Bill Text: HI HB1816 | 2020 | Regular Session | Amended
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 24-0)
Status: (Introduced - Dead) 2020-02-13 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Eli, Har excused (2). [HB1816 Detail]
Download: Hawaii-2020-HB1816-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1816 |
|
THIRTIETH LEGISLATURE, 2020 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1.
The legislature finds that certain published research indicates that
Hawaii residents have among the highest per capita debt in the United
States. According to a study conducted
by the online lending company LendingTree, Hawaii residents rank eighth in the
country when it comes to per capita debt, at $40,700. High debt is largely attributable to credit
card debt, with ninety per cent of Hawaii residents having credit cards and an
average balance of $4,489, and has an impact on a resident's ability to qualify
for home loans or to have the necessary down payment for home purchasing.
The legislature further finds that one
strategy to improve the potential for more Hawaii residents to become
homeowners is a mix of financial aid and financial education for low-income
families. This strategy can include
education on debt reduction and credit score improvement and financial aid to
assist in making down payments for a home.
Such strategies can help lead low-income families to achieving the
purchase of their own home.
The purpose of this part is to require the
Hawaii housing finance and development corporation to implement
the homebuyers' club program and provide financial aid to the program's
participants.
SECTION 2. Section 201H-171, Hawaii Revised Statutes, is amended to read as follows:
"§201H-171
Homebuyers' club program.
(a) The corporation shall
establish a homebuyers' club program for participants who [are desirous of
purchasing] desire to purchase a home and who have adequate incomes
but who lack sufficient funds for the downpayment and closing costs. The primary focus of this program is to
facilitate the purchase of homes by providing participants with financial
aid and strategies to save money, to resolve credit problems, and to
educate participants on how to shop for and purchase a home.
(b) The corporation shall provide financial aid
to participants using loans or other means of financial aid to pay for down
payments and other costs associated with the purchase of a home; provided that
a homeownership education program approved by the corporation shall be
completed before any financial aid is administered by the corporation to a
participant; provided further that upon purchasing a home, the participant shall
report to a designated agent of the corporation to ensure timely payments for
loans made under this section.
[(b)]
(c) In establishing such a
program, the corporation shall adopt rules pursuant to chapter 91 relating to
establishing a savings program for participants based upon individual analyses
of income and family expenses. The rules
may also provide for integration of the homebuyers' club program with other
governmental programs including but not limited to individual housing accounts
under section 235-5.5, the state mortgage guarantee program under subpart E, the
downpayment loan assistance program established under subpart F, and the
rent-to-own program established under subpart H.
[(c)]
(d) The corporation may secure
the services of another public or private entity to carry out the purposes of
this section.
(e) There is established within the corporation a full-time, permanent position, subject to chapter 76 and 89, to assist with the administration of the homebuyers' club program."
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 2020-2021 for the homebuyers' club program and one full-time equivalent (1.00 FTE) permanent position to assist with the administration of the homebuyers' club program.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this part.
PART II
SECTION 4. The legislature finds that many individuals and families who have received financial assistance to exit homelessness or prevent themselves from becoming homeless often have difficulty maintaining self-sufficiency for more than one to two years. Homeless service providers often provide case management support for a short-term period following the provision of financial rental assistance. However, short-term case management is often not enough, and a longer term of follow up and availability of case management, including counseling and financial education, for low-income renters will help to secure long-term housing and reduce recidivism.
The legislature further finds that homeless service providers see households return to homelessness or fall into arrears with rent and utilities within one to two years after assistance is provided. Long-term case management support for all types of households who have received homeless prevention services, including housing first, transitional shelters, rapid rehousing, and housing placement programs, provides clients with the guidance and motivation to maintain housing wellness. Each household may require different levels of case management, which may be determined by a holistic assessment.
Accordingly, the purpose of this part is to authorize and appropriate funds for the department of human services to offer long-term case management for low-income individuals and families and individuals and families who were homeless or at-risk for homelessness and accept financial aid offered by the department of human services for rent.
SECTION 5. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§346- Long-term
case management; housing stability. (a) To ensure that individuals and families
maintain self sufficiency and stable housing in the long term, the department may
offer long-term case management services to low-income
individuals and families and individuals and families who were homeless or
at-risk for homelessness and accept financial aid offered by the department,
including rental assistance, for the payment of rent.
(b) In providing long-term case management
services, the department may include financial counseling and education as part
of the case management services.
(c) The department may adopt rules, pursuant to chapter 91, necessary for the purposes of this section, including the establishment of eligibility requirements and applicant qualifications."
SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,500,000 or so much thereof as may be necessary for fiscal year 2020-2021 to provide long-term case management services as authorized by this part.
The sum appropriated shall be expended by the department of human services for the purposes of this part.
PART III
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2025; provided that sections 3 and 6 shall take effect on July 1, 2020.
Report Title:
Homebuyers' Club Program; Financial Aid; Long-term Case Management; Appropriation
Description:
Requires HHFDC to establish a homebuyers' club program and provide financial aid to participants. Establishes a full-time permanent position to administer the program. Authorizes DHS to offer long-term case management for low-income individuals and families and individuals and families that are were homeless or at-risk for homelessness and accept financial aid for rent. Appropriates funds. Takes effect on 7/1/2025. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
