HB 1298: HHFDC; Government Employee Housing; Affordable Rental Housing; Dwelling Unit Revolving Fund; Appropriations
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-04-26
Current Status:
In Progress
(2025-06-03: Act 166, on 06/03/2025 (Gov. Msg. No. 1266).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill creates a Government Employee Housing Program at the Hawaii Housing Finance and Development Corporation to build one affordable rental project on state-owned, transit-oriented land using the Dwelling Unit Revolving Fund. At least 60% of the units must go to government employees (priority to newly hired and full‑time staff) with incomes up to 140% of the area median, and employees can stay up to 12 months after leaving their job. It exempts the project contracts from normal procurement rules and provides funding and one staff position to plan and run the program.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Establishes a Government Employee Housing Program within HHFDC, to be financed by the Dwelling Unit Revolving Fund. Appropriates funds for the program. (CD1)
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Takes effect 7/1/2050. (SD1)
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD3)
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD3 PROPOSED)
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD2)
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD1)
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 3 |
|
|
STATE OF HAWAII |
S.D. 1 |
|
|
|
C.D. 1 |
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with the city and county of Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in the city and county of Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation a government employee housing program, to be financed by the dwelling unit revolving fund.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING PROGRAM
§201H- Purpose. The purpose of this part is to establish a government employee housing program to facilitate the creation of affordable residential rental units for rent to government employees and the general public on state-owned land.
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use development as defined in section 201H-12(a).
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Transit-oriented development site" means non-ceded state‑owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Government employee housing program. (a) There shall be established within the corporation the governmental employee housing program for the purpose of providing affordable and low-cost rental housing units for rent to government employees and general public on state-owned land, to be financed by the dwelling unit revolving fund established pursuant to section 201H-191.
(b) The program shall be limited to one project on a transit-oriented development site, which shall be selected by the corporation.
§201H- Government employee housing projects; criteria. (a) Government employee housing projects developed under this part shall be intended primarily for government employees in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees; and
(6) The general public.
(b) Sixty per cent of available units shall be for government employees with incomes at or below one hundred forty per cent of the median family income. For the purposes of this part, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(c) Should a state or county employee tenant occupying a rental unit leave employment with the State or a county, the tenant may continue to occupy the unit for up to twelve months.
§201H- Rules; guidelines. (a) Government employee housing program project units on state land shall not be advertised for rent, subleased, or used for any non-residential use. The corporation, by rule, shall establish penalties for violations of this subsection.
(b) The design and development contracts for residential rental units on state land under this part shall not be subject to chapter 103D.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for residential rental projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the corporation any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance is made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting the commercial portion of a mixed-use project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the government employee housing program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part."
SECTION 3. Section 201H-191, Hawaii Revised Statutes, is amended to read as follows:
"§201H-191 Dwelling unit
revolving fund. (a) There is created a dwelling unit revolving
fund. The funds appropriated for the
purpose of the dwelling unit revolving fund and all moneys received or
collected by the corporation for the purpose of the revolving fund shall be
deposited in the revolving fund. The
proceeds in the revolving fund shall be used [to reimburse]:
(1) To reimburse
the general fund to pay the interest on general obligation bonds issued for the
purposes of the revolving fund[, for the];
(2) For
necessary expenses in administering housing development programs [and],
regional state infrastructure programs, and the government employee housing
program pursuant to part ; and [for carrying]
(3) To carry out
the purposes of housing development programs [and], regional
state infrastructure programs, and the government employee housing program
pursuant to part , including but not limited to the
expansion of community facilities and regional state infrastructure constructed
in conjunction with housing and mixed-use transit-oriented development
projects, permanent primary or secondary financing, and supplementing building
costs, federal guarantees required for operational losses, and all things
required by any federal agency in the construction and receipt of federal funds
or low-income housing tax credits for housing projects.
(b)
Subject to the requirements of subsection (a), proceeds in the revolving
fund may be used to [establish]:
(1) Establish
and operate regional state infrastructure subaccounts pursuant to section
201H-191.5[.]; and
(2) Administer, implement, and finance the government employee housing program pursuant part ."
SECTION 4. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development with an executed education
contribution agreement or other like document with the agency for the
contribution of school sites or payment of fees for school land or school
construction; [and
[](5)[]] Any form of development by the Hawaii
community development authority pursuant to part XII of chapter 206E[.];
and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 6. There is appropriated out of the dwelling unit revolving fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for one government employee housing program project.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 7. There is appropriated out of the dwelling unit revolving fund the sum of $160,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) position within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2025.
