HI SB584

Amends section 201H-46 of Hawaii Revised Statutes to allow extended or hanai family members to serve as co-mortgagors for qualified residents purchasing dwelling units through the Hawaii Housing Finance and Development Corporation.

Permits co-mortgagors who are extended or hanai family members (in addition to those meeting the corporation's family definition) to assist buyers with mortgage qualification while limiting their ownership interest to no more than one percent.

Specifies that the income and assets of the co-mortgagor shall not be counted in determining the eligibility of the qualified resident under the mortgage program.

Recognizes that extended family, including cousins, uncles, aunties, step-parents, and hanai family members, frequently provide financial assistance to Hawaii residents for down payments and mortgage qualification despite not fitting traditional family definitions.

Takes effect on July 1, 2017.