| 47 | | - | SECTION 1. The legislature finds that the federal housing choice voucher program, also known as section 8 of the United States Housing Act of 1937, as amended, provides federally-funded, tenant-based vouchers to low-income households that are responsible for finding appropriate rental units in the private market. Once a household receives a Section 8 voucher, the challenge is finding a landlord who is willing to accept the voucher. The legislature believes that renters who participate in housing assistance programs, such as section 8, should have an equal opportunity to find housing and should not be discriminated against because their source of income includes funds from housing assistance programs. Studies have shown that when there are laws that prevent discrimination against renters with housing assistance vouchers, these renters are twelve per cent more likely to find housing. The American Bar Association adopted a resolution in 2017 that called for the enactment of laws that ban housing discrimination based on lawful sources of income. The legislature notes that source of income discrimination laws do not alter or restrict standard industry practices to vet prospective renters. Rather, these laws prohibit landlords from rejecting prospective renters who receive section 8 vouchers or other housing assistance simply because of the voucher or assistance. The legislature further finds that ten states, the District of Columbia, fourteen counties, and fifty-six major cities across the country have laws that prohibit source of income discrimination in housing. Honolulu is one of the largest cities in the United States that does not prohibit source of income discrimination in housing. The legislature also finds that low-income individuals experience extreme difficulty in finding affordable rentals in Hawaii. Prior to the COVID-19 pandemic, local and national news reports documented that prospective tenants are often rejected by landlords due to their use of section 8 vouchers or other forms of housing assistance, or based on requirements for participation in a housing assistance program. This situation becomes all the more frustrating when housing vacancy advertisements state "No section 8 accepted" or "Section 8 need not apply" in an effort to prevent low-income individuals receiving housing assistance from being considered as tenants. The legislature additionally finds that the COVID-19 pandemic and resulting economic conditions have impacted many residents' ability to pay their rent. An August 2020 survey of two hundred seventy-one landlords and property managers statewide conducted by the University of Hawaii economic research organization indicated that more than nine thousand households were two months or more behind in rent, and more tenants were thirty days behind in rent than prior to the pandemic. The legislature further finds that prior to the pandemic, nationally, eighty-three per cent of households participating in section 8, were led by women. Currently, there are more than twenty-two thousand single mothers in Hawaii. Ninety-two per cent of fifty-five single mothers surveyed in Hawaii during the COVID-19 pandemic reported that they have lost financial independence due to the economic crisis. Allowing landlords to consider a rental applicant's source of income can also function as a proxy for discrimination against single mothers. The purpose of this Act is to prohibit discrimination, including in advertisements for rental property, in rental transactions based on participation in a section 8 housing choice voucher program or any permanent supportive housing program or requirements related to participation in these housing assistance programs. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "CHAPTER RENTAL DISCRIMINATION BASED ON SOURCE OF INCOME § -1 Definitions. As used in this chapter, unless the context clearly requires otherwise: "Housing assistance program" means a section 8 housing choice voucher program or any permanent supportive housing program. "Rental transaction" means any part of the process for the rental or lease of a premises for residential purposes. § -2 Discriminatory practices in a rental transaction based on source of income. (a) It shall be a discriminatory practice for a landlord to: (1) Indicate in any manner used to advertise the availability of a rental property that the landlord will not rent a property to a person participating in a housing assistance program; (2) Discourage in any manner a person from seeking to engage in a rental transaction based on the person's participation in a housing assistance program; (3) Refuse to engage in a rental transaction with a person because of the person's participation in a housing assistance program or requirements related to participation in a housing assistance program; or (4) Require rental conditions that are different from those required for a person not participating in a housing assistance program. (b) Nothing in this section shall be deemed to prohibit a landlord from determining in a commercially reasonable manner the ability of a potential tenant to pay rent by: (1) Verifying the source and amount of income of the potential tenant; or (2) Evaluating the stability, security, and creditworthiness of the potential tenant or any source of income of the potential tenant. § -3 Remedies. (a) Any individual claiming to be aggrieved by an alleged unlawful discriminatory practice by a landlord may bring a civil action in district court within one year of the occurrence of the alleged violation for appropriate injunctive relief and damages. (b) In an action brought pursuant to subsection (a), a district court may issue an injunction to enjoin a violation of this chapter. If the court issues an injunction, the court may also award damages not to exceed $2,500 to the person bringing the action, and reasonable attorney's fees and costs incurred in the civil action." SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 4. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. The legislature finds that low-income individuals experience extreme difficulty in finding affordable rentals in Hawaii. This situation becomes all the more frustrating when housing vacancy advertisements proclaim "no Section 8 accepted" or "Section 8 need not apply" in an effort to prevent low-income individuals with housing vouchers from being considered as tenants. News reports, locally and nationally, have documented that prospective tenants are often rejected by landlords due to their use of housing vouchers or other forms of housing assistance, or based on requirements for participation in a housing program. The legislature further finds that studies have shown that when there are laws to prevent discrimination against renters with housing vouchers, such renters are twelve per cent more likely to find housing. Discrimination against housing voucher holders and recipients of other housing assistance programs, often termed "source of income" discrimination, is prohibited in about a dozen states and the District of Columbia, as well as numerous cities and counties throughout the United States. Further, the American Bar Association adopted a resolution in 2017 calling for enactment of laws that ban housing discrimination based on lawful sources of income. Hawaii law currently does not prohibit housing discrimination based on lawful sources of income. The legislature notes that source of income laws do not alter or restrict the standard industry practices to vet prospective renters. Rather, these laws prohibit landlords from rejecting prospective renters who receive housing vouchers or other housing assistance simply because of the voucher or assistance. The legislature believes that renters who participate in housing assistance programs, such as the federal housing choice voucher program, also known as the section 8 housing program, should have an equal opportunity to find housing. The legislature further finds that allowing landlords to consider a rental applicant's source of income also functions as a proxy for discrimination against women. Prior to the coronavirus disease 2019 (COVID-19) pandemic, nationally eighty-three per cent of households participating in Section 8 voucher program were led by women. Currently, there are more than 22,000 single mothers in Hawaii, and ninety-two per cent of fifty-seven single mothers surveyed during the COVID-19 pandemic reported that they have lost financial independence due to the economic crisis. The purpose of this Act is to prohibit discrimination, including in advertisements for available real property, based on participation in a housing assistance program, or requirements related to participation in housing assistance programs, in rental transactions and requirements. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "CHAPTER SOURCE OF INCOME DISCRIMINATION IN HOUSING § ‑1 Definitions. As used in this chapter, unless the context clearly requires otherwise: "Housing assistance program" means any government assistance, government grant, government loan, or government rental assistance program, including low-income housing assistance certificates and vouchers under the United States Housing Act of 1937, as amended. "Rental transaction" means any part of the process or transaction for the rental or lease of a premises for residential purposes. "Steer" means the practice of directing persons who seek to enter into a rental transaction toward or away from the premises to deprive them of the benefits of living in a discrimination-free environment. § ‑2 Discriminatory practices. (a) It is a discriminatory practice for an owner or any other person engaging in a rental transaction, or for a real estate broker or salesperson, because of participation in a housing assistance program or requirements related to participation in a housing assistance program to: (1) Refuse to engage in a rental transaction with a person or expel or otherwise refuse to continue to rent to a current tenant; (2) Discriminate against a person in the terms, conditions, or privileges of a rental transaction or in the furnishing of facilities or services in connection with a rental transaction; (3) Refuse to receive or to fail to transmit a bona fide offer to engage in a rental transaction from a person; (4) Refuse to negotiate for a rental transaction with a person; (5) Represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is available, or to fail to bring a property listing to the person's attention, or to refuse to permit the person to inspect real property, or to steer a person seeking to engage in a rental transaction; (6) Offer, solicit, accept, use, or