HomeMy WebLinkAboutCOM 0740.001 2018-2020tSY,os•k!
From the office of- c).'•'': '.'• Office: (808) 961-8396
Fax: (808)961-8912CouncilMember
District 3—Hilo and Puna r* ' Email. sue.leeloy@hawaaicounty.gov
N/•' .
SUSAN L.K. LEE LOY
25 Aupuni Street,Hilo,Hawai`i 96720
r-.,
TO: Aaron S.Y. Chung, Chair
and Members of the Hawai 1 County Council
FROM: Sue Lee Loy, Council Member -' -
Ashley L. Kierkiewicz, Council Membe w
tin .._
y
DATE: February 18, 2020
SUBJECT: Proposed Amendments to 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.
Please see below proposed amendments to Resolution No. 487-20. This amendment removes
references to Senate Bill No. 2526, which has been deferred, and amends the description of
Senate Bill No. 2826 to the current draft adopted by the Senate Committee on Hawaiian
Affairs.
The proposed amendments are illustrated below in Ramseyer format with respect to the contents
of Resolution No. 487-20. Material to be removed is bracketed and stricken; material to be added
is underscored.
1. The title of Resolution No. 487-20 is amended to read as follows:
A RESOLUTION SUPPORTING [SENATE BILL NO. 2526,] SENATE BILL NO. 2826,
AS AMENDED, OR OTHER LEGISLATION WITH THE PURPOSE OF PROVIDING
ADEQUATE FORECLOSURE PROTECTION FOR BENEFICIARIES OF THE
HAWAIIAN HOMES COMMISSION ACT OF 1920."
2. The eighth WHEREAS clause is deleted:
I I I - '- . -
improvements to identify the replacement cost or the leasehold market value, grants authority to
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
ILK).Comm. No.
Ref.To: PI CO WAG1I
Ref. Date FEB 1 2 2n2Q
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"
3. The ninth WHEREAS clause is amended to read as follows:
WHEREAS, Senate Bill No. 2826, introduced in the 2020 session of the Hawai`i State
Legislature and amended to Senate Draft 1, requires DHHL to develop and implement a loan
servicing manual [. -: . . - -. ! — — -. -: . - - . -. - : - a. -: s. . 4. -
servicing manual]; now, therefore,"
4. The enacting clause is amended to read as follows:
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, as amended, 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.
5. The BE IT FURTHER RESOLVED clause is amended to read as follows:
BE IT FURTHER RESOLVED that [Senate Bill No. 2526 and] Senate Bill No. 2826
sem] supports native Hawaiian beneficiaries as full and equal citizens who are on par with
all other County citizens."
A draft copy of the draft 2 of this bill that would result if these proposed amendments are
adopted is attached.
SL/ps
Att.
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A RESOLUTION SUPPORTING SENATE BILL NO. 2826, AS AMENDED, 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 ofthe State of Hawai`i 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 of the 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 Hawai`i 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
Hawai`i, 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. 2826, introduced in the 2020 session of the Hawaii State
Legislature and amended to Senate Draft 1, requires DHHL to develop and implement a 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. 2826, as amended, 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.
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BE IT FURTHER RESOLVED that Senate Bill No. 2826 supports native Hawaiian
beneficiaries as full and equal citizens who are on par with all other County citizens.
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 ofRepresentatives; 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 Hawai`i Island legislative delegation.
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