Bill Text: HI HB2548 | 2024 | Regular Session | Amended

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Bill Title: Relating To Accessory Dwelling Units.

Spectrum: Partisan Bill (Democrat 21-1)

Status: (Engrossed - Dead) 2024-03-20 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [HB2548 Detail]

Download: Hawaii-2024-HB2548-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2548
THIRTY-SECOND LEGISLATURE, 2024		H.D. 3
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

 

 

RELATING TO ACCESSORY DWELLING UNITS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that accessory dwelling units are an option for people to maximize their residential lots and adapt to changing living conditions and responsibilities and growing families.  However, traditional financing for accessory dwelling units may be difficult to secure.

     The purpose of this Act is to promote affordable housing by establishing an accessory dwelling unit loan program under the Hawaii housing finance and development corporation.

     SECTION 2.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:

"     .  Accessory dwelling unit loan program

     §201H-A  Definitions.  As used in this subpart, unless the context otherwise requires:

     "Accessory dwelling unit" means an accessory or second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot.

     "Eligible borrower" means a person or family, without regard to race, creed, national origin, or sex, who:

     (1)  Is a citizen of the United States or a resident alien;

     (2)  Is a bona fide resident of the State;

     (3)  Is at least eighteen years of age;

     (4)  Is financing an accessory dwelling unit that will be on the eligible borrower's principal residence;

     (5)  Has a recorded property interest in the land on which the accessory dwelling unit will be constructed; and

     (6)  Meets other qualifications as established by rules adopted by the corporation.

     §201H-B  Accessory dwelling unit loan program; established.  (a)  There is established within the corporation an accessory dwelling unit loan program.  Under the accessory dwelling unit loan program, the corporation may:

     (1)  Make loans to non-depository community development financial institutions, which may then make accessory dwelling unit loans to eligible borrowers to finance the construction of accessory dwelling units, including the upgrade or conversion of a cesspool to a wastewater system or the connection of an accessory dwelling unit to a sewerage system; and

     (2)  Provide technical assistance grants to community development financial institutions.

     (b)  The interest rate on loans to non-depository community development financial institutions shall not exceed      per cent.

     (c)  An accessory dwelling unit loan to any one eligible borrower shall not exceed $300,000.  In no event shall the loan amount and purchase money mortgage amount exceed one hundred per cent of combined loan-to-value.  The interest rate on an accessory dwelling unit loan to an eligible borrower may range from      per cent to      per cent, depending on the borrower's income and program rules relating to evaluation criteria and underwriting.

     (d)  A technical assistance grant to any one community development financial institution shall not exceed $200,000.

     (e)  The repayment of every accessory dwelling unit loan shall be secured by a duly recorded mortgage executed by the borrower and non-depository community development financial institution on the primary residential property of the borrower.

     (f)  The principal of the accessory dwelling unit loan, together with accrued interest, shall be due and payable upon the sale, transfer, or refinancing of the property or shall be repaid by the non-depository community development financial institution borrower in installments as determined by the corporation; provided that the corporation may provide a period in which payments may be waived.  The period over which the principal and interest shall be paid need not coincide with the period over which the loan from the mortgage lender for the balance of the purchase price must be repaid.  The borrower may repay the whole or any part of the unpaid balance of the accessory dwelling unit loan, plus accrued interest, at any time without penalty.

     (g)  The construction of accessory dwelling units financed through the program established by this section shall be exempt from chapter 104.

     (h)  Accessory dwelling units financed through the program shall not be furnished as transient accommodations, as defined in section 237D-1.

     (i)  The corporation shall adopt rules pursuant to chapter 91 to carry out the purposes of this subpart.

     §201H-C  Accessory dwelling unit loan revolving fund.  (a)  There is created an accessory dwelling unit loan revolving fund to be administered by the corporation.

     (b)  The accessory dwelling unit loan revolving fund may include appropriations made by the legislature, private contributions, repayment of loans, interest, other returns, program fees collected pursuant to section 201H-D, and funds from other sources.

     (c)  The revolving fund shall be used to implement the accessory dwelling unit loan program by:

     (1)  Providing loans to non-depository community development financial institutions to then provide accessory dwelling unit loans to eligible borrowers to finance the construction of accessory dwelling units, including the upgrade or conversion of a cesspool to a wastewater system or the connection of an accessory dwelling unit to a sewerage system; and

     (2)  Providing technical assistance grants of up to $200,000 to community development financial institutions; provided that:

          (A)  The community development financial institution shall match 20 cents for every $1 of grant funds awarded;

          (B)  Ten per cent of the amount of each grant awarded shall be used for marketing and outreach of the accessory dwelling unit loan program; and

          (C)  Each grant shall be awarded over a three-year term.

     §201H-D  Program fees.  The corporation may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient for the accessory dwelling unit loan program.  The fees, premiums, and charges shall be deposited into the accessory dwelling unit loan revolving fund established in section 201H-C."

     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 2024-2025 to be deposited into the accessory dwelling unit loan revolving fund.

     SECTION 4.  There is appropriated out of the accessory dwelling unit loan revolving fund the sum of $           or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of the accessory dwelling unit loan revolving fund established pursuant to section 2 of this Act.

     The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

     SECTION 5.  In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No.     , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $           or      per cent.  In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $           or      per cent.  The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $           or      per cent.  The reasons for exceeding the general fund expenditure ceiling are that:

     (1)  The appropriation made in this Act is necessary to serve the public interest; and

     (2)  The appropriation made in this Act meets the needs addressed by this Act.

     SECTION 6.  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 7.  This Act shall take effect on July 1, 2050.

 

 

Report Title:

HHFDC; Accessory Dwelling Units; Loans; Grants; Community Development Financial Institutions; Revolving Fund; Appropriation; Expenditure Ceiling

 

Description:

Establishes the Accessory Dwelling Unit Loan Program under the Hawaii Housing Finance and Development Corporation to provide loans for the development of accessory dwelling units.  Appropriates funds.  Declares that the general fund expenditure ceiling is exceeded.  Takes effect 7/1/2050.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.