Bill Text: HI SB3112 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Hawaiian Homes Commission Act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-07 - Report adopted; Passed Second Reading and referred to JDC/WAM. [SB3112 Detail]
Download: Hawaii-2024-SB3112-Introduced.html
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THE SENATE |
S.B. NO. |
3112 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAIIAN HOMES COMMISSION ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the department of Hawaiian home lands provides direct loans for the repair, maintenance, purchase, and erection of a dwelling; however, the Hawaiian Homes Commission Act of 1920, as amended, stipulates that these loans cannot exceed fifty per cent of the maximum single residence loan amount allowed in Hawaii by the United States Department of Housing and Urban Development's Federal Housing Administration. The purpose of this Act is to increase the loan limit for direct loans provided by the department of Hawaiian home lands to seventy-five per cent of the maximum single residence loan amount allowed in Hawaii by the United States Department of Housing and Urban Development's Federal Housing Administration, instead of fifty per cent, as currently outlined in section 215 of the Hawaiian Homes Commission Act, 1920, as amended.
SECTION 2. Section 215, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:
"§215.
Conditions of loans. Except as otherwise provided in section
213(c), each contract of loan with the lessee or any successor or successors to
the lessee's interest in the tract or with any agricultural, mercantile, or
aquacultural cooperative association composed entirely of lessees shall be held
subject to the following conditions whether or not stipulated in the contract
loan:
(1) At
any one time, the outstanding amount of loans made to any lessee, or successor
or successors in interest, for the repair, maintenance, purchase, and erection
of a dwelling and related permanent improvements shall not exceed [fifty]
seventy-five per cent of the maximum single residence loan amount
allowed in Hawaii by the United States Department of Housing and Urban Development's
Federal Housing Administration (FHA), for the development and operation of a
farm, ranch, or aquaculture operation shall not exceed $200,000, except that
when loans are made to an agricultural or aquacultural cooperative association
for the purposes stated in section 214(a)(4), the loan limit shall be determined
by the department on the basis of the proposed operations and the available
security of the association, and for the development and operation of a
mercantile establishment shall not exceed the loan limit determined by the
department on the basis of the proposed operations and the available security
of the lessee or of the organization formed and controlled by lessees; provided
that upon the death of a lessee leaving no relative qualified to be a lessee of
Hawaiian home lands, or the cancellation of a lease by the department, or the
surrender of a lease by the lessee, the department shall make the payment
provided for by section 209(a), the amount of any such payment shall be
considered as part or all, as the case may be, of any such loan to the
successor or successors, without limitation as to the above maximum amounts; provided
further that in case of the death of a lessee, or cancellation of a lease by
the department, or the surrender of a lease by the lessee, the successor or
successors to the tract shall assume any outstanding loan or loans thereon, if
any, without limitation as to the above maximum amounts but subject to
paragraph (3).
(2) The loans shall be repaid in periodic installments,
such installments to be monthly, quarterly, semiannual, or annual as may be
determined by the department in each case. The term of any loan shall not exceed thirty
years. Payments of any sum in addition
to the required installments, or payment of the entire amount of the loan, may
be made at any time within the term of the loan. All unpaid balances of principal shall bear
interest at the rate of two and one-half per cent a year for loans made
directly from the Hawaiian home loan fund, or at the rate of two and one-half per
cent or higher as established by law for other loans, payable periodically or
upon demand by the department, as the department may determine. The payment of any installment due shall be
postponed in whole or in part by the department for such reasons as it deems
good and sufficient and until such later date as it deems advisable. Such postponed payments shall continue to bear
interest on the unpaid principal at the rate established for the loan.
(3) In the case of the death of a lessee the department
shall, in any case, permit the successor or successors to the tract to assume
the contract of loan subject to paragraph (1). In case of the cancellation of a lease by the
department or the surrender of a lease by the lessee, the department may, at
its option declare all installments upon the loan immediately due and payable,
or permit the successor or successors to the tract to assume the contract of
loan subject to paragraph (1). The
department may, in such cases where the successor or successors to the tract
assume the contract of loan, waive the payment, wholly or in part, of interest
already due and delinquent upon the loan, or postpone the payment of any
installment thereon, wholly or in part, until such later dates as it deems
advisable. Such postponed payments
shall, however, continue to bear interest on the unpaid principal at the rate
established for the loan. Further, the
department may, if it deems it advisable and for the best interests of the
lessees, write off and cancel, wholly or in part, the contract of loan of the
deceased lessee, or previous lessee, as the case may be, where such loans are delinquent
and deemed uncollectible. Such write off
and cancellation shall be made only after an appraisal of all improvements and
growing crops or improvements and aquaculture stock, as the case may be, on the
tract involved, such appraisal to be made in the manner and as provided for by
section 209(a). In every case, the amount
of such appraisal, or any part thereof, shall be considered as part or all, as
the case may be, of any loan to such successor or successors, subject to paragraph
(1).
(4) No part of the moneys loaned shall be devoted to
any purpose other than those for which the loan is made.
(5) The borrower or the successor to the borrower's
interest shall comply with such other conditions, not in conflict with any
provision of this Act, as the department may stipulate in the contract of loan.
(6) The borrower or the successor to the
borrower's interest shall comply with the conditions enumerated in section 208,
and with section 209 of this Act in respect to the lease of any tract.
(7) Whenever the department shall determine that a borrower is delinquent in the payment of any indebtedness to the department, it may require such borrower to execute an assignment to it, not to exceed, however, the amount of the total indebtedness of such borrower, including the indebtedness to others the payment of which has been assured by the department of all moneys due or to become due to such borrower by reason of any agreement or contract, collective or otherwise, to which the borrower is a party. Failure to execute such an assignment when requested by the department shall be sufficient ground for cancellation of the borrower's lease or interest therein."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on either the date of the Secretary of the Interior's notification letter to the Congressional Committee Chairmen that this Act meets none of the criteria in 43 CFR section 48.20, or on the date that the United States Congress approval becomes law. The amendments made to section 215, Hawaiian Homes Commission Act, 1920, as amended, by this Act shall not be repealed when Act 107, Session Laws of Hawaii 2000, or Act 85, Session Laws of Hawaii 2008, take effect with the consent of the United States Congress.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
DHHL; Hawaiian Homes Commission Act; Federal Housing Administration
Description:
Increases the loan limit for direct loans provided by DHHL to seventy-five percent of the maximum single residence loan amount allowed in Hawaii by the United States Department of Housing and Urban Development's Federal Housing Administration, instead of fifty percent, as currently outlined in section 215 of the Hawaiian Homes Commission Act, 1920, as amended.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
