Bill Text: HI HB1142 | 2023 | Regular Session | Introduced

Hawaii House Bill 1142 (Prior Session Legislation)

Introduced

Bill Title: Relating To 201h-181 Rent-to-own Program.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-01-30 - Referred to HSG, CPC, FIN, referral sheet 3 [HB1142 Detail]

Download: Hawaii-2023-HB1142-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1142
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

Relating to §201H-181 Rent-to-own program.

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

SECTION 1. The legislature finds that home ownership is one of the pillars of wealth generation. Renting a home removes wealth from a family, while owning a home builds equity over time. The state has seen the wisdom of helping residents use their rental funds towards homeownership in the establishing of the Rent-to-Own Program in HRS 201H-181. The Hawaii housing finance and development corporation has been slow in implementing this program on any meaningful level.

This Act will require the Hawaii housing finance and development corporation to implement its Rent-to-Own Program.

SECTION 2. Section 201h-181, Hawaii Revised Statutes, is amended to read as follows:

"H. Rent-to-Own Program

[§201H-181] Rent-to-own program. (a) The corporation [~~may~~] shall establish a rent-to-own program under which dwelling units that are for sale may be rented to program participants. Under this program, the corporation shall credit [~~a portion of~~] the rent received, minus any maintenance fees, toward the purchase of the unit.

(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first [~~five~~] ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the [~~five~~] ten-year period, the renter shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.

(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit."

SECTION 3. 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 2023-2024 for staffing and resources to implement and publicize the Rent-to-Own Program.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 4. The Hawaii housing finance and development corporation shall submit a report of its progress and recommendations, including any needed funding or staffing, to the legislature no later than twenty days prior to the convening of the regular session of 2024, and each subsequent year.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Rent-to-Own Housing Program, HHFDC, homeownership, appropriation

Description:

Requires the HHFDC to implement its Rent-to-Own Housing Program, increases the time that the owner/renter can build equity from five years to ten years. Appropriates funds for staffing and implementing the program.

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