Report Title:

Housing; HCDCH

Description:

Requires the HCDCH to deduct 30% of a family's earned income when calculating their rent for federal low-income housing purposes.

HOUSE OF REPRESENTATIVES

H.B. NO.

1343

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HOUSING.

 

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

SECTION 1. It is the policy of both federal and state governments to foster and encourage economic self-sufficiency of families living in federal low-income housing in the State. Nevertheless, working families often find it difficult to get by. Rent is thirty per cent of the family's adjusted gross income. Essentially, the only adjustment from the gross income is to exclude $40/month/child. A family on public assistance, with nothing withheld from their check, who receives sizeable non-cash benefits of food stamps and one hundred per cent free medical, has an actual net income considerably greater that its gross income.

A working family, on the other hand, has federal income taxes, state income taxes, social security, union dues, medical insurance, and retirement withheld from its gross income. Its net realized income may be only sixty per cent of its gross income. The working family then buys its food and medical services from out of the gross income that its rent is computed from, whereas the family on welfare receives those benefits on a non-cash basis without impacting its rent. In addition, of course, there are numerous expenses associated with working that the working family must pay out of its gross income.

Thus, where the welfare family pays only thirty per cent of its cash benefits for rent, the working family finds itself paying about half of its take home pay for rent.

Federal regulation allows the housing and community development corporation of Hawaii to make discretionary deductions from a family's gross income. However, the housing and development corporation of Hawaii has chosen not to do so.

This Act requires the housing and community development corporation of Hawaii to deduct thirty per cent of a family's earned income when calculating their rent for federal low-income housing.

SECTION 2. Section 201G-32, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In the operation or management of housing projects, the corporation (acting directly or by an agent or agents) [shall], at all times, shall observe the following duties with respect to rentals and tenant selections:

(1) It may establish maximum limits of annual net income for tenant selection in any public housing project, less such exemptions as may be authorized by federal regulations pertaining to public housing. The corporation may agree to conditions as to tenant eligibility or preference required by the federal government pursuant to federal law in any contract for financial assistance with the corporation;

(2) It may rent or lease the dwelling accommodations therein only at rentals within the financial reach of persons who lack the amount of income [which] that it determines to be necessary in order to obtain safe, sanitary, and uncongested dwelling accommodations within the area of operation of the corporation and to provide an adequate standard of living; [and]

(3) It may rent or lease to a tenant a dwelling consisting of the number of rooms (but no greater number) [which] that it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding[.]; and

(4) It shall deduct thirty per cent of a family's earned income that would otherwise be counted in the family's adjusted annual income when calculating the family's rate of rent for dwelling accommodations in housing projects provided for by this subpart, in so far as such deduction may be allowed by federal law."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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