Report Title:

Housing; HCDCH

Description:

Requires the HCDCH to deduct 30% of a family's earned income when calculating their rent for federal low-income housing purposes.

HOUSE OF REPRESENTATIVES

H.B. NO.

804

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HOUSING.

 

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

SECTION 1. It is the policy of both federal and state governments to foster and encourage the self-sufficiency of families living in federal low-income housing in the State. Nevertheless, working families often find it difficult to survive economically with rent, in some cases, taking up over thirty per cent of the family's adjusted gross income. Surprisingly, the only adjustment to gross income allowance in federal housing programs is an exclusion of $40 per month per child.

A family on public assistance, with nothing withheld from their public assistance payment, who receives sizeable non-cash benefits of food stamps and one hundred per cent free medical services, has an actual net income considerably greater that its gross income.

A working family's gross income, on the other hand, is adjusted for federal income tax, state income tax, social security, union dues, medical insurance, and retirement costs. The net balance of a working family's income must also pay for food and medical expenses, whereas the family on welfare receives those benefits on a non-cash basis without impacting their housing costs.

Thus, where the welfare family pays only thirty per cent of its cash benefits for rent, the working family devotes approximately one-half of its income for housing.

Federal regulations allow the housing and community development corporation of Hawaii to make discretionary deductions from a family's gross income. However, the housing and development corporation of Hawaii has chosen not to do so.

This Act levels the playing field for tenants of federal low-income housing by adjusting housing requirements to assist working families by requiring the housing and community development corporation of Hawaii to deduct thirty per cent of a family's earned income when calculating federal low-income housing rental rates.

SECTION 2. Section 201G-32, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In the operation or management of housing projects, the corporation (acting directly or by an agent or agents) [shall] at all times, shall observe the following duties with respect to rentals and tenant selections:

(1) It may establish maximum limits of annual net income for tenant selection in any public housing project, less such exemptions as may be authorized by federal regulations pertaining to public housing. The corporation may agree to conditions as to tenant eligibility or preference required by the federal government pursuant to federal law in any contract for financial assistance with the corporation;

(2) It may rent or lease the dwelling accommodations therein only at rentals within the financial reach of persons who lack the amount of income which it determines to be necessary in order to obtain safe, sanitary, and uncongested dwelling accommodations within the area of operation of the corporation and to provide an adequate standard of living; [and]

(3) It may rent or lease to a tenant a dwelling consisting of the number of rooms (but no greater number) which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding[.]; and

(4) It shall deduct thirty per cent of a family's earned income that would otherwise be counted in the family's adjusted annual income when calculating the family's rental rate for dwelling accommodations in housing projects provided by this subpart, insofar as the deduction may be allowed by federal law."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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

INTRODUCED BY:

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