HAR §17-534-33. Owner Preference

Qualified owners shall be given preference for participation in the program in the followinu order: (1) (2) Owners who are not applying for construction grant funds provided by the authority; Owners who are in a census tract with the least number of rental units in such census tract; and 534-11 1’758 ’ . §17-534-33 (3) Owners whose rental units have the largest floor area. [Eff SLH 1992, Act 279, I&- : SLB 1992, Act 279, SSl, 3(3), 5) §17-534-34 Notification of ineliaibilitv. An owner determined to be ineligible to participate in the program shall be notified in writing of the determination, the reasons thereof and the right to a hearing by the authority. (Auth: lEff -J#!m$o'g%I 19!2 Act SLH 1992, Act 279, S3(3)) : I 279, §3(3)) §§17-534-35 to 17-534-39 (Reserved) SUBCHAPTER 4 CONSTRUCTION GRANTS s17-534-40 Construction aoolication. (a) m owner seeking to receive a construction grant for constructing or renovating a dwelling unit to be used as a rental unit shall submit an application form, as prescribed by the authority. The form shall include, but not be limited to, the owner's name, address, ownership information, property information, contractor information, financial cost information, county regulatory information, and dwelling information. (b) The owner shall submit documentation as required by the authority in order to verify the 'ty to receive a construction grant. ;wnP =%e&pqq& ] (Auth: SLB 1992, Act 279, SS3(5), 5) (Imp: SLH 1992, Act 279, SS3(5), 5) s17-534-41 Grant amount. (a) The authority shall pay to the owner, or authorized agent, up to the amounts defined by and set forth in Exhibit B, dated 2/l/94, located at the end of this chapter, for the applicable rental unit size and extent of construction, who has: (1) Submitted a completed application; (2) Become a qualified owner; and (3) Executed a construction grant agreement. (b) The owner shall submit documentation that is 534-12 §17-534-43 satisfactory to the authority that the owner has expended amounts at least equal to the construction grant amount for constructing or renovating a dwelling unit. (c) Any construction grant funds received by the owner which are in excess of the amount expended by the owner for constructing or renovating a dwelling unit shall be reimbursed to the authority. ] (Auth: tEff JU SLH 1992, Act 279, 5) (Imp: SLH 1992, Act 279, SS3(5), 5) §17-534-42 Restriction on use of dwelling units. (a) A dwelling unit that has been constructed or renovated using construction grant funds shall be used or available for use as a rental unit for applicants or tenants at all times during the five year period commencing on the date such unit is ready for occupancy after the construction or renovation is completed. (b) The owner or owners of the real property on which a dwelling unit has been constructed or renovated using construction grant funds shall record in the bureau of conveyances of the State of Hawaii, or if the real property is subject to land court registration under chapter 501, Hawaii Revised Statutes, shall record in the land court, a covenant that the owner or owners, or the heirs, successors or assigns of the owner or owners shall use the dwelling unit for applicants or tenants as provided by this section. The covenant shall be recorded on a form approved by the authority and may contain such terms as the authority deems necessary to ensure its enforceability. (c) At the end of the five year period of restriction on use of the dwelling unit, the authority shall execute a release of covenant and shall record ::::tfel;;:: wjtia 3v1w eau of conveyances or the land ] (Auth: SLH 1992, Act 279, §§3(5), 5) (Imp: SLH 1992, Act 279, SS3(5), 5) I s17-534-43 ConstNction liabilitv exceotion. (a) An owner who receives a construction grant from the authority for constructing or renovating a dwelling unit shall not hold the authority liable for any civil damages resulting from the authority's acts or omissions relating to the grant. (b) The owner shall defend, indemnify, and execute a waiver of liability holding the authority harmless from all claims made by third parties against 534-13 . §17-534-43 the authority resulting from constructing or renovating the dwelling unit. rEff JUN &K@&2,~Acfl~f sLH 1992, Act 279, §§3(4)) (I-: §3(4)) §17-534-44 Termination of narticination. (a) a owner who receives a construction grant from the authority for constructing or renovating a dwelling unit and terminates participation in the program prior to the end of the five year period provided in section 17-534-42(a) shall reimburse the authority for all amounts received by the owner as a construction grant within ninety days after the date of termination. Upon reimbursement of the construction grant, the