Report Title:

Housing Assistance; Kunia; Omnibus

Description:

Establishes a program for low interest loans and grants for home acquisition and rehabilitation for displaced pineapple workers at Kunia, Oahu; establishes a rental assistance program for rental of safe, decent, and sanitary units in the private market; and provides supportive services to prepare displaced workers for homeownership. (SD3)

THE SENATE

S.B. NO.

2773

TWENTY-THIRD LEGISLATURE, 2006

S.D. 3

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to housing.

 

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

 

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 Act is to assist Kunia pineapple workers in danger of losing their homes by:

(1) Establishing a program of low interest loans and grants for home acquisition and rehabilitation;

(2) Establishing a rental assistance program for rental of safe, decent, and sanitary units in the private market; and

(3) Providing supportive services to prepare current renters for homeownership.

PART I

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

"§201H-A Kunia camp housing revolving fund; established. (a) There is established in the state treasury the Kunia camp housing revolving fund to provide low interest loans or grants for the acquisition, rehabilitation, or reconstruction of existing homes in Kunia camp by pineapple workers who are displaced by the closure of Del Monte Fresh Produce and who have been denied loans from traditional financial institutions. The Kunia camp housing revolving fund shall be administered by the administration.

(b) Low interest loans may be made to nonprofit organizations that assist pineapple workers displaced by the closure of Del Monte Fresh Produce.

(c) The rate of interest on loans executed pursuant to this section shall not exceed three per cent per year. Interest earnings on loans made pursuant to this section may be used for administrative and other expenses necessary for administering the loan program. Guidelines shall be established by the administration with respect to loan terms and loan qualification criteria. Moneys appropriated for the purposes of this section shall be deposited into the Kunia camp housing revolving fund; provided that upon fulfillment of the purposes of this section, all unencumbered moneys shall lapse into the state general fund.

(d) The administration shall adopt rules in accordance with chapter 91 to effectuate the purposes of this section."

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 2006-2007, for deposit into the Kunia camp housing revolving fund established under section 201H-A, Hawaii Revised Statutes, to provide low interest loans or grants for the acquisition, rehabilitation, or reconstruction of homes in Kunia camp for pineapple workers displaced by the closure of Del Monte Fresh Produce and to fund related activities.

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

PART II

SECTION 4. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H-B Kunia camp rental housing fund; established. (a) There is established in the state treasury the Kunia camp rental housing fund to make annual payments to a landlord to provide rent subsidies for eligible Del Monte pineapple workers and their families seeking safe, decent, and sanitary housing in the private market. The Kunia camp rental housing fund shall be administered by the administration.

(b) Moneys appropriated for the purposes of this section shall be deposited into the Kunia camp rental housing fund; provided that upon fulfillment of the purposes of this section, all unencumbered moneys shall lapse into the state general fund. Guidelines shall be established by the administration with respect to eligible Del Monte pineapple workers and rental assistance payments under this section.

(c) The administration shall adopt rules in accordance with chapter 91 to effectuate the purposes of this section."

SECTION 5. 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 2006-2007, for deposit into the Kunia camp rental housing fund established under section 201H-B, Hawaii Revised Statutes, to provide rent subsidies for eligible Del Monte pineapple workers and their families seeking safe, decent, and sanitary housing in the private market.

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

PART III

SECTION 6. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H-C Kunia camp homeownership counseling program; established. (a) There is established within the administration a homeownership counseling program known as the "Kunia camp homeownership counseling program" to provide displaced pineapple workers with homebuyer education and counseling.

(b) The administration may secure the services of a public or private entity to carry out the purposes of this section."

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 2006-2007, to effectuate the Kunia camp homeownership counseling program.

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

PART IV

SECTION 8. In codifying the new sections added by this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2006.