[§127A-16.5] Resilient Hawaii revolving loan fund. (a) There is established in the state treasury the resilient Hawaii revolving loan fund, into which shall be deposited:
(1) Funds from federal or private funding sources;
(2) Moneys appropriated by the legislature to the fund;
(3) Investment and interest earnings of the fund;
(4) Moneys received as repayment of loans, including interest and payments received on account of principal; and
(5) All other moneys received by the fund from any other source.
(b) Moneys in the resilient Hawaii revolving loan fund shall be used to provide low- or no-interest loans to the counties and nonprofit organizations for local resilience projects that address mitigation of all hazards, including natural disasters. Moneys in the resilient Hawaii revolving loan fund may be used for administrative support associated with the revolving loan fund, including the hiring of necessary staff.
(c) Loans from the resilient Hawaii revolving loan fund shall be for a fixed loan period and may be used to satisfy the nonfederal match for federal mitigation grants.
(d) The resilient Hawaii revolving loan fund shall be administered by the administrator. The administrator shall apply to the Federal Emergency Management Agency under the provisions of the Safeguarding Tomorrow through Ongoing Risk Mitigation Act, Public Law 116-284, when funding is available, to capitalize the fund. Appropriations or authorizations from the fund shall be expended by the agency. The agency shall prioritize making loans to projects it determines to have the greatest impact on eliminating hazards.
(e) The resilient Hawaii revolving loan fund shall be administered, operated, and maintained to remain available in perpetuity to provide loans and other financial assistance pursuant to this section and the federal Safeguarding Tomorrow through Ongoing Risk Mitigation Act. All moneys deposited or paid into the fund and any interest earned on the balance of the fund shall be continuously available to the administrator for expenditures consistent with this section and shall not lapse to the general fund.
(f) The director of finance shall hold and invest moneys in the resilient Hawaii revolving loan fund in investments as permitted by law.
(g) Moneys expended from the resilient Hawaii revolving loan fund shall be supplemental to and shall not take the place of funding that otherwise would be appropriated to the counties for resilience projects.
(h) The agency shall establish application procedures and eligibility criteria for loans from the resilient Hawaii revolving loan fund. The eligibility criteria shall require that a county or nonprofit organization demonstrate:
(1) The need for a loan to address hazard mitigation; and
(2) The ability to repay the loan, if required, at a later date. [L 2022, c 284, §2]