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HB1408
HOUSE OF REPRESENTATIVES
H.B. NO.
1408
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING
TO THE DEPARTMENT OF HAWAIIAN HOME LANDS
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that article
XII, section 1, of the Hawaii State Constitution provides 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".
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The legislature further finds that 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".
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Finally,
article XII, section 2, of the Hawaii State Constitution provides 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
projects for the further rehabilitation of the Hawaiian race shall be
faithfully carried out".
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The
department of Hawaiian home lands is an eligible borrower of loans guaranteed
by the United States Department of Housing and Urban Development under section
184A of the Housing and Community Development Act of 1992, as amended.
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However, section 214(b)(8) of the Hawaiian
Homes Commission Act of 1920, as amended, authorizes the department to only
pledge receivables of loan accounts outstanding as collateral to secure loans
made by government agencies or private lending institutions to the department,
the proceeds of which shall be used by the department to make new loans to
lessees or to finance the development of available lands for purposes permitted
by the Act.
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In addition, section
214(b)(8) of the Hawaiian Homes Commission Act of 1920, as amended, stipulates
that any loan agreement entered into by the department shall include a
provision that the money borrowed by the department is 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.
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The
purpose of this Act is to further the provisions in article XII, section 2, of
the Hawaii State Constitution supporting the development of residential
homestead lots and housing units by allowing the department of Hawaiian home
lands to utilize the dwelling unit revolving fund collateral when acting as an
eligible borrower for a loan guaranteed under section 184A of the Housing and
Community Development Act of 1992, as amended, and to appropriate the necessary
funds for this purpose.
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SECTION
2
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Section 201H-191, Hawaii Revised Statutes, is
amended to read as follows:
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�201H-191
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Dwelling unit revolving fund.
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(a)
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There is created a dwelling
unit revolving fund.
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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.
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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.
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(b)
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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.
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(c)
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Notwithstanding the provisions in the
Hawaiian Homes Commission Act of 1920, as amended, the department of Hawaiian
home lands is authorized 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 under 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.
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SECTION
3
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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.
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SECTION
4
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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 collateral when the department
of Hawaiian home lands acts as an eligible borrower of a loan guaranteed by the
United States Department of Housing and Urban Development under section 184A of
the Housing and Community Development Act, as amended, to develop residential
homestead lots and housing units.
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The sums appropriated shall be expended by
the Hawaii housing finance and development corporation for the purposes of this
Act.
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SECTION
5.
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New statutory material is
underscored.
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SECTION 6.
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This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
DHHL; HHFDC;
Dwelling Unit Revolving Fund; Appropriation
Description:
Allows
the Department of Hawaiian Home Lands to utilize the Dwelling Unit Revolving
Fund as collateral when the Department acts as an eligible borrower for a loan
agreement under section 184A of the Housing and Community Development Act of
1992, as amended.
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Appropriates funds.
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not legislation or evidence of legislative intent.