| 47 | | - | SECTION 1. The legislature finds that article XII, section 1, of the Hawaii State Constitution, mandates that "[a]nything in this constitution to the contrary notwithstanding, the Hawaiian Homes Commission Act, 1920, enacted by the Congress, as the same has been or may be amended prior to the admission of the State, is hereby adopted as a law of the State, subject to amendment or repeal by the legislature". Further, article XII, section 2, of the Hawaii State Constitution, provides that, "[t]he State and its people do hereby accept, as a compact with the United States, or as conditions or trust provisions imposed by the United States, relating to the management and disposition of the Hawaiian home lands, the requirement that section 1 hereof be included in this constitution, in whole or in part, it being intended that the Act or acts of the Congress pertaining thereto shall be definitive of the extent and nature of such compact, conditions or trust provisions, as the case may be." Finally, article XII, section 2, of the Hawaii State Constitution, provides further that "[t]he State and its people do further agree and declare that the spirit of the Hawaiian Homes Commission Act looking to the continuance of the Hawaiian homes project for the further rehabilitation of the Hawaiian race shall be faithfully carried out." The legislature further finds that the department of Hawaiian home lands is an eligible borrower of loans guaranteed by the United States Department of Housing and Urban Development pursuant to section 184A of the Housing and Community Development Act of 1992, as amended. However, existing provisions in the Hawaiian Homes Commission Act, 1920, as amended, only authorize the department of Hawaiian home lands to pledge receivables of loan accounts outstanding as collateral to secure loans made by government agencies or private lending institutions to the department. Additionally, proceeds used by the department of Hawaiian home lands are restricted to the creation of new loans for lessees or to finance the development of available lands for purposes permitted by the Hawaiian Homes Commission Act, 1920, as amended. Existing provisions stipulate that any loan agreement entered into by the department of Hawaiian home lands require a provision that moneys borrowed are not secured directly or indirectly by the full faith and credit or the general credit of the State or by any revenues or taxes of the State other than the receivables specifically pledged to repay the loan. Therefore, the purpose of this Act is to further the department of Hawaiian home lands' constitutional mandate by authorizing the department to use funds in the dwelling unit revolving fund as collateral when acting as an eligible borrower for a loan guaranteed by the Housing and Community Development Act of 1992, as amended. SECTION 2. Section 201H-191, Hawaii Revised Statutes, is amended to read as follows: "§201H-191 Dwelling unit revolving fund. (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 regional state infrastructure programs, and for carrying out the purposes of housing development programs and regional state infrastructure programs, including but not limited to the expansion of community facilities and regional state infrastructure constructed in conjunction with housing and mixed-use transit-oriented development projects, permanent primary or secondary financing, and supplementing building costs, federal guarantees required for operational losses, 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) Subject to the requirements of subsection (a), proceeds in the revolving fund may be used to establish and operate regional state infrastructure subaccounts pursuant to section 201H-191.5. (c) Notwithstanding the provisions of the Hawaiian Homes Commission Act, 1920, as amended, the department of Hawaiian home lands may utilize the dwelling unit revolving fund as collateral when acting as an eligible borrower of a loan guaranteed by the United States Department of Housing and Urban Development pursuant to section 184A of the Housing and Community Development Act of 1992, as amended, to develop residential homestead lots and housing units, subject to the approval of the corporation." SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $75,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the dwelling unit revolving fund. SECTION 4. There is appropriated out of the dwelling unit revolving fund the sum of $75,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of Hawaiian home lands to utilize the dwelling unit revolving fund as collateral when acting as an eligible borrower of a loan guaranteed by the United States Department of Housing and Urban Development pursuant to section 184A of the Housing and Community Development Act of 1992, as amended, to develop residential homestead lots and housing units, subject to approval of the Hawaii housing finance and development corporation. The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act. SECTION 5. New statutory material is underscored. SECTION 6. This Act shall take effect on July 1, 2025. |
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| 47 | + | SECTION 1. The legislature finds that article XII, section 1, of the Hawaii State Constitution, mandates that "[a]nything in this constitution to the contrary notwithstanding, the Hawaiian Homes Commission Act, 1920, enacted by the Congress, as the same has been or may be amended prior to the admission of the State, is hereby adopted as law of the State, subject to amendment or repeal by the legislature". Further, article XII, section 2, of the Hawaii State Constitution, provides that, "[t]he State and its people do hereby accept, as a compact with the United States, or as conditions or trust provisions imposed by the United States, relating to the management and disposition of the Hawaiian home lands, the requirement that section 1 hereof be included in this constitution, in whole or in part, it being intended that the Act or acts of the Congress pertaining thereto shall be definitive of the extent and nature of such compact, conditions or trust provisions, as the case may be". Finally, article XII, section 2, of the Hawaii State Constitution, provides further that "[t]he State and its people do further agree and declare that the spirit of the Hawaiian Homes Commission Act looking to the continuance of the Hawaiian homes project for the further rehabilitation of the Hawaiian race shall be faithfully carried out". The legislature further finds that the department of Hawaiian home lands is an eligible borrower of loans guaranteed by the United States Department of Housing and Urban Development pursuant to section 184A of the Housing and Community Development Act of 1992, as amended. However, existing provisions in the Hawaiian Homes Commission Act, 1920, as amended, only authorizes the department of Hawaiian home lands to pledge receivables of loan accounts outstanding as collateral to secure loans made by government agencies or private lending institutions to the department. Additionally, proceeds used by the department of Hawaiian home lands are restricted to the creation of new loans for lessees or to finance the development of available lands for purposes permitted by the Hawaiian Homes Commission Act, 1920, as amended. Existing provisions stipulate that any loan agreement entered into by the department of Hawaiian home lands require a provision that moneys borrowed are not secured directly or indirectly by the full faith and credit or the general credit of the State, or by any revenues or taxes of the State other than the receivables specifically pledged to repay the loan. Therefore, the purpose of this Act is to further the department of Hawaiian home lands' constitutional mandate by authorizing the department to use funds in the dwelling unit revolving fund as collateral when acting as an eligible borrower for a loan guaranteed by the Housing and Community Development Act of 1992, as amended. SECTION 2. Section 201H-191, Hawaii Revised Statutes, is amended to read as follows: "§201H-191 Dwelling unit revolving fund. (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 regional state infrastructure programs, and for carrying out the purposes of housing development programs and regional state infrastructure programs, including but not limited to the expansion of community facilities and regional state infrastructure constructed in conjunction with housing and mixed-use transit-oriented development projects, permanent primary or secondary financing, and supplementing building costs, federal guarantees required for operational losses, 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) Subject to the requirements of subsection (a), proceeds in the revolving fund may be used to establish and operate regional state infrastructure subaccounts pursuant to section 201H-191.5. (c) Notwithstanding the provisions of the Hawaiian Homes Commission Act, 1920, as amended, the department of Hawaiian home lands may utilize the dwelling unit revolving fund as collateral when acting as an eligible borrower of a loan guaranteed by the United States Department of Housing and Urban Development pursuant to section 184A of the Housing and Community Development Act of 1992, as amended, to develop residential homestead lots and housing units, subject to the approval of the corporation." SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $75,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the dwelling unit revolving fund. SECTION 4. There is appropriated out of the dwelling unit revolving fund the sum of $75,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of Hawaiian home lands to utilize the dwelling unit revolving fund as collateral when acting as an eligible borrower of a loan guaranteed by the United States Department of Housing and Urban Development pursuant to section 184A of the Housing and Community Development Act of 1992, as amended, to develop residential homestead lots and housing units, subject to approval of the Hawaii housing finance and development corporation. The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act. SECTION 5. New statutory material is underscored. SECTION 6. This Act shall take effect on July 1, 2025. INTRODUCED BY: _____________________________ |
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