Bill Text: HI HB738 | 2019 | Regular Session | Introduced


Bill Title: Relating To The Residential Landlord-tenant Code.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2019-01-28 - Referred to CPC, FIN, referral sheet 6 [HB738 Detail]

Download: Hawaii-2019-HB738-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

738

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE.

 

 

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

 


     SECTION 1.  The legislature finds that some landlords have been charging prospective tenants fees for the opportunity to apply for housing units.  These fees are frequently not returned to unsuccessful housing applicants and are a serious detriment to low-income housing applicants who must also contend with the costs of security deposits and higher rental rates.

     The legislature also finds that current state law does not specifically regulate the nature and amount of application fees that landlords may charge prospective tenants.  According to the office of consumer protection, the cost of an application fee often does not correlate with the actual cost of a background check.  The legislature further finds that, in particularly egregious examples, some landlords or their agents invite numerous prospective tenants to submit applications for one apartment, most of which are not seriously considered.  Instead of engaging in a valid tenant screening process, these landlords or agents abuse their bargaining position to create a supplemental source of income.

     The purpose of this Act is to establish criteria and limits for the assessment of application screening fees for residential rental property, while still enabling landlords to be compensated for the expense associated with credit checks.

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

     "§521-     Application screening fee.  (a)  A landlord or the landlord's agent may charge an applicant an application screening fee to recover costs incurred by the landlord or the landlord's agent in obtaining information about the applicant, including but not limited to personal reference checks and consumer credit reports produced by consumer credit reporting agencies, as defined in section 489P-2.

     (b)  The amount of the application screening fee shall not exceed the lesser of:

     (1)  The actual costs incurred by the landlord or the landlord's agent in obtaining the information, including but not limited to the cost of using a tenant screening service or consumer credit reporting service and the reasonable value of time spent by the landlord or the landlord's agent in obtaining the information; or

     (2)  $25 per applicant.

     (c)  Except as agreed to in writing by the applicant, the landlord or the landlord's agent may not charge an application screening fee if the landlord or the landlord's agent knows or should have known that no rental unit is available or will be available within the landlord's inventory of rental units within a reasonable time.

     (d)  The landlord or the landlord's agent shall provide to the applicant a receipt for the application screening fee paid by the applicant, and the receipt shall itemize the actual expenses and time spent by the landlord or the landlord's agent to obtain and process the information about the applicant.

     (e)  The landlord or the landlord's agent shall return to the applicant any amount of the application screening fee that is not used for the purposes of this section.

     (f)  Upon payment of the application screening fee and at the request of the applicant, the landlord or the landlord's agent shall provide a copy of any obtained consumer credit report to the applicant who is the subject of the report.

     (g)  The application screening fee shall not be considered a security deposit under section 521-44.

     (h)  Nothing in this section shall be construed to preempt any law that governs the collection of deposits and fees under federal or state housing assistance programs.

     (i)  In complying with this section, a landlord or the landlord's agent shall not pass on to or collect from an applicant any taxes owed under chapter 237.

     (j)  For purposes of this section:

     "Applicant" means any person who makes a request to a landlord or the landlord's agent to rent a residential housing unit or who agrees to act as a guarantor or cosigner on a rental agreement.

     "Application screening fee" means any nonrefundable payment of money charged by a landlord or the landlord's agent to an applicant, the purpose of which is to purchase a consumer credit report and to validate, review, or otherwise process an application for the rent or lease of residential rental property."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2019.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Landlord-Tenant Code; Application Screening Fees

 

Description:

Establishes criteria and limits for the assessment of application screening fees for residential rental property.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

feedback