Appropriates $1.3 million for fiscal year 2001-2002, and $1.5 million for fiscal year 2002-2003 to the state rent supplement program to assist low-income renters. Removes the exclusion of public assistance recipients from participation in the program. (SD1)

A BILL FOR AN ACT

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 for fiscal year 2001 to 2002, and by $1,500,000 for fiscal year 2002 to 2003, to assist low-income Hawaii renters, and to allow public assistance recipients to participate in the program.

SECTION 2. Section 201G-233, Hawaii Revised Statutes, is amended to read as follows:

"§201G-233 Qualified tenant defined. As used in this subpart, the term "qualified tenant" means any single person or family, pursuant to criteria and procedures established by the corporation, that has been determined to have an income not exceeding the very low income limit as determined by the corporation pursuant to rules adopted by the corporation; provided that the qualified tenant's primary place of residence shall be in the State of Hawaii or that the qualified tenant intends to make the State of Hawaii the qualified tenant's primary place of residence. The terms "qualified tenant" and "tenant" include a member of a cooperative who satisfies the foregoing requirements and who, upon resale of the member's membership to the cooperative, will not be reimbursed for more than fifty per cent of any equity increment accumulated through payments under this subpart. With respect to members of a cooperative, the terms "rental" and "rental charges" mean the charges under the occupancy agreements between the members and the cooperative. The term "qualified tenant" shall [not] include any person receiving money payments for public assistance from the department of human services[; provided that the term "public assistance" shall exclude aid provided through the federal Supplemental Security Income Program]."

SECTION 3. 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 4. This Act shall take effect on July 1, 2001.