HB2240

SECTION 1. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H- Tenant eligibility. Any eligibility review of tenants conducted by the corporation shall allow any tenant found ineligible because of excessive income:

(1) A reasonable time period to relocate;

(2) An opportunity to open individual development accounts; and

(3) An opportunity to purchase the tenant's unit, not including, the underlying land, if provided by law and approved by the corporation.

The corporation may adopt rules pursuant to chapter 91 to effectuate this section."

SECTION 2. Section 356D-92, Hawaii Revised Statutes, is amended to read as follows:

"§356D-92 Termination and eviction. (a) Except as otherwise provided, the authority 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 authority;

(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 authority.

(b) When any tenant has been delinquent in payment of rent, the authority, 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 authority 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 authority 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 authority or the authority's agent before the meeting time to reschedule the meeting.

(1) Inquire into the cause of the tenant's delinquency and offer suggestions, if any, that the authority may feel appropriate 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 authority shall develop a checklist outlining all of the requirements listed in subsection (c). The authority 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 (b), the authority shall provide the tenant with a second written notice. The notice shall inform the tenant that:

(1) The authority 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 authority's written notice issued pursuant to subsection (b);

(2) The tenant has ten business 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 ten business days, the authority has the right to proceed with the eviction hearing pursuant to section 356D-93.

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

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

(2) If the tenant fails to request a grievance hearing within ten business days, the authority has the right to proceed with the eviction hearing pursuant to section 356D-93.

(g) Except as provided by law, the authority shall allow any tenant whose tenancy is terminated due to excessive income:

(1) A reasonable time period to relocate;

(2) An opportunity to open an individual development account; and

(3) An opportunity to purchase the tenant's unit, not including the underlying land if approved by the authority.

The authority may adopt rules pursuant to chapter 91 to effectuate this subsection."

SECTION 3. New statutory material is underscored.

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

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2240
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII