REPORT TITLE:
Housing & Community Devt. Corp


DESCRIPTION:
Proposes amendments to the State Rent Supplement Program to allow
more persons who earn 50% or less of the median family income to
participate in the program, and increase the rent contribution of
each tenant from 20% to 30% of the tenant's annual income.

 
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THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   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 make amendments to
 
 2 the state rent supplement program to allow more persons who earn
 
 3 fifty per cent or less of the median family income to participate
 
 4 in the program and increase the rent contribution of each tenant
 
 5 from twenty per cent to thirty per cent of the tenant's annual
 
 6 income.
 
 7      SECTION 2.  Section 201G-128, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      §201G-128  Exception of current owners in corporation
 
10 projects.  The corporation may allow a person who is a current
 
11 owner of a multifamily dwelling unit in a project sponsored by
 
12 the corporation to apply for the purchase of a larger dwelling
 
13 unit in a project sponsored by the corporation if the applicant's
 
14 current family size exceeds the permissible family size for the
 
15 applicant's current dwelling unit, as determined by prevailing
 
16 county building or housing codes.  The applicant shall be
 
17 required to sell the applicant's current dwelling unit back to
 
18 the corporation.  Notwithstanding any law to the contrary, any
 
19 applicant, as it pertains to for-sale housing, shall be a
 

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

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

 
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 1           of return, and methods of operation, from the time of
 
 2           issuance of the building 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 not exceeding the very low income limit as determined by the
 
20 corporation pursuant to rules adopted by the corporation; and
 
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
 

 
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 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 by amending subsection (d) to read as follows:
 

 
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 1      "(d)  No payments shall be made under this subpart except to
 
 2 the extent that tenants selected under this subpart have been
 
 3 selected according to the following priorities:
 
 4      (1)  First priority shall be given to those who have:
 
 5           (A)  An income above the maximum amount allowed for
 
 6                continued occupancy in housing provided for in
 
 7                [part II.A;] subparts A and B of part II;
 
 8           (B)  Been tenants of public housing under [part II.A;]
 
 9                subparts A and B of part II;
 
10           (C)  Recently vacated or are vacating housing in
 
11                subparagraph (A) or (B) because of exceeding the
 
12                maximum income allowable for continued occupancy;
 
13                and
 
14           (D)  An urgent housing need; and
 
15      2)   Second priority shall be given to all other eligible
 
16           persons under this subpart who have an urgent need for
 
17           housing [need]."
 
18      SECTION 7.  Section 201G-234, Hawaii Revised Statutes, to
 
19 the contrary notwithstanding, the amount by which the fair market
 
20 rental for a dwelling unit may exceed the tenant's income as
 
21 determined by the corporation under section 201G-234, Hawaii
 
22 Revised Statutes, which is one-fifth on June 30, 2000, shall be
 
23 increased to twenty-five per cent on July 1, 2000, and shall be
 

 
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 1 increased to thirty per cent on July 1, 2001. This section shall
 
 2 apply to participants in the rent supplement program under
 
 3 chapter 201G, Hawaii Revised Statutes, on June 30, 2000.
 
 4      SECTION 8.  New participants to the rent supplement program
 
 5 after June 30, 2000, shall be required to comply with section
 
 6 201G-234, Hawaii Revised Statutes.
 
 7      SECTION 9.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 10.  This Act shall take effect upon its approval,
 
10 except that sections 6 and 7 shall take effect on June 30, 2000,
 
11 and that section 4 shall take effect on July 1, 2000. 
 
12 
 
13                           INTRODUCED BY:  _______________________
 

 
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