Report Title:
HHFDC; Government Employee Housing; Affordable Rental Housing; Dwelling Unit Revolving Fund; Appropriations
Description:
Establishes a Government Employee Housing Program within HHFDC, to be financed by the Dwelling Unit Revolving Fund. Appropriates funds for the program. (CD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 3 |
|
|
STATE OF HAWAII |
S.D. 1 |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental and homeownership opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with the city and county of Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in the city and county of Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation:
(1) A government employee housing revolving fund program and government employee ninety-nine year leasehold rent-to-own program to facilitate the creation of affordable housing and low-cost rental and leasehold residential condominium units for rent and sale to government employees and the general public on state‑owned land; and
(2) A government employee housing revolving fund to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of affordable housing projects developed under the government employee housing revolving fund and government employee ninety-nine year leasehold rent-to-own programs.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING
A. General Provisions
§201H- Purpose. The purpose of this part is to establish a government employee housing revolving fund program and a government employee ninety-nine year leasehold rent-to-own program to facilitate the creation of affordable rental and leasehold residential condominium units for rent and sale to government employees and the general public on state-owned land and to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of projects developed under the government employee housing revolving fund and government employee ninety-nine year leasehold rent-to-own programs.
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use developments as defined in section 201H-12(a).
"Mixed-use transit-oriented development project" means a mixed-use project on a transit-oriented development site.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Qualified resident" has the same meaning as defined in section 201H-32.
"Transit-oriented development site" means non-ceded state‑owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for rental and leasehold projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part.
B. Government Employee Housing Revolving Fund Program
§201H- Government employee housing revolving fund. (a) There is created a government employee housing revolving fund. The proceeds in the revolving fund shall be used for the necessary expenses in administering government employee housing development programs and infrastructure programs on state lands and for carrying out the purposes of government employee housing development and infrastructure programs, including but not limited to:
(1) The expansion of community facilities and infrastructure constructed in conjunction with government employee housing and mixed-use transit‑oriented development projects on state lands;
(2) Interim and permanent primary or secondary financing and supplementing building costs; and
(3) Federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for state employee housing projects.
(b) The following may be deposited into the revolving fund:
(1) Appropriations made by the legislature;
(2) Private contributions, repayment of loans, interest, other returns, and moneys from other sources; and
(3) All moneys received or collected by the corporation for the purposes of the revolving fund.
(c) The revolving fund shall be used to provide interim and permanent loans or grants for the development, pre‑development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units and units developed under the government employee ninety-nine year leasehold rent-to-own program pursuant to subpart C. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other housing development services or activities as provided in any rules adopted by the corporation pursuant to chapter 91. The rules may provide:
(1) For a means of recapturing loans or grants made from the revolving fund if a rental housing project or a unit developed under the government employee ninety‑nine year leasehold rent-to-own program financed under the revolving fund is refinanced or sold at a later date; and
(2) That moneys from the revolving fund shall be leveraged with other financial resources to the extent possible.
(d) Moneys available in the revolving fund shall be used for the purpose of providing, in whole or in part, interim and permanent loans or grants for government employee ninety-nine year leasehold rent-to-own projects and rental housing projects and rental units in mixed-use projects for tenants in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees;
(6) Retired state and county employees; and
(7) The general public.
Sixty per cent of available units shall be for persons and families with incomes at or below one hundred forty per cent of the median family income. For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(e) Should a state or county employee occupying a rental unit leave employment with the State or a county, the tenant may continue to occupy the unit for up to twelve months.
(f) The corporation may provide loans and grants under this section; provided that:
(1) The corporation shall establish loan-to-value ratios to protect the fund from inordinate risk; provided further that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent;
(2) The underwriting guidelines shall include a debt‑coverage ratio of no less than 1.0 to 1; and
(3) Grants shall be made only to state departments and agencies.
§201H- Eligible applicants for funds. Eligible applicants for funds shall include state departments and agencies and for-profit organizations, limited liability companies, partnerships, and government agencies that are qualified in accordance with rules adopted by the corporation pursuant to chapter 91.
§201H- Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c);
(2) The leveraging of moneys with the use of fund assets; and
(3) Pre-development activity grants or loans to nonprofit organizations.
