HOUSE OF REPRESENTATIVES

H.B. NO.

25

TWENTY-EIGHTH LEGISLATURE, 2015

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO DISCRIMINATION.

 

 

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

 


     SECTION 1.  The legislature finds that low-income individuals have an extremely difficult time finding affordable rentals in Hawaii.  This situation is made more frustrating when "no section 8 accepted" housing vacancy advertisements prevent low-income individuals from being considered as renters.  Hawaii's laws currently do not prohibit discrimination based on lawful source of income.  However, a number of other states, including California and Oregon, have prohibited this type of income discrimination.  Renters who participate in government assistance programs, such as the federal Housing Choice Voucher program, also known as section 8 housing, should have an equal opportunity to find housing.

     The purpose of this Act is to prohibit discrimination based on lawful source of income in the rental of real estate, including advertisements for available rental units.

     SECTION 2.  Chapter 521, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:

     "§521-    Discriminatory practices.  (a)  In addition to the discriminatory practices provided in section 521-3, it is a discriminatory practice for a person engaging in a rental transaction pursuant to this chapter because of source of income:

     (1)  To refuse to engage in a rental transaction with a person;

     (2)  To discriminate against a person in the terms, conditions, or privileges of a rental transaction or in the furnishing of facilities or services in connection with a rental transaction;

     (3)  To refuse to receive or to fail to transmit a bona fide offer to engage in a rental transaction from a person;

     (4)  To refuse to negotiate for a rental transaction with a person;

     (5)  To represent to a person that premises are not available for inspection, rental, or lease when in fact the premises are available, or to fail to bring a property listing to the person's attention, or to refuse to permit the person to inspect premises, or to steer a person away from seeking to engage in a rental transaction;

     (6)  To offer, solicit, accept, use, or retain a listing of premises with the understanding that a person may be discriminated against in a rental transaction or in the furnishing of facilities or services in connection with a rental transaction; or

     (7)  To discriminate against or deny a person access to, or membership or participation in any multiple listing service, or other service, organization, or facility involved either directly or indirectly in rental transactions, or to discriminate against any person in the terms or conditions of access, membership, or participation.

     (b)  Nothing in this section shall be deemed to prohibit a person from determining the ability of a potential renter to pay rent by:

     (1)  Verifying, in a commercially reasonable manner, the source and amount of income of the potential renter; or

     (2)  Evaluating, in a commercially reasonable manner, the stability, security, and credit worthiness of the potential renter or any source of income of the potential renter.

     §521-    Restrictive covenants and conditions.  (a)  Every provision in an oral agreement or a written instrument relating to premises that purports to forbid or restrict the occupancy or lease thereof to individuals because of source of income is void.

     (b)  Every condition, restriction, or prohibition, including a right of entry or possibility of reverter, that directly or indirectly limits the use or occupancy of premises on the basis of source of income is void.

     (c)  It is a discriminatory practice to insert in a written instrument relating to premises a provision that is void under this section or to honor or attempt to honor such a provision in the chain of title.

     §521-    Blockbusting.  It is a discriminatory practice for a person for the purpose of inducing a rental transaction from which the person may benefit financially, because of source of income:

     (1)  To represent that a change has occurred or will or may occur in the composition of the owners or occupants in the block, neighborhood, or area in which the premises are located; or

     (2)  To represent that this change will or may result in the lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools in the block, neighborhood, or area in which the premises are located.

     §521-    Other discriminatory practices.  It is a discriminatory practice for a person, or for two or more persons to conspire:

     (1)  To retaliate, threaten, or discriminate against a person because of the exercise or enjoyment of any right granted or protected by this chapter, or because the person has opposed a discriminatory practice, or because the person has made a charge, filed a complaint, testified, assisted, or participated in an investigation, proceeding, or hearing under this chapter;

     (2)  To aid, abet, incite, or coerce a person to engage in a discriminatory practice;

     (3)  To interfere with any person in the exercise or enjoyment of any right granted or protected by this chapter or with the performance of a duty or the exercise of a power by any person or agency charged with enforcing this chapter;

     (4)  To obstruct or prevent a person from complying with this chapter or an order issued pursuant to this chapter;

     (5)  To intimidate or threaten any person engaging in activities designed to make other persons aware of, or encouraging other persons to exercise rights granted or protected by this chapter;

     (6)  To threaten, intimidate, or interfere with persons in their enjoyment of premises because of the source of income of the persons, or of visitors or associates of the persons; or

     (7)  To print, circulate, post, or mail, or cause to be published a statement, advertisement, or sign, or to use a form of application for a rental transaction, or to make a record or inquiry in connection with a prospective rental transaction, that indicates, directly or indirectly, an intent to make a limitation or specification, or to discriminate because of source of income."

     SECTION 3.  Section 521-2, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

     ""Rental transaction" means any part of a process or transaction for the rental or lease of premises.

     "Source of income" means any lawful source of money paid directly or indirectly to a tenant or potential tenant, including:

     (1)  Any lawful profession or occupation;

     (2)  Any government or private assistance, grant, loan, or rental assistance program, including low-income housing assistance certificates and vouchers under the United States Housing Act of 1937, as amended; and

     (3)  Any gift, inheritance, pension, annuity, alimony, child support, or other consideration or benefit."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

Discrimination in Rental Transactions; Source of Income

 

Description:

Prohibits discrimination in the rental of real property based on lawful source of income.  (HB25 HD1)

 

 

 

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