STAND. COM. REP. NO. 858-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2270

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 2270, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend the Downpayment Loan Assistance Program administered by the Hawaii Housing Finance and Development Corporation by:

(1) Removing the prohibition on combined loan-to-value ratios exceeding one hundred percent;

(2) Clarifying the Corporation's authority to allow payment waivers and interest forgiveness for downpayment loans;

(3) Additionally authorizing financial institutions, mortgage lenders, and other qualified loan originators to originate downpayment loans on behalf of the State; and

(4) Reducing the borrower's required personal contribution toward the downpayment from five percent to three percent of the sales price, while allowing that amount to include downpayment assistance provided by the Corporation.

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; Hawaiʻi Association of REALTORS; Mortgage Bankers Association of Hawaii; and one individual.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2270, H.D. 1, and recommends that it pass Third Reading.

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

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CHRIS TODD, Chair