Bill > SB843

This bill establishes the Kupuna Home Equity Conversion Mortgage Program through the Hawaii Housing Finance and Development Corporation, which creates a specialized mortgage program specifically designed for homeowners aged 62 and older (called "kupuna homeowners"). The program allows these homeowners to convert home equity into cash through a reverse mortgage with robust consumer protections, including mandatory independent counseling about financial implications, alternative housing options, and potential program impacts. Key provisions include allowing homeowners to receive mortgage payments through various methods like monthly payments or a line of credit, ensuring that homeowners are not liable for mortgage debt beyond the home's value, and providing safeguards to prevent displacement. The program limits the total number of insured mortgages to 275,000 and requires extensive disclosure about costs, fees, and potential risks. Mortgage originators must meet strict standards to prevent conflicts of interest, and the program includes provisions for counseling, refinancing, and helping homeowners transition to affordable rental housing if their home equity is exhausted. The bill aims to provide financial flexibility and security for older homeowners while protecting them from predatory lending practices.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=843&year=2026