SB3121

SECTION 1. Section 356D-8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-8[]] Acquisition, use, and disposition of property. (a) The authority may acquire any real or personal property or interest therein by purchase, exchange, gift, grant, lease, or other means from any person or government to provide [~~public~~] housing. Exchange of real property shall be in accordance with section 171-50.

(b) The authority may own or hold real property. All real property owned or held by the authority shall be exempt from mechanics' or materialmen's liens and also from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the property of the authority nor shall any judgement against the authority be a charge or lien upon its real property; provided that this subsection shall not apply to nor limit the right of obligees to foreclose or otherwise enforce any mortgage of the authority or the right of obligees to pursue any remedies for the enforcement of any pledge or lien given by the authority on its rents, fees, or revenues. The authority and its property shall be exempt from all taxes and assessments.

(c) The authority may lease or rent all of a portion of any [~~public~~] housing project and establish and revise the rents or charges therefor. The authority may sell, exchange, transfer, assign, or pledge any property, real or personal, or any interest therein to any person or government.

(d) The authority may insure or provide for the insurance of its property or operations against risks as it deems advisable.

(e) For the purposes of this section, "housing project" shall have the same meaning as that term is defined in section 356D-11."

SECTION 2. Section 356D-10, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-10[]] Agents, including corporations. The authority may exercise any or all of the powers conferred upon it, either generally or with respect to any specific [~~public~~] housing project through an agent that it may designate, including any corporation that is formed under the laws of this State, and for those purposes the authority may cause one or more corporations to be formed under the laws of this State or may acquire the capital stock of any corporation. Any corporate agent, all of the stock of which shall be owned by the authority or its nominee, may to the extent permitted by law, exercise any of the powers conferred upon the authority in this chapter. For the purposes of this section, "housing project" shall have the same meaning as that term is defined in section 356D-11."

SECTION 3. Section 356D-21, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-21[]] Bonds; authorization. (a) The authority, with the approval of the governor, may issue from time to time bonds (including refunding bonds to pay, retire, or provide for the retirement of bonds previously issued by the authority) in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for any of its corporate purposes.

(b) All bonds shall be issued pursuant to part III of chapter 39, except as provided in this part.

(c) The bonds shall be issued in the name of the authority, and not in the name of the State. The final maturity date of the revenue bonds may be any date not exceeding sixty years from the date of issuance.

(d) The authority may issue bonds as it may determine, including without limitation bonds payable from and secured, in whole or in part, by:

(1) Income and revenues derived from the [~~public~~] housing project or projects financed from the proceeds of bonds;

(2) Receipts derived from any grant from the federal government made in aid of a [~~public~~] housing project or projects financed from the proceeds of bonds;

(3) Income and revenues derived from a particular designated [~~public~~] housing project or projects whether or not financed, in whole or in part, from the proceeds of bonds;

(4) Income and revenues of the authority generally; or

(5) Any combination of paragraphs (1) through (4).

(e) Any pledge made by the authority shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the authority from and after the time that a financing statement with respect to the revenues, moneys, or property so pledged and thereafter received shall be filed with the bureau of conveyances. Upon the filing, the revenues, moneys, or property so pledged and thereafter received by the authority shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge shall be prior to the lien of all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice thereof. This section shall apply to any financing statement heretofore or hereafter filed with the bureau of conveyances with respect to any pledge made to secure revenue bonds issued under this part.

(f) Any [~~public~~] housing project or projects authorized by, and undertaken pursuant to, this chapter shall constitute an "undertaking" within the meaning of that term as defined and used in part III, chapter 39. The authority shall constitute a "department" and the board shall constitute a "governing body" within the meaning of those terms as defined and used in part III, chapter 39.

(g) Neither the members of the board nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof.

(h) For the purposes of this section, "housing project" shall have the same meaning as that term is defined in section 356D-11."

SECTION 4. Section 356D-22, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-22[]] Bonds; interest rate, price, and sale. (a) The bonds shall bear interest at rates payable at times that the authority, with the approval of the governor, may determine except for deeply discounted bonds that are subject to redemption or retirement at their accreted value; provided that the discounted value of the bonds shall not exceed ten per cent of any issue; and provided further that no bonds may be issued without the approval of the director of finance and the governor. Notwithstanding any other law to the contrary, the authority may, subject to the approval of the director of finance and the governor, issue bonds pursuant to section 356D-21, in which the discounted value of the bonds exceeds ten per cent of the issue.

