Bill Text: HI HB2014 | 2020 | Regular Session | Introduced
Bill Title: Relating To Housing.
Spectrum: Moderate Partisan Bill (Democrat 21-3)
Status: (Introduced - Dead) 2020-01-23 - Referred to HSG, FIN, referral sheet 4 [HB2014 Detail]
Download: Hawaii-2020-HB2014-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2014 |
THIRTIETH LEGISLATURE, 2020 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
||
|
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that homeownership is positively correlated with economic and social stability in low- and moderate-income households. However, in the last fifty years, the number of full-time Hawaii residents who own homes has steadily declined. Currently, Hawaii has the third lowest homeownership rate of any state in the nation. The department of business, economic development, and tourism projects that Hawaii will need approximately thirty-four thousand new housing units by 2025 to address the critical shortage of housing. Action is needed to increase the availability of owner-occupied housing to meet demand.
The legislature also finds that the self-help housing model is a cost-effective means of assisting low-income families who would otherwise not have a homeownership opportunity. Self-help housing organizations, nonprofit developers, and community land trust organizations leverage federal funds from the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development program, with low-income families' own contributions of labor to build their own communities. However, an additional non-federal matching funding source is needed.
The legislature further finds that nonprofit community development financial institutions are intermediaries that provide financing and technical assistance to assist nonprofit housing organizations in the development of affordable homeownership units in underserved communities. As private sector organizations, community development financial institutions establish and maintain revolving loan funds to attract capital from the United States Department of the Treasury and other public and private sources of capital to increase the collective impact of affordable housing development by nonprofit housing organizations. According to Opportunity Finance Network, community development financial institutions leverage federal funding for affordable housing and community development activities at a ratio of eight-to-one. Additional funding would help community development financial institutions attract private and public capital for affordable housing development.
The legislature additionally finds that qualified nonprofit housing trusts provide access to low-cost land that in turn reduces home sales prices and ensures affordability in perpetuity through equity sharing between the nonprofit and the homeowner at the time of resale.
The purpose of this Act is to establish the affordable homeownership revolving fund to provide funds for the development of affordable for-sale housing projects by nonprofit community development financial institutions, qualified nonprofit housing trust programs, and nonprofit housing development organizations to facilitate greater homeownership opportunities for Hawaii residents.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§201H- Affordable homeownership revolving fund. (a) There is established the affordable
homeownership revolving fund to be administered by the corporation. The purpose of the fund shall be to provide, in
whole or in part, loans to nonprofit community development financial
institutions, qualified nonprofit housing trusts, and nonprofit housing
development organizations for the development of affordable homeownership
housing projects.
(b) Loans for projects or units in projects that are
funded by programs of the United States Department of Housing and Urban
Development, United States Department of Agriculture Rural Development, and
United States Department of the Treasury Community Development Financial Institutions
Fund shall be awarded in the following order of priority:
(1) At least fifty per cent of
the available units are reserved for persons and families with incomes at or
below eighty per cent of the median family income and of which at least five
per cent of the available units are for persons and families with incomes at or
below fifty per cent of the median family income;
(2) The remaining units under paragraph (1) are reserved
for persons and families with incomes at or below one hundred twenty per cent
of the median family income; and
(3) Mixed-income affordable for-sale housing projects or
units in a mixed-income affordable for-sale housing project in which all of the
available units are reserved for persons and families with incomes at or below
one hundred per cent of the median family income.
(c) Moneys in the fund shall be used to
provide loans for the development, pre-development, construction, acquisition,
preservation, and substantial rehabilitation of affordable for-sale housing
units and qualified nonprofit housing trust programs.
(d) Permitted uses of the fund may include but
are not limited to planning, design, and land acquisition, including the costs
of options, agreements of sale, and down payments; capacity building of
nonprofit housing developers and land trusts; and equity financing as matching
funds for nonprofit community development financial institutions or other
housing development services or activities as provided in rules adopted by the
corporation pursuant to chapter 91. The
rules may provide that money from the affordable homeownership revolving fund
be leveraged with other financial resources to the extent possible.
(e) The fund may include sums appropriated by the
legislature, private contributions, repayment of loans, interest, other
returns, and moneys from other sources.
(f) An amount from the fund, to be set by the
corporation and authorized by the legislature, may be used for administrative
expenses incurred by the corporation in administering the fund; provided that
moneys in the fund shall not be used to finance the day-to-day administrative
expenses of projects allotted moneys from the fund.
(g) The corporation may provide loans under this
section as provided in rules adopted by the corporation pursuant to chapter 91.
(h) The corporation shall submit a report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded by the affordable homeownership revolving fund."
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 to be deposited into the affordable homeownership revolving fund established under section 201H- , Hawaii Revised Statutes.
SECTION 4. There is appropriated out of the affordable homeownership revolving fund the sum of $ or so much thereof as may necessary for fiscal year 2020-2021 to carry out the purposes of the affordable homeownership revolving fund, including providing loans to nonprofit community development financial institutions, qualified nonprofit housing trusts, or nonprofit organizations operating programs for the development of affordable for-sale housing projects.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 5. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval; provided that sections 3 and 4 shall take effect on July 1, 2020.
INTRODUCED BY: |
_____________________________ |
|
|
Report Title:
Affordable Housing; Affordable Homeownership Revolving Fund; HHFDC; Appropriation
Description:
Establishes the affordable homeownership revolving fund to be administered by HHFDC to provide loans to qualified nonprofit community development financial institutions, qualified nonprofit housing trusts, and nonprofit housing development organizations for the development of affordable homeownership housing projects. Appropriates funds for the purposes of the affordable homeownership revolving fund.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.