HOUSE OF REPRESENTATIVES

H.B. NO.

2745

TWENTY-NINTH LEGISLATURE, 2018

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE RENTAL ASSISTANCE PROGRAM.

 

 

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

 


     SECTION 1.  The legislature finds that the state rental assistance program administered by the Hawaii housing finance and development corporation provides qualified rental project owners with monthly rental assistance subsidies to assist eligible tenants to make their rental payments.  The shallow, project-based rental assistance program subsidies have been effective in helping moderate income households at or below eighty per cent of the area median income to afford their rent payments, while providing sufficient rental income to ensure that the rental project remains economically feasible.

     Over this program's lifespan, rental assistance subsidies were provided for 1,437 units in seventeen affordable rental projects statewide.  As older project contracts have expired, and due to the lack of resources to enter into new project contracts, only ten projects remain in the program, with a total of 1,204 assisted units.

     Accordingly, the purpose of this Act is to increase the number of low-income households with access to permanent affordable rental housing by:

     (1)  Increasing the minimum percentage of affordable units a rental housing project is required to maintain for eligible tenants;

     (2)  Lowering the qualifying maximum income threshold from eighty per cent to thirty per cent of the area median income for a family or individual to be an eligible tenant under the rental assistance program; and

     (3)  Appropriating funds to be deposited into the rental assistance revolving fund to support new rental assistance program contracts.

     SECTION 2.  Section 201H-122, Hawaii Revised Statutes, is amended as follows: 

     1.  By amending the definition of "eligible project" to read:

     ""Eligible project" means a rental housing project that:

     (1)  Is financed by the corporation pursuant to subpart B or D, or that the corporation determines will require rental assistance to make it financially feasible;

     (2)  Is subject to a regulatory agreement with the corporation;

     (3)  Maintains at least [twenty] thirty per cent of its units for eligible tenants; and

     (4)  Meets other qualifications as established by rules adopted by the corporation.

     Notwithstanding any provision to the contrary, "eligible project" may also include a rental housing project that is financed by the corporation pursuant to subpart A."

     2.  By amending the definition of "eligible tenant" to read:

     ""Eligible tenant" means a family or an individual whose income does not exceed [eighty] thirty per cent of the area median income as determined by the United States Department of Housing and Urban Development."

     SECTION 3.  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 2018-2019 to be deposited into the rental assistance revolving fund established by section 201H-123, Hawaii Revised Statutes.

     SECTION 4.  It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair any existing federal obligation of the State or any agency thereof.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on January 1, 2050.



 

Report Title:

Affordable Rental Housing; Rental Assistance Program; Appropriation

 

Description:

Expands the rental assistance program by increasing the minimum percentage of affordable units a rental housing project is required to maintain for eligible tenants from twenty per cent to thirty per cent.  Decreases the qualifying maximum threshold from eighty per cent to thirty per cent of the area median income for a family or individual to be an eligible tenant under the rental assistance program.  Appropriates funds to be deposited into the rental assistance revolving fund to support new rental assistance program contracts.  Takes effect on 01/01/2050.  (SD1)

 

 

 

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