THE SENATE	S.R. NO.	205
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

SENATE RESOLUTION

Urging the Hawaii Housing Finance and Development Corporation to use Dwelling Unit Revolving Fund moneys to issue zero percent interest loans or grants to buyers with incomes above sixty and at or below one hundred forty percent of the median family income for the State.

WHEREAS, the State is experiencing a severe housing crisis; and

WHEREAS, a 2019 study commissioned by the Department of Business, Economic Development, and Tourism found that the State will require an additional 50,156 homes by the year 2025; and

WHEREAS, the Federal Home Loan Corporation, more commonly known as Freddie Mac, reported that the average thirty-year fixed residential mortgage interest rate rose from 3.11 percent in December 2021 to 6.42 percent in December 2022; and

WHEREAS, this two hundred six percent increase in the average thirty-year fixed residential mortgage interest rate reflects the dramatically increasing monthly cost of owning a home in the State; and

WHEREAS, zero percent interest home loans made to eligible homebuyers could help counteract these higher interest rates and lower the effective borrowing interest rate, allowing a buyer to obtain a portion of their home loan as interest free financing for the purchase of an affordable for-sale housing unit; now, therefore,

BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, that the Hawaii Housing Finance and Development Corporation is urged to use Dwelling Unit Revolving Fund moneys to issue zero percent interest loans or grants to buyers with incomes above sixty and at or below one hundred forty percent of the median family income for the State; and

BE IT FURTHER RESOLVED that moneys allocated for the zero percent interest loans are requested to prioritize projects utilizing the lowest average loan amount as a percentage of unit sale price; and

BE IT FURTHER RESOLVED that moneys received upon repayment of the zero percent interest loans or grants are requested to be redeposited into the Dwelling Unit Revolving Fund for the issuance of new zero percent interest loans or grants to buyers with incomes above sixty and at or below one hundred forty percent of the median family income for the State; and

BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation.

OFFERED BY:

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Report Title:

Hawaii Housing Finance and Development Corporation; Dwelling Unit Revolving Fund; Zero Interest Loans