Report Title:

Appropriation; Rent Supplement Program

 

Description:

Appropriates $1,300,000 in FY 2001-2002 and $1,500,000 in FY 2002-2003 to be expended by the housing and community development corporation of Hawaii to fund the state rent supplement program for low-income renters.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

246

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

making an appropriation for the state rent supplement program.

 

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

SECTION 1. The legislature finds that there exists an inadequate supply of affordable rental and transitional housing for working families who will be leaving welfare. Approximately fifty-five per cent of those who will be leaving are low-income, working families. Seventy-five per cent of the families projected to leave welfare rely on the private housing market, thus few of them will be able to continue making private market rental payments.

Pursuant to section 201G-231, Hawaii Revised Statutes, the state rent supplement program administered by the housing and community development corporation of Hawaii currently makes available only $160 monthly to supplement what very low-income renters can pay for rent. Due to program cuts, the rent supplement program has compiled a long waiting list and can now assist only about one-third of the number of clients it helped five years ago.

Act 214, Session Laws of Hawaii 2000 amended section 201G-233, Hawaii Revised Statutes, to lower the income limit – from ninety-five per cent to fifty per cent of the United States Housing and Urban Development median income – to very low income for qualified tenants to participate in the program. As a result, it is anticipated that eligible households will receive the maximum rent supplement of $160 monthly because of their lower incomes. As a further result, fewer households will be assisted at the current funding level of $1,700,000.

The purpose of this Act is to increase the funding level of the state rent supplement program by $1,300,000 in fiscal year 2001-2002, and by $1,500,000 in fiscal year 2002-2003, to assist low-income Hawaii renters.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,300,000, or so much thereof as may be necessary for fiscal year 2001-2002, and the sum of $1,500,000, or so much thereof as may be necessary for fiscal year 2002-2003, to fund the state rental supplement program under subpart D of chapter 201G, Hawaii Revised Statutes. The sums appropriated shall be expended by the housing and community development corporation of Hawaii for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2001.

INTRODUCED BY:

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