But NRMLA hopes that certain “clarifying revisions” can be made in the language of the existing account, HB 1306.
The existing language of the bill is not about the core characteristics of the HECM program of the FHA, for which the borrower must remain in the building as their primary home. It is also obliged to continue to pay the continuous obligation to continue to pay real estate tax, insurance of homeowners and other applicable reimbursements as a condition for keeping the loan a good reputation. NRMLA advised to place language in a revision to tackle these problems.
Another characteristic of the bill as proposed bill would make the help of the borrower possible once their equity has been exhausted. At that time, the Hawaii Housing Finance and Development Corp. (HFDC) would “coordinate with and the homeowner of Kupuna to move to affordable rental properties under the company and start the sale of the home,” said the bill.
After that point, the borrower will “have no debts after the sale of the home”, and the rents in a new home would “be” comparable to rental interest under tenant -based housing choice program “managed by HUD.
NRMLA called this provision ‘admirable and progressive’. But it also asked for extra language to prevent combining “this program -requirement and the events that cause the reimbursement of the loan obligation,” the letter explained.
In an interview with Housing‘S Reverse MortGage Daily (RMD) In February, NRMLA President Steve Irwin explained that the association needed more time to determine its position.
When it was reached on Wednesday, Irwin explained part of the thinking that the NRMLA committee of the state and the local issues weighed in determining the support.
“The NRMLA State and the local committee deliberates all proposed legislation at state level and, through the feedback collected from those deliberations, official comments are made,” Irwin said.
“The discussions around HB 1306 of Hawaii were particularly robust when the committee members tried to distinguish the intention of certain provisions of the legislation and then worked to propose a clearer language that could support that legislative intention.”
The process was robust and “extremely deliberative and collaboration,” he added.
The bill will not progress further in 2025, according to comments that were previously shared with RMD of his primary sponsor, rep. Kim Coco Iwamoto (D). But she kept the door open for the return to the next legislative session.
“This account did not receive a hearing on time to get certain deadlines, so the bill is dead for the year,” said a spokesperson for the representative’s office last month. “However, the bill has a second shot to hear in the next calendar year as the applicable chairman of the committee chooses.”
A person who is familiar with the legislative positions in the State previously told RMD that the referral of a bill to several committees seriously delays his legislative momentum. In practical terms, this does not give enough time to consider during the limited legislative session in Honolulu. HB 1306 was presented to three separate committees, making this result more likely.
The session started in the third week of January and runs for 60 legislative daysExclusive weekends, holidays and recess. This year’s session will be postponed on 2 May.
When asked whether NRMLA supports a revival in the future, Irwin said that further study of potential effects will be useful.
“Regarding the results, we hope that the Hawaii legislators will take a step back and continue to study possible unintended consequences of the proposed reverse mortgage program,” Irwin said on Wednesday.
