THE SENATE

S.B. NO.

1050

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to housing.

 

 

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

 


     SECTION 1.  The legislature finds that Hawaii has a unique opportunity to address two dissimilar problems currently facing many living in Hawaii.  First, Hawaii's lower- and moderate-income residents bear the biggest brunt of the State's housing shortage due to the high cost of living and high housing cost.  Many residents cannot afford to buy a home, despite being able to reliably pay monthly rent in an amount nearly equivalent to a monthly mortgage payment.  The largest obstacle for residents is being unable to save the large amount required for a downpayment, leaving renters vulnerable to ever-increasing rents.  The second problem is that the State has difficulty attracting employees, in large part due to the high cost of living and inability to compete with private sector wages.  This creates a lack of necessary manpower in various state agencies, especially with increasing proportions of state employees aging and becoming eligible for retirement.  A possible solution to both problems is for Hawaii to adopt a loan program similar to the United States Department of Veterans Affairs VA home loan program, which provides loans or guarantees to cover the cost of a downpayment to any veteran who has served for a specific period of time.  Hawaii could establish a similar program for state employees who meet certain criteria, such as having worked for the State for five years.  This would provide lower- and moderate-income employees the same security and benefits of homeownership, while simultaneously making long-term employment with the State more financially attractive and desirable.

     Accordingly, the purpose of this Act is to establish a task force to examine and report on the feasibility of the State establishing and operating a housing loan program for state employees similar to that of the United States Department of Veterans Affairs VA home loan program.

     SECTION 2.  (a)  There is established a task force within the Hawaii housing finance and development corporation to examine and report on the feasibility of the State of Hawaii establishing and operating a housing loan program for state employees similar to that of the United States Department of Veterans Affairs VA home loan program, including recommendations for implementation if the program is deemed feasible.

     (b)  The task force shall take into consideration the following when examining the eligibility of participants in a housing loan program for state employees similar to that of the United States Department of Veterans Affairs VA home loan program:

     (1)  Length of employment with the State;

     (2)  Whether the program should be open to all state employees or limited to certain categories of state employees;

     (3)  Maximum income level of the applicants; and

     (4)  Whether to include non-state employees who have a connection to the State, such as beneficiaries of the department of Hawaiian home lands.

     (c)  The task force shall include but not be limited to the following members:

     (1)  The director of finance or the director's designee;

     (2)  The attorney general or the attorney general's designee;

     (3)  The comptroller or the comptroller's designee;

     (4)  The executive director of the Hawaii housing finance and corporation or the executive director's designee;

     (5)  One individual appointed by the governor who shall be exempt from section 26-34, Hawaii Revised Statutes;

     (6)  One individual appointed by the president of the senate; and

     (7)  One individual appointed by the speaker of the house of representatives.

     (d)  The task force shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2020.

     (e)  The task force shall be dissolved on      .

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the task force established by section 2 of this Act to examine the feasibility of the State of Hawaii establishing and operating a housing loan program for state employees similar to that of the United States Department of Veterans Affairs VA home loan program.

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

     SECTION 4.  This Act shall take effect on July 1, 2019.

 

INTRODUCED BY:

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Report Title:

Housing Loan Program; VA Loans; Task Force; Feasibility Study; Appropriation

 

Description:

Establishes a task force within the Hawaii housing finance and development corporation to examine and report on the feasibility of the State of Hawaii establishing and operating a housing loan program for state employees similar to the United States Department of Veterans Affairs VA home loan program.  Makes an appropriation.

 

 

 

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