(b) The authority may include the costs of undertaking and maintaining any [~~public~~] housing project or projects for which the bonds are issued in determining the principal amount of bonds to be issued. In determining the cost of undertaking and maintaining the [~~public~~] housing project, the authority may include the cost of studies and surveys; insurance premiums; underwriting fees; financial consultant, legal, accounting, and other services incurred; reserve account, trustee, custodian, and rating agency fees; and interest on the bonds for a period determined by the authority.

(c) For the purposes of this section, "housing project" shall have the same meaning as that term is defined in section 356D-11."

SECTION 5. Section 356D-23, Hawaii Revised Statutes, is amended to read as follows:

"§356D-23 Trustee; designation, duties. (a) The authority may designate a trustee for each issue of bonds secured under the same trust indenture; provided that the trustee shall be approved by the director of finance.

(b) The trustee shall be authorized by the authority to receive and receipt for, hold, and administer the proceeds of the bonds, and to apply the proceeds to the purposes for which the bonds are issued.

(c) The trustee shall also be authorized by the authority to receive and receipt for, hold, and administer the revenues derived by the authority from any [~~public~~] housing project or projects for which the bonds are issued or the projects pledged to the payment of the bonds, and to apply the revenues to the payment of the cost of administering, operating, and maintaining the [~~public~~] housing project or projects, to pay the principal of and the interest on the bonds, to the establishment of reserves, and to other purposes as may be authorized in the proceedings providing for the issuance of the bonds.

(d) Notwithstanding section 39-68, the director of finance may appoint the trustee to serve as fiscal agent for:

(1) The payment of the principal of and interest on the bonds; and

(2) The purchase, registration, transfer, exchange, and redemption of the bonds.

(e) The trustee shall perform additional functions with respect to the payment, purchase, registration, transfer, exchange, and redemption, as the director of finance may deem necessary, advisable, or expeditious, including the holding of the bonds and coupons, if any, that have been paid and the supervision of their destruction in accordance with law.

(f) Nothing in this part shall limit or be construed to limit the powers granted to the director of finance in sections 36-3, 39-13, and 39-68(a), to appoint the trustee or others as fiscal agents, paying agents, and registrars for the bonds or to authorize and empower those fiscal agents, paying agents, and registrars to perform the functions referred to in those sections.

(g) For the purposes of this section, "housing project" shall have the same meaning as that term is defined in section 356D-11."

SECTION 6. Section 356D-24, Hawaii Revised Statutes, is amended to read as follows:

"[[]§356D-24[]] Trust indenture. (a) A trust indenture may contain covenants and provisions authorized by part III of chapter 39, and as deemed necessary or convenient by the authority for the purposes of this part.

(b) A trust indenture may allow the authority to pledge and assign to the trustee agreements related to the [~~public~~] housing project or projects and the rights of the authority thereunder, including the right to receive revenues thereunder and to enforce the provision thereof.

(c) Where a trust indenture provides that any bond issued under that trust indenture is not valid or obligatory for any purpose unless certified or authenticated by the trustee, all signatures of the officers of the State upon the bonds required by section 39-56 may be facsimiles of their signatures.

(d) A trust indenture shall also contain provisions as to:

(1) The investment of the proceeds of the bonds, the investment of any reserve for the bonds, the investment of the revenues of the [~~public~~] housing project or system of [~~public~~] housing projects, and the use and application of the earnings from investments; and

(2) The terms and conditions upon which the holders of the bonds or any portion of them or any trustee thereof may institute proceedings for the enforcement of any agreement or any note or other undertaking, obligation, or property securing the payment of the bonds and the use and application of the moneys derived therefrom.

(e) A trust indenture may also contain provisions deemed necessary or desirable by the authority to obtain or permit, by grant, interest subsidy, or otherwise, the participation of the federal government in the [~~public~~] housing projects or in the financing of the costs of administering, operating, or maintaining the [~~public~~] housing projects.

(f) For the purposes of this section, "housing project" shall have the same meaning as that term is defined in section 356D-11."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	3121
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII