Housing; Admin Measure

Amends "qualified resident"; and definition of "housing owner" to
include "very low" income; amends definition of "qualified
tenant" to conform to fair housing requirements; lowers the
income limits for participation in the state rent supplemental
program; increases tenants annual payment from 1/5 to 30% of
tenant's income over a two year period.  (SD2)

THE SENATE                              S.B. NO.           S.D. 2
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
 4 projects.  The corporation may allow a person who is a current
 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;

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

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 1                580-71."
 2      SECTION 2.  Section 201G-232, Hawaii Revised Statutes, is
 3 amended to read as follows:
 4      "[[]201G-232[]]  Housing owner defined.  As used in this
 5 subpart, the term "housing owner" means:
 6      (1)  A private nonprofit corporation or other private
 7           nonprofit legal entity, a limited dividend corporation
 8           or other limited dividend legal entity, or a
 9           cooperative housing corporation, which is a mortgagor
10           under [sections] section 202, 207, 213, 221(d)(3),
11           221(d)(5), or 231 of the National Housing Act, as
12           amended, or which conforms to the standards of those
13           sections but which is not a mortgagor under those
14           sections or any other private mortgagor under the
15           National Housing Act, as amended, for very low-, low-,
16           or moderate-income family housing, regulated or
17           supervised under federal or state laws or by political
18           subdivisions of the State, or agencies thereof, as to
19           rents, charges, capital structure, rate of return, and
20           methods of operation, from the time of issuance of the
21           building permit for the project; and
22      (2)  Any other owner of a standard housing unit or units

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                                     S.B. NO.           S.D. 2

 1           deemed qualified by the corporation."
 2      SECTION 3.  Section 201G-233, Hawaii Revised Statutes, is
 3 amended to read as follows:
 4      "[[]201G-233[]]  Qualified tenant defined.  As used in this
 5 subpart, the term "qualified tenant" means[:
 6      (1)  Any single person who has attained the age of sixty-two
 7           or who is unable to engage in any substantial gainful
 8           activity by reason of any medically determinable
 9           physical or mental impairment; or
10      (2)  Any family;
11 provided that the] any single person or family[, pursuant to
12 criteria and procedures established by the corporation, has been
13 determined to have] with an income [which would qualify the
14 tenant for occupancy in housing provided by section 221(d)(3) of
15 the National Housing Act, as amended, or to have a lesser income;
16 and] that does not exceed the very low income limit as determined
17 by the United States Department of Housing and Urban Development;
18 provided [further] that the qualified tenant's primary place of
19 residence shall be in the State of Hawaii or that the qualified
20 tenant intends to make the State of Hawaii [their] the qualified
21 tenant's primary place of residence.  The terms "qualified
22 tenant" and "tenant" include a member of a cooperative who

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 1 satisfies the foregoing requirements and who, upon resale of the
 2 member's membership to the cooperative, will not be reimbursed
 3 for more than fifty per cent of any equity increment accumulated
 4 through payments under this subpart.  With respect to members of
 5 a cooperative, the terms "rental" and "rental charges" mean the
 6 charges under the occupancy agreements between the members and
 7 the cooperative.  The term "qualified tenant" shall not include
 8 any person receiving money payments for public assistance from
 9 the department of human services; provided that the term "public
10 assistance" shall exclude aid provided through the federal
11 Supplemental Security Income Program."
12      SECTION 4.  Section 201G-234, Hawaii Revised Statutes, is
13 amended to read as follows:
14      "[[]201G-234[]]  Relationship of annual payment to rental
15 and income.  The amount of the annual payment with respect to any
16 dwelling unit shall not exceed the amount by which the fair
17 market rental for such a unit exceeds [one-fifth] thirty per cent
18 of the tenant's income as determined by the corporation pursuant
19 to procedures and regulations established by it."
20      SECTION 5.  Section 201G-235, Hawaii Revised Statutes, is
21 amended by amending subsection (d) to read as follows:
22      "(d)  No payments shall be made under this subpart except to

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 1 the extent that tenants selected under this subpart have been
 2 selected according to the following priorities:
 3      (1)  First priority shall be given to those who have:
 4           (A)  An income above the maximum amount allowed for
 5                continued occupancy in housing provided for in
 6                [part II.A;] subparts A and B of part II;
 7           (B)  Been tenants of public housing under [part  II.A;]
 8                subparts A and B of part II;
 9           (C)  Recently vacated or are vacating housing in
10                subparagraph (A) or (B) because of exceeding  the
11                maximum income allowable for continued  occupancy;
12                and
13           (D)  An urgent housing need; and
14      (2)  Second priority shall be given to all other eligible
15           persons under this subpart who have an urgent need for
16           housing [need]."
17      SECTION 6.  Section 201G-234, Hawaii Revised Statutes, to
18 the contrary notwithstanding, the amount by which the fair market
19 rental for a dwelling unit may exceed the tenant's income as
20 determined by the corporation under section 201G-234, Hawaii
21 Revised Statutes, which is one-fifth on June 30, 1999, may be
22 increased by rules of the corporation adopted under chapter 91,

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                                     S.B. NO.           S.D. 2

 1 Hawaii Revised Statutes, to twenty-five per cent on July 1, 1999,
 2 and may be increased to thirty per cent on July 1, 2000. This
 3 section shall apply to participants in the rent supplement
 4 program under chapter 201G, Hawaii Revised Statutes, on June 30,
 5 1999.
 6      SECTION 7.  New participants to the rent supplement program
 7 after June 30, 1999, shall be required to comply with section
 8 201G-234, Hawaii Revised Statutes.
 9      SECTION 8.  Statutory material to be repealed is bracketed.
10 New statutory material is underscored.
11      SECTION 9.  This Act shall take effect upon its approval;
12 provided that sections 6 and 7 shall take effect on June 30,
13 1999; and provided further that section 4 shall take effect on
14 July 1, 1999.