authority shall release the covenant on restriction of use pursuant to section 17-534-42(c). (b) An owner who does not reimburse the authority pursuant to this section shall pay for any attorney's fees and costs, as determined by a court of competent jurisdiction to be reasonable, that are incurred by the authority in collecting the amounts owed to the authority. The authority may file a lien upon the property where the rental unit is located, in the amount of the construction grant that has not been reimbursed to the authority. (c) An owner shall give the authority at least forty-five days written notice prior to the date.tha the owner will withdraw from the program. [Eff JUN 10 1gg4 ] (Auth: SLH 1992, Act 279, S6) (Imp:- SLH 1992, Act 279, S6) s17-534-45 Construction grant aareement. A construction grant agreement shall be executed between the authority and the owner who receives a construction grant for constructing or renovating a dwelling unit to be used as a rental unit for tenants in the program. The agreement shall include, but not be limited to, the owner's name, address, ownership information, dwelling unit information, financial cost information, construction grant amounts, restriction on use of the dwelling unit, indemnification of the authority during construction, liability insurance, and the o the authority's responsibilities. [Eff $yti@@nd] (Auth: SLH 1992, Act 279, SS3(5), 5) (Imp: SLH 1992, Act 279, SS3(5), 5) 534-14 §17-534-53 SS17-534-46 to 17-534-49 (Reserved) SUBCHAPTER 5 RENT ASSISTANCE S17-534-50 Rent assistance auolication. (a) m owner seeking to receive rent assistance for a rental unit shall submit an application form, as prescribed by the authority. The form shall include, but not be limited to, the owner's name, address, ownership information, property information, dwelling unit information, and rent information. (b) The owners shall submit documentation as required by the authority in order to verify the ility to receive rent assistance. Owne$# Sb%@ ] (Auth: [Eff 5) -(Imp: SLH 1992, Act 279, SS 3(5), SLH 1992, Act 279, S53(5),5) S17-534-51 Fair monthlv rent. The fair monthly rent for the rental unit shall not be greater than ninety percent of the fair market rent for the same unit size as defined by 24 C.F.R. S888.113 and set forth in Exhibit A, dated 4 1 92 located at the end of this chapter. [Eff jUN 361494' J (Auth: SLH 1992, Act 279, §3(3)) (Imp: SLH 1992, Act 279, §3(3)) 517-534-52 Rent adjustment. The fair monthly rent for the rental unit may be adjusted by the owner as defined by 24 C.F.R. S882.108 and set forth in Exhibit A, dated 4 chapter. [Eff ad%"1@# ocated at the end of this 279, S3(3)) (Imp: J (Auth: SLH 1992, Act SLH 1992, Act 279, S3(3)) S17-534-53 Rent assistance oavments. (a) The authority shall pay directly to the owner, or authorized agent, on behalf of a tenant, a monthly rent assistance amount that is subject to subsection (d) and is the difference between the fair monthly rent for the rental unit and the tenant's allowable share of rent as defined by 24 C.F.R. S813.107 and set forth in Exhibit A, dated 4/l/92, located at the end of this chapter. (b) Rent assistance payments shall be made on behalf of a tenant for the period that the rental unit is occupied. 534-15 1’758 ’ . 517-534-53 (c) Vacated rental units will receive rent assistance payments under the following conditions: (1) If the tenant vacates the rental unit without proper notice, rent assistance payments shall be continued to the time that the tenancy could legally be terminated or to the date that the rental unit is re-rented, or to the last day of the month that the tenant vacated the rental unit and rent assistance payment was already made, whichever comes first; or (2) If the tenant has had his social services agreement terminated by the authority and is ineligible to participate in the program, rent assistance payments shall be continued for ninety days from the effective date of termination of the social services agreement or to the date the rental unit is re-rented, whichever comes first. (d)The rent assistance shall be limited up to the amounts as defined by and set forth in Exhibit B, dated 2/l/94, located at the end of this chapter. (IpN 3 0 1994 I (Auth: [Eff SLH 1992, Act 279, $53(5), 5) : SLH 1992, Act 279, §§3(5), 5) 517-534-54 Securitv deDosits. No portion of the rent assistance payments by the authority shall be applied or allocated to any security deposit demanded by an owner. The authority shall not be responsible for nor be required to pay an owner for the security deposit. [Eff 279, 553(5), 5) . N 301994 ] (Auth; SLB 1992, Act SLH 1992, Act 279, 553(5), 5) 517-534-55 Rent assistance agreement - owner. (a) A rent assistance agreement shall be executed