Requires the housing and community development corporation to implement a two-year pilot project that permits the payment of rental deposits by public housing tenants on a deferred, installment basis.

A BILL FOR AN ACT

SECTION 1. The legislature finds that homelessness continues to be a problem in Hawaii. Although the State provides public housing for low-income persons, some families, that are otherwise eligible, are precluded from qualifying for public housing because of their inability to meet the rental deposit requirement. For persons of limited income, the rental deposit, which may be the equivalent of one month's rent, represents a substantial amount of their monthly income. If the State permitted greater flexibility regarding rental deposit payments, more families may be able to qualify for public housing and avoid homelessness.

The purpose of this Act is to authorize a pilot program that would allow public housing tenants to pay the rental deposit on a deferred, installment basis.

SECTION 2. Any other law to the contrary notwithstanding, the housing and community development corporation of Hawaii shall implement a two-year pilot program that allows for the collection of rental deposits in public housing projects on a deferred, installment basis for a maximum deferral period of three months.

SECTION 3. The housing and community development corporation of Hawaii shall submit to the legislature findings and recommendations, including proposed legislation, on the rental deposit deferral program authorized in this Act, no later than twenty days before the convening of the regular session of 2003.

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