Bill Text: HI HB477 | 2019 | Regular Session | Amended

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Bill Title: Relating To Housing.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Engrossed - Dead) 2019-04-26 - Conference Committee Meeting will reconvene on Friday, 04-26-19 at 4:40PM in Conference Room 423. [HB477 Detail]

Download: Hawaii-2019-HB477-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	477
THIRTIETH LEGISLATURE, 2019		H.D. 1
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

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

 

PART I

SECTION 1.  The legislature finds that homeownership is positively correlated with economic and social stability in low- and moderate-income households.  However, in the last fifty years, the number of full time Hawaii residents who own homes has steadily declined.  Currently, Hawaii has the third lowest homeownership rate of any state in the nation.  The department of business, economic development, and tourism projects that Hawaii will need approximately thirty-four thousand new housing units by 2025 to address the critical shortage of housing.  Action is needed to increase the availability of owner-occupied housing to meet demand.

     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 program with low-income families' own contributions of labor to build their own communities.  However, an additional non-federal matching funding source is needed.

     The legislature further finds that nonprofit community development financial institutions are intermediaries that provide financing and technical assistance to assist self-help housing organizations in the development of affordable homeownership units in underserved communities.  As private sector organizations, community development financial institutions establish and maintain revolving loan funds to attract capital from the United States Department of the Treasury and other public and private sources of capital in order to increase the collective impact of affordable housing development by self-help housing organizations.  According to Opportunity Finance Network, community development financial institutions leverage federal funding for affordable housing and community development activities at a ratio of eight-to-one.  Additional funding will help community development financial institutions attract private and public capital for affordable housing development.

     The purpose of this Act is to:

     (1)  Establish a homeownership housing revolving fund to provide funds for the development of affordable for-sale housing projects by nonprofit community development financial institutions and nonprofit housing development organizations under a self-help housing program to facilitate greater homeownership opportunities for Hawaii residents; and

     (2)  Establish the qualified nonprofit housing trust program to authorize the Hawaii housing finance and development corporation to provide loans to qualified nonprofit housing trusts and nonprofit community development financial institutions to develop affordable housing units.

PART II

     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 community development financial institutions and 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 the 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 median family income 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 median family income; and

(B)  The remaining units are reserved for persons and families with incomes at or below one hundred twenty per cent of the median family income; 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 median family income.

     (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 nonprofit community development financial institutions 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 shall be leveraged with other financial resources to the 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 as provided in rules adopted by the corporation pursuant to chapter 91.

     (f)  The corporation shall submit a report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded.

     (g)  For the purposes of this section, "self-help housing program" shall have the same meaning as in section 201H-151(a)."

     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 to be deposited into the homeownership housing revolving fund established under section 201H-  , Hawaii Revised Statutes.

     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 for loans to nonprofit community development financial institutions or nonprofit 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 part.

PART III

     SECTION 5.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part II to be appropriately designated and to read as follows:

"B.  Qualified Nonprofit Housing Trust Program

     §201H-A  Purpose and findings.  The legislature finds that qualified nonprofit housing trusts can help families by reducing housing costs significantly for income-qualified families up to one hundred forty per cent of the area median income.  Qualified nonprofit housing trust homeowners have more financial stability because they no longer worry about rent increases or loss of their residence in the event the landlord decides to sell the unit.

     The purpose of this subpart is to promote permanent affordable homeownership opportunities by establishing an acquisition, rehabilitation, and development financing program for qualified nonprofit housing trusts and nonprofit community development financial institutions.

     §201H-B  Definitions.  As used in this subpart, unless a different meaning is clearly required by the context:

     "Develop" or "development" means the planning, financing, or acquisition of real and personal property; demolition of existing structures; clearance of real property; construction, reconstruction, alteration, or repairing of approaches, streets, sidewalks, utilities, and services, or other site improvements; construction, reconstruction, repair, remodeling, extension, equipment, or furnishing of buildings or other structures; or any combination of the foregoing, of any housing project, including any undertakings necessary therefor and the acquisition of any housing, in whole or in part.

     "Fund" means the qualified nonprofit housing trust revolving fund established pursuant to section 201H-C.

     §201H-C  Qualified nonprofit housing trust revolving fund.  (a)  There is established a qualified nonprofit housing trust revolving fund.  Funds appropriated for the purpose of the qualified nonprofit housing trust revolving fund and all moneys received or collected by the corporation for the purpose of the fund shall be deposited in the fund.  The proceeds in the revolving fund may be used for the necessary expenses incurred by the corporation in administering the fund; provided that fund moneys may not be used to finance day-to-day administrative expenses of projects allotted fund moneys.

     (b)  The fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable housing units under the qualified nonprofit housing trust program.  Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide for a means of recapturing loans made from the fund if an affordable housing project financed under the fund is refinanced or sold by the qualified nonprofit housing trust at a later date.

     §201H-D  Qualified nonprofit housing trust program for affordable for-sale housing development.  (a)  The corporation may provide loans in amounts not to exceed $           under this section to qualified nonprofit housing trusts and nonprofit community development financial institutions for the development of affordable housing units.

     (b)  Affordable housing units developed under this section shall be sold to qualified residents earning not more than one hundred forty per cent of the area median income as determined by the United States Department of Housing and Urban Development under terms that ensure permanent housing affordability.

     (c)  Notwithstanding any other provision of law, the corporation, at its sole discretion, may waive or modify, as appropriate, the following restrictions for housing units developed under this section:

     (1)  The ten-year buyback restriction set forth in section 201H-47;

     (2)  The shared appreciation equity restriction set forth in section 201H-47;

     (3)  The buyback restriction set forth in section 201H-48;

     (4)  The restrictions on use of real property set forth in section 201H-49; and

     (5)  The restrictions on use, sale, and transfer of real property set forth in section 201H-50;

provided that the qualified nonprofit housing trust loan attributable to the housing units developed by the loan is repaid to the corporation upon closing of the sale or transfer of the housing units.

     (d)  Qualified nonprofit housing trusts shall establish and impose on qualified residents owner-occupancy and buyback restrictions, to be approved by the corporation, that require the purchased housing units to remain affordable in perpetuity.

     (e)  The corporation may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, for its qualified nonprofit housing trust program.

     (f)  The corporation shall adopt rules pursuant to chapter 91 to effectuate the purpose of this program."

     SECTION 6.  Chapter 201H, Hawaii Revised Statutes, is amended by designating sections 201H-31 to 201H-70 as subpart A and inserting a title before section 201H-31 to read as follows:

"A.  General Provisions"

     SECTION 7.  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 to be deposited into the qualified nonprofit housing trust revolving fund established under section 201H-C, Hawaii Revised Statutes.

     SECTION 8.  There is appropriated out of the qualified nonprofit housing trust revolving fund the sum of $           or so much thereof as may be necessary for fiscal year 2019-2020 for the qualified nonprofit housing trust program.

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

     SECTION 9.  In codifying the new sections added by section 5 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 10.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect on January 1, 2050.

 

 

Report Title:

Housing; Affordable Homeownership; Qualified Nonprofit Housing Trust Revolving Fund; HHFDC; Appropriation

 

Description:

Establishes a Homeownership Housing Revolving Fund within HHFDC to provide loans to nonprofit housing development organizations and community development financial institutions for the development of affordable homeownership housing projects under a self-help housing program.  Establishes the qualified nonprofit housing trust program to authorize HHFDC to provide loans to qualified nonprofit housing trusts and nonprofit community development financial institutions to develop affordable housing units.  Makes an appropriation into and out of the qualified nonprofit housing trust revolving fund.  Effective 1/1/2050.  (SD1)

 

 

 

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