between the authority and owner who receives rent assistance and rents to tenants in the program. The form shall include but not be limited to, an acknowledgement of the tenancy between the owner and the eligible applicant or tenant, the amount of the fair monthly rent and the rent assistance, date that the rent assistance payment is due, to whom payment is to be made, and the owner's and authority's responsibilities. (b) Amendments to the rent assistance agreement shall be made in writing, by the owner or agent, and 534-16 517-534-58 approved by the authority. [Eff 1 (Auth: SLH 1992, Act 279, 553(5), #N 3f$94 : SLH 1992, Act 279, 553(5), 5) 517-534-56 Rent assistance agreement - tenant. (a) The eligible applicant shall execute a rent assistance agreement with the authority prior to participating in the program. The agreement shall include, but not be limited to, an acknowledgement of the tenancy between the owner and the eligible applicant, the amount of the fair monthly rent and the rent assistance, and the eligible applicant's and authority's responsibilities. (b) The rent assistance agreement between the authority and eligible applicant shall set forth the conditions of participation in the program. ’ JY$m$-j ‘C&X& l;~~;ct”~g19;f; (if ;;% 553 (5) ,‘“8 I I I 517-534-57 Authoritv not resDonsible. Other than the agreed to rent assistance for the fair monthly rent, the authority shall not be held responsible to the owner for any portion of the tenant's allocable share of the rent, or be held responsible to the owner or tenant for any damages, breakage or losses to the rental unit or any portion thereof, or to the furnishings, fixtures, and appliances where the same may have been ca causes. [Eff ~~d+&&ia ~;::;h:wn=9;:he:ct 279, §§3(5), 5) (Imp: SLH 1992, Act 279, §§3(5), 5) $17-534-58 Rent assistance aoreement termination. (a) A tenant shall give the authority at least thirty days written notice prior to the date that the tenant will withdraw from participation in the program. (b) The authority may terminate a tenant's participation in the program when a tenant has: (1) Submitted false or misleading information or willfully withheld important information from the authority; or (2) Violated any provision of these rules or SLH 1992, Act 279, as related to this program; or (3)' Had the tenancy terminated by the owner; or (4) Had the social services agreement terminated by the authority. (c) A tenant found to be ineligible for continued 534-17 . 517-534-58 participation in the program shall be so notified in kiting-pursuant to section 17-534-23. (d) The owner may continue to rent to the tenant notwithstanding the termination of the rent assistance agreement and the ineligibility of the tenant E continued participation in the program. [Eff %'i 3 0 1994 ] (Auth: SLH 1992; Act 279, 553(5), 5) (Imp: SLH 1992, Act 279, 553(5), 5) 517-534-59 (Reserved) SUBCHAPTER 6 OPERATIONS 517-534-60 Selection of tenant. (a) The authority shall provide a qualified owner with a list of up to five eligible applicants. The list of eligible applicants shall be taken in the order of preference as provided in section 17-534-22. (b) The owner shall interview the eligible applicants from the list of applicants provided by the authority and may select an eligible applicant from such list to be the tenant for the rental unit. If the eligible applicants are unsatisfactory to the owner, then the owner may request a new list from the authority. The owner shall be provided a maximum of three lists by the authority and shall choose a eligible applicant from such lists. [Eff JUN Qo1994 ] (Auth: SLH 1992, Act 279, 53(4)) (Imp: SLH 1992, Act 279, 53(4)) 517-534-61 Social services aureement. (a) The eligible applicant that has been selected by an owner to be a tenant for a rental unit shall enter into a social services agreement with the authority. The agreement shall include, but not be limited to, the following: (1) An individualized assessment of the financial, health, housing, vocational, educational, and social needs of the tenant and tenant's family members, if applicable; (2) Identification of goals and objectives to address the tenant's assessed needs; (3) Identification of timeline, activities, and 534-18 1’758 517-534-71 tasks to accomplish the tenant's goals and objectives. (b) The authority shall monitor the tenant in order to evaluate the progress of the tenant in accomplishing the social services agreement. (c) The authority may terminate the social services agreement of the tenant if the tenant does not comply with or meet the goals and objectives of the social services agreement as determined by the authority. [Eff JUN 301994 ] (Auth: SLH 1992, Act 279, SS3(2), 3(7)) (Imp: SLH 1992, Act 279, ss3w, 3(7)). 517-534-62 Eviction. The owner may evict a tenant provided the requirements of chapter 521, Hawaii Revised Statutes, have been complied with. The owner must notify the authority, in writing, of the commencement of procedures for termination of the tenancy at the same time that the owner gives notice to the tenan [Eff &N un er chapter 521 Hawaii Revised Statutes. (Imp:. 08% (Auth: &I 1992, Act 279, 53(3,)) SLH 1992, Act 279, 53(3)). 5517-534-63 to 17-534-69 (Reserved) SUBCHAPTER7 CONTESTED CASES 517-534-70 Contested cases: aDDliCabilitY. The right to a contested case hearing shall exist where provided for by this chapter or where required by law. The right to hearing shall only be afforded to the person affected by the action or decision of the authority, unless otherwise provided by law. [Eff JLJN 30 1994 I (Auth: SLH 1992, Act 279, 52) (Imp: HRS 5591-14; SLH 1992, Act 279, 52) 517-534-71 Commencement of case. A contested case shall commence by the filing of a petition for a permitted relief with the authority. Unless otherwise provided by law, the petition shall be filed within thirty days of the action or decision for which contested case hearing is sought. Upon the filing of a 534-19 . 517-534-71 petition, the authority shall docket the petition and assign a docket number to the petition. 27&J# 0 19% I (Auth: ,[Eff HRS 5591-g; SLH 1992, Act I (Imp: SLH 1992, Act 279, 52) 517-534-72 Contents of oetition. (a) The petition shall state the following: (1) Name, address, telephone number of the petitioner and the petitioner's legal counsel, if any, which shall be updated by the petitioner at all times; (2) A brief and concise factual statement of the petitioner's claim; (3) The law or rule involved; (4) The names of all respondents or identities against whom the petition is brought; and (5) A brief statement of the relief sought by the petitioner. (b) If the petitioner is not in substantial compliance with part (a), the authority may refuse to file the petition and may request the petitioner to submit an ame ded petition in compliance thereto. juN 3 0 d , [Eff (Au-: SLH 1992, Act 279, 52) (Imp: HRshs91-2; SLH 1992, Act 279, 52) 517-534-73 Action bv authority. Upon the filing of the petition, the chairperson of the authority shall: (1) Assign the petition for further proceedings before the authority or assign the matter to a hearings officer; and (2) Afford all parties in the matter an opportunity for hearin notice. [Eff #p 3 ifM!!e~ r~;zEb'&H 1992, Act 279, . ~ (Imp: HRS 591-g; SLH 1992, Act 279, 52) 517-534-74 Resnonse. Each respondent may file with the authority or hearings officer if the case has been assigned to one, a written response to the petition which shall state briefly a counter-statement of the facts, circumstances, law, rules, or reasons in defense thereof, and which shall specifically admit or deny the allegations of the petition. The response shall be filed at least five working days prior to the 534-20 517-534-77 hearing. [Eff &N 301994 ] (Auth: SLB 1992, Act 279, 52) (Imp: SLH 1992, Act 279, 52) 517-534-75 Notice. The authority or hearings officer shall, as soon as possible, provide notice to all parties of the scheduled hearing in such form and manner as provided by law. (Auth: lEff(Im#JN ~Jg~91-~, 91- SLH 1992, Act 279, 52) 9.5; SLH 1992, Act 279, 52) 517-534-76 Burden of proof: evidence. Except as otherwise provided by law, the party initiating the proceeding shall have the burden of proof, including the burden of producing evidence as well as the burden of persuasion. rEff(Imp?U%8@8-10(&);(?~i99~~Act 1992, Act 279, 52) 279, 52) 517-534-77 Procedure at hearina. Unless otherwise stipulated by the parties, which stipulation is approved by the authority or the hearings officer, all hearings shall proceed as follows: (1) (2) (3) (4) The parties shall have the opportunity to make opening statements before any evidence is presented, unless they waive the opportunity. The opening statement shall be heard in the following order: (A) Petitioner's opening statement; and (B) Respondent's opening statement, unless respondent chooses to reserve same until after presentation of petitioner's evidence; The petitioner's evidence shall be presented first and shall be followed by the presentation of evidence by respondent; After presentation of the evidence in support of their respective cases, the parties shall have the opportunity to introduce rebuttal evidence. Rebuttal evidence shall be introduced in the same order as was followed with respect to the- introduction of evidence in support of their respective cases; Each witness shall first be sworn under oath and shall be examined first by the party calling-the witness before cross-examination by the opposing party; 534-21 . .- \I ,7 ,.. 