Financing Programs

HRS div. 1, tit. 13, ch. 201H, pt. III

in effect

HRS §201H-71 Bonds; authorization

201H-71. Bonds; authorization (a) The corporation, 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 corporation) in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for any of its corporate purposes. Bonds may also be issued in connection with any program whose primary purpose is to provide housing for active or retired United States military personnel, their families, and other persons authorized by any branch of the United States military to reside in the housing; provided that the aggregate principal amount of all outstanding bonds issued by the corporation for military housing projects shall total no more than $2,000,000,000. (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 corporation, 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 corporation may issue the types of 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 housing project or projects, or infrastructure for the 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 housing project or projects, or infrastructure for the housing project or projects, financed from the proceeds of bonds; (3) Income and revenues derived from a particular designated housing project or projects, or infrastructure for the housing project or projects, whether or not financed, in whole or in part, from the proceeds of bonds; (4) Receipts derived from any payment for "eligible loans", "eligible improvement loans", or "eligible project loans", as the terms are defined in subpart B, or any other agreement or agreements entered into for a "housing loan program", as the term is defined in subpart B or D, or any other loan program administered by the corporation and financed from the proceeds of bonds; (5) Receipts derived from loans to mortgage lenders or from the payment on account of principal of or interest on loans purchased from mortgage lenders, as provided in subpart B which loans to mortgage lenders or loans purchased are financed from the proceeds of bonds; (6) Moneys in any funds or accounts established in connection with the issuance of bonds, and any earnings thereon; (7) Proceeds derived from any insurance; (8) Income and revenues of the corporation generally; or (9) Any combination of paragraphs (1) through (8). The term "income and revenues" includes income and revenues derived from the sale of land or from both land and improvements thereon serviced from infrastructure financed from the proceeds of bonds as permitted by this subpart. The provisions of this subsection are in addition and supplemental to part III of chapter 39. (e) Any of the bonds may be additionally secured by a pledge of any revenues or a mortgage of any housing project, infrastructure for any housing project, other property of the corporation, the pledge or assignment of any loans or other agreements, or any note or other undertaking, obligation, or property held by or on behalf of the corporation to secure loans made from the proceeds of bonds for any "housing loan program", as the term is defined in subpart B or D, or any other loan program administered by the corporation and financed from the proceeds of bonds. (f) Any pledge made by the corporation shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the corporation 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 corporation shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be prior to the lien of all parties having claims of any kind in tort, contract, or otherwise against the corporation, 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. (g) Any housing project or projects, or infrastructure for a 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. Any loan program authorized by, and undertaken pursuant to, this chapter, including without limitation "housing loan programs" defined in and authorized by subparts B and D, shall constitute a "loan program" within the meaning of that term as defined and used in part III, chapter 39. The corporation 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. (h) 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. [L 2006, c 180, pt of §4; am L 2024, c 34, §1]

HRS §201H-73 Issuance of bonds for the preservation of low‑income housing projects. [(a)] The corporation, pursuant to and in accordance with this subpart, may issue bonds to purchase low-income housing projects financed by the United States Department of Housing and Urban Development to preserve these projects. Upon the payment of all interest and principal stemming from the issuance of these bonds, the corporation may transfer title to these projects to qualified nonprofit organizations. Nothing in this section shall be construed to:

201H-73. Issuance of bonds for the preservation of low‑income housing projects. [(a)] The corporation, pursuant to and in accordance with this subpart, may issue bonds to purchase low-income housing projects financed by the United States Department of Housing and Urban Development to preserve these projects. Upon the payment of all interest and principal stemming from the issuance of these bonds, the corporation may transfer title to these projects to qualified nonprofit organizations. Nothing in this section shall be construed to: (1) Prohibit qualified nonprofit or for-profit organizations from operating these projects on behalf of the corporation, or providing for the repair and maintenance of these projects, before the payment of all interest and principal stemming from the issuance of these bonds; or (2) Prohibit the corporation from transferring title to these projects to qualified nonprofit or for-profit organizations if these bonds can be secured to the satisfaction of the bondholders. [(b)] As used in this section, "qualified nonprofit organization" includes community-based nonprofit organizations and resident councils. [L 2006, c 180, pt of §4]

HRS §201H-74 Bonds; interest rate, price, and sale

201H-74. Bonds; interest rate, price, and sale (a) The bonds shall bear interest at rates payable at times that the corporation, 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 corporation, subject to the approval of the director of finance and the governor, may issue bonds pursuant to section 201H‑72, in which the discounted value of the bonds exceeds ten per cent of the issue. (b) The corporation may include the costs of undertaking and maintaining any housing project or projects or loan program for which the bonds are issued in determining the principal amount of bonds to be issued. In determining the costs of undertaking and maintaining the housing projects, the corporation 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 corporation, or the estimated expenditure of borrowed funds for any loan program for which the bonds are issued. [L 2006, c 180, pt of §4]

HRS §201H-76 Trust indenture

201H-76. 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 corporation for the purposes of this part. (b) A trust indenture may allow the corporation to pledge and assign to the trustee agreements related to the housing project or projects or loan program and the rights of the corporation 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 housing project or system of housing projects or the loan program, 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 corporation to obtain or permit, by grant, interest subsidy, or otherwise, the participation of the federal government in the housing projects or loan programs or in the financing of the costs of administering, operating, or maintaining the housing projects or loan programs. [L 2006, c 180, pt of §4]

HRS §201H-77 Investment of reserves, etc

201H-77. Investment of reserves, etc The corporation may invest any funds held in reserves or sinking funds or any funds not required for immediate disbursement, including the proceeds of bonds, in property or securities in which the director of finance may legally invest, as provided in section 36-21, except that funds held outside the state treasury may be invested for terms not to exceed thirty-five years. No provisions with respect to the acquisition, operation, or disposition of property by other government agencies shall be applicable to the corporation unless the legislature shall specifically so state. [L 2006, c 180, pt of §4]

HRS §201H-80 Housing finance revolving fund; bond special funds.