retain a listing of real property with the understanding that a person may be discriminated against in a rental transaction or in the furnishing of facilities or services in connection with a rental transaction; or (7) Discriminate against or deny a person access to, or membership or participation in any multiple listing service, real estate broker's organization, or other service, organization, or facility involved either directly or indirectly in rental transactions, or to discriminate against any person in the terms or conditions of access, membership, or participation. (b) Nothing in this section shall be deemed to prohibit a person from determining the ability of a potential buyer or renter to pay a purchase price or rent by: (1) Verifying, in a commercially reasonable manner, the source and amount of income of the potential buyer or renter; or (2) Evaluating, in a commercially reasonable manner, the stability, security, and credit worthiness of the potential buyer or renter or any source of income of the potential buyer or renter. As used in this section, "source of income" includes benefits or subsidy programs including housing assistance, public assistance, emergency rental assistance, veterans benefits, social security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity. "Source of income" does not include income derived in an illegal manner. § ‑3 Blockbusting. It is a discriminatory practice for a person, representative of a person, or a real estate broker or salesperson, for the purpose of inducing a rental transaction from which the person, representative, or real estate broker or salesperson may benefit financially, because of participation in a housing assistance program or requirements related to participation in a housing assistance program to represent that: (1) A change has occurred or will or may occur in the composition of the owners or occupants in the block, neighborhood, or area in which the real property is located; or (2) This change will or may result in the lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools in the block, neighborhood, or area in which the real property is located. § ‑4 Other discriminatory practices. It is a discriminatory practice for a person, or for two or more persons to conspire to: (1) Retaliate, threaten, or discriminate against a person because of the exercise or enjoyment of any right granted or protected by this chapter, or because the person has opposed a discriminatory practice, or because the person has made a charge, filed a complaint, testified, assisted, or participated in an investigation, proceeding, or hearing under this chapter; (2) Aid, abet, incite, or coerce a person to engage in a discriminatory practice; (3) Interfere with any person in the exercise or enjoyment of any right granted or protected by this chapter or with the performance of a duty or the exercise of a power by the commission; (4) Obstruct or prevent a person from complying with this chapter or an order issued pursuant to this chapter; (5) Intimidate or threaten any person engaging in activities designed to make other persons aware of, or encouraging such other persons to exercise rights granted or protected by this chapter; (6) Threaten, intimidate, or interfere with persons in their enjoyment of a housing accommodation because of participation in a housing assistance program or requirements related to participation in a housing assistance program; or (7) Print, circulate, post, mail, or cause to be published a statement, advertisement, or sign, or to use a form of application for a rental transaction, or to make a record or inquiry in connection with a prospective rental transaction, that indicates, directly or indirectly, an intent to make a limitation or specification, or to discriminate because of participation in a housing assistance program or requirements related to participation in a housing assistance program. § ‑5 Remedies for discrimination based on participation in a housing assistance program. (a) If a person engaging in a rental transaction engages in a discriminatory practice based on participation in a housing assistance program or requirements related to participation in a housing assistance program in violation of this chapter, any aggrieved person may bring a civil action in district court for appropriate injunctive relief within one year of the occurrence of the discriminatory violation. (b) In an action brought pursuant to subsection (a), a district court: (1) May issue an injunction to enjoin violation of this chapter in regard to discriminatory practices based on participation in a housing assistance program or requirements related to participation in a housing assistance program; and (2) In any case in which it issues an injunction pursuant to paragraph (1), may also assess a fine not to exceed $5,000 and award reasonable attorney's fees incurred in the civil action." SECTION 3. The Hawaii civil rights commission shall produce materials related to this Act and publicize the prohibition against discrimination based on participation in housing assistance programs or requirements related to participation in housing assistance programs. SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 5. This Act shall take effect on May 6, 2137. |
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