to sell the applicant's current dwelling unit back to
12 the corporation.  Notwithstanding any law to the contrary, any
13 applicant, as it pertains to for-sale housing, shall be a
14 "qualified resident" who:
15      (1)  Is a citizen of the United States or a resident alien;
16      (2)  Is at least eighteen years of age;
17      (3)  Is domiciled in the State and shall physically reside
18           in the dwelling unit purchased under this chapter;
19      (4)  In the case of purchase of real property in fee simple

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 1           or leasehold, has a gross income sufficient to qualify
 2           for the loan to finance the purchase; and
 3      (5)  Except for the applicant's current residence, meets the
 4           following qualifications:
 5           (A)  Is a person who either oneself or together with
 6                spouse[,] or household member, does not own a
 7                majority interest in fee simple or leasehold lands
 8                suitable for dwelling purposes, or a majority
 9                interest in lands under any trust agreement or
10                other fiduciary arrangement in which another
11                person holds the legal title to such land; and
12           (B)  Is a person whose spouse or household member does
13                not own a majority interest in fee simple or
14                leasehold lands suitable for dwelling purposes or
15                a majority interest in lands under any trust
16                agreement or other fiduciary arrangement in which
17                another person holds the legal title to such land,
18                except when husband and wife are living apart
19                under a decree of separation from bed and board
20                issued by the family court pursuant to section
21                580-71."
22      SECTION 2.  Section 201G-232, Hawaii Revised Statutes, is
23 amended to read as follows:

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 1      "[[]201G-232[]]  Housing owner defined.  As used in this
 2 subpart, the term "housing owner" means:
 3      (1)  A private nonprofit corporation or other private
 4           nonprofit legal entity, a limited dividend corporation
 5           or other limited dividend legal entity, or a
 6           cooperative housing corporation, which is a mortgagor
 7           under sections 202, 207, 213, 221(d)(3), 221(d)(5), or
 8           231 of the National Housing Act, as amended, or which
 9           conforms to the standards of those sections but which
10           is not a mortgagor under those sections or any other
11           private mortgagor under the National Housing Act, as
12           amended, for very low income, low- or moderate-income
13           family housing, regulated or supervised under federal
14           or state laws or by political subdivisions of the
15           State, or agencies thereof, as to rents, charges,
16           capital structure, rate of return, and methods of
17           operation, from the time of issuance of the building
18           permit for the project; and
19      (2)  Any other owner of a standard housing unit or units
20           deemed qualified by the corporation."
21      SECTION 3.  Section 201G-233, Hawaii Revised Statutes, is
22 amended to read as follows:
23      "[[]201G-233[]]  Qualified tenant defined.  As used in this

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 1 subpart, the term "qualified tenant" means[:
 2      (1)  Any single person who has attained the age of sixty-two
 3           or who is unable to engage in any substantial gainful
 4           activity by reason of any medically determinable
 5           physical or mental impairment; or
 6      (2)  Any family;
 7 provided that the] any single person or family[, pursuant to
 8 criteria and procedures established by the corporation, has been
 9 determined to have] with an income [which would qualify the
10 tenant for occupancy in housing provided by section 221(d)(3) of
11 the National Housing Act, as amended, or to have a lesser
12 income;] that does not exceed the very low income limit as
13 determined by the United States Department of Housing and Urban
14 Development; and provided further that the qualified tenant's
15 primary place of residence shall be in the State of Hawaii or
16 that the qualified tenant intends to make the State of Hawaii
17 [their] the qualified tenant's primary place of residence.  The
18 terms "qualified tenant" and "tenant" include a member of a
19 cooperative who satisfies the foregoing requirements and who,
20 upon resale of the member's membership to the cooperative, will
21 not be reimbursed for more than fifty per cent of any equity
22 increment accumulated through payments under this subpart.  With
23 respect to members of a cooperative, the terms "rental" and

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 1 "rental charges" mean the charges under the occupancy agreements
 2 between the members and the cooperative.  The term "qualified
 3 tenant" shall not include any person receiving money payments for
 4 public assistance from the department of human services; provided
 5 that the term "public assistance" shall exclude aid provided
 6 through the federal Supplemental Security Income Program."
 7      SECTION 4.  Section 201G-234, Hawaii Revised Statutes, is
 8 amended to read as follows:
 9      2)        "[[]201G-234[]]  Relationship of annual payment to
10        rental and income.  The amount of the annual payment
11           with respect to any dwelling unit shall not exceed the
12           amount by which the fair market rental for such a unit
13           exceeds [one-fifth] thirty per cent of the tenant's
14           income as determined by the corporation pursuant to
15           procedures and regulations established by it."
16      SECTION 5.  Section 201G-235, Hawaii Revised Statutes, is
17 amended by amending subsection (d) to read as follows:
18      "(d)  No payments shall be made under this subpart except to
19 the extent that tenants selected under this subpart have been
20 selected according to the following priorities:
21      (1)  First priority shall be given to those who have:
22           (A)  An income above the maximum amount allowed for
23                continued occupancy in housing provided for in

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 1                [part II.A;] subparts A and B of part II;
 2           (B)  Been tenants of public housing under [part  II.A;]
 3                subparts A and B of part II;
 4           (C)  Recently vacated or are vacating housing in
 5                subparagraph (A) or (B) because of exceeding  the
 6                maximum income allowable for continued  occupancy;
 7                and
 8           (D)  An urgent housing need; and
 9      (2)  Second priority shall be given to all other eligible
10           persons under this subpart who have an urgent need for
11           housing."
12      SECTION 6.  Section 201G-234, Hawaii Revised Statutes, to
13 the contrary not withstanding, the amount by which the fair
14 market rental for a dwelling unit may exceed the tenant's income
15 as determined by the corporation under section 201G-234, Hawaii
16 Revised Statutes, which is one-fifth on June 30, 1999, may be
17 increased by rules of the corporation adopted under chapter 91,
18 Hawaii Revised Statutes, to twenty-five per cent on July 1, 1999,
19 and may be increased to thirty per cent on July 1, 2000. This
20 section shall apply to participants in the rent supplement
21 program under chapter 201G, Hawaii Revised Statutes, on June 30,
22 1999.
23      SECTION 7.  New participants to the rent supplement program

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 1 after June 30, 1999, shall be required to comply with section
 2 201G-234, Hawaii Revised Statutes.
 3      SECTION 8.  Statutory material to be repealed is bracketed.
 4 New statutory material is underscored.
 5      SECTION 9.  This Act shall take effect upon its approval
 6 provided that section 4 shall take effect on July 1, 1999.
 8                           INTRODUCED BY: ________________________

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