Bill Text: HI HB870 | 2018 | Regular Session | Amended
Bill Title: Relating To Mortgages.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB870 Detail]
Download: Hawaii-2018-HB870-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
870 |
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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 MORTGAGES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the Hawaii housing finance and development corporation is tasked with developing and financing low- and moderate-income housing projects and administering homeownership programs. One function of the Hawaii housing finance and development corporation is providing mortgages for affordable housing units to qualifying residents.
The legislature further finds that affordable
units priced between $350,000 and $600,000 might still be unaffordable to
first-time buyers without the financial assistance of family and friends. The
legislature additionally finds that the "family" of Hawaii's
residents frequently extends to cousins, uncles, aunties, step-parents, and
"hanai" family members who may not be considered family under the
definition used by the Hawaii housing finance and development corporation, but
who have the financial capacity and the willingness to assist buyers with the
down payment or the qualification for a mortgage.
The purpose of this Act is to:
(1) Include extended and hanai family members as family members who are eligible to assist a qualified resident in securing a mortgage to purchase a dwelling unit from the Hawaii housing finance and development corporation; and
(2) Require a qualified resident who is assisted by a co-mortgager to have an income of at least fifty per cent of the amount required to qualify for a loan to purchase the dwelling unit.
SECTION 2. Section 201H-46, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201H-46[]]
Co-mortgagor. For purposes of qualifying for a mortgage loan to finance
the purchase of a dwelling unit under this part, a "qualified
resident" as defined in section 201H‑32 may be assisted by a
co-mortgagor who is a family member, including an extended or hanai family
member, as defined by the corporation, who may own other lands in fee
simple or leasehold suitable for dwelling purposes, whose interest in the
dwelling unit to be purchased is limited to no more than one per cent, and who
certifies that the co-mortgagor does not intend to reside in the dwelling unit[.];
provided that a qualified resident who is assisted by a co-mortgagor shall have
an income of at least fifty per cent of the amount required to qualify for a
loan to purchase the dwelling unit. The income and assets of the
co-mortgagor shall not be counted in determining the eligibility of the
"qualified resident" under this chapter."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Hawaii Housing Finance and Development Corporation; Co-mortgagor; Family Members; Income
Description:
Clarifies that a co-mortgagor assisting a qualified resident in securing a mortgage to purchase a dwelling unit from the Hawaii housing finance and development corporation may be a family member, which also includes extended or hanai family members. Requires a qualified resident who is assisted by a co-mortgager to have an income of at least fifty per cent of the amount required to qualify for a loan to purchase the dwelling unit. (HB870 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
