HomeMy WebLinkAboutRES 487 Draft 01 2018-2020COUNTY OF HAWAII 4 STATE OF HAWAII
RESOLUTION NO. 487 20
A RESOLUTION SUPPORTING SENATE BILL NO. 2526, SENATE BILL NO. 2826, OR
OTHER LEGISLATION WITH THE PURPOSE OF PROVIDING ADEQUATE
FORECLOSURE PROTECTION FOR BENEFICIARIES OF THE HAWAIIAN HOMES
COMMISSION ACT OF 1920.
WHEREAS, Section 4 of United States Public Law No. 86-3, An Act to Provide for the
Admission of the State of Hawaii into the Union, includes the condition that the Hawaiian
home-loan fund,the Hawaiian home-operating fund, and the Hawaiian home-development fund
of the Hawaiian Homes Commission Act of 1920 (HHCA) "shall not be reduced or impaired by
any (State) amendment ... except with the consent ofthe United States"; and
WHEREAS, the Department of Hawaiian Home Lands (DHHL) is the lead state agency
designated to fulfill the compact enumerated in the Admission Act; and
WHEREAS, trust lands as defined under the HHCA are located within each County in
the State; and
WHEREAS, DHHL operates a loan fund and loan servicing program for home loans on
these trust lands, which are required to comply with the HHCA to prohibit non-beneficiaries
such as banks from taking ownership of beneficiary homes in a foreclosure action and instead
should allow for such foreclosures to result in the asset being serviced and held by DHHL; and
WHEREAS, the Legislature can approve legislation requiring that the same level of
protections and procedures mandated in Chapter 667 of Hawaii Revised Statutes, relating to
foreclosures, be made available to HHCA beneficiaries; and
WHEREAS, the only protection and review of a foreclosure action taken by DHHL on
behalf of its direct loan program or on behalf of banks, is through Hawaii Revised Statutes
Chapter 91, the administrative review process followed by State commissions and agencies; and
WHEREAS, DHHL loan policies and procedures do not provide parity for native
Hawaiian families to access common loan loss mitigations available for all other citizens of
Hawaii, including opportunities to apply for a permanent loan modification, a loan assumption,
or reasonable opportunities to sell a home prior to foreclosure; and
WHEREAS, Senate Bill No. 2526, introduced in the 2020 session of the Hawaii State
Legislature, amends the Hawaiian Homes Commission Act to require appraisals of
improvements to identify the replacement cost or the leasehold market value, grants authority to
DHHL to authorize second position loans on homestead leases by approved lenders, requires
DHHL to develop and implement a loan servicing manual, subject to commission approval, to
standardize loan loss mitigation policies,procedures, and methods, and clarifies that DHHL shall
not cancel a lease solely based on a loan default or delinquency unless all loan loss mitigation
procedures are exhausted pursuant to the loan servicing manual; and
WHEREAS, Senate Bill No. 2826, introduced in the 2020 session of the Hawaii State
Legislature,requires DHHL to develop and implement a loan servicing manual and clarifies that
DHHL shall not cancel a lease solely based on a loan default or delinquency unless all loan loss
mitigation procedures are exhausted pursuant to the loan servicing manual; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it
supports the passage of Senate Bill No. 2526, Senate Bill No. 2826, or any other similar
legislation that establishes regulations, resources, and opportunities for beneficiaries of the
Hawaiian Homes Commission Act to prevent home loan default, such as a written loan servicing
manual that includes ensuring federal protections of native Hawaiian active military service
members, opportunities to apply for loan loss mitigations such as a permanent loan modification,
a loan assumption, and other industry standard loan default cures.
BE IT FURTHER RESOLVED that Senate Bill No. 2526 and Senate Bill No. 2826
support native Hawaiian beneficiaries as full and equal citizens who are on par with all other
County citizens.
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BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the Honorable David Y. Ige, Governor; the Honorable Ronald D. Kouchi, President
of the Senate; the Honorable Maile S.L. Shimabukuro, Chair of the Senate Committee on
Hawaiian Affairs; the Honorable Donovan M. Dela Cruz, Chair of the Senate Committee on
Ways and Means; the Honorable Karl Rhoads, Chair of the Senate Committee on Judiciary; the
Honorable Scott K. Saiki, Speaker of the House of Representatives; the Honorable Ryan I.
Yamane, Chair of the House Committee on Water, Land, and Hawaiian Affairs; the Honorable
Chris Lee, Chair of the House Committee on Judiciary; the Honorable Sylvia Luke, Chair of the
House Committee on Finance; and the Hawaii Island legislative delegation.
Dated at Hawai`i,this day of 20
INTRODUCED BY:
O _MEMBER, CO WA `I
COUNCIL MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii AYES NOES ABS EX
Hilo, Hawaii CHIING
DAVID
I hereby certify that the foregoing RESOLUTION was by EOFF
the vote indicated to the right hereof adopted by the COUNCIL ofthe KANEALI`I-KLEINFELDERCountyofHawaiion
KIERKIEWICZ
LEE LOY
ATTEST: POINDEXTER
RICHARDS
VILLEGAS
Reference: C-740/Waived GPMC
COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 487
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