HB 1124 Summary

• Requires appraisals of leasehold improvements to identify replacement cost or leasehold market value in conformance with methods and standards applicable to other leasehold properties across the State.

• Authorizes the Department of Hawaiian Home Lands to permit second position loans on homestead leases by approved lenders and United States Treasury-certified community development financial institutions.

• Mandates the Department of Hawaiian Home Lands to develop and implement a loan servicing manual subject to commission approval that establishes loan loss mitigation policies including financial counseling, forbearance, loan modification, and other options to help borrowers avoid default and foreclosure.

• Prohibits the Department of Hawaiian Home Lands from canceling a lease based solely on loan delinquency or default unless all loan servicing procedures identified in the loan servicing manual have been exhausted.

• Defines "due notice" for lease cancellation and loan enforcement proceedings as written notice served by certified mail or personal service.