REPORT TITLE:
Rent supplement program


DESCRIPTION:
Allows persons who earn 50% or less of the median family income
to participate in the Rent Supplement Program.  Allows the
Housing and Community Development Corporation of Hawaii (HCDCH)
to increase the rent contribution of each tenant from 20% to a
maximum 30% of the tenant's annual income provided HCDCH first
holds a public hearing.  (HB2429 CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2429
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                S.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE HOUSING AND COMMUNITY DEVELOPMENT CORPORATION OF
   HAWAII.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to amend the state
 
 2 rent supplement program to allow more persons who earn fifty per
 
 3 cent or less of the median family income to participate in the
 
 4 program and increase the rent contribution of each tenant from
 
 5 twenty per cent to thirty per cent of the tenant's annual income.
 
 6      SECTION 2.  Section 201G-128, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "201G-128  Exception of current owners in corporation
 
 9 projects.  The corporation may allow a person who is a current
 
10 owner of a multifamily dwelling unit in a project sponsored by
 
11 the corporation to apply for the purchase of a larger dwelling
 
12 unit in a project sponsored by the corporation if the applicant's
 
13 current family size exceeds the permissible family size for the
 
14 applicant's current dwelling unit, as determined by prevailing
 
15 county building or housing codes.  The applicant shall be
 
16 required to sell the applicant's current dwelling unit back to
 
17 the corporation.  Notwithstanding any law to the contrary, any
 
18 applicant, as it pertains to for-sale housing, shall be a
 
19 "qualified resident" who:
 

 
Page 2                                                     2429
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                                                        S.D. 2
                                                        C.D. 1


 1      (1)  Is a citizen of the United States or a resident alien;
 
 2      (2)  Is at least eighteen years of age;
 
 3      (3)  Is domiciled in the State and shall physically reside
 
 4           in the dwelling unit purchased under this chapter;
 
 5      (4)  In the case of purchase of real property in fee simple
 
 6           or leasehold, has a gross income sufficient to qualify
 
 7           for the loan to finance the purchase; and
 
 8      (5)  Except for the applicant's current residence, meets the
 
 9           following qualifications:
 
10           (A)  Is a person who either oneself or together with
 
11                the person's spouse[,] or a household member, does
 
12                not own a majority interest in fee simple or
 
13                leasehold lands suitable for dwelling purposes, or
 
14                a majority interest in lands under any trust
 
15                agreement or other fiduciary arrangement in which
 
16                another person holds the legal title to [such] the
 
17                land; and
 
18           (B)  Is a person whose spouse or a household member
 
19                does not own a majority interest in fee simple or
 
20                leasehold lands suitable for dwelling purposes, or
 
21                a majority interest in lands under any trust
 
22                agreement or other fiduciary arrangement in which
 
23                another person holds the legal title to [such] the
 

 
Page 3                                                     2429
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1


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

 
Page 4                                                     2429
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1


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

 
Page 5                                                     2429
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1


 1 tenant's primary place of residence.  The terms "qualified
 
 2 tenant" and "tenant" include a member of a cooperative who
 
 3 satisfies the foregoing requirements and who, upon resale of the
 
 4 member's membership to the cooperative, will not be reimbursed
 
 5 for more than fifty per cent of any equity increment accumulated
 
 6 through payments under this subpart.  With respect to members of
 
 7 a cooperative, the terms "rental" and "rental charges" mean the
 
 8 charges under the occupancy agreements between the members and
 
 9 the cooperative.  The term "qualified tenant" shall not include
 
10 any person receiving money payments for public assistance from
 
11 the department of human services; provided that the term "public
 
12 assistance" shall exclude aid provided through the federal
 
13 Supplemental Security Income Program."
 
14      SECTION 5.  Section 201G-234, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "[[]201G-234[]]  Relationship of annual payment to rental
 
17 and income.  The amount of the annual payment with respect to any
 
18 dwelling unit shall not exceed the amount by which the fair
 
19 market rental for [such] that unit exceeds [one-fifth] thirty per
 
20 cent of the tenant's income as determined by the corporation
 
21 pursuant to procedures and regulations established by it."
 