201H-80. Housing finance revolving fund; bond special funds. (a) There is created a housing finance revolving fund to be administered by the corporation. Notwithstanding sections 36-21 and 201H-191, the proceeds in the fund shall be used for long-term and other special financings of the corporation and for the necessary expenses in administering this part. (b) All moneys received and collected by the corporation, not otherwise pledged or obligated nor required by law to be placed in any other special fund, shall be deposited in the housing finance revolving fund. (c) A separate special fund shall be established for each housing project or system of housing projects or loan program financed from the proceeds of bonds secured under the same trust indenture. Each fund shall be designated "housing project bond special fund" or "housing loan program revenue bond special fund", as appropriate, and shall bear any additional designation as the corporation deems appropriate to properly identify the fund. (d) Notwithstanding any other law to the contrary, all revenues, income, and receipts derived from a housing project or system of projects or loan program financed from the proceeds of bonds or pledged to the payment of the principal of and interest and premium on bonds, shall be paid into the housing project bond special fund or housing loan program revenue bond special fund established for the housing project or system of projects or loan program and applied as provided in the proceedings authorizing the issuance of the bonds. [L 2006, c 180, pt of §4]

HRS §201H-82 Rate of wages for laborers and mechanics

201H-82. Rate of wages for laborers and mechanics The corporation shall require an eligible bidder or eligible developer of a housing project developed under this subpart to comply with the requirements of section 104-2 for those laborers and mechanics hired to work on that housing project; provided that this section shall not apply to a housing project developed under this chapter if the entire cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit organization. [L 2006, c 180, pt of §4]

HRS §201H-85 Pineapple workers and retirees housing assistance fund; established.

201H-85. Pineapple workers and retirees housing assistance fund; established. (a) There is established in the state treasury the pineapple workers and retirees housing assistance fund to provide mortgage payments or rent subsidies for eligible Del Monte Fresh Produce pineapple workers and retirees and their families who are displaced or affected by the closure of Del Monte Fresh Produce. The pineapple workers and retirees housing assistance fund shall be administered by the corporation. (b) Moneys appropriated for the purposes of this section shall be deposited into the pineapple workers and retirees housing assistance fund; provided that, upon fulfillment of the purposes of this section, all unencumbered moneys shall lapse into the general fund. The corporation shall establish guidelines with respect to eligible Del Monte Fresh Produce pineapple workers and retirees and mortgage payments or rental assistance payments under this section. (c) The corporation shall adopt rules in accordance with chapter 91 to effectuate the purposes of this section. [L 2007, c 203, §2]

HRS §201H-87 Applications for financing; application periods

201H-87. Applications for financing; application periods If sufficient funding is available, the corporation shall open at minimum two application periods each year for the receipt of applications for financing from parties interested in applying for financing for the development of affordable housing in the State from the low-income housing tax credit program, Hula Mae multi-family program, rental housing revolving fund program, and dwelling unit revolving fund program. Applications for the four programs may be consolidated for administrative efficiency. [L 2023, c 91, §1]

HRS §201H-88 Authorization to secure lines of credit or other instruments of indebtedness

201H-88. Authorization to secure lines of credit or other instruments of indebtedness The corporation, subject to legislative approval, may secure a line of credit or other instrument of indebtedness to be used to meet the requirements of federal tax law for the bond volume cap recycling program; provided that the term of the authorized line of credit or other instrument of indebtedness shall correspond to each fiscal biennium budget period. [L 2024, c 35, §2]

HRS §201H-90 Additional powers

201H-90. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities so conferred. [L 2006, c 180, pt of §4]

HRS §201H-91 Definitions

201H-91. 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: "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) Does not personally, or whose spouse does not if the person is married, own any interest in a principal residence within or without the State and who has not owned a principal residence within the three years immediately prior to the application for an eligible loan under this subpart, except this requirement shall not apply to any eligible loan for a targeted area residence as defined in the Mortgage Subsidy Bond Tax Act of 1980, Public Law 96-499; (5) Is financing a property that will be the eligible borrower's principal residence; and (6) Meets other qualifications as established by rules adopted by the corporation. "Eligible improvement" means alterations, repairs, or improvements to an existing dwelling unit that substantially protect or improve the basic livability of the unit. "Eligible improvement loan" means a loan to finance an eligible improvement to the owner of the dwelling unit, which may be a condominium unit, where the eligible improvement is to be made; provided that the owner meets the requirements of an eligible borrower, except that the requirements of paragraph (4) of the definition of "eligible borrower" shall not apply, the unit to be financed is located in the State, the unit will be occupied as the principal place of residence of the borrower, and meets other requirements as established by rules adopted by the corporation. "Eligible loan" means a loan under this subpart, including mortgage-backed securities backed by such a loan, to an eligible borrower for the permanent financing of a dwelling unit, including a condominium unit, including eligible improvement loans, loans to finance homebuyer assistance, and loans that provide the security or interest in a mortgage-backed security; provided that the property financed is located in the State, will be occupied as the principal place of residence by the eligible borrower, and meets other requirements as established by rules adopted by the corporation. "Eligible project loan" means an interim or permanent loan, which may be federally insured or guaranteed, made to a qualified sponsor for the financing of a rental housing project, and which meets other requirements as established by rules adopted by the corporation. "Homebuyer assistance" means assistance provided to eligible borrowers in conjunction with an eligible loan to provide downpayment assistance or fund closing costs; provided that such assistance is repaid through consideration to the corporation, including borrower repayments. "Housing loan programs" includes all or any part of the advance commitments program, and the loan funding programs authorized under this subpart. "Mortgage-backed security" means any investment security, not including bonds of the corporation, that represents an interest in, or is secured by, one or more pools of mortgage loans, including any such security representing a direct obligation or guarantee of a federally-sponsored or private entity such as the Government National Mortgage Association, Federal National Mortgage Association, or Federal Home Loan Mortgage Corporation. "Qualified sponsor" means any person or entity determined by the corporation: (1) To be qualified by experience, financial responsibility, and support to construct a housing project of the type and magnitude described; (2) To have submitted plans for a housing project adequately meeting the objectives of this chapter, the maintenance of aesthetic values in the locale of the project, and the requirements of all applicable environmental statutes and rules; and (3) To meet other qualifications as established by rules adopted by the corporation pursuant to chapter 91. [L 2006, c 180, pt of §4; am L 2013, c 135, §2]

