STAND. COM. REP. NO. 2404

Honolulu, Hawaii

RE: S.B. No. 3089

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3089 entitled:

"A BILL FOR AN ACT RELATING TO THE DOWNPAYMENT LOAN ASSISTANCE PROGRAM,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the Downpayment Loan Assistance Program, administered by the Hawaii Housing Finance and Development Corporation, to align with federal requirements and enhance assistance for low- and moderate-income first-time homebuyers.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; AARP Hawaii; Hawaiʻi Association of REALTORS; and Aloha United Way.

Your Committee received comments on this measure from one individual.

Your Committee finds that the State's Downpayment Loan Assistance Program is designed to provide below-market rate financing for eligible households. To be eligible for the program, purchasers must put down five percent from their own funds to be eligible for downpayment assistance. This requirement is difficult and even insurmountable for some households, given the rapidly rising cost of housing in the State.

In addition to the five percent requirement for downpayment assistance, the program also imposes restrictive loan-to-value ratio caps, further undermining homebuyers. By removing these stringent requirements, this measure supports homebuyers in the State and helps make housing available to eligible residents.

Your Committee has amended this measure by:

(1) Clarifying that the loan-to-value ratio shall be the maximum allowable under federal guidelines; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3089, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3089, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair