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WHEREAS, DHHL loan policies and procedures do not provide parity for native <br /> Hawaiian families to access common loan loss mitigations available for all other citizens of <br /> Hawaii, including opportunities to apply for a permanent loan modification, a loan assumption, <br /> or reasonable opportunities to sell a home prior to foreclosure; and <br /> WHEREAS, Senate Bill No. 2526, introduced in the 2020 session of the Hawaii State <br /> Legislature, amends the Hawaiian Homes Commission Act to require appraisals of <br /> improvements to identify the replacement cost or the leasehold market value, grants authority to <br /> DHHL to authorize second position loans on homestead leases by approved lenders, requires <br /> DHHL to develop and implement a loan servicing manual, subject to commission approval, to <br /> standardize loan loss mitigation policies,procedures, and methods, and clarifies that DHHL shall <br /> not cancel a lease solely based on a loan default or delinquency unless all loan loss mitigation <br /> procedures are exhausted pursuant to the loan servicing manual; and <br /> WHEREAS, Senate Bill No. 2826, introduced in the 2020 session of the Hawaii State <br /> Legislature,requires DHHL to develop and implement a loan servicing manual and clarifies that <br /> DHHL shall not cancel a lease solely based on a loan default or delinquency unless all loan loss <br /> mitigation procedures are exhausted pursuant to the loan servicing manual; now, therefore, <br /> BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it <br /> supports the passage of Senate Bill No. 2526, Senate Bill No. 2826, or any other similar <br /> legislation that establishes regulations, resources, and opportunities for beneficiaries of the <br /> Hawaiian Homes Commission Act to prevent home loan default, such as a written loan servicing <br /> manual that includes ensuring federal protections of native Hawaiian active military service <br /> members, opportunities to apply for loan loss mitigations such as a permanent loan modification, <br /> a loan assumption, and other industry standard loan default cures. <br /> BE IT FURTHER RESOLVED that Senate Bill No. 2526 and Senate Bill No. 2826 <br /> support native Hawaiian beneficiaries as full and equal citizens who are on par with all other <br /> County citizens. <br /> 2 <br />