HOUSE OF REPRESENTATIVES

H.B. NO.

868

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC HOUSING.

 

 

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

 


PART I

     SECTION 1.  Part II of this Act directs the Hawaii public housing authority to establish trust accounts to provide matching funds to tenants who rent dwelling units and require that trust account moneys be spent by the tenant on purchases relating to housing.

     Part III of this Act provides that the tenancy of all tenants of a dwelling unit in a state low-income housing project shall terminate upon the termination of the tenancy of the last household member who was an original household member at the time the initial lease or rental agreement was executed, subject to certain exceptions.

     Part IV of this Act authorizes the issuance of general obligation bonds and appropriates funds for capital improvement projects at state low-income housing projects and for the establishment of trust accounts pursuant to part II of this Act.

PART II

     SECTION 2.  Chapter 356D, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§356D-    Trust accounts; renovation of rental units.  (a)  Trust accounts shall be established within the authority to enable the authority to provide matching funds to tenants who rent a dwelling unit.

     (b)  If at any time there are more applicants for units than available units, the authority shall maintain a waiting list of eligible applicants for dwelling units.  When a unit becomes vacant, the authority shall determine who shall fill the vacancy from the waiting list; provided that the eligible applicant agrees to the conditions set forth in this section.

     (c)  The authority shall require an eligible applicant who rents the dwelling unit to:

     (1)  Establish and maintain a trust account to be managed by the authority; and

     (2)  Be a participant in the Family Self-Sufficiency Program as provided in 42 United States Code section 1437u.

     (d)  The tenant shall pay       per cent of the tenant's income to the authority as payment for rent.  The authority shall take the difference between the:

     (1)  Tenant's payment; and

     (2)  Minimum rent set by the authority for state-aided public housing project units on the date the tenant first occupies the unit,

and deposit the moneys into the tenant's trust account.

     For the purposes of this subsection, the minimum rent for the tenant shall remain the same during the entire period the tenant occupies the unit.

     (e)  Upon the date the tenant voluntarily vacates the unit, the authority shall match, on a dollar-for-dollar basis, the amount deposited by the authority on behalf of the tenant pursuant to subsection (d) and shall deposit the matching amount into the trust account in the name of the tenant.  All interest accrued on the balance in the trust account shall be included in the trust account.  Within three months after the date of tenancy termination, the authority shall release to the tenant the moneys contained in the tenant's trust account and shall require the tenant to spend all the moneys on purchases related to housing.

     (f)  No tenant subject to this section who is evicted from the tenant's unit for cause by the authority shall be eligible to receive any matching funds pursuant to subsection (e).

     (g)  If a former tenant who has received moneys pursuant to subsection (e) wishes to reapply for a dwelling unit, the former tenant shall first repay the entire amount of the trust fund moneys paid pursuant to subsection (e) and meet any other requirements imposed by the authority.

     (h)  The authority may adopt rules pursuant to chapter 91 to carry out this section."

PART III

     SECTION 3.  Section 356D-42, Hawaii Revised Statutes, is amended to read as follows:

     "§356D-42  Housing; tenant selection[.]; tenancy termination.  (a)  The authority shall select tenants upon the basis of those in greatest need for the particular housing, subject to the following limitations and preferences:

     (1)  The authority may limit the tenants of any state low-income housing project to classes of persons when required by federal law or regulation as a term or condition of obtaining assistance from the federal government; provided that not less than fifty per cent of available units shall be for applicants without preference and up to fifty per cent of available units shall be for applicants with preference;

     (2)  Within the priorities established by the authority recognizing need, veterans with a permanent disability of ten per cent or more, as certified by the United States Department of Veterans Affairs, and their dependent parents, if any.  The deceased veteran's widow or widower shall be given first preference.  Parents of veterans shall not use the veteran status of their adult child as a basis for preference; and

     (3)  Subject to any limitations set by federal law or regulation, the authority shall not select as a tenant, and may terminate the tenancy of, any person if the person or any household member owns or acquires a home within the State.

     (b)  Upon the termination of the tenancy of the last household member who was an original household member at the time of the initial lease or rental agreement for a dwelling unit in a state low-income housing project, the tenancy of all remaining tenants in the dwelling unit shall also terminate; provided that, where the original head or co-head of the household is survived by a minor who was subsequently added to the household by birth, adoption, or court order, the household may retain the lease or rental agreement and remain in the unit until the youngest minor reaches the age of twenty-one, or reaches the age of twenty-three if the youngest minor is a full-time student of a business school, technical school, college, community college, or university.

     [(b)] (c)  The authority shall adopt rules pursuant to chapter 91 to carry out the purposes of this section."

     SECTION 4.  This part shall apply to all tenants who reside in dwelling units in state low-income housing projects under a lease or rental agreement, as of the effective date of this Act or later.

PART IV

     SECTION 5.  The director of finance is authorized to issue general obligation bonds in the sum of $         or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2017-2018 for the purpose of funding repair and maintenance for state low-income housing under chapter 356D, part III, Hawaii Revised Statutes.

     The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

     SECTION 6.  The appropriation made for the capital improvement project authorized by section 5 of this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2020, shall lapse as of that date.

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2017-2018 for the Hawaii public housing authority to provide funds for repair and maintenance on state low-income housing projects.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

     SECTION 8.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2017-2018 for the Hawaii public housing authority; provided that:

(1)  $         is used to fund the matching funds to be placed in the trust accounts established under this Act; and

(2)  $         is used to establish       positions to manage the funds of the trust accounts established under this Act.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

PART V

     SECTION 9.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Public Housing; Rentals; General Obligation Bonds; Appropriations

 

Description:

Requires the Hawaii Public Housing Authority to establish trust accounts to provide matching funds to tenants who rent dwelling units.  Specifies tenancy termination requirements.  Authorizes the issuance of general obligations bonds for capital improvement projects at state low-income housing projects.  Appropriates funds.

 

 

 

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