County-backed loans for required sewer connections

(a) Before the director, pursuant to section 21-5, notifies property owners in an increment of the requirement that they connect their properties to the sewer line, the director of finance shall be authorized to develop a sewer connection loan program for the purpose of guaranteeing loans used to connect lots which are a part of that increment to the sewer lines. The director of finance may consult with any banks or financial institutions about participation in a program of loan guarantees for owners of properties who are required to connect to sewers pursuant to section (b) After consultation, the director of finance shall designate one or more banks or financial institutions to handle the County-guaranteed loan program. In designating a bank or financial institution, the director shall consider the interest rates offered on the loans by the bank, the number of months and monthly payments of the loan, and the willingness of the institution to make the same agreed-upon rate offered on the County-guaranteed loans available to others borrowing money to pay for sewer hookup fees whose loans are not guaranteed by the County of Hawai‘i. Any bank or financial institution which complies with the terms of the loan program shall qualify as a designated bank. (c) The director of finance shall require that a designated bank agree that: (1) The loan to a guaranteed borrower will be at a rate of interest and terms agreed upon at the inception of the program for that increment; (2) The loan will be guaranteed by the County of Hawai‘i up to the assessed value of the parcel to be connected and any improvements at the time of the loan application; (3) In the event that a guaranteed borrower fails to pay the required payment on the loan within ninety days of the date upon which the payment is due, the loan shall be considered in default and the designated bank shall immediately notify the director of finance of the County of Hawai‘i, as well as the guaranteed borrower; (4) In the event of a default of any guaranteed borrower, a designated bank shall accept payment in full from the County of Hawai‘i as full satisfaction for the loan; (5) The loan amount shall be limited to hook up and cost for the reasonable restoration of the parcel and improvements to the condition existing at the time of the loan application plus loan fees and costs; and (d) The director of finance shall inform the mayor and the County council of the names of banks and financial institutions which are designated banks, and shall provide them with copies of the agreement negotiated with the designated banks and the contract which the designated banks will execute with guaranteed borrowers. (1992, ord 92-136, sec 1; am 2001, ord 01-108, sec 1; am 2002, ord 02-66, sec 17; am 2012, ord 12-15, sec 3.)21-39