HB955 HD1

SECTION 1. Due to a critical teacher and educational staff shortage, the legislature finds that there is a pressing need to provide housing assistance to assist in the recruitment and retention of public school teachers and other educational staff.

The purpose of this Act is to create an incentive program that provides housing for teachers and other educational staff at affordable prices.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding three new sections to part III, subpart E, to be appropriately designated and to read as follows:

"§302A- Teachers' affordable housing program. (a) There is established an affordable housing program for qualified teachers and other educational staff of the department to be administered by the Hawaii housing finance and development corporation.

(b) The Hawaii housing finance and development corporation shall make available an interest in residential properties to qualified teachers and other educational staff for purchase at twenty per cent of the current fair market values of the properties. Fair market value shall equal that of comparable residential properties sold in the surrounding area as determined from tax assessed valuation.

(c) Under this program, the qualified teacher or educational staff member shall pay property taxes on the property's current full market value at the rate established by the county governments responsible for property tax assessments.

(d) The qualified teacher or educational staff member under this program shall be solely responsible for securing a mortgage, and paying principal and interest, mortgage insurance, maintenance, and other associated costs on the residential property.

(e) The Hawaii housing finance and development corporation shall adopt rules pursuant to chapter 91 to carry out this section.

§302A- Qualifications for teachers' affordable housing program. (a) An individual shall be eligible to participate in the program if the individual is a qualified teacher or educational staff member who:

(1) Is in active and full-time employment in the Hawaii public school system; and

(2) Resides on the property purchased under this subpart as the teacher or educational staff member's permanent and primary residence for at least nine months in a twelve-month period.

(b) No teacher or educational staff member who owns a residential property elsewhere shall be eligible to purchase a residential property under this subpart. A teacher or educational staff member shall be deemed to own a residential property if the teacher or educational staff member, the teacher's or educational staff member's spouse, or both (unless separated and living apart under a decree of a court of competent jurisdiction) own a majority interest in a residential property.

§302A‑ Occupation of residential property by teacher and spouse upon termination of service, retirement, death, or divorce. (a) If the qualified teacher or educational staff member is terminated from service with ten years or less of service with the department, the teacher or educational staff member shall vacate the residential property. Twenty per cent of the fair market value of the property at the time of the purchase of the property by the teacher or educational staff member shall be returned to the teacher or educational staff member.

(b) If the qualified teacher or educational staff member is terminated from service with more than ten years of service with the department, the teacher or educational staff member shall vacate the residential property. Twenty per cent of the fair market value of the property at the time of termination shall be returned to the teacher or educational staff member.

(c) If the qualified teacher or educational staff member retires from the public school system and does not reside in the property for at least nine months in a twelve-month period, the property shall be sold back to the State at fair market value. Twenty per cent of the fair market value of the property at the time of the sale shall be returned to the teacher or educational staff member.

(d) The surviving spouse of a deceased qualified teacher or educational staff member may live in the home until the surviving spouse's death. Upon the death of both the qualified teacher or educational staff member, and the spouse, twenty per cent of the fair market value of the property at the time of death of the teacher or educational staff member, or spouse, whichever is later, shall be paid to the teacher's or educational staff member's estate.

(e) If the qualified teacher or educational staff member is divorced from the teacher's or educational staff member's spouse, the residential property shall be divided in accordance with section 580-47. If the qualified teacher or educational staff member has lived on the property for ten years or less, the teacher or educational staff member shall be entitled to twenty per cent of the fair market value of the property at the time of the purchase of the property by the teacher or educational staff member. If the qualified teacher or educational staff member has lived on the property for more than ten years, the teacher or educational staff member shall be entitled to twenty per cent of the fair market value of the property at the time of the divorce."

SECTION 3. Section 302A-831, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-831[]] Purpose. The purpose of this subpart is to transfer the administration of the teachers' housing program from the [~~housing and community development corporation of~~] Hawaii housing finance and development corporation to the department [~~of education~~]. This subpart [~~also~~] establishes a revolving fund for the accounting and control of receipts and disbursements in connection with the [~~department of education's~~] department's functions of planning, constructing, purchase, repairing, maintaining, and operating housing programs for teachers employed and assigned by the department [~~of education~~]. This subpart also establishes an affordable housing program for teachers to purchase an interest in residential property."

SECTION 4. Section 302A-833, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The revolving fund may be used by the department [~~of education~~] for any and all of the purposes of teachers' housing, including the planning, construction, purchase, maintenance, and operation of teachers' housing, as well as for the salaries of the necessary personnel in charge thereof."

SECTION 5. Section 302A-834, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-834[]] Annual statements. The department [~~of education~~] shall annually prepare for the director of human services and the director of finance a full, detailed description and financial statement of the planning, construction, purchasing, repair, maintenance, and operation of teachers' housing."

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ for fiscal year 2007-2008 and the same sum for fiscal year 2008-2009 to be deposited into the teachers' housing revolving fund.

SECTION 7. There is appropriated out of the teachers' housing revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary for fiscal year 2008-2009 for the purchase of residential properties to be used as part of the teachers' affordable housing program pursuant to chapter 302A, Hawaii Revised Statutes.

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

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2007.

HOUSE OF REPRESENTATIVES	H.B. NO.	955
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII