Report Title:

Housing and Community Development Corporation of Hawaii

Description:

Authorizes the Housing and Community Development Corporation of Hawaii to evict tenants in violation of their rental agreement through a judicial process.

HOUSE OF REPRESENTATIVES

H.B. NO.

2449

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

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:

SECTION 1. There is a statewide shortage of rental housing affordable to extremely low and very low-income families. The housing and community development corporation of Hawaii manages over 6,500 public housing units statewide. In 2003, there were nearly 19,000 families on the waiting lists for low rent public housing. Given the extent of the housing need, it is essential that the public housing program is managed efficiently. Yet rental delinquencies in public housing have reached nearly $355,000 as a result of a protracted administrative eviction process.

The purpose of this Act is to streamline the public housing eviction process while ensuring the due process rights of public housing tenants. This Act authorizes the housing and community development corporation of Hawaii to evict tenants in violation of the rental agreement through the judicial process.

SECTION 2. Section 201G-33, Hawaii Revised Statutes, is amended to read as follows:

"§201G-33 Delinquent accounts. (a) Notwithstanding section 40-82, the corporation, with the approval of the attorney general, may delete from its accounts receivable records delinquent accounts for vacated units within federal low rent public housing projects that have been delinquent for at least ninety days.

(b) The delinquent accounts may be assigned to a collection agency.

[(c) Before the corporation seeks eviction of a tenant due to delinquency in payment of rent, the corporation shall comply with the procedures set forth in section 201G-52(b) before proceeding with the eviction hearing.]"

SECTION 4. Section 201G-52, Hawaii Revised Statutes, is amended to read as follows:

"§201G-52 Termination and eviction. (a) Except as otherwise provided, the corporation may terminate any lease, rental agreement, permit, or license covering the use and occupation of any dwelling unit or other premises located within a public housing project and evict from any premises any tenant, licensee, or other occupant for any of the following reasons:

(1) Failure to pay rent when due;

(2) Violation of any of the provisions of a lease rental agreement, permit, or license;

(3) Violation of any of the rules of the corporation;

(4) Failure to maintain the dwelling unit in a clean, sanitary, and habitable condition; or

(5) The existence of any other circumstances giving rise to an immediate right to possession by the corporation.

[(b) When any tenant has been delinquent in payment of rent, the corporation, either directly or through its managing agent, shall provide the tenant with a written notice no later than forty-five days from the date of delinquency that shall inform the tenant of the delinquency and schedule a meeting between the tenant and the corporation or its agent. The written notice shall:

(1) Inform the tenant that continued delinquency shall result in the tenant's eviction;

(2) Inform the tenant of the tenant's right to apply for an interim adjustment in rent;

(3) Explain to the tenant the steps of the grievance and eviction processes and how the processes protect the tenant;

(4) Provide the tenant with a sample letter for demanding a grievance hearing;

(5) Set forth the location, date, and time, which shall be no earlier than fourteen days from the date of the written notice, at which the tenant may meet with the corporation or its agent to discuss the delinquency in rent; and

(6) Inform the tenant that the tenant shall either attend the meeting or, if applicable, contact the corporation or the corporation's agent before the meeting time to reschedule the meeting.

(c) At the meeting described in subsection (b), the corporation or its agent shall:

(1) Inquire into the cause of the tenant's delinquency and offer suggestions that the corporation may feel appropriate, if any, to address the causes of delinquency;

(2) Consider whether a reasonable payment plan is appropriate for the tenant's situation and, if appropriate, offer a payment plan to the tenant; and

(3) Inform the tenant of and explain the issues as required under subsection (b)(1), (2), and (3).

(d) The corporation shall develop a checklist outlining all of the requirements listed in subsection (c). The corporation or its agent and the tenant shall complete, sign, and date the checklist to memorialize the meeting.

