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Hawaii gov signs legislation to bring homeownership within reach for more island families

HONOLULU — Gov. Neil Abercrombie on Friday signed Senate Bill 1025 to make  homeownership more accessible to Hawaii households by updating the Hula Mae Single Family Mortgage Loan Program and broadening eligibility.

“This bill will make owning a home more than just a dream for many island  families,” said Gov. Abercrombie, who also took the opportunity to  proclaim June as Homeownership Month in Hawaii. “Homeownership strengthens  families and builds communities. It also fosters economic prosperity and  generates economic growth, which benefits us all.”

Part of the Governor’s legislative package, SB1025 (enacted as Act 135)  updates the Hula Mae Single Family Mortgage Loan Program to allow broader  program participation by potential single family homeowners, especially  for eligible borrowers’ principal residences. It also adds down payment,  closing cost and other assistance as a program feature and makes various  housekeeping and conforming amendments. The act is effective July 1, 2013.

In 1979, the state Legislature authorized the Hawaii Housing Authority to  fund the mortgage loan program to assist low- and moderate-income  homebuyers. Since then, the Legislature has authorized the issuance of  revenue bonds in an aggregate principal amount of $2.2 billion to fund  this program. As of June 30, 2012, $1.8 billion in single family mortgage  purchase revenue bonds have been issued, providing eligible first-time  homebuyers with mortgage loans at below market interest rates. Also since  then, the Hula Mae Single Family Program has helped more than 10,000  families purchase first homes.

The Hawaii Housing Finance and Development Corporation now administers the  program. Homebuyers apply directly with participating lending  institutions, which review eligibility and qualifications for a Hula Mae  loan. Loans currently made under the program are securitized by the  Federal National Mortgage Association, the Government National Mortgage  Association, or the Federal Home Loan Mortgage Corporation.

HOMEOWNERSHIP MONTH

 
Held in conjunction with National Homeownership Month, Homeownership Month  in Hawaii highlights the personal and societal benefits of owning a home,  as well as recognizes public, private and non-profit partners that  contribute to providing homeownership opportunities and ensuring long-term  viability of homeownership for island families.

These agencies and entities in Hawaii include the Hawaii Housing Finance  and Development Corporation; Department of Hawaiian Home Lands; the U.S.  Department of Housing and Urban Development; the Hawaii Association of  Realtors; the Land Use Research Foundation representing housing developers  throughout the state; financial institutions; and non-profits such as the  Hawaii HomeOwnership Center, Hawaiian Community Assets, Legal Aid Society  of Hawaii, Consumer Credit Counseling Service of Hawaii, Habitat for  Humanity, and Self-Help Housing Corporation of Hawaii.



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