Hawaii 2024 Regular Session

Hawaii Senate Bill SB2996 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	THE SENATE S.B. NO. 2996 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII A BILL FOR AN ACT relating To accessory dwelling units. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	THE SENATE S.B. NO. 2996
4	4	THIRTY-SECOND LEGISLATURE, 2024
5	5	STATE OF HAWAII
6	6
7	7	THE SENATE
8	8
9	9	S.B. NO.
10	10
11	11	2996
12	12
13	13	THIRTY-SECOND LEGISLATURE, 2024
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	relating To accessory dwelling units.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. The legislature finds that accessory dwelling units are an option for people to maximize their residential lots and adapt to changing living conditions, responsibilities, and growing families. However, traditional financing for accessory dwelling units may be difficult to secure. The purpose of this Act is to promote affordable housing by establishing an accessory dwelling unit loan program under the Hawaii housing finance and development corporation. SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows: "SUBPart . Accessory dwelling unit loan program §201H-A Definitions. The following words or terms as used in this subpart shall have the following meanings unless a different meaning clearly appears from the context: "Accessory dwelling unit" means an accessory or second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot. "Eligible borrower" means a person or family, without regard to race, creed, national origin, or sex, who: (1) Is a citizen of the United States or a resident alien; (2) Is a bona fide resident of the State; (3) Is at least eighteen years of age; (4) Is financing an accessory dwelling unit that will be on the eligible borrower's principal residence; (5) Has a recorded property interest in the land on which the accessory dwelling unit will be constructed; and (6) Meets other qualifications as established by rules adopted by the corporation. §201H-B Accessory dwelling unit loan program; established. (a) There is established within the corporation an accessory dwelling unit loan program. Under the accessory dwelling unit program, the corporation may: (1) Make loans to non-depository community development financial institutions, which may then make accessory dwelling unit loans to eligible borrowers to finance the construction of accessory dwelling units, including the upgrade or conversion of a cesspool to a wastewater system or the connection of an accessory dwelling unit to a sewerage system; and (2) Provide technical assistance grants to community development financial institutions. (b) The interest rate on loans to non-depository community development financial institutions shall not to exceed one per cent. (c) An accessory dwelling unit loan to any one eligible borrower shall not exceed $300,000. In no event shall the loan amount and purchase money mortgage amount exceed one hundred per cent of combined loan-to-value. The interest rate on an accessory dwelling unit loan to an eligible borrower may range from one per cent to six per cent, depending on the borrower's income and program rules relating to evaluation criteria and underwriting. (d) A technical assistance grant to any one community development financial institution shall not exceed $200,000. (e) The repayment of every accessory dwelling unit loan shall be secured by a duly recorded mortgage executed by the borrower and non-depository community development financial institution on the primary residential property of the borrower. (f) The principal of the accessory dwelling unit loan, together with accrued interest, shall be due and payable upon the sale, transfer, or refinancing of the property or shall be repaid by the non-depository community development financial institution borrower in installments as determined by the corporation; provided that the corporation may provide a period in which payments may be waived. The period over which the principal and interest shall be paid need not coincide with the period over which the loan from the mortgage lender for the balance of the purchase price must be repaid. The borrower may repay the whole or any part of the unpaid balance of the accessory dwelling unit loan, plus accrued interest, at any time without penalty. (g) The construction of accessory dwelling units financed through the program established by this section shall be exempt from chapter 104. (h) Accessory dwelling units financed through the program shall not be furnished as transient accommodations. (i) The corporation shall adopt rules pursuant to chapter 91 to carry out the purposes of this subpart. §201H-C Accessory dwelling unit loan revolving fund. (a) There is created an accessory dwelling unit loan revolving fund to be administered by the corporation. (b) The accessory dwelling unit loan revolving fund may include appropriations made by the legislature, private contributions, repayment of loans, interest, other returns, and funds from other sources. (c) The revolving fund shall be used to implement the accessory dwelling unit loan program by: (1) Providing loans to non-depository community development financial institutions to then provide accessory dwelling unit loans to eligible borrowers to finance the construction of accessory dwelling units, including the upgrade or conversion of a cesspool to a wastewater system or the connection of an accessory dwelling unit to a sewerage system; and (2) Providing technical assistance grants of up to $200,000 to community development financial institutions; provided that: (A) There is a twenty per cent match requirement and that ten per cent is used for marketing and outreach of the accessory dwelling unit loan program; and (B) Each grant shall be awarded over a three-year term. §201H-D Program fees. The corporation may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, for the accessory dwelling unit loan program. The fees, premiums, and charges shall be deposited into the accessory dwelling unit loan revolving fund established in section 201H-C." 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 2024-2025 to be deposited into the accessory dwelling unit loan revolving fund. SECTION 4. There is appropriated out of the accessory dwelling unit loan revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of the accessory dwelling unit loan revolving fund established pursuant to section 2 of this Act. The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act. SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that: (1) The appropriation made in this Act is necessary to serve the public interest; and (2) The appropriation made in this Act meets the needs addressed by this Act. SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 7. This Act shall take effect on July 1, 2024. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. The legislature finds that accessory dwelling units are an option for people to maximize their residential lots and adapt to changing living conditions, responsibilities, and growing families. However, traditional financing for accessory dwelling units may be difficult to secure.
50	50
51	51	The purpose of this Act is to promote affordable housing by establishing an accessory dwelling unit loan program under the Hawaii housing finance and development corporation.
52	52
53	53	SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
54	54
55	55	"SUBPart . Accessory dwelling unit loan program
56	56
57	57	§201H-A Definitions. The following words or terms as used in this subpart shall have the following meanings unless a different meaning clearly appears from the context:
58	58
59	59	"Accessory dwelling unit" means an accessory or second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot.