(e) If the tenant fails to attend or reschedule the meeting provided for in subsection (c), the corporation shall provide the tenant with a second written notice. The notice shall inform the tenant that:

(1) The corporation shall proceed to terminate the tenant's tenancy because of the tenant's outstanding rent delinquency and the tenant's failure to respond to the corporation's written notice issued pursuant to subsection (b);

(2) The tenant has thirty days from receipt of the second written notice to request a grievance hearing; and

(3) If the tenant fails to request a grievance hearing within thirty days, the corporation has the right to proceed with the eviction hearing pursuant to section 201G-53.

(f) If the tenant meets with the corporation as provided for in subsection (c), the corporation shall decide, based upon the facts discussed at the meeting, what action is appropriate to address the tenant's case. The corporation shall notify the tenant of such decision in writing. If the corporation decides to proceed with an action to terminate the tenancy, the corporation shall further inform the tenant in the same written notice that:

(1) The tenant has thirty days from receipt of this notice to request a grievance hearing; and

(2) If the tenant fails to request a grievance hearing within thirty days, the corporation has the right to proceed with the eviction hearing pursuant to section 201G-53.]

(b) Where the corporation terminates a lease, rental agreement, permit, or license and evicts a tenant, the corporation shall bring a summary proceeding for possession of the dwelling unit or any other proper proceeding, action, or suit for possession in a court of competent jurisdiction."

SECTION 3. Sections 201G-53, 201G-55, 201G-56, 201G-57, and 201G-58, Hawaii Revised Statutes, are repealed.

["§201G-53 Hearings. (a) Where the corporation proposes to terminate a lease, rental agreement, permit, or license, and evict a tenant, licensee, or other occupant under section 201G-52, a hearing shall be held to determine whether cause exists for the action. The corporation shall give written notice to the person concerned specifying the reason for which the eviction is proposed and fixing the date and place of hearing. The written notice shall further inform the tenant, licensee, or other occupant of the right to inspect and copy the tenant file at the tenant's expense before the hearing is held. The notice shall be given at least five days before the date set for the hearing. At the hearing, before final action is taken, the person concerned shall be entitled to be heard in person or through counsel, and shall be accorded a full and fair hearing in accordance with the requirements of a contested case hearing provided for under sections 91-9 and 91-10 to 91-13. This full and fair hearing shall be deemed to be a contested case hearing before the agency that is required pursuant to chapter 91.

(b) Hearings shall be conducted by an eviction board appointed by the corporation. The eviction board shall consist of not fewer than three persons, of which one member shall be a tenant. At least one eviction board shall be established in each county of the State. The findings, conclusions, decision, and order of the eviction board shall be final unless an appeal is taken as hereinafter provided.

(c) The eviction board shall have the same powers respecting administering oaths, compelling the attendance of witnesses and the production of documentary evidence, and examining witnesses, as are possessed by circuit courts. In case of disobedience by any person of any order of the eviction board, or of any subpoena issued by the eviction board, or the refusal of any witness to testify to any matter regarding which the witness may lawfully be questioned, any circuit judge, on application by the eviction board, shall compel obedience as in the case of disobedience of the requirements of a subpoena issued by a circuit court, or a refusal to testify therein.

§201G-55 Eviction. (a) If it is proven to the satisfaction of the eviction board that there is cause to terminate a lease, rental agreement, permit, or license and evict the tenant, licensee, or other occupant, the corporation shall provide the tenant with a written notice of the corporation's decision to terminate the lease. The notice shall inform the tenant that a writ of possession may be issued by the corporation within ten days. The notice shall also inform the tenant of whether the grounds for eviction are considered curable, and if so, what the tenant must do to remedy the grounds, by when it must be done, and what the tenant must do to document for the corporation that the grounds have been remedied.

(b) When the grounds for termination of the lease may be cured by the occupant, licensee, or other occupant, the tenant shall have ten days from receipt of the notice provided for in subsection (a) to cure such grounds. If the grounds are cured within the ten-day period, no writ of possession may be issued. If the condition is not cured within the ten-day period, the corporation may issue a writ of possession forthwith.

(c) The corporation may adopt rules to define curable and noncurable grounds for eviction pursuant to chapter 91. The corporation may consider a tenant's history in determining noncurable grounds for eviction. A tenant's history may include chronic or consistent delinquency, or repeated violations of the terms of the rental agreement.

(d) Enforcement of the order by a writ of possession shall be effected either by an officer appointed by the corporation, who shall have all of the powers of a police officer for all action in connection with the enforcement of the order, or by the sheriff, or any other law enforcement officer of the State or any county, whose duty it shall be to carry out the order. The person enforcing the order shall remove all persons from the premises and put the corporation in full possession thereof.

(e) Upon eviction, the household goods and personal effects of the person against whom the order is entered, and those of any persons using the premises incident to the person's holding, may be removed from the premises and stored by the corporation. If the action is taken, the corporation shall have a lien on the property so taken for the expenses incurred by it in moving and storing the same, and the corporation is authorized to sell or otherwise dispose of the property, if unclaimed after thirty days.

§201G-56 Ex parte motion. If a tenant or licensee cannot be served with an order of eviction or writ of possession, and the facts shall appear by affidavit to the corporation, service to the tenant or licensee may be made according to the special order of the corporation. The order shall require the officer to affix a certified copy of the order of eviction or writ of possession in a conspicuous place upon the premises such as the door or wall of the dwelling unit.

§201G-57 Judicial review. (a) Any person aggrieved by a final decision and order by the corporation or by a preliminary ruling of the nature that deferral of review pending entry of a subsequent final decision would deprive the appellant of adequate relief is entitled to judicial review thereof under this subpart.

(b) Except as otherwise provided herein, proceedings for review shall be instituted in the circuit court within thirty days after the preliminary ruling or within thirty days after service of the certified copy of the final decision and order of the corporation pursuant to the provisions of the Hawaii rules of civil procedure, except where a statute provides for a direct appeal to the supreme court and in such cases the appeal shall be in like manner as an appeal from the circuit court to the supreme court, including payment of the fee prescribed by section 607-5 for filing the notice of appeal. The court in its discretion may permit other interested persons to intervene.

(c) The proceedings for review shall not stay enforcement of the decisions of the corporation; but the corporation or the reviewing court may order a stay upon such terms as it deems proper.

(d) Within twenty days after the determination of the contents of the record on appeal in the manner provided by the rules of court, or within further time as the court may allow, the corporation shall transmit to the reviewing court the record of the proceeding under review. The court may require or permit subsequent corrections or additions to the record when deemed desirable.

(e) If, before the date set for hearing, application is made to the court for leave to present additional evidence and the evidence is material and good cause exists for the failure to present the evidence in the proceeding before the corporation, the court may order the corporation to hear the evidence upon the conditions as the court deems proper. The corporation may modify its findings, decision, and order by reason of the additional evidence and shall file with the reviewing court, to become a part of the record, the additional evidence, together with any modification of its findings or decision.

(f) The review shall be conducted by the court without a jury and shall be confined to the record. In cases of alleged irregularities in procedure before the corporation and not shown in the record, testimony thereon may be taken in court. The court may, upon request by any party, hear oral argument and receive written briefs.

(g) Upon review of the record the court may affirm the decision of the corporation or remand the case with instructions for further proceedings, or it may reverse or modify the decision and order if the substantial rights of the petitioners may have been prejudiced because the administrative findings, conclusions, decisions, or orders are:

(1) In violation of constitutional or statutory provisions;

(2) In excess of the statutory authority or jurisdiction of the corporation;

(3) Made upon unlawful procedure;

(4) Affected by other error of law;

(5) Clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or

(6) Arbitrary, or capricious, or characterized by abuse of discretion or clearly unwarranted exercise of discretion.

[§201G-58] Appeals. An aggrieved party may secure a review of any final judgment of the circuit court under this subpart by appeal to the supreme court. The appeal shall be taken in the manner provided in the rules of court."]

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST