Bill Text: HI HB2550 | 2024 | Regular Session | Introduced

Hawaii House Bill 2550

Introduced

Bill Title: Relating To Affordable Housing.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-02-02 - The committee(s) on HSG recommend(s) that the measure be deferred. [HB2550 Detail]

Download: Hawaii-2024-HB2550-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2550
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

relating to affordable housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to promote affordable housing by establishing an accessory dwelling unit grant program under the Hawaii housing finance and development corporation.

SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:

" . ACCESSORY DWELLING UNIT GRANT PROGRAM

§201H-A Definitions. As used in this subpart, unless the context otherwise requires:

"Accessory dwelling unit" means an accessory or a second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot on which the primary residential dwelling of the borrower is located.

"Development costs" includes costs associated with site preparation, architectural or engineering design, permits, soil tests, impact fees, and property survey.

"Eligible homeowner" means a person or family, without regard to race, creed, national origin, or sex, who:

(1) Is a citizen of the United States or a resident alien;

(2) Is a bona fide resident of the State;

(3) Is at least eighteen years of age;

(4) Is financing the construction of an accessory dwelling unit on the zoning lot on which the primary residential dwelling of the borrower is located; and

(5) Meets other qualifications as established by rules adopted by the corporation.

§201H-B Accessory dwelling unit grant program; established. (a) There is established within the corporation an accessory dwelling unit grant program. Under the accessory dwelling unit grant program, the corporation may make grants to eligible homeowners to finance development costs and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit.

(b) A grant provided pursuant to this subpart to any one eligible homeowner shall not exceed $50,000.

(c) An eligible homeowner shall be required to have an approved construction loan to finance construction of the accessory dwelling unit.

(d) Proceeds from an accessory dwelling unit grant shall be deposited into a managed escrow account. A third-party loan or escrow officer shall determine that grant proceeds are being used towards eligible development costs before allowing the grant proceeds to be used toward paying the construction loan.

(e) An accessory dwelling unit grant shall be repaid to the corporation upon sale of the home.

(f) The corporation shall adopt rules pursuant to chapter 91 to carry out the purposes of this subpart.

§201H-C Accessory dwelling unit grant revolving fund. (a) There is established an accessory dwelling unit grant revolving fund to be administered by the corporation.

(b) The accessory dwelling unit grant revolving fund may include appropriations made by the legislature, private contributions, repayment of grants, other returns, program fees collected pursuant to section 201H-D, and funds from other sources.

(c) The revolving fund shall be used to implement the accessory dwelling unit grant program by providing grants to eligible borrowers to finance the construction of accessory dwelling units.

§201H-D Program fees. The corporation may establish, revise, charge, and collect fees, premiums, and impose costs as necessary, reasonable, or convenient, for the accessory dwelling unit grant program. The fees, premiums, and costs received shall be deposited into the accessory dwelling unit grant revolving fund established in 201H-C."

SECTION 3. There is appropriated out of the general revenues the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the accessory dwelling unit grant revolving fund.

SECTION 4. There is appropriated out of the accessory dwelling unit grant revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of the accessory dwelling unit grant revolving fund established pursuant to section 2 of this Act.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

Report Title:

HHFDC; Accessory Dwelling Units; Grant Program; Revolving Fund; Appropriation; Expenditure Ceiling

Description:

Establishes the accessory dwelling unit grant program under the Hawaii Housing Finance and Development Corporation to provide grants to eligible homeowners for development costs and certain closing costs associated with the construction of an accessory dwelling unit. Establishes and appropriates funds into and out of the accessory dwelling unit grant revolving fund.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.