60	60
61	61	"Eligible borrower" means a person or family, without regard to race, creed, national origin, or sex, who:
62	62
63	63	(1) Is a citizen of the United States or a resident alien;
64	64
65	65	(2) Is a bona fide resident of the State;
66	66
67	67	(3) Is at least eighteen years of age;
68	68
69	69	(4) Is financing an accessory dwelling unit that will be on the eligible borrower's principal residence;
70	70
71	71	(5) Has a recorded property interest in the land on which the accessory dwelling unit will be constructed; and
72	72
73	73	(6) Meets other qualifications as established by rules adopted by the corporation.
74	74
75	75	§201H-B Accessory dwelling unit loan program; established. (a) There is established within the corporation an accessory dwelling unit loan program. Under the accessory dwelling unit program, the corporation may:
76	76
77	77	(1) Make loans to non-depository community development financial institutions, which may then make accessory dwelling unit loans to eligible borrowers to finance the construction of accessory dwelling units, including the upgrade or conversion of a cesspool to a wastewater system or the connection of an accessory dwelling unit to a sewerage system; and
78	78
79	79	(2) Provide technical assistance grants to community development financial institutions.
80	80
81	81	(b) The interest rate on loans to non-depository community development financial institutions shall not to exceed one per cent.
82	82
83	83	(c) An accessory dwelling unit loan to any one eligible borrower shall not exceed $300,000. In no event shall the loan amount and purchase money mortgage amount exceed one hundred per cent of combined loan-to-value. The interest rate on an accessory dwelling unit loan to an eligible borrower may range from one per cent to six per cent, depending on the borrower's income and program rules relating to evaluation criteria and underwriting.
84	84
85	85	(d) A technical assistance grant to any one community development financial institution shall not exceed $200,000.
86	86
87	87	(e) The repayment of every accessory dwelling unit loan shall be secured by a duly recorded mortgage executed by the borrower and non-depository community development financial institution on the primary residential property of the borrower.
88	88
89	89	(f) The principal of the accessory dwelling unit loan, together with accrued interest, shall be due and payable upon the sale, transfer, or refinancing of the property or shall be repaid by the non-depository community development financial institution borrower in installments as determined by the corporation; provided that the corporation may provide a period in which payments may be waived. The period over which the principal and interest shall be paid need not coincide with the period over which the loan from the mortgage lender for the balance of the purchase price must be repaid. The borrower may repay the whole or any part of the unpaid balance of the accessory dwelling unit loan, plus accrued interest, at any time without penalty.
90	90
91	91	(g) The construction of accessory dwelling units financed through the program established by this section shall be exempt from chapter 104.
92	92
93	93	(h) Accessory dwelling units financed through the program shall not be furnished as transient accommodations.
94	94
95	95	(i) The corporation shall adopt rules pursuant to chapter 91 to carry out the purposes of this subpart.
96	96
97	97	§201H-C Accessory dwelling unit loan revolving fund. (a) There is created an accessory dwelling unit loan revolving fund to be administered by the corporation.
98	98
99	99	(b) The accessory dwelling unit loan revolving fund may include appropriations made by the legislature, private contributions, repayment of loans, interest, other returns, and funds from other sources.
100	100
101	101	(c) The revolving fund shall be used to implement the accessory dwelling unit loan program by:
102	102
103	103	(1) Providing loans to non-depository community development financial institutions to then provide accessory dwelling unit loans to eligible borrowers to finance the construction of accessory dwelling units, including the upgrade or conversion of a cesspool to a wastewater system or the connection of an accessory dwelling unit to a sewerage system; and
104	104
105	105	(2) Providing technical assistance grants of up to $200,000 to community development financial institutions; provided that:
106	106
107	107	(A) There is a twenty per cent match requirement and that ten per cent is used for marketing and outreach of the accessory dwelling unit loan program; and
108	108
109	109	(B) Each grant shall be awarded over a three-year term.
110	110
111	111	§201H-D Program fees. The corporation may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, for the accessory dwelling unit loan program. The fees, premiums, and charges shall be deposited into the accessory dwelling unit loan revolving fund established in section 201H-C."
112	112
113	113	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 2024-2025 to be deposited into the accessory dwelling unit loan revolving fund.
114	114
115	115	SECTION 4. There is appropriated out of the accessory dwelling unit loan revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of the accessory dwelling unit loan revolving fund established pursuant to section 2 of this Act.
116	116
117	117	The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
118	118
119	119	SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:
120	120
121	121	(1) The appropriation made in this Act is necessary to serve the public interest; and
122	122
123	123	(2) The appropriation made in this Act meets the needs addressed by this Act.
124	124
125	125	SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
126	126
127	127	SECTION 7. This Act shall take effect on July 1, 2024.
128	128
129	129
130	130
131	131	INTRODUCED BY: _____________________________
132	132
133	133	INTRODUCED BY:
134	134
135	135	_____________________________
136	136
137	137
138	138
139	139
140	140
141	141	Report Title: HHFDC; Accessory Dwelling Units; Loans; Revolving Fund; Appropriation; Expenditure Ceiling Description: Establishes the accessory dwelling unit loan program under HHFDC to provide loans for the development of accessory dwelling units. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
142	142
143	143
144	144
145	145
146	146
147	147
148	148
149	149
150	150
151	151	Report Title:
152	152
153	153	HHFDC; Accessory Dwelling Units; Loans; Revolving Fund; Appropriation; Expenditure Ceiling
154	154
155	155
156	156
157	157	Description:
158	158
159	159	Establishes the accessory dwelling unit loan program under HHFDC to provide loans for the development of accessory dwelling units.
160	160
161	161
162	162
163	163
164	164
165	165
166	166
167	167	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.