Bill Text: HI SB2409 | 2020 | Regular Session | Amended
Bill Title: Relating To Down Payments.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Engrossed - Dead) 2020-03-09 - Referred to HSG, FIN, referral sheet 36 [SB2409 Detail]
Download: Hawaii-2020-SB2409-Amended.html
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THE SENATE |
S.B. NO. |
2409 |
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THIRTIETH LEGISLATURE, 2020 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO DOWN PAYMENTS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the size of the State's population is declining. In fiscal year 2016-2017, the United States Census estimated that Hawaii had a net loss of 13,537 people. People who move away from Hawaii often cite Hawaii's high cost of living as the deciding factor in moving.
The legislature further finds that the relocation of individuals and families out of Hawaii causes economic, social, and cultural burdens for the State. The lack of frequent physical contact with family members can be traumatic, disruptive, and fragmenting to ohana. This erosion of kinship support networks among existing residents can even delay family-making decisions for younger generations when considering their ability to clothe, feed, and educate their future children.
The legislature further finds that many who move out of Hawaii are often the most skilled and educated members of the workforce since those individuals have the greatest opportunity for career choices in the mainland United States. Failure to stem this loss represents a danger to Hawaii's economic future.
The purpose of this part is to encourage former residents to return to Hawaii by assisting them in making down payments for the purchase of primary residences.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§201H-A Returning resident down payment program,
established. (a) There is established the returning resident
down payment program to be administered by the corporation. The program shall encourage former Hawaii
residents to return to Hawaii by awarding grants to assist with the down
payment on the purchase of a primary residence.
(b) Subject to available funds, the returning
resident down payment program shall award grants of up to one dollar for each
dollar of down payment made by a qualified applicant; provided that the total award
to an applicant shall not exceed the lesser of ten per cent of the value of the
single family residence purchased or $50,000.
(c) To be eligible for an award under the returning
resident down payment program, an applicant shall:
(1) Have earned a
high school diploma from a high school located in the State;
(2) Have ceased residency in the State for the purpose of attending a four-year course of study leading to a baccalaureate degree at a college or university accredited by the United States Department of Education or other entity recognized by the corporation;
(3) Use the award to make
a down payment for the purchase of a residence as defined in
section 521-8; and
(4) Be a resident of the State
or a former resident of the State who meets subparagraph (1) and (2), who will be
an owner-occupant of the residence purchased pursuant to subparagraph (3), and who
owns no other interest in real property wherever situated.
(d)
Any applicant who has received an award and fails to satisfy the requirements
of subsection (c)(4) shall repay the award plus interest at the rate of eight
per cent.
§201H-B Returning resident down payment special
fund. (a) There is established in the state treasury
the returning resident down payment special fund into which shall be deposited
the following moneys:
(1) Appropriations made
by the legislature to the special fund; and
(2) Repayments to
the fund made pursuant to section 201H‑A(d).
(b) Funds in the special fund shall be used for
the purposes of the returning resident down payment 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 deposit into the returning resident down payment special fund.
SECTION 4. 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 returning resident down payment program.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 5. In codifying the new sections added by section 2 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. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2020.
Report Title:
Returning Resident Down Payment Program; Special Fund; Appropriation
Description:
Encourages qualified former Hawaii residents to move back to Hawaii by establishing the returning resident down payment program to provide matching funds for the down payment on a residence. Appropriates funds. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
