HB1752

PART I

SECTION 1. The legislature finds that low-income individuals experience extreme difficulty in finding affordable rentals in Hawaii, particularly when housing vacancy advertisements prevent low-income individuals with housing vouchers from being considered as tenants by stating "no Section 8 accepted" or "Section 8 need not apply." Local and national news reports have documented that landlords often reject prospective tenants based on their use of housing vouchers or other forms of housing assistance, or the requirements associated with the prospective tenants' participation in a housing program.

The purpose of this part is to prohibit discrimination in advertisements for available rental units based on receipt of income from a public assistance, rental assistance, or housing subsidy program, or requirements related to participation in such programs.

SECTION 2. Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§521- Negative advertising relating to source of income prohibited; remedies. (a) A landlord shall not make, print, publish, display, or cause to be made, printed, published, or displayed any communication, notice, or advertisement relating to the rental or lease of a dwelling unit that specifically states that persons utilizing any particular source of income, as defined in section 521-8, may not or should not apply.

(b) Nothing in this section shall prohibit a landlord from determining the ability of a potential tenant to pay rent or meet other financial obligations by:

(1) Verifying, in a commercially reasonable manner, the source and amount of income of a potential tenant; or

(2) Evaluating, in a commercially reasonable manner, the stability, security, background, and creditworthiness of the potential tenant or any source of income of the potential tenant.

(c) Landlords are encouraged to evaluate and participate in providing rental housing to recipients of federal, state, or local public assistance, rental assistance, or housing subsidy programs, and nothing in this section shall be deemed to require any person or landlord to so participate; provided that the denial of a potential tenant shall not be based on the potential tenant's source of income.

(d) Any person or potential tenant may recover a $250 penalty against a landlord determined by the court to have violated this section for the first time. The court shall impose a $500 penalty in favor of a person or potential tenant for any subsequent violation of this section by the landlord. The court may also order any injunctive or other equitable relief as it deems proper. No party shall be awarded attorney's fees or costs in any action under this section."

SECTION 3. Section 521-8, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Source of income" means any lawful and verifiable source of money paid directly, indirectly, or on behalf of a person, including:

(1) Income derived from any lawful profession or occupation; and

(2) Any lawful income, benefit, or subsidy derived from child support; alimony; social security; supplemental security income; a military housing allowance; medical or veterans assistance; and any federal, state, or local public assistance, rental assistance, or housing subsidy program, including the section 8 housing choice vouchers program authorized by title 42 United States Code section 1437, and any requirements associated with the public assistance, rental assistance, or housing subsidy program."

PART II

SECTION 4. The legislature finds that Act 215, Session Laws of Hawaii 2019 (Act 215), required the Hawaii public housing authority to adopt rules, without regard to chapter 91, Hawaii Revised Statutes, to establish a program to reimburse landlords who participate in the section 8 housing choice voucher program to cover repair costs of tenant-caused property damage when the repair costs exceed the tenant's security deposit. Act 215 also made an appropriation to the Hawaii public housing authority for that purpose. On February 20, 2020, the Hawaii public housing authority board of directors adopted a set of rules, entitled "Section 8 Housing Choice Voucher Landlord Incentive Program Rules", that provide the structure for this program.

The purpose of this part is to provide additional incentives for landlords to participate in the section 8 housing choice voucher program by providing financial protections for those landlords.

SECTION 5. Chapter 356D, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§356D- Housing choice voucher landlord incentive program. (a) The authority shall adopt rules, without regard to chapter 91, to establish the following incentives for landlords participating in the tenant-based assistance housing choice voucher program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f):

(1) The landlord may be reimbursed up to one month of rent at the contract rate when the dwelling unit sits vacant:

(A) Between rentals to tenants participating in the section 8 housing choice voucher program; or

(B) When the landlord initially transitions the dwelling unit to a rental under the section 8 housing choice voucher program; and

(2) The landlord may receive a signing bonus of up to one month of rent at the contract rate when the landlord first joins the housing choice voucher program by entering into a contract with the authority and securing a tenant participating in the housing choice voucher program for the dwelling unit; provided that a landlord receiving the signing bonus may not also receive reimbursement under paragraph (1)(B).

(b) The incentives in subsection (a) shall supplement the incentive offered under the section 8 housing choice voucher landlord incentive program established pursuant to Act 215, Session Laws of Hawaii 2019, to reimburse landlords who participate in the housing choice voucher program for repair costs of tenant-caused property damage when such repair costs exceed the tenant's security deposit. The following requirements apply to the reimbursement of repair costs:

(1) The landlord shall submit a claim to the authority within thirty calendar days of the tenant vacating the dwelling unit;

(2) The authority may reimburse the landlord up to an amount to be determined by the authority for verified costs to repair the tenant-caused property damage, subject to availability of funding; provided that the costs exceed the security deposit; and

(3) Claims that exceed an amount to be determined by the authority shall include an estimate from a licensed contractor setting forth the costs to repair the tenant-caused damages to the dwelling unit."

SECTION 6. 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 2022-2023 for the cost of the incentives established pursuant to section 356D‑ , Hawaii Revised Statutes, and Act 215, Session Laws of Hawaii 2019, for landlords who participate in the tenant-based assistance housing choice voucher program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).

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

PART III

SECTION 7. The legislature finds that the administrative rules applicable to section 8 housing choice voucher program leases found at title 15, chapter 185, subchapter 3, Hawaii Administrative Rules (sections 15-185-41 through 15-185-44) require dwelling units approved for lease under the program to meet minimum housing quality standards. Prior to approving a lease, the dwelling unit must be inspected within a reasonable time after receipt of the owner's inspection request. In addition, the form of the lease must comply with U.S. Department of Housing and Urban Development regulations and state and local law, specify utilities and appliances supplied by the owner, and include a federally prescribed tenancy addendum. If the dwelling unit is determined to be suitable for the program and the lease meets specified requirements of the program, the owner and family requesting to lease the dwelling unit must be notified and a contract executed.

The legislature further finds that specifying a maximum number of days within which the required inspection shall be completed will reflect the prioritization of increasing section 8 housing availability and assure landlords and families of a more expedited process. The legislature also finds that creating targeted positions and appropriating funds for those positions are necessary to achieve timely inspections and a better coordinated and more responsive program.

The purpose of this part is to:

(1) Require that the Hawaii public housing authority adopt rules to establish a maximum of fifteen days after receipt of an owner's or landlord's inspection request as a reasonable time within which to inspect a dwelling unit for lease under the section 8 housing choice voucher program; and

(2) Establish positions within the Hawaii public housing authority and appropriate funds to ensure that prospective dwelling unit inspections are completed within fifteen days of receipt of a request for lease approval and to facilitate various aspects of the section 8 housing choice voucher program.

SECTION 8. The authority shall adopt or amend administrative rules, without regard to chapter 91, Hawaii Revised Statutes, to establish a maximum of fifteen days after receipt of an owner's or landlord's inspection request as a reasonable time within which to inspect a dwelling unit for lease under the section 8 housing choice voucher program.

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $360,500 or so much thereof as may be necessary for fiscal year 2022-2023 for the Hawaii public housing authority, to be allocated as follows:

(1) $130,000 for two full-time equivalent (2.00 FTE) permanent housing quality standards inspector II positions to facilitate, coordinate, and monitor inspections of dwelling units that are the subject of applications for the section 8 housing choice voucher program, and handle related duties; and

(2) $230,500 for three full-time equivalent (3.00 FTE) permanent public housing specialist II positions to facilitate, coordinate, and monitor various aspects of the section 8 housing choice voucher program.

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

PART IV

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, 2022.

INTRODUCED BY:

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HOUSE OF REPRESENTATIVES	H.B. NO.	1752
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII