HI HB1306

Establishes the Kupuna Home Equity Conversion Mortgage Program under the Hawaii Housing Finance and Development Corporation (HHFDC) to help seniors age 62 and older access their home equity while remaining in their homes

Allows HHFDC to insure home equity conversion mortgages (reverse mortgages) up to a maximum of 275,000 mortgages statewide, with payments to homeowners based on accumulated equity through various methods including line of credit, monthly payments, or tenure-based options

Requires mandatory independent counseling for kupuna homeowners covering alternative options, financial implications, tax consequences, and impacts on eligibility for government assistance programs before obtaining a mortgage

Protects kupuna homeowners from liability for any difference between remaining mortgage debt and sale proceeds, and guarantees transition to affordable rental housing (at Section 8-comparable rates) when home equity is exhausted

Caps origination fees at 2% of the first $200,000 of maximum claim amount plus 1% of amounts over $200,000, with a maximum fee of $6,000 adjusted for inflation, and prohibits requiring purchase of additional insurance or financial products as a condition of the mortgage