22      SECTION 6. Section 201G-235, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
Page 6                                                     2429
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1


 1      "[[]201G-235[]]  Determination of eligibility of occupants
 
 2 and rental charges.(a)  For purposes of carrying out this
 
 3 subpart, the corporation shall establish criteria and procedures
 
 4 for determining the eligibility of occupants and rental charges,
 
 5 including criteria and procedures with respect to periodic review
 
 6 of tenant incomes and periodic adjustment of rental charges.  The
 
 7 corporation shall issue, upon the request of a housing owner,
 
 8 certificates as to the [following facts concerning] income of the
 
 9 single persons and families applying for admission to, or
 
10 residing in, dwellings of that owner[:
 
11      (1)  The income of the single person or family; and
 
12      (2)  Whether the single person or family was displaced from
 
13           public housing administered under part II.A for
 
14           exceeding the maximum allowable income for continued
 
15           occupancy].
 
16      (b)  Procedures adopted by the corporation hereunder shall
 
17 provide for recertification of the incomes of occupants, except
 
18 elders, at intervals of two years, or at shorter intervals, for
 
19 the purpose of adjusting rental charges and annual payments on
 
20 the basis of occupants' incomes, but in no event shall rental
 
21 charges adjusted under this subpart for any dwelling exceed the
 
22 fair market rental of the dwelling.
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1


 1      (c)  No payments under this subpart may be made with respect
 
 2 to any property for which the costs of operation, including wages
 
 3 and salaries, are determined by the corporation to be greater
 
 4 than similar costs of operation of similar housing in the
 
 5 community where the property is situated.
 
 6      [(d)  No payments shall be made under this subpart except to
 
 7 the extent that tenants selected under this subpart have been
 
 8 selected according to the following priorities:
 
 9      (1)  First priority shall be given to those who have:
 
10           (A)  An income above the maximum amount allowed for
 
11                continued occupancy in housing provided for in
 
12                part II.A;
 
13           (B)  Been tenants of public housing under part II.A;
 
14           (C)  Recently vacated or are vacating housing in
 
15                subparagraph (A) or (B) because of exceeding the
 
16                maximum income allowable for continued occupancy;
 
17                and
 
18           (D)  An urgent housing need; and
 
19      (2)  Second priority shall be given to all other eligible
 
20           persons under this subpart who have an urgent housing
 
21           need.]"
 
22      SECTION 7.  The housing and community development
 
23 corporation is authorized to increase the rent contribution
 

 
Page 8                                                     2429
                                     H.B. NO.           H.D. 2
                                                        S.D. 2
                                                        C.D. 1


 1 amount set forth in section 201G-234, Hawaii Revised Statutes, on
 
 2 the day before this Act takes effect in increments or in one
 
 3 step; provided that:
 
 4      (1)  The corporation shall conduct a public hearing before
 
 5           making any increase; and
 
 6      (2)  The amount of the annual payment with respect to any
 
 7           dwelling unit shall not exceed thirty per cent of the
 
 8           tenant's income as determined by the Hawaii housing and
 
 9           community development corporation.
 
10      This section shall only apply to participants in the rent
 
11 supplement program under chapter 201G, Hawaii Revised Statutes,
 
12 on June 30, 2000.
 
13      SECTION 8.  New participants to the rent supplement program
 
14 after June 30, 2000, shall be required to comply with section
 
15 201G-234, Hawaii Revised Statutes.
 
16      SECTION 9.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 10.  This Act shall take effect upon its approval;
 
19 provided that:
 
20      (1)  Sections 6 and 7 shall take effect on June 30, 2000;
 
21           and
 
22      (2)  Sections 4 and 5 shall take effect on July 1, 2000.