Bill Text: HI HB1550 | 2017 | Regular Session | Amended
Bill Title: Relating To Homeownership.
Spectrum: Moderate Partisan Bill (Democrat 8-2)
Status: (Engrossed - Dead) 2017-03-16 - The committee on HOU deferred the measure. [HB1550 Detail]
Download: Hawaii-2017-HB1550-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1550 |
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TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOMEOWNERSHIP.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 356D, Hawaii Revised Statutes, is amended by adding three new sections to part I to be appropriately designated and to read as follows:
"§356D-A Section 8 voucher homebuyer assistance program. (a) There is established within the authority the section 8 voucher homebuyer assistance program.
(b) The section 8 voucher homebuyer assistance program shall offer home loans at below-market interest rates to recipients of federal section 8 housing choice vouchers who want to purchase homes in the State. Eligible borrowers shall be permitted to use their section 8 housing choice vouchers toward a monthly mortgage payment.
(c) There is established the section 8 voucher homebuyer assistance program special fund to be administered by the authority. Proceeds from the special fund shall be used for the purposes of this section.
(d) The authority may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient for its section 8 voucher homebuyer assistance program. The fees, premiums, and charges shall be deposited into the section 8 voucher homebuyer assistance program special fund.
§356D-B Downpayment loans. (a) The authority may make downpayment loans, either directly or through a nonprofit organization as defined in section 454F-1, to eligible borrowers who qualify for loans under sections 356D-A and 356D-C. The downpayment loan to any one borrower shall not exceed fifteen per cent of the purchase price or appraised value of the residential property or $15,000, whichever is less. In no event shall the combined loan amount and purchase money mortgage amount exceed one hundred per cent of the loan-to-value ratio. The interest rate on the loans may range from zero per cent to eight per cent, depending on the buyer's income.
(b) The repayment of every downpayment loan shall be secured by a duly recorded second mortgage executed by the borrower to the State on the residential property purchased with the downpayment loan.
(c) The principal of the downpayment loan, together with accrued interest, shall be due and payable upon the sale, transfer, or refinancing of the property, or shall be repaid by the borrower in installments as determined by the authority; provided that the authority may provide a period in which payments may be waived. The period over which the principal and interest shall be paid need not coincide with the period over which the loan from the mortgage lender for the balance of the purchase price must be repaid. The borrower may repay the whole or any part of the unpaid balance of the downpayment loan, plus accrued interest, at any time without penalty.
(d) The authority may secure the services of nonprofit organizations, as defined in section 454F-1, to originate the downpayment loans, on behalf of the State, for an origination fee not in excess of the prevailing loan origination fee amount.
(e) The authority may secure the services of the mortgage lender who loans to the borrower the balance of the purchase price of the residential property or the services of any other mortgage lender doing business in the State to collect, on behalf of the State, the principal and interest of the downpayment loan and otherwise to service the downpayment loan, for a servicing fee not in excess of the prevailing loan servicing fees.
(f) The authority may issue bonds pursuant to section 356D-21 to implement the purposes of this section.
(g) The authority shall adopt rules pursuant to chapter 91 to carry out the purposes of this section.
§356D-C Downpayment loan qualifications. No person shall be qualified for a downpayment loan pursuant to section 356D-B unless the person:
(1) Is a citizen of the United States or a resident alien;
(2) Is at least eighteen years of age;
(3) Is a bona fide resident of the State;
(4) Will physically reside in the residential property to be purchased for the term of the loan;
(5) Is accepted by a mortgage lender as a person to whom it is willing to lend money for the purchase of the residential property, provided the required downpayment is made;
(6) Provides a portion of the downpayment that shall be equal to at least three per cent of the sales price; and
(7) Has successfully completed a homeownership counseling program approved by the authority."
SECTION 2. The Hawaii public housing authority is authorized to issue revenue bonds, in accordance with part III of chapter 39 and section 356D-21, Hawaii Revised Statutes, in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2017-2018 for the purposes of establishing and implementing the section 8 voucher homebuyer assistance program, pursuant to section 1 of this Act.
The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.
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 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 for the hiring of full-time equivalent ( FTE) positions for the Hawaii public housing authority's section 8 voucher homebuyer assistance program.
The sums appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 6. This Act shall take effect on July 1, 2017.
Report Title:
Homeownership; Section 8 Housing Choice Vouchers; Section 8 Voucher Homebuyer Assistance Program; Established; Revenue Bonds; Authorization; Appropriation
Description:
Establishes within HPHA the Section 8 Voucher Homebuyer Assistance Program for recipients of federal Section 8 Housing Choice vouchers. Authorizes issuance of revenue bonds. Authorizes HPHA to make downpayment loans to eligible borrowers. Establishes a special fund. Appropriates funds. (HB1550 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
