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THE SENATE |
S.B. NO. |
590 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 201H-45, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201H-45[]] Sale;
mortgage, agreement of sale, and other instruments. (a) The corporation
shall sell completed dwelling units or dwelling units that are substantially
completed and habitable, developed and constructed hereunder, to qualified
residents in fee simple, or shall cause them to be leased or rented to
qualified residents at a price or rental based on costs as determined by the
corporation[.]; provided that the corporation shall select qualified
purchasers in accordance with subsection (b). The gross share to the other
partners or contract payments and any amounts subsidized by the State,
including but not limited to the land, need not be counted as cost so as to
increase the price. These costs may be borne by the State, pursuant to rules
adopted by the corporation subject to reimbursement upon sale as provided in
section 201H‑47.
(b) For units with zero or one bedroom within a for-sale condominium development, the corporation shall not give preference to a qualified purchaser on any basis. Applications for the purchase of a unit with zero or one bedroom by a qualified purchaser shall be accepted on a lottery basis.
[(b)] (c) If a qualified
purchaser is unable to obtain sufficient funds at reasonable rates from private
lenders, the corporation, by way of mortgage, agreement of sale, or other
instrument to secure the indebtedness, may loan to the purchaser up to one
hundred per cent of the purchase price. The purchaser in that event shall
execute with the corporation an agreement of sale, mortgage, or other
instrument under the terms of which the unpaid principal and the interest
thereon shall be paid in monthly installments over a period of not more than
forty years.
[(c)] (d) Every mortgage,
agreement of sale, other instrument to secure the indebtedness, or instrument
of indebtedness executed by the corporation may contain other provisions as are
usually found in such instruments and shall provide that the purchaser may
repay the whole or any part of the unpaid balance of the purchase price plus
accrued interest at any time without prepayment penalty.
[(d)] (e) If the purchaser
defaults on the payment of any loan, the corporation shall take all necessary
action to collect the delinquent principal and interest on the loan and may
take all actions allowed to holders of obligations, including the power to
repossess, lease, rent, repair, renovate, modernize, and sell the property
foreclosed, subject to the restrictions described in this section.
[(e)] (f) The mortgages,
agreements of sale, and other instruments of indebtedness, at the direction of
the corporation, may be assigned to and serviced by commercial banks and other
lending institutions doing business in the State at a fee of not more than
one-half of one per cent of the amount loaned to the purchaser.
[(f)] (g) Subsections (a) to [(e)]
(f) need not apply to market-priced dwelling units in an economically
integrated housing project, except as otherwise determined by the developer of
the units; provided that preference shall be given to qualified residents in
the initial sale of market-priced units."
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.
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INTRODUCED BY: |
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Report Title:
Affordable Housing; Condominium Developments; Lottery
Description:
Requires the Hawaii housing finance and development corporation to sell condominium development units with zero or one bedrooms on a lottery basis and not give preference to qualified purchasers.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.