SB2411

THE SENATE	S.B. NO.	2411
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AFFORDABLE HOUSING.

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

SECTION 1. Section 201H-191, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201H-191[]] Dwelling unit revolving fund[.]; county subaccount. (a) There is created a dwelling unit revolving fund. The funds appropriated for the purpose of the dwelling unit revolving fund and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited in the revolving fund. The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering housing development programs, and for carrying out the purposes of housing development programs, including but not limited to the expansion of community facilities constructed in conjunction with housing projects, permanent primary or secondary financing, and supplementing building costs, federal guarantees required for operational losses, county-initiated affordable housing projects under subsection (b), and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for housing projects.

(b) There is created a county dwelling unit revolving fund as a subaccount of the dwelling unit revolving fund to provide funding to counties as a grant-in-aid for county initiated development of affordable housing, as defined in section 201H-57; provided that an eligible county project shall exceed a county's requirement for affordable housing development. An initial transfer of $100,000,000, or so much thereof as may be a available, into the separate subaccount shall be made beginning July 1, 2008, and thereafter on July 1 of each fiscal year to bring the separate subaccount balance as far as practicable to a constant $100,000,000 on each July 1, depending on the availability of funds; provided that no appropriation shall be necessary for the transfers; and provided further that any grant-in-aid shall be made by appropriation of the legislature.

A county receiving funding under this subsection shall repay moneys received by the county for purpose of a county affordable housing development to which the grant-in-aid applies, to the State for deposit into the subaccount as reimbursement. The terms of repayment shall be in accordance with repayment terms established for other loans or grants authorized under this chapter.

The corporation shall render a quarterly activity report to the state director of finance and the director of finance of the appropriate county of moneys deposited into and disbursed from the county dwelling unit revolving fund.

The director of finance of a county receiving a grant-in-aid under this subsection shall provide to the corporation status reports of grant funds disbursed by the county and such other information as the corporation may require, at such times as determined by the corporation.

This subsection shall not be construed to subject the State to any liability or responsibility of whatsoever kind and nature for a county-initiated affordable housing development project to which this subsection applies."

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

SECTION 3. This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________