HRS §201H-92 Owner-occupancy requirement

201H-92. Owner-occupancy requirement (a) An eligible borrower shall use the dwelling unit purchased under this subpart as the eligible borrower's permanent and primary residence. (b) From time to time, the corporation may submit a verification of owner-occupancy form to the eligible borrower. Failure to respond to this verification in a timely manner may result in an immediate escalation of the interest rate or acceleration of the eligible loan. (c) For eligible borrowers in the process of selling or transferring title to their property, the corporation may grant a waiver of subsection (a) for a period not to exceed three years and for reasons set forth in section 201H-49 on a case-by-case basis. [L 2006, c 180, pt of §4]

HRS §201H-93 Eligible borrowers

201H-93. Eligible borrowers (a) The corporation shall establish the qualifications of the eligible borrower, and may consider the following: (1) The proportion of income spent for shelter; (2) Size of the family; (3) Cost and condition of housing available to the total housing market; and (4) Ability of the person to compete successfully in the normal housing market and to pay the amounts on which private enterprise is providing loans for safe, decent, and sanitary housing in the State. (b) The family income of an eligible borrower shall not exceed the income requirements of section 143(f) of the Internal Revenue Code of 1986, as amended. (c) For the purpose of determining the qualification of an eligible borrower for an eligible improvement loan: (1) The dwelling unit for which the eligible improvement loan is to be made and the property on which the dwelling unit is situated shall not be included in the calculation of the eligible borrower's assets; and (2) The mortgage secured by the dwelling unit and property shall not be included in the calculation of the eligible borrower's liabilities. (d) For the purpose of determining the qualification of an eligible borrower for an eligible loan for a targeted area residence: (1) The dwelling unit being replaced and the property on which the dwelling unit is situated shall not be included in the calculation of the eligible borrower's assets; and (2) The mortgage secured by the dwelling unit and the property shall not be included in the calculation of the eligible borrower's liabilities. [L 2006, c 180, pt of §4]

HRS §201H-94 Eligible loans

201H-94. Eligible loans (a) The corporation shall establish requirements for property financed by an eligible loan, and may consider the location, age, condition, and other characteristics of the property. (b) The corporation shall establish restrictions on the terms, maturities, interest rates, collateral, and other requirements for eligible loans. (c) All eligible loans made shall comply with applicable state and federal laws. (d) Notwithstanding any other provision of law, the corporation may provide homebuyer assistance in conjunction with eligible loans through loans or other means; provided that the homebuyer assistance: (1) Is repaid through consideration to the corporation, including borrower repayments; and (2) Meets restrictions and requirements as established in rules adopted by the corporation. [L 2006, c 180, pt of §4; am L 2013, c 135, §3]

HRS §201H-95 Eligible project loans

201H-95. Eligible project loans (a) The corporation shall establish requirements for rental housing projects to be financed by an eligible project loan, and may consider the location, age, condition, and other characteristics of the project. (b) The corporation shall establish restrictions on the terms, maturities, interest rates, and other requirements for eligible project loans. (c) The corporation shall establish restrictions on the prepayment of eligible project loans and on the transfer of ownership of the projects securing eligible project loans. (d) The corporation shall require that any sums deferred on land leased at nominal rates by the corporation to the owner of a rental housing project shall be recovered by the corporation at the time an eligible project loan is prepaid, whether as a result of refinancing of the eligible project loan or otherwise, to the extent that funds are available from the refinancing or other method by which the eligible project loan is paid in full prior to its due date. (e) The corporation shall enter into an agreement with the owner of a rental housing project to be financed with an eligible project loan which shall provide that in the event that the eligible project loan is at any time prepaid for the purpose of converting the rental units of such project to ownership units, all tenants at the time of the proposed conversion shall have the first option to purchase their units. (f) All eligible project loans shall comply with applicable state and federal laws. (g) The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the multifamily revenue bond activity under this section. The following information shall be reported: (1) The amount of multifamily revenue bond authority utilized and remaining balance; (2) A description of multifamily project activity including dates, project names and descriptions, and bond amounts for the following activities: (A) Application; (B) Approval of inducement resolution; (C) Approval to issue bonds; and (D) Issuance of bonds; and (3) A summary of the activity of the fund by quarter. [L 2006, c 180, pt of §4; am L 2017, c 175, §3]

HRS §201H-96 Eligible improvement loans

201H-96. Eligible improvement loans (a) The corporation shall establish requirements for property financed by an eligible improvement loan, and may consider the location, age, condition, value, and other characteristics of the property. (b) The corporation shall establish restrictions on the terms, maturities, interest rates, collateral, and other requirements for eligible improvement loans. (c) All eligible improvement loans made shall comply with applicable state and federal laws. [L 2006, c 180, pt of §4]

HRS §201H-98 Housing loan programs; general powers

201H-98. Housing loan programs; general powers (a) The corporation may make, enter into, and enforce all contracts or agreements that are necessary, convenient, or desirable in the performance of its duties in executing the housing loan programs. (b) The corporation may require representations and warranties as it determines necessary to secure its loans. [L 2006, c 180, pt of §4]

HRS §201H-99 Housing loan programs; self-supporting

201H-99. Housing loan programs; self-supporting The interest rate, fees, charges, premiums, and other terms of the loans made under the housing loan programs shall be at least sufficient to pay the cost of administering and maintaining the portion of the specific housing loan programs for which the bonds have been issued, and to assure payment of the principal of and interest on the bonds as they become due. [L 2006, c 180, pt of §4]

HRS §201H-101 Housing loan programs; evidence of eligible loan, eligible improvement loan, or eligible project loan

201H-101. Housing loan programs; evidence of eligible loan, eligible improvement loan, or eligible project loan (a) Each mortgage lender who participates in any housing loan program shall submit evidence, as deemed satisfactory by the corporation, that eligible loans, eligible improvement loans, or eligible project loans have been made from the proceeds of the bonds. (b) The corporation may inspect the books and records of the mortgage lenders as may be necessary for the purposes of this section. [L 2006, c 180, pt of §4]

HRS §201H-106 Loan funding programs

201H-106. Loan funding programs (a) The corporation may contract with mortgage lenders to fund eligible loans and eligible improvement loans and may directly make or contract with mortgage lenders to fund eligible project loans. (b) Any contract in subsection (a) with a mortgage lender may contain provisions as determined by the corporation to be necessary or appropriate to provide security for its revenue bonds. [L 2006, c 180, pt of §4]

HRS §201H-107 Loans; service and custody

201H-107. Loans; service and custody The corporation may contract for the service and custody of its loans. The contract may provide for the payment of fees or charges for the services rendered; provided that the fees or charges shall not exceed the usual, customary, and reasonable charges for the services rendered. [L 2006, c 180, pt of §4]

HRS §201H-110 Loans; default

201H-110. Loans; default The corporation may: (1) Renegotiate, refinance, or foreclose any loan in default; (2) Waive any default or consent to the modification of the terms of any loan or security agreement; (3) Commence any action to protect or enforce any right conferred upon it by any law, mortgage, insurance policy, contract, or other agreement; (4) Bid for and purchase the property secured by the loan at any foreclosure or other sale, or acquire or take possession of the property secured by the loan; and (5) Operate, manage, lease, dispose of, or otherwise deal with the property secured by the loan. [L 2006, c 180, pt of §4; am L 2017, c 12, §11]

HRS §201H-120 Additional powers

201H-120. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities so conferred. [L 2006, c 180, pt of §4]

HRS §201H-121 Purpose; findings and determinations

201H-121. Purpose; findings and determinations The legislature finds and declares that the health and general welfare of the people of this State require that the people of this State have safe and sanitary rental housing accommodations available at affordable rents; that a grave shortage in the number of such accommodations affordable by families and individuals of low- and moderate-income in the State exists; and that it is essential that owners of rental housing accommodations be provided with appropriate additional means to assist in reducing the cost of rental housing accommodations to the people of this State. The legislature further finds that the high cost of infrastructure development and the obtaining of interim construction financing are two of the greatest impediments to the production of affordable rental housing in this State. It is especially difficult for private nonprofit and for-profit entities to participate in the development of affordable housing due to the difficulty in amassing the capital necessary to plan and carry out a project to completion. It is the purpose of this subpart to: (1) Assist owners in maintaining rentals at levels affordable to low- and moderate-income families and individuals by providing owners with rental assistance payments which, together with rental payments received from low- and moderate-income tenants, will provide owners with limited but acceptable rates of return on their investments in rental housing accommodations. Assisting owners by entering into contracts with them to provide for rental assistance payments is a valid public purpose and in the public interest; and (2) Provide a funding source for interim construction financing for the development of affordable rental housing by private nonprofit and for-profit entities, as well as the corporation; provided that in allotting this financing, the corporation shall give preference to qualified sponsors who are private nonprofit and for-profit entities. [L 2006, c 180, pt of §4]

HRS §201H-122 Definitions

201H-122. Definitions The following terms as used in this subpart shall have the following meanings unless a different meaning clearly appears from the context: "Eligible project" means a rental housing project that: (1) Is financed by the corporation pursuant to subpart B or D, or that the corporation determines will require rental assistance to make it financially feasible; (2) Is subject to a regulatory agreement with the corporation; (3) Maintains at least twenty per cent of its units for eligible tenants; and (4) Meets other qualifications as established by rules adopted by the corporation. Notwithstanding any provision to the contrary, "eligible project" may also include a rental housing project that is financed by the corporation pursuant to subpart A. "Eligible tenant" means a family or an individual whose income does not exceed eighty per cent of the area median income as determined by the United States Department of Housing and Urban Development. "Owner" means the owner of an eligible project. "Regulatory agreement" means an agreement between the corporation and the owner relating to an eligible project that includes provisions relating to rents, charges, profits, return on owner's equity, development costs, and methods of operation. "Rental assistance contract" means an agreement between an owner and the corporation providing for periodic rental assistance payment for units in an eligible project. [L 2006, c 180, pt of §4]

HRS §201H-123 Rental assistance revolving fund

201H-123. Rental assistance revolving fund (a) There is created a rental assistance revolving fund to be administered by the corporation. (b) The rental assistance revolving fund may include sums made available from any government program or grant, from private grants or contributions, from the proceeds of any bond issue, or from appropriations to the fund. The aggregate principal in the fund shall be invested by the corporation in a manner that will maximize the rate of return on investment of the fund; provided that any investment made shall be consistent with section 201H-77 but need not comply with section 36-21. (c) The corporation may use, as needed, the aggregate principal sum and the accumulated earnings in the rental assistance revolving fund to make payments under rental assistance contracts or to subsidize tenants' rents in eligible projects developed under this part; provided that the corporation shall use up to $25,000,000 plus any bond proceeds to provide interim construction financing to: (1) Qualified sponsors who are private nonprofit or for-profit entities; or (2) The corporation, for the development of affordable rental housing; provided further that the corporation, in allotting interim construction financing moneys pursuant to this subpart, shall give preference to rental housing projects developed by qualified sponsors who are private nonprofit or for-profit entities. [L 2006, c 180, pt of §4]

HRS §201H-125 Rental assistance program

201H-125. Rental assistance program (a) Prior to the execution of a rental assistance contract and annually thereafter, the owner shall submit a proposed rental schedule to the corporation for approval. The schedule shall list every rental unit in the project and shall designate which units are to be maintained for eligible tenants. (b) The corporation shall establish procedures for evaluating the rental schedules submitted pursuant to this section, and may consider the following: (1) The size of and number of bedrooms in the units comprising the eligible project; (2) The location of the project and its type (whether high‑rise, mid-rise, or low-rise); (3) The percentage of units being maintained for eligible tenants; and (4) The rentals prevalent in the open market for comparable units. (c) Annually, following the approval of the rental schedule submitted pursuant to subsection (a), the corporation shall determine the amount of rental assistance payments payable to the owner for the forthcoming year; provided that the amount shall not exceed the maximum annual rental assistance payment amount determined in accordance with section 201H-124. The amount determined pursuant to this subsection shall take into account the estimated amount to be derived by the owner from rentals to be charged for the forthcoming year and the limited rate of return on equity permitted in accordance with section 201H-124(d)(6). (d) The corporation shall establish standards and requirements for: (1) The awarding of rental assistance contracts and the allocation of annual rental assistance payments; (2) The form of lease to be utilized by the owner in renting units in an eligible project; (3) The marketing and tenant selection and admission processes to be employed by the owner with respect to an eligible project; and (4) The maintenance and operation of eligible projects. (e) The corporation shall establish procedures for: (1) The annual review of rental schedules for eligible projects; (2) The periodic review of the income of tenants renting units in eligible projects; and (3) The periodic inspection of eligible projects to monitor the owners' compliance with the terms and conditions of their rental assistance contracts. (f) When an eligible project is not owned by the corporation, the corporation shall be entitled to share in the appreciation in value of units maintained for eligible tenants within an eligible project realized at the time of refinancing or prepayment of the eligible project loan. The corporation's share shall be calculated by multiplying the appreciation in value of units maintained for eligible tenants realized upon refinancing or prepayment by the ratio of the owner's equity to the discounted value of the aggregate rental assistance payments. The discount rate shall be established by rules adopted by the corporation. The corporation shall exempt projects owned by a county from the shared appreciation requirement set forth in this subsection if all of the following requirements are met: (1) The funds derived by the county as a result of appreciation in value of the units are used for housing projects wherein: (A) At least sixty per cent of the project is affordable to families earning one hundred per cent or below of the applicable area median income; and (B) At least half of the foregoing sixty per cent is affordable to families earning eighty per cent or below of the applicable area median income; and (2) The project from which the appreciation in value is derived remains as affordable as it was prior to the refinancing or prepayment of the eligible project loan. [L 2006, c 180, pt of §4]

HRS §201H-141 Definitions

201H-141. Definitions Whenever used in this subpart, unless the context otherwise requires: "Eligible borrower" means: (1) Any person or family, without regard to race, creed, national origin, or sex, who: (A) Is a citizen of the United States or a resident alien; (B) Is a bona fide resident of the State; (C) Is at least eighteen years of age; (D) Does not personally, or whose spouse does not if the person is married, own a majority interest in any residential property in the State; and (E) Meets other qualifications as established by rules adopted by the corporation; or (2) A qualified sponsor of an affordable housing project who meets the qualification requirements as established by rules adopted by the corporation. "Eligible loan" or "loan" means: (1) A loan to an eligible borrower for the purchase of a dwelling unit, including a condominium unit; provided that the property financed is located in the State, will be occupied as the principal place of residence by the eligible borrower, and meets other requirements as established by rules adopted by the corporation; or (2) An interim or permanent loan, which may be federally insured or guaranteed, made to a qualified sponsor for the financing of an affordable housing project, and which meets other requirements as established by rules adopted by the corporation. "Housing loan programs" include all or any part of the loan programs authorized in section 201H-142. [L 2006, c 180, pt of §4]

HRS §201H-142 Housing loan programs; authorization

201H-142. Housing loan programs; authorization (a) The corporation may establish under this subpart one or more eligible loan programs. (b) The corporation may invest in, make, purchase, take assignments of, or otherwise acquire or make commitments to invest in, make, purchase, take assignments of, or otherwise acquire any eligible loans or any partial interest or participation therein held by or on behalf of the corporation. (c) The corporation may sell, assign, or otherwise dispose of or enter into commitments to sell, assign, or otherwise dispose of any eligible loans or any partial interest or participation therein held by or on behalf of the corporation. (d) The corporation may acquire any obligation under conditions which require the seller of the obligation to use the proceeds of the sale for the purpose of financing eligible loans. [L 2006, c 180, pt of §4]

HRS §201H-143 Housing loan programs; procedures and requirements

201H-143. Housing loan programs; procedures and requirements (a) The corporation may establish procedures and requirements for: (1) The purchase of loans from mortgage lenders by auction, invitation of tender, advance commitment, or other negotiation; (2) The making of loans through mortgage lenders to eligible borrowers or qualified sponsors; (3) The allocation to mortgage lenders of money made available under this subpart; and (4) The participation by mortgage lenders as originators and processors of loans on behalf of the corporation under this subpart. (b) The corporation may adopt rules under chapter 91 necessary or convenient for the operation of the housing loan programs established under this subpart. [L 2006, c 180, pt of §4]

HRS §201H-144 Housing loan programs; general powers

201H-144. Housing loan programs; general powers (a) The corporation may make, enter into, and enforce all contracts or agreements which are necessary, convenient, or desirable for the purpose of the performance of its powers under this subpart. (b) The corporation may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient in connection with its housing loan programs established under this subpart. The fees, premiums, and charges shall be deposited into funds as determined by the corporation. (c) The corporation may contract for the servicing and custody of any loans or other obligations acquired under this subpart. (d) The corporation may procure insurance against any default of its loans from insurers in amounts deemed necessary or desirable. (e) Subject to any agreements with the holders of its bonds, the corporation may: (1) Renegotiate, refinance, or foreclose any loan in default; (2) Commence any action to protect or enforce any right conferred upon it by any law, or as provided in any mortgage, insurance policy, contract, or other agreement; and (3) Bid for and purchase the property secured by the loan at any foreclosure or other sale; or acquire, or take possession of the property secured by the loan and may operate, manage, lease, dispose of, or otherwise deal with the property securing the loan. [L 2006, c 180, pt of §4]

HRS §201H-150 Additional powers

201H-150. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities so conferred. [L 2006, c 180, pt of §4]

HRS §201H-152 Mortgage guarantee agreements

201H-152. Mortgage guarantee agreements (a) To induce appropriate officials of any agency or instrumentality of the United States to commit to insure and to insure mortgages under the provisions of the United States Housing Act of 1937, as amended, the corporation may enter into guarantee agreements with those officials whenever: (1) The purchaser-mortgagor in question is ineligible for mortgage insurance purposes under the United States Housing Act of 1937, as amended, because of credit standing, debt obligation, or income characteristics; (2) The purchaser-mortgagor in question is a "displaced person" as defined in chapter 111 and the guarantee agreement will enable the purchaser-mortgagor to obtain suitable replacement housing in accordance with chapter 111; or (3) The corporation finds that the purchaser-mortgagor would be a satisfactory credit risk with ability to repay the mortgage loan if the purchaser-mortgagor were to receive budget, debt management, and related counseling. (b) Guarantee agreements under subsection (a) may obligate the corporation to: (1) Provide or cause to be provided counseling under subsection (a)(3); and (2) Indemnify an agency or instrumentality of the United States for a period not to exceed five years for any loss sustained by the agency or instrumentality by reason of insurance of a mortgage. (c) The total of guarantees made pursuant to this section and guarantees made pursuant to section 201H-151 shall not exceed $10,000,000. [L 2006, c 180, pt of §4]

HRS §201H-161 Downpayment loans

201H-161. Downpayment loans (a) 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. 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. 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 the loans may range from one per cent to eight per cent, depending on the buyer's income. (b) The repayment of every downpayment loan shall be secured by a duly recorded second mortgage executed by the borrower to the State on the residential property purchased with the downpayment loan. (c) 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 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 downpayment loan, plus accrued interest, at any time without penalty. (d) The corporation may secure the services of nonprofit organizations, as defined in section 454F-1, 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. (e) The corporation may secure the services of the mortgage lender who loans to the borrower the balance of the purchase price of the residential property or the services of any other mortgage lender doing business in the State to collect, on behalf of the State, the principal and interest of the downpayment loan and otherwise to service the downpayment loan, for a servicing fee not in excess of the prevailing loan servicing fees. (f) The corporation shall adopt rules pursuant to chapter 91 to carry out the purposes of this subpart. [L 2006, c 180, pt of §4; am L 2017, c 123, §4]

HRS §201H-162 Qualifications for downpayment loans

201H-162. Qualifications for downpayment loans (a) No person shall be qualified for a downpayment loan unless the person: (1) Is a citizen of the United States or a resident alien; (2) Is at least eighteen years of age; (3) Is a bona fide resident of the State; (4) Will physically reside in the residential property to be purchased for the term of the loan; (5) 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; (6) Provides a portion of the downpayment which shall be equal to at least five per cent of the sales price; and (7) Has successfully completed a homeownership counseling program provided by a housing counseling agency approved by the United States Department of Housing and Urban Development. (b) No person who owns in fee simple or in leasehold any other residential property within the State shall be eligible to become a borrower under this section. A person shall be deemed to own a residential property if the person, the person's spouse, or both (unless separated and living apart under a decree of a court of competent jurisdiction) own a majority interest in a residential property. [L 2006, c 180, pt of §4; am L 2017, c 123, §5]

HRS §201H-163 Restrictions on borrower

201H-163. Restrictions on borrower Every loan made under this subpart shall be subject to the following conditions: (1) The borrower shall expend no portion of the borrower's downpayment loan for purposes other than to make a downpayment for the purchase of a residential property; (2) The residential property purchased with the downpayment loan and mortgaged to the State to secure the repayment of the loan shall not be sold or assigned without the prior approval in writing of the corporation and the first mortgage lender; (3) The borrower shall pay when due all taxes, liens, judgments, or assessments that may be lawfully levied against the residential property and all costs and expenses of any foreclosure of the mortgage made to the State; (4) The borrower shall maintain fire and casualty insurance in amounts equal to the replacement value of all improvements and insurable portions of the residential property with an insurance company authorized to do business in the State. All proceeds of that insurance shall be made payable to the first mortgage lender and the corporation as their respective interests may appear at the time of any loss or damage. Subject to the rules of the corporation, in the event of any loss or damage to the improvements or property covered by the insurance, the proceeds receivable by the State shall be applied toward the reconstruction of the improvements or property destroyed or damaged, unless otherwise determined by the corporation on behalf of the State; and (5) The borrower shall maintain the improvements in good repair. All of the conditions in paragraphs (1) through (5) shall be a part of any downpayment mortgage executed under this subpart, regardless of whether or not they are expressly incorporated in the mortgage document. [L 2006, c 180, pt of §4]

HRS §201H-164 Default

201H-164. Default If the borrower defaults in the payment of any installment of principal or interest of the downpayment loan, the corporation or mortgage lender shall take all necessary action to collect the delinquent amounts and may take all actions generally allowed holders of mortgages, including the power to foreclose. Upon any foreclosure of the second mortgage, the corporation or mortgage lender on behalf of the corporation, may purchase the interest of the borrower in and to the residential property, take possession thereof and assume all of the obligations of the borrower under the first mortgage held by the private lender and any other liens having priority over the second mortgage that may then exist. On the acquisition of the borrower's interest, the corporation, at its option, may pay in full the unpaid balance of the borrower's obligation secured by the first mortgage and other prior liens; repair, renovate, modernize, or improve the residential property; and, with or without clearing the property of all prior mortgages and liens, sell, lease, or rent the property or use or dispose of the same in any manner authorized by law. [L 2006, c 180, pt of §4]

HRS §201H-170 Additional powers

201H-170. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities so conferred. [L 2006, c 180, pt of §4]

HRS §201H-171 Homebuyers' club program

201H-171. Homebuyers' club program (a) The corporation may establish a homebuyers' club program for participants who are desirous of purchasing a home and who have adequate incomes but who lack sufficient funds for the downpayment and closing costs. The primary focus of this program is to facilitate the purchase of homes by providing participants with strategies to save money, to resolve credit problems, and to educate participants on how to shop for and purchase a home. (b) In establishing such a program, the corporation shall adopt rules pursuant to chapter 91 relating to establishing a savings program for participants based upon individual analyses of income and family expenses. The rules may also provide for integration of the homebuyers' club program with other governmental programs including but not limited to individual housing accounts under section 235-5.5, the state mortgage guarantee program under subpart E, the downpayment loan assistance program established under subpart F, and the rent-to-own program established under subpart H. (c) The corporation may secure the services of another public or private entity to carry out the purposes of this section. [L 2006, c 180, pt of §4; am L 2017, c 123, §6]

HRS §201H-180 Additional powers

201H-180. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities so conferred. [L 2006, c 180, pt of §4]

HRS §201H-181 Rent-to-own program

201H-181. Rent-to-own program (a) The corporation may establish a rent-to-own program under which dwelling units that are for sale may be rented to program participants. Under this program, the corporation shall credit a portion of the rent received toward the purchase of the unit. (b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first five years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the five-year period, the renter shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter. (c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit. [L 2006, c 180, pt of §4]

HRS §201H-191 Dwelling unit revolving fund

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. [L 2006, c 180, pt of §4; am L 2016, c 132, §3]

HRS §201H-191.5 Regional state infrastructure subaccounts

201H-191.5. Regional state infrastructure subaccounts (a) The corporation, upon request by a county, may establish and operate a regional state infrastructure subaccount within the dwelling unit revolving fund established pursuant to section 201H-191 for the benefit of the housing and mixed-use transit-oriented development projects within the county. (b) Each regional state infrastructure subaccount shall consist of the following sources of revenue: (1) Moneys received by the corporation from counties for the repayment of the loan principal and the payment of simple interest from various assessments or fees from special improvement districts, improvement districts, tax increment financing districts, community facilities districts, and other areas where property value increases are captured over periods of time for the purposes of infrastructure financing; (2) Appropriations from the legislature; (3) Federal grants and subsidies to the State or counties; (4) Proceeds from bonds issued pursuant to section 201H-72(a)(2); (5) Private investments; and (6) Voluntary contributions. (c) The corporation shall expend revenues in the subaccounts to make grants and loans to state agencies, and loans to counties or private developers, for the costs, in whole or in part, of infrastructure improvements that would increase the capacity of the infrastructure facilities, including regional sewer systems, water systems, drainage systems, roads, and telecommunications and broadband. (d) Whenever the corporation undertakes, or causes to be undertaken, a regional infrastructure improvement project, the cost of providing regional infrastructure improvements may be assessed against housing and mixed-use transit-oriented development projects specially benefiting from the improvements, and the corporation shall take into consideration previous contributions by project owners to infrastructure improvements; provided that: (1) The corporation may fix the assessments against real property specially benefited. All assessments made pursuant to this subsection shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid and the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien; (2) Notwithstanding any other law to the contrary, in assessing real property specially benefiting from improvements, the corporation may utilize various methods including but not limited to: (A) Assessment on a frontage basis; (B) According to the area of real property for housing and mixed-use transit-oriented development projects; (C) According to the area of real property within an assessment area; (D) Any other assessment method that assesses the real property according to the special benefit conferred; or (E) Any combination thereof; (3) The assessments made under this subsection shall not apply to projects within the stadium development district as established pursuant to section 206E-223; (4) The corporation shall adopt rules pursuant to chapter 91, providing for the method of assessment of real properties specially benefited; and (5) All sums collected under this subsection shall be deposited in the dwelling unit revolving fund established pursuant to section 201H-191. (e) Grants and loans shall be made only for capital improvement projects approved by the respective county council and mayor, or state agency, as applicable, with a view towards planned growth rather than upkeep and maintenance. The Hawaii interagency council for transit-oriented development shall review and make recommendations on applications for subaccount funds for infrastructure projects related to transit-oriented development. (f) Eligible costs shall include those for planning, design, feasibility studies, construction, and materials. No grant or loan shall be made: (1) For maintenance or repair costs unless the construction would simultaneously increase the carrying capacity of the infrastructure facility; or (2) Solely for mass transit or electrical utilities. (g) The corporation may also expend revenues in the subaccounts to repay: (1) Holders of bonds issued pursuant to section 201H-72(a)(2); and (2) Private investors for their investment plus any interest accrued on their investments made into the subaccounts to finance, in whole or in part, infrastructure improvements that would increase the capacity of the infrastructure facilities, including regional sewer systems, water systems, drainage systems, roads, and telecommunications and broadband. (h) The corporation may accept improved land from the counties or private developers in repayment of their loans. (i) The corporation shall adopt rules in accordance with chapter 91 for the purposes of this section. [L 2016, c 132, §2; am L 2021, c 95, §1; am L 2024, c 34, §3]

HRS §201H-200 Additional powers

201H-200. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities so conferred. [L 2006, c 180, pt of §4]

HRS §201H-201 Definitions

201H-201. Definitions As used in this subpart, unless a different meaning is clearly required by the context: "Develop" or "development" means the planning, financing, or acquisition of real and personal property; demolition of existing structures; clearance of real property; construction, reconstruction, alteration, or repairing of approaches, streets, sidewalks, utilities, and services, or other site improvements; construction, reconstruction, repair, remodeling, extension, equipment, or furnishing of buildings or other structures; or any combination of the foregoing, of any housing project. It also includes any undertakings necessary therefor, and the acquisition of any housing, in whole or in part. "Efficiency" means the amount of state financial resources required per unit. "Feasibility" means reasonableness of project budget and schedule assumptions. "Fund" means the rental housing revolving fund established pursuant to section 201H-202. "Project readiness" means a project that is anticipated to commence construction within one year of award of financing. [L 2006, c 180, pt of §4; am L 2015, c 237, §24; am L 2024, c 235, §1]

HRS §201H-202 Rental housing revolving fund

201H-202. Rental housing revolving fund (a) There is established the rental housing revolving fund to be administered by the corporation. (b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the corporation's housing finance programs; provided that fund moneys shall not be used to finance day-to-day administrative expenses of projects allotted fund moneys. (c) The following may be deposited into the fund: appropriations made by the legislature, conveyance taxes pursuant to section 247-7, private contributions, repayment of loans, interest, other returns, and moneys from other sources. (d) The fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units. The corporation shall not forgive any loan made from the fund unless the corporation forecloses on the project. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, credit enhancement, gap financing, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible. (e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority: (1) For projects that were awarded low-income housing credits pursuant to paragraph (2), priority shall be given to projects with a perpetual affordability commitment; (2) Projects or units in projects that are allocated low-income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein: (A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and (B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income; provided that the corporation may establish rules to ensure full occupancy of fund projects; and (3) Mixed-income rental projects or units in a mixed-income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income. (f) There is established within the fund a bond volume cap recycling program subaccount. The bond volume cap recycling program subaccount shall be maintained as a reserve for the bond volume cap recycling program established pursuant to section 39B-2(f). (g) The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded and, with respect to rental housing projects targeted for persons and families with incomes at or below thirty per cent of the median family income, its efforts to develop those rental housing projects, a description of proposals submitted for this target group and action taken on the proposals, and any barriers to developing housing units for this target group. (h) For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time. (i) The corporation may provide loans under this section; provided that the corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent; provided further that the underwriting guidelines include a debt-coverage ratio of no less than 1.0 to 1. (j) For the period commencing July 1, 2005, through June 30, 2009, the fund may be used to provide grants for rental units set aside for persons and families with incomes at or below thirty per cent of the median family income in any project financed in whole or in part by the fund in proportion of those units to the total number of units in the project. At the conclusion of the period described in this subsection, the corporation shall report to the legislature on the number and use of grants provided and whether the grants were an effective use of the funds for purposes of developing rental housing for families at or below thirty per cent of the median family income. [L 2006, c 180, pt of §4; am L 2007, c 249, §33; am L 2015, c 237, §25; am L 2022, c 236, §5; am L 2024, c 35, §5 and c 235, §2]

HRS §201H-203 Eligible applicants for funds

201H-203. Eligible applicants for funds Eligible applicants for funds shall include nonprofit and for-profit organizations, limited liability companies, partnerships, and government agencies, who are qualified in accordance with rules adopted by the corporation pursuant to chapter 91. [L 2006, c 180, pt of §4]

HRS §201H-204 Eligible projects

201H-204. Eligible projects (a) [Repeal and reenactment on June 30, 2030. (1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c) or section 201H-202(f); (2) The leveraging of moneys with the use of fund assets; (3) Pre-development activity grants or loans to nonprofit organizations; and (4) Acquisition of housing units for the purpose of preservation as low-income or very low-income housing. (b) Preference shall be given to projects producing units in at least one of the following categories: (1) Multifamily units; (2) Attached single-family units; (3) Apartments; (4) Townhouses; (5) Housing units above commercial or industrial space; (6) Single room occupancy units; (7) Accessory apartment units; (8) Employee housing; (9) United States Department of Housing and Urban Development mixed finance development of public housing units; and (10) Other types of units meeting the criteria for eligibility set forth in subsection (c). (c) [Repeal and reenactment on June 30, 2030. L 2025, c 159, §8.] Except as provided in section 201H-202(f), the corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority: (1) Serve the original target group; (2) Provide at least five per cent of the total number of units for persons and families with incomes at or below thirty per cent of the median family income; (3) Provide the maximum number of units for persons or families with incomes at or below eighty per cent of the median family income; (4) Are committed to serving the target group over a longer period of time; (5) Increase the integration of income levels of the immediate community area; (6) Meet the geographic needs of the target group of the proposed rental housing project, such as proximity to employment centers and services; and (7) Have favorable past performance in developing, owning, managing, or maintaining affordable rental housing. The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart. If the corporation, after applying the process described in this subsection, finds a nonprofit project equally ranked with a for-profit or government project, the corporation shall give preference to the nonprofit project in allotting fund moneys. L 2025, c 159, §8.] Activities eligible for assistance from the fund shall include but not be limited to: [L 2006, c 180, pt of §4; am L 2025, c 159, §3]

HRS §201H-207 Additional powers

201H-207. Additional powers The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred by any other law, and nothing in this subpart shall be construed as limiting any powers, rights, privileges, or immunities conferred. [L 2021, c 227, pt of §2]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0201H/HRS_0201H-.htmFetched: 11/10/2026