2%: 517-534-77 (5) After all evidence, including rebuttal evidence, has been presented, the parties shall have the opportunity to make,final argument. Final argument shall proceed as follows: (A) Petitioner's final argument; (B) Respondent's final argument; and (C) Petitioner's final argument in rebuttal which shall be limited to countering matters raised in respondent's final argument; and (6) The hearing shall be deemed closed after completion of all final arguments or upon filing of all permitted memoranda and other post-hearing submissions or upon the expiration of the time allowed for filing submissions, unless the time is extended, or upon the completion of taking further evidence, whichever is later. [Eff JUN 301994 ] (Auth: SLH 1992, Act 279, 52) (Imp: HRS 5591-9, 91-10; SLB 1992, Act 279, 52) 517-534-78 ProDosed findinos of fact and conclusions of law. Proposed findings of fact, conclusions of law, decisions, and orders shall be filed with the authority no later than seven business days after the day the proceedings were concluded, or such other time as may be established by the authority or hearings officer. [E;fmp JUN 3 0 19% ] (Auth: SLH 1992, Act 279, 52) r SLH 1992, Act 279, 52) 517-534-79 Authority's final decisions, orders, findings of fact, and conclusions of law. (a) The authority shall issue its final decision and order together with findings of fact and conclusions of law. The findings of fact, conclusions of law, final decisions, and orders shall be based upon the whole record and shall be supported by reliable, probative, and substantial evidence, including facts on which the authority properly took judicial notice. (b) If the proceedings were held before a hearings officer and exceptions were filed to the recommended decision, the authority shall afford the parties oral argument as to the exceptions, prior to the authority adoption of a decision and order and " findings of fact and conclusions of law. 534-22 517-534-80 (c) If any party has timely filed proposed findings of fact, the authority shall incorporate in its decision a ruling upon each proposed finding so presented, provided that a separate ruling on each proposed finding shall not be required. (d) The authority shall cause to have a certified copy of the decision and order and accompanying findings and conclusions, delivered or mailed within a reasonable time after their adoption by the authority, to each party or the party's authorized representative. (e) Appeal of the authority's final decision, order, ruling, or action may be made to the ' court as provided by law. [Eff (Auth: SLH 1992, Act 279, 52) (ImpJUN 3 0 199vrC;it : HRS 5591-11, 91- 12; SLH 1992, Act 279, 52) 517-534-80 Procedure before a hearinus officer; transmittal to authoritv. The following procedures shall apply before a hearings officer: (a) Upon conclusion of the proceedings before the hearings officer and following the timely submittal of proposed findings of fact, conclusions of law, and decision and order, the hearings officer shall prepare a recommended decision in the matter before the authority. (b) If the recommended decision is adverse to any party to the proceeding other than the authority, the recommended decision shall contain a statement of the reasons therefor and shall include a determination of each issue of fact or law necessary to the recommended decision, and it shall be served upon all parties. Any party adversely affected by the recommended decision may file exceptions thereto an may submit written argument in support of the exceptions to the authority, provided that the exceptions and argument shall be filed within ten days of the service of the recommended decision, or within such other time as may be designated by the hearings officer. (c) Following the expiration of the time specified in (b) above, or if not applicable, foilowing preparation of the recommended decision, the hearings officer shall transmit the entire record to the authority for action together with the recommended decision, any timely filed exceptions thereto, and any timely submitted written arguments in support of the exceptions. [Eff Act 279, 52) (Imp: JUN 3(Jl994 ] (Auth: SLH 1992, HRS sgl-11; SLH 1992, Act 279, S2) 534-23 . §17-534-81 SUBCHAPTER8 MISCELLANEOUS PROVISIONS $17-534-81 Severabilitv. If any part, section, sentence, clause, or phrase of this chapter, or its application to any person or transaction or other circumstances is for any reason held to be unconstitutional or invalid, the remaining parts, sections, sentences, clauses, and phrases of this chapter, or the application of this chapter to other persons or transactions or circumstances shall not be affected. [Eff # 279, §3(12); HRS S HRS §356-ld) N 3 0 19yImpl 6-10) : W-&;;,,““,c:‘;;4 Act I I ~302); '