HomeMy WebLinkAboutORD 2012-158 2010-2012COUNTY OF HAWAII
STATE OF HAWAII
BILL NO. 312
ORDINANCE NO. 1-2 158
AN ORDINANCE AMENDING CHAPTER 21, ARTICLE 5, OF THE HAWAII COUNTY
CODE 1983 (2005 EDITION), RELATING TO SEWER CONNECTION LOAN PROGRAM.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this measure is to update and amend Article 5 relating to the
Sewer Connection Loan Program.
SECTION 2. Chapter 21, Article 5, Section 21 -40, Hawai`i County Code 1983 (2005
edition), is amended to read as follows:
"Section 21 -40. Loan application.
(a) Any owner who is required to connect such owner's property to a sewer pursuant to section
21 -5, and who has been rejected by any two banks or financial institutions for any type of
loan to pay for the sewer connection, based on insufficient ability to repay said loan, may
apply to a designated bank for a sewer connection loan which is guaranteed by the County
of Hawai`i. Any application for a guaranteed loan must be submitted to a designated bank
no more than [sixty] one hundred and twenty calendar days after the date of the notification
by the director requiring the owner to connect to the sewer.
(b) All such timely applications for guaranteed loans shall be sent by any receiving designated
bank to the director of finance. Any owner whose application for a sewer connection loan is
referred to the director of finance by a designated bank and is deemed to have a reasonable
ability to repay the loan may participate in a loan guaranteed by the County of Hawai`i and
become a guaranteed borrower. As conditions of participation, the applicant shall execute:
(1) A loan agreement with a designated bank, with the County of Hawai`i as
guarantor of the loan, providing that:
(A) The money will be paid by the bank directly to the contractor performing the
connection; and
(B) In the event the guaranteed borrower fails to pay the required payment on the
loan within ninety days of the date upon which payment is due, the loan shall
be considered in default and the County of Hawai`i will repay the loan in full
to the designated bank, and will assume the designated bank's status as
creditor.
(2) An agreement with the County of Hawai`i giving the County of Hawaii a lien on the
property to be connected. The County of Hawai`i may initiate foreclosure
proceedings immediately upon default by the owner and any non - payment of a
payment required by a payment plan under section 21 -41. Upon execution, the loan
agreement and the lien document shall be recorded at the bureau of conveyances.
(c) For the protection of the interest of the County of Hawai`i, a title search for any property
upon which the County of Hawai`i will have a lien shall be conducted prior to execution of
any agreements, and the cost of the search shall be paid from -the loan proceeds."
SECTION 3. Chapter 21, Article 5, Section 21 -45 of the Hawai`i County Code
1983 (2005 edition), is amended to read as follows:
"Section 21 -45. Reserve Fund.
(a) For the purpose of payment of guaranteed loans in default, there shall be created a reserve
fund, to be known as the sewer connection reserve fund, which shall at all times be not less than
fifteen percent of the total amount of loans guaranteed and shall be funded by the general fund or
other available sources. If a guaranteed borrower defaults on a loan, the bank shall be paid from
this reserve fund without further council action. If this repayment of the loan causes the reserve
fund to fall below fifteen percent of the total amount of loans guaranteed, the director of finance
will then submit to the council a bill for an ordinance to transfer the money from the general fund or
other available sources if such a transfer is necessary to maintain the required level of the fund. All
interest generated by the fund shall be deposited into the County of Hawai`i general fund.
(b) In the event grant monies are available to finance sewer connection costs, the sewer
connection reserve fund may be used to finance connection costs for those lot owners eligible for
grant funding and only to the extent that the sewer connection reserve fund can be reimbursed from
the grant.
kcj At least every three months the director of finance shall prepare and submit to the council a
report on the status of the loan program, including but not limited to the following:
The number of guaranteed loans outstanding;
The total dollar value of all guaranteed loans outstanding;
The balance in the reserve fund; and
The number of hookups to be required in the next increment."
(1)
(2)
(3)
(4)
SECTION 4. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed material and underscoring need not
be included.
SECTION 5. If any provision of this ordinance or the application thereof to any person or
circumstance, is held invalid, such invalidity shall not affect other provisions or applications of the
ordinance which can be given effect without the invalid provision or application, and to this end,
the provisions of this ordinance are declared to be severable.
SECTION 6. This ordinance shall take effect upon approval.
Kona , Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm.. 861
INTRO P ED BY:
COUNCIL MEMBER,
October 3, 2012
November 9, 2012
November 21, 2012
December 14, 2012
2
OF HAWAI`I
OFFICE OF THE COUNTY CLERK
County of Hawai`i
Kona, Hawai`i
Introduced By: Dominic Yagong
Date Introduced: Cbtob r 3, 2012
First Reading: November 9 , 2012
Published: November 17, 2012
REMARKS: October 3, 2012 (Referred Bill 312, to
the thvirornuital N nagarent Director and Carm ssian
for review and carrrait)
Second Reading: November 21, 2012
To Mayor: November 30, 2012
Returned: December 14, 2012
Effective: December 14, 2012
Published: December 29, 2012
REMARKS:
ROLL CALL VOTE
AYES
NOES
ABS
EX
Blas
X
Ford
X
Hoffmann
X
Ikeda
X
Onishi
X
Pilago
X
Smart
X
Yagong
X
Yoshimoto
X
8
0
1
0
ROLL CALL VOTE
AYES
NOES
ABS
EX
Blas
X
Ford
X
Hoffmann
X
Ikeda
X
Onishi
X
Pilago
X
Smart
X
Yagong
X
Yoshimoto
X
7
0
2
0
I DO HEREBY CERTIFY that the foregoing BILL was adopted by the
indicated above.
APPROVED AS TO
FORM AND LEGALITY:
DEPUT C �'
COUNTY OF HAWAII
Date
N COUNSEL
c49k&Y-
Approved/'' isapproved this 1 T day
MAYOR, COUNTY OF HAWAII
my Council published as
COUNCIL CHAIRPE
4
OUNTY CLERK
Bill No.:
Reference:
Ord No.:
312
C- 861 /Waived FC
1.2 158