Excludes pre-development loans made by the housing and community development corporation of Hawaii from the rental housing trust fund from loan-to-value ratio and debt-coverage ratio restrictions.

A BILL FOR AN ACT

SECTION 1. Section 201G-432, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:

"(h) [Providing loans and grants under this section; provided that] For loans for development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units, the corporation shall establish loan-to-value ratios not exceeding ninety-five per cent to protect the fund from inordinate risk [and that under no circumstances shall the rules permit the loan-to-value ratio to exceed ninety-five per cent; and provided further that the underwriting]. Underwriting guidelines shall include a debt-coverage ratio of not less than 1.05 to 1."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.