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SB3089
THE SENATE
S.B. NO.
3089
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE DOWNPAYMENT LOAN ASSISTANCE PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
�
Section 201H-161, Hawaii Revised
Statutes, is amended by amending subsection (a) to read as follows:
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"(a)
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The corporation may make downpayment loans, either directly or through a
nonprofit organization as defined in section 454F-1, to eligible borrowers who
qualify for loans under section 201H-162.
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The downpayment loan to any one borrower shall not exceed fifteen per
cent of the purchase price or appraised value of the residential property or
$60,000, whichever is less.
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[
In no
event shall the loan amount and purchase money mortgage amount exceed one
hundred per cent of combined loan-to-value.
]
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The interest rate on the loans may range from
one per cent to eight per cent, depending on the buyer's income."
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SECTION 2.
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Section 201H-161, Hawaii Revised Statutes, is amended by amending
subsections (c) and (d) to read as follows:
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"(c)
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The principal of the downpayment 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 borrower in installments as determined by
the corporation; provided that the corporation may provide a period in which
payments may be waived.
�
The
corporation may also forgive all or a portion of the accrued interest, subject
to terms and conditions it may establish.
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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.
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The borrower may repay the whole
or any part of the unpaid balance of the downpayment loan, plus accrued
interest, at any time without penalty.
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(d)
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The corporation may secure the services of nonprofit organizations, as
defined in section 454F-1,
as well as financial institutions, mortgage
lenders, or other qualified loan originators,
to originate the downpayment
loans on behalf of the State for an origination fee not in excess of the
prevailing loan origination fee amount, as determined by the corporation."
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SECTION 3.
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Section 201H-162, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:
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"(a)
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No person shall be qualified for a downpayment loan unless the person:
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(1)
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Is
a citizen of the United States or a resident alien;
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(2)
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Is
at least eighteen years of age;
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(3)
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Is
a bona fide resident of the State;
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(4)
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Will
physically reside in the residential property to be purchased for the term of
the loan;
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(5)
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Is
accepted by a mortgage lender as a person to whom it is willing to lend money
for the purchase of the residential property provided the required downpayment
is made;
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(6)
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Provides
a portion of the downpayment which shall be equal to [
at least five
]
three
per cent of the sales price[
; and
]
, which may include any downpayment
loan assistance made available by the corporation under this chapter; and
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(7)
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Has
successfully completed a homeownership counseling program provided by a housing
counseling agency approved by the United States Department of Housing and Urban
Development."
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SECTION 4.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.
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SECTION 5.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
BY
REQUEST
Report Title:
HHFDC; Downpayment Loan Assistance Program
Description:
Amends the
Downpayment Loan Program, administered by the Hawaii Housing Finance and
Development Corporation, to align with federal requirements and enhance
assistance for low- and moderate-income first-time homebuyers.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.