(b) Preference shall be given to projects producing units in at least one of the following categories:
(1) Multifamily units;
(2) Attached single-family units;
(3) Apartments;
(4) Townhouses;
(5) Housing units above commercial or industrial space; or
(6) United States Department of Housing and Urban Development mixed-finance development of public housing units.
(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Are committed to serving the target group over a longer period of time;
(3) Increase the integration of income levels of the immediate community area;
(4) Meet the geographic needs of the target group of the proposed government employee housing project, such as proximity to employment centers and services; and
(5) Have favorable past performance in developing, owning, managing, or maintaining affordable rental and rent‑to-own housing.
(d) The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
C. Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program
§201H- Government employee ninety-nine year leasehold rent-to-own program. (a) There is established the government employee ninety-nine year leasehold rent-to-own program for the purpose of providing low-cost, leasehold residential condominium units for rent and subsequent sale to government employees on state‑owned lands within a transit-oriented development site. Under the program, dwelling units that are for sale may be rented to program participants, and the corporation may credit a portion of the rent received toward the purchase of the unit.
(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the ten-year period, the participant shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.
(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit.
§201H- Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease.
§201H- Rules; guidelines. (a) Government employee residential condominium units within transit-oriented development sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within a transit-oriented development site.
(b) The design and development contracts for residential condominium units within a transit-oriented development site shall not be subject to chapter 103D.
(c) Development shall be revenue-neutral to the greatest extent possible.
(d) Transit-oriented development sites shall maximize walkability.
§201H- Sale of the leasehold interest of residential condominium units; rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within transit-oriented development sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within a transit‑oriented development site:
(1) The person shall be a qualified resident;
(2) The person shall not use a government employee residential condominium unit within a transit-oriented development site for any purpose other than owner‑occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential or non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within a transit-oriented development site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within a transit-oriented development site; provided further that an owner of a residential condominium unit within a transit-oriented development site in the process of selling the residential condominium unit may own other real property up to six months before closing on the sale of the residential condominium unit to an eligible buyer;
provided that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within a transit-oriented development site to any tenant or sublessee. The corporation may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non‑residents may have access to the premises.
(b) The median price of residential condominium units within a transit-oriented development site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) An owner of a residential condominium unit within a transit-oriented development site may sell the owner's residential condominium unit; provided that the corporation shall have the right of first refusal to purchase the residential condominium unit for a certain period of time and for a buyback price to be determined by the corporation. If the corporation does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within a transit‑oriented development site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(d) The corporation may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
§201H- Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this part, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding subsection (a), no public lands shall be conveyed or leased to the corporation pursuant to this section if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or that county, department, or board.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the corporation any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance is made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Construction contracts. Construction contracts for residential condominium units within a transient-oriented development site shall not be subject to chapter 103D.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation."
SECTION 3. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development with an executed education
contribution agreement or other like document with the agency for the
contribution of school sites or payment of fees for school land or school
construction; [and
[](5)[]] Any form of development by the Hawaii community
development authority pursuant to part XII of chapter 206E[.];
and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 4. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 5. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of full-time equivalent ( FTE) positions within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2050.
Report Title:
HHFDC; Government Employee Housing; Affordable Rental Housing; Leasehold; Rent-to-Own; Revolving Fund; Appropriations
Description:
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Takes effect 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 3 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental and homeownership opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation:
(1) A government employee housing revolving fund program and government employee ninety-nine year leasehold rent-to-own program to facilitate the creation of affordable housing and low-cost rental and leasehold residential condominium units for rent and sale to government employees and the general public on state-owned land; and
(2) A government employee housing revolving fund to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of affordable housing projects developed under the government employee housing revolving fund and government employee ninety-nine year leasehold rent-to-own programs.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING
A. General Provisions
§201H- Purpose. The purpose of this part is to establish a government employee housing revolving fund program and an affordable ninety-nine year leasehold rent-to-own program to facilitate the creation of affordable rental and leasehold residential condominium units for rent and sale to government employees and the general public on state-owned land and to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of projects developed under the government employee housing revolving fund and government employee ninety-nine year leasehold rent-to-own programs.
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use development as defined in section 201H-12(a).
"Mixed-use transit-oriented development project" means a mixed-use project on a transit-oriented development site.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Qualified resident" has the same meaning as in section 201H-32.
"Transit-oriented development site" means non-ceded state-owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for rental and leasehold projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part.
B. Government Employee Housing Revolving Fund Program
§201H- Government employee housing revolving fund. (a) There is created a government employee housing revolving fund. The proceeds in the revolving fund shall be used for the necessary expenses in administering government employee housing development programs and infrastructure programs on state lands and for carrying out the purposes of government employee housing development and infrastructure programs, including but not limited to:
(1) The expansion of community facilities and infrastructure constructed in conjunction with government employee housing and mixed-use transit-oriented development projects on state lands;
(2) Interim and permanent primary or secondary financing and supplementing building costs; and
(3) Federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for state employee housing projects.
(b) The following may be deposited into the revolving fund:
(1) Appropriations made by the legislature;
(2) Private contributions, repayment of loans, interest, other returns, and moneys from other sources; and
(3) All moneys received or collected by the corporation for the purposes of the revolving fund.
(c) The revolving fund shall be used to provide interim and permanent loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units and units developed under the government employee ninety-nine year leasehold rent-to-own program pursuant to subpart C. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other housing development services or activities as provided in any rules adopted by the corporation pursuant to chapter 91. The rules may provide:
(1) For a means of recapturing loans or grants made from the revolving fund if a rental housing project or a unit developed under the government employee ninety-nine year leasehold rent-to-own program financed under the revolving fund is refinanced or sold at a later date; and
(2) That moneys from the revolving fund shall be leveraged with other financial resources to the extent possible.
(d) Moneys available in the revolving fund shall be used for the purpose of providing, in whole or in part, interim and permanent loans or grants for government employee ninety-nine year leasehold rent-to-own projects and rental housing projects and rental units in mixed-use projects for tenants in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees;
(6) Retired state and county employees; and
(7) The general public.
Sixty per cent of available units shall be for persons and families with incomes at or below one hundred forty per cent of the median family income. For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(e) Should a state or county employee occupying a rental unit leave employment with the State or a county, the tenant may continue to occupy the unit for up to twelve months.
(f) The corporation may provide loans and grants under this section; provided that:
(1) The corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent;
(2) The underwriting guidelines include a debt-coverage ratio of no less than 1.0 to 1; and
(3) Grants shall only be made to state departments and agencies.
§201H- Eligible applicants for funds. Eligible applicants for funds shall include state departments and agencies and for-profit organizations, limited liability companies, partnerships, and government agencies that are qualified in accordance with rules adopted by the corporation pursuant to chapter 91.
§201H- Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c);
(2) The leveraging of moneys with the use of fund assets; and
(3) Pre-development activity grants or loans to nonprofit organizations.
(b) Preference shall be given to projects producing units in at least one of the following categories:
(1) Multifamily units;
(2) Attached single-family units;
(3) Apartments;
(4) Townhouses;
(5) Housing units above commercial or industrial space; or
(6) United States Department of Housing and Urban Development mixed-finance development of public housing units.
(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Are committed to serving the target group over a longer period of time;
(3) Increase the integration of income levels of the immediate community area;
(4) Meet the geographic needs of the target group of the proposed government employee housing project, such as proximity to employment centers and services; and
(5) Have favorable past performance in developing, owning, managing, or maintaining affordable rental and rent-to-own housing.
(d) The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
C. Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program
§201H- Government employee ninety-nine year leasehold rent-to-own program. (a) There is established the government employee ninety-nine year leasehold rent-to-own program for the purpose of providing low-cost, leasehold residential condominium units for rent and subsequent sale to government employees on state‑owned lands within a transit-oriented development site. Under the program, dwelling units that are for sale may be rented to program participants, and the corporation may credit a portion of the rent received toward the purchase of the unit.
(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the ten-year period, the participant shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.
(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit.
§201H- Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease.
§201H- Rules; guidelines. (a) Government employee residential condominium units within transit-oriented development sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within a transit-oriented development site.
(b) The design and development contracts for residential condominium units within a transit-oriented development site shall not be subject to chapter 103D.
(c) Development shall be revenue-neutral to the greatest extent possible.
(d) Transit-oriented development sites shall maximize walkability.
§201H- Sale of the leasehold interest of residential condominium units; rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within transit-oriented development sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within a transit-oriented development site:
(1) The person shall be a qualified resident;
(2) The person shall not use a government employee residential condominium unit within a transit-oriented development site for any purpose other than owner-occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential or non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within a transit-oriented development site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within a transit-oriented development site; provided further that an owner of a residential condominium unit within a transit-oriented development site in the process of selling the residential condominium unit may own other real property up to six months before closing on the sale of the residential condominium unit to an eligible buyer;
provided that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within a transit-oriented development site to any tenant or sublessee. The corporation may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median price of residential condominium units within a transit-oriented development site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) An owner of a residential condominium unit within a transit-oriented development site may sell the owner's residential condominium unit; provided that the corporation shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the corporation. If the corporation does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within a transit-oriented development site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(d) The corporation may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
§201H- Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this part, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding subsection (a), no public lands shall be conveyed or leased to the corporation pursuant to this section if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or that county, department, or board.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the authority any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance may be made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Construction contracts. Construction contracts for residential condominium units within a transient-oriented development site shall not be subject to chapter 103D.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation."
SECTION 3. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development with an executed education
contribution agreement or other like document with the agency for the
contribution of school sites or payment of fees for school land or school
construction; [and
[](5)[]] Any form of development by the Hawaii
community development authority pursuant to part XII of chapter 206E[.];
and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 4. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 5. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of full-time equivalent ( FTE) positions within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000.
Report Title:
Government Employee Housing; Hawaii Housing Finance and Development Corporation; Affordable Rental Housing; Leasehold; Rent-to-Own; Revolving Fund; Appropriation
Description:
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD3)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 3 |
|
|
STATE OF HAWAII |
PROPOSED |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental and homeownership opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation:
(1) A government employee housing revolving fund program and government employee ninety-nine year leasehold rent-to-own program to facilitate the creation of affordable housing and low-cost rental and leasehold residential condominium units for rent and sale to government employees and the general public on state-owned land; and
(2) A government employee housing revolving fund to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of affordable housing projects developed under the government employee housing revolving fund and government employee ninety-nine year leasehold rent-to-own programs.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING
A. General Provisions
§201H- Purpose. The purpose of this part is to establish a government employee housing revolving fund program and an affordable ninety-nine year leasehold rent-to-own program to facilitate the creation of affordable rental and leasehold residential condominium units for rent and sale to government employees and the general public on state-owned land and to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of projects developed under the government employee housing revolving fund and government employee ninety-nine year leasehold rent-to-own programs.
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use development as defined in section 201H-12(a).
"Mixed-use transit-oriented development project" means a mixed-use project on a transit-oriented development site.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Qualified resident" has the same meaning as in section 201H-32.
"Transit-oriented development site" means non-ceded state-owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for rental and leasehold projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part.
B. Government Employee Housing Revolving Fund Program
§201H- Government employee housing revolving fund. (a) There is created a government employee housing revolving fund. The proceeds in the revolving fund shall be used for the necessary expenses in administering government employee housing development programs and infrastructure programs on state lands and for carrying out the purposes of government employee housing development and infrastructure programs, including but not limited to:
(1) The expansion of community facilities and infrastructure constructed in conjunction with government employee housing and mixed-use transit-oriented development projects on state lands;
(2) Interim and permanent primary or secondary financing and supplementing building costs; and
(3) Federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for state employee housing projects.
(b) The following may be deposited into the revolving fund:
(1) Appropriations made by the legislature;
(2) Private contributions, repayment of loans, interest, other returns, and moneys from other sources; and
(3) All moneys received or collected by the corporation for the purposes of the revolving fund.
(c) The revolving fund shall be used to provide interim and permanent loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units and units developed under the government employee ninety-nine year leasehold rent-to-own program pursuant to subpart C. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other housing development services or activities as provided in any rules adopted by the corporation pursuant to chapter 91. The rules may provide:
(1) For a means of recapturing loans or grants made from the revolving fund if a rental housing project or a unit developed under the government employee ninety-nine year leasehold rent-to-own program financed under the revolving fund is refinanced or sold at a later date; and
(2) That moneys from the revolving fund shall be leveraged with other financial resources to the extent possible.
(d) Moneys available in the revolving fund shall be used for the purpose of providing, in whole or in part, interim and permanent loans or grants for government employee ninety-nine year leasehold rent-to-own projects and rental housing projects and rental units in mixed-use projects for tenants in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees;
(6) Retired state and county employees; and
(7) The general public.
Sixty per cent of available units shall be for persons and families with incomes at or below one hundred forty per cent of the median family income. For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(e) Should a state or county employee occupying a rental unit leave employment with the State or a county, the tenant may continue to occupy the unit for up to twelve months.
(f) The corporation may provide loans and grants under this section; provided that:
(1) The corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent;
(2) The underwriting guidelines include a debt-coverage ratio of no less than 1.0 to 1; and
(3) Grants shall only be made to state departments and agencies.
§201H- Eligible applicants for funds. Eligible applicants for funds shall include state departments and agencies and for-profit organizations, limited liability companies, partnerships, and government agencies that are qualified in accordance with rules adopted by the corporation pursuant to chapter 91.
§201H- Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c);
(2) The leveraging of moneys with the use of fund assets; and
(3) Pre-development activity grants or loans to nonprofit organizations.
(b) Preference shall be given to projects producing units in at least one of the following categories:
(1) Multifamily units;
(2) Attached single-family units;
(3) Apartments;
(4) Townhouses;
(5) Housing units above commercial or industrial space; or
(6) United States Department of Housing and Urban Development mixed-finance development of public housing units.
(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Are committed to serving the target group over a longer period of time;
(3) Increase the integration of income levels of the immediate community area;
(4) Meet the geographic needs of the target group of the proposed government employee housing project, such as proximity to employment centers and services; and
(5) Have favorable past performance in developing, owning, managing, or maintaining affordable rental and rent-to-own housing.
(d) The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
C. Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program
§201H- Government employee ninety-nine year leasehold rent-to-own program. (a) There is established the government employee ninety-nine year leasehold rent-to-own program for the purpose of providing low-cost, leasehold residential condominium units for rent and subsequent sale to government employees on state‑owned lands within a transit-oriented development site. Under the program, dwelling units that are for sale may be rented to program participants, and the corporation may credit a portion of the rent received toward the purchase of the unit.
(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the ten-year period, the participant shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.
(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit.
§201H- Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease.
§201H- Rules; guidelines. (a) Government employee residential condominium units within transit-oriented development sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within a transit-oriented development site.
(b) The design and development contracts for residential condominium units within a transit-oriented development site shall not be subject to chapter 103D.
(c) Development shall be revenue-neutral to the greatest extent possible.
(d) Transit-oriented development sites shall maximize walkability.
§201H- Sale of the leasehold interest of residential condominium units; rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within transit-oriented development sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within a transit-oriented development site:
(1) The person shall be a qualified resident;
(2) The person shall not use a government employee residential condominium unit within a transit-oriented development site for any purpose other than owner-occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential or non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within a transit-oriented development site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within a transit-oriented development site; provided further that an owner of a residential condominium unit within a transit-oriented development site in the process of selling the residential condominium unit may own other real property up to six months before closing on the sale of the residential condominium unit to an eligible buyer;
provided that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within a transit-oriented development site to any tenant or sublessee. The corporation may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median price of residential condominium units within a transit-oriented development site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) An owner of a residential condominium unit within a transit-oriented development site may sell the owner's residential condominium unit; provided that the corporation shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the corporation. If the corporation does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within a transit-oriented development site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(d) The corporation may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
§201H- Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this part, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding subsection (a), no public lands shall be conveyed or leased to the corporation pursuant to this section if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or that county, department, or board.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the authority any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance may be made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Construction contracts. Construction contracts for residential condominium units within a transient-oriented development site shall not be subject to chapter 103D.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation."
SECTION 3. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development
with an executed education contribution agreement or other like document with
the agency for the contribution of school sites or payment of fees for school
land or school construction; [and
[](5)[]] Any
form of development by the Hawaii community development authority pursuant to part
XII of chapter 206E[.]; and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 4. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 5. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of two full-time equivalent (2.0 FTE) positions within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 3000.
Report Title:
Government Employee Housing; Hawaii Housing Finance and Development Corporation; Affordable Rental Housing; Leasehold; Rent-to-Own; Revolving Fund; Appropriation
Description:
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD3 PROPOSED)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental and homeownership opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation:
(1) A government employee housing revolving fund program and an affordable ninety-nine year leasehold rent-to-own program to facilitate the creation of low-cost rental and leasehold residential condominium units for rent and sale to government employees on state-owned land; and
(2) A government employee housing revolving fund to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of projects developed under the affordable rental housing and affordable ninety-nine year leasehold rent-to-own programs.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING
A. General Provisions
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use development as defined in section 201H-12(a).
"Mixed-use transit-oriented development project" means a mixed-use project on a transit-oriented development site.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Qualified resident" has the same meaning as in section 201H-32.
"Transit-oriented development site" means non-ceded state-owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for rