Bill Text: HI SB214 | 2014 | Regular Session | Amended
Bill Title: Location Efficient Mortgages; Urban Districts ($)
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB214 Detail]
Download: Hawaii-2014-SB214-Amended.html
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THE SENATE |
S.B. NO. |
214 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
S.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. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and
"Part . location efficient mortgage loans"
§201H- Definitions. As used in this part, the following terms shall mean as follows:
"Location efficient mortgage loan" or "mortgage loan" means a mortgage loan whose amount is increased to reflect the decrease in transportation costs experienced by a mortgagee who purchases residential premises in an urban district.
"Urban district" means a land use district classified as an urban district by the land use commission.
§201H- Authorization for location efficient mortgage loans. The corporation may provide location efficient mortgage loans to persons purchasing residential premises in urban districts for their personal residential needs.
§201H- Qualifications for a mortgage loan. To qualify for a mortgage loan under this part an applicant shall:
(1) Be of legal age;
(2) Be a resident of the State for not less than one year immediately preceding the application for the mortgage loan;
(3) Be a purchaser of residential premises located in an urban district; and
(4) Have such other qualifications as may be established by the corporation.
§201H- Purpose for and terms of mortgage loans. (a) Mortgage loans made pursuant to this part may be granted only for the purchase of residential premises located in an urban district.
(b) By rule, the corporation shall establish:
(1) The amount by which the mortgage loan amount may be increased to reflect the transportation cost savings incurred by purchasing a residential premise in an urban district rather than in a non-urban district; and
(2) The interest rate on the mortgage loan.
The corporation may authorize repayment upon such terms as the corporation deems appropriate but in no case shall the payments extend beyond forty years.
§201H- Contract with lending institution. The corporation may, and as far as practicable shall, contract with lending institutions for the processing of applications for the mortgage loans and the servicing of these mortgage loans. In furtherance of the purposes of this part, the contract may provide for the mortgage loan to be repaid after the funds of the lending institution are repaid in full and for payment to lending institutions for servicing the State's portion of the total mortgage loan and may include other terms deemed appropriate by the corporation.
§201H- Rules. The corporation may adopt, amend, or repeal rules governing the granting of mortgage loans and other related functions as the corporation considers necessary or suitable. The rules, when approved by the governor and made in accordance with chapter 91, shall have the force and effect of law.
§201H- Bond authorization. With the approval of the governor, the corporation may issue from time to time general obligation bonds pursuant to chapter 39, part I, not exceeding $ for the granting of mortgage loans pursuant to the purposes of this part."
SECTION 2. This Act shall take effect upon its approval.
Report Title:
Location Efficient Mortgages; Urban Districts
Description:
Authorizes the Hawaii housing finance and development corporation to provide location efficient mortgage loans to purchasers of residential premises in urban districts. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
