HB2238 SD1

SECTION 1. Chapter 356D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§356D‑ Public housing; affordable in perpetuity. Notwithstanding any law to the contrary, any public housing project that is constructed or managed with state or county funds for sale to qualified buyers or provided to qualified tenants as rentals shall remain affordable in perpetuity, subject to any restrictions and conditions provided by law that are not contrary to the purposes of this section. For the purposes of this section, "affordable" means available for households with incomes at or below one hundred forty per cent of the median family income as determined by the United States Department of Housing and Urban Development."

SECTION 2. Section 356D-31, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-31[]] Rentals and tenant selection. (a) In the operation or management of federal public housing projects, the authority (acting directly or by an agent or agents) at all times shall observe the following duties with respect to rentals and tenant selection:

(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 authority 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 authority;

(2) It may rent or lease the dwelling units therein only at rentals within the financial reach of persons who lack the amount of income that it determines to be necessary to obtain safe, sanitary, and uncongested dwelling accommodations within the area of operation of the authority 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) that it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding.

(b) Nothing in this part shall be construed as limiting the power of the authority to:

(1) Vest in an obligee the right, in the event of a default by the authority, to take possession of a public housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by this part with respect to rentals, tenant selection, manner of operation, or otherwise; or

(2) Vest in obligees the right, in the event of a default by the authority, to acquire title to a public housing project or the property mortgaged by the authority, free from all the restrictions imposed by this part.

(c) Notwithstanding any other law to the contrary, the authority shall ensure that the dwelling units provided under this part remain affordable in perpetuity; provided that such enforcement is consistent with federal law. For the purposes of this section, "affordable" means available for households with incomes at or below one hundred forty per cent of the median family income as determined by the United States Department of Housing and Urban Development."

SECTION 3. Section 356D-43, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-43[]] Rentals. (a) Notwithstanding any other law to the contrary, the authority shall fix the rates of the rentals for dwelling units and other facilities in state low-income housing projects provided for by this subpart, at rates that will produce revenues that will be sufficient to pay all expenses of management, operation, and maintenance, including the cost of insurance, a proportionate share of the administrative expenses of the authority to be fixed by it, and the costs of repairs, equipment, and improvements, to the end that the state low-income housing projects shall be and always remain self-supporting. The authority, in its discretion, may fix the rates in amounts as will produce additional revenues (in addition to the foregoing) sufficient to amortize the cost of the state low-income housing project or projects, including equipment, over a period or periods of time that the authority may deem advisable.

(b) Notwithstanding any other law to the contrary, if:

(1) Any state low-income housing project or projects have been specified in any resolution of issuance adopted pursuant to part I;

(2) The income or revenues from any project or projects have been pledged by the authority to the payment of any bonds issued under part I; or

(3) Any of the property of any state low-income housing project or projects is security for the bonds,

the authority shall fix the rates of the rentals for dwelling units and other facilities in the state low-income housing project or projects so specified or encumbered at increased rates that will produce the revenues required by subsection (a) and, in addition, those amounts that may be required by part I, by any resolution of issuance adopted under part I, and by any bonds or mortgage or other security issued or given under part I.

(c) Notwithstanding any other law to the contrary, the authority shall ensure that the dwelling units provided under this part remain affordable in perpetuity. For the purposes of this section, "affordable" means available for households with incomes at or below one hundred forty per cent of the median family income as determined by the United States Department of Housing and Urban Development."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2008.

HOUSE OF REPRESENTATIVES	H.B. NO.	2238
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII		S.D. 1