Bill Text: HI SB743 | 2020 | Regular Session | Introduced
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [SB743 Detail]
Download: Hawaii-2020-SB743-Introduced.html
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THE SENATE |
S.B. NO. |
743 |
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THIRTIETH LEGISLATURE, 2019 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to housing.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further 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 leverage federal funds from the United States Department of Housing and Urban Development and the United States Department of Agriculture – Rural Development and low-income families' own contributions of labor to build their own communities. However, an additional non-federal matching funding source is needed.
The purpose of this Act is to establish a homeownership housing revolving fund to provide for the development of affordable for-sale housing projects by nonprofit housing development organizations under a self-help housing program 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- Homeownership housing revolving fund. (a)
There is established a homeownership housing revolving fund to be
administered by the corporation for the purpose of providing, in whole or in
part, loans to nonprofit housing development organizations for the development
of affordable homeownership housing projects under a self-help housing
program. Loans shall be awarded in the
following order of priority:
(1) 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 Treasury community
development financial institutions fund, wherein:
(A) 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 area median family
income as determined by the United States Department of Housing and Urban
Development 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 area median
family income as determined by the United States Department of Housing and
Urban Development; and
(B) The
remaining units are reserved for persons and families with incomes at or below
one hundred twenty per cent of the area median family income as determined by
the United States Department of Housing and Urban Development; and
(2) Mixed-income
affordable for-sale housing projects or units in a mixed-income affordable
for-sale housing project wherein all of the available units are reserved for
persons and families with incomes at or below one hundred forty per cent of the
area median family income as determined by the United States Department of
Housing and Urban Development.
(b) 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. Uses of moneys in the fund may
include but are not limited to planning, design, land acquisition, including
the costs of options, agreements of sale, and down payments, capacity building
of nonprofit housing developers, as matching funds for community development
financial institutions financial assistance awards, 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 fund be leveraged with other financial
resources to the fullest extent possible.
(c) The fund may include sums appropriated by the
legislature, private contributions, repayment of loans, interest, other
returns, and moneys from other sources.
(d) 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 day-to-day administrative
expenses of the projects allotted moneys from the fund.
(e) The corporation may provide loans under this
section; provided that the corporation shall establish loan-to-value ratios to
protect the fund from inordinate risk and that under no circumstances shall the
rules permit the loan-to-value ratio to exceed
per cent; provided further that the underwriting guidelines include a
debt-coverage ratio of not less than to one.
(f) The corporation shall submit a report of all
projects that received loans pursuant to this section to the legislature no later
than twenty days prior to the convening of each regular session.
(g) For purposes of this section, "self-help housing program" means development or preservation of housing in which prospective homeowners have contributed labor, materials, or real property; provided that at least two-thirds of the participating homeowners are qualified by income for assistance under this part and that the program is carried out under the sponsorship of a nonprofit housing development organization."
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 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 to be deposited into the homeownership housing revolving fund.
SECTION 4. There is appropriated out of the homeownership housing revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for loans to nonprofit housing development organizations operating a self-help housing program for the development of affordable for-sale housing projects.
The sums 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 on July 1, 2019.
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INTRODUCED BY: |
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Report Title:
Housing; Homeownership Housing Revolving Fund; Appropriation
Description:
Establishes a homeownership housing revolving fund to provide loans to nonprofit housing development organizations for development of affordable homeownership housing projects under a self-help housing program. Appropriates funds to provide loans.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
