For displaced pineapple workers at Kunia, Oahu, appropriates funds for conversion of rental housing to owner occupancy; low-interest mortgage loans for home purchase; rent subsidies and rental assistance; preservation and rehabilitation of existing housing units; demolition and reconstruction of dilapidated units; and direct downpayment loans for eligible borrowers. (SD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the closure of Del Monte Fresh Produce will result in significant negative impacts to Kunia pineapple workers. Housing ranks among their primary concerns. Currently, many employees and their families live in plantation homes owned by the company at Kunia Camp. With the closure of Del Monte Fresh Produce, many of these families face the possibility of losing their homes. Housing is a fundamental need, to which every person should have access.

With the loss of their jobs, many employees will undergo a transition period as they seek new employment, participate in job training programs, or seek other opportunities. While incomes may be greatly diminished, these employees must continue to make their housing payments and meet other living expenses. Many former employees in transition may find it difficult to qualify for loans under conventional loan-writing standards.

The purpose of this omnibus Act is to address the housing needs of pineapple workers who are displaced by the closure of Del Monte Fresh Produce and in danger of losing their homes at Kunia Camp. Specifically, this Act provides for the following:

SECTION 2. There is appropriated out of the dwelling unit revolving fund of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to provide grants for displaced Del Monte pineapple workers and their families to purchase their existing homes in Kunia Camp; provided that the Hawaii housing finance and development administration shall by rule apply section 201G-127, Hawaii Revised Statutes, relating to restrictions on transfer, and section 201G-129, Hawaii Revised Statutes, relating to restrictions on use, to real property purchased pursuant to this section; and provided further, that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the dwelling unit revolving fund as of that date.

SECTION 3. The Hawaii housing finance and development administration, with the approval of the director of finance and the governor, is authorized pursuant to part III, chapter 39, Hawaii Revised Statutes, and part III, chapter 201G, Hawaii Revised Statutes, to issue revenue bonds in an aggregate principal amount not to exceed $          , at such times and in such amounts as it deems advisable, for the purpose of carrying out the provisions of subpart B of part III of chapter 201G, Hawaii Revised Statutes, relating to housing loan and mortgage programs.

The proceeds of such revenue bonds shall be deposited into the Kunia housing project bond special fund created pursuant to section 201G-170, Hawaii Revised Statutes.

SECTION 4. There is appropriated out of the Kunia housing project bond special fund the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to provide low-interest loans to former employees and their surviving spouses displaced by the closure of Del Monte Fresh Produce at Kunia Camp; provided that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the Kunia housing project bond special fund as of that date. Loans may be made for up to $          , each to provide for the payment of monthly mortgage loan payments, which may include principal and interest payments, real property taxes, and insurance. The loans shall be limited to one loan per household, and the rate of interest on loans made pursuant to the Act shall not exceed     per cent a year. Interest earnings on funds appropriated and loans made pursuant to this Act may be used for administrative and other expenses necessary for administering the loan program. Loans made pursuant to this Act may not require repayment to begin for a period of      years after the loan agreement is executed. Loan proceeds distributed may be made directly to the borrower's note and mortgage holder to ensure timely payment of the borrower's mortgage payment. Guidelines for administering this loan program shall be adopted by the Hawaii housing finance and development administration.

SECTION 5. There is appropriated out of the rental assistance revolving fund of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to provide rent subsidies through the state rent supplement program to eligible Del Monte pineapple workers and their families seeking safe, decent, and sanitary housing in the private market; provided that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the rental assistance revolving fund as of that date.

SECTION 6. There is appropriated out of the rental assistance revolving fund of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to finance rental assistance subsidies to owners who contract to provide lower rents to eligible tenants displaced from Kunia Camp; provided that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the rental assistance revolving fund as of that date.

SECTION 7. There is appropriated out of the rental housing trust fund of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to provide loans or grants for the preservation and substantial rehabilitation of rental housing units at Kunia Camp; provided that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the rental housing trust fund as of that date.

SECTION 8. There is appropriated out of the dwelling unit revolving fund of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to provide funds for the demolition and reconstruction of dilapidated housing units at Kunia Camp; provided that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the dwelling unit revolving fund as of that date.

SECTION 9. There is appropriated out of the dwelling unit revolving fund of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, to provide funds for direct downpayment loans to eligible borrowers displaced from Del Monte Fresh Produce to purchase their existing homes in Kunia Camp; provided that this appropriation shall not lapse at the end of the 2006-2007 fiscal year, and that any amount that is unencumbered as of June 30, 2007, shall lapse into the dwelling unit revolving fund as of that date.

SECTION 10. The sums appropriated by this Act shall be expended by the Hawaii housing finance and development administration for the purposes of this Act.

SECTION 11. This Act shall take effect upon July 1, 2006.