Bill > HB1306

This bill establishes the Kupuna Home Equity Conversion Mortgage Program through the Hawaii Housing Finance and Development Corporation, designed to help seniors (kupuna) aged 62 and older access home equity to address financial challenges related to homeownership. The program allows eligible homeowners to receive mortgage payments based on their home's accumulated equity, with multiple payment options including line of credit, monthly payments over a specified term, or payments over the homeowner's lifetime. Key provisions include mandatory independent counseling to ensure seniors understand the financial implications, protections that defer loan repayment until the homeowner's death or home sale, and safeguards to prevent displacement by coordinating affordable rental housing when home equity is exhausted. The program includes strict requirements for mortgage originators, prohibits requiring additional product purchases, caps origination fees, and limits the total number of insured mortgages to 275,000. The bill aims to provide housing security and financial relief for seniors by allowing them to leverage their home equity while maintaining the right to stay in their home, with built-in consumer protections to prevent predatory lending practices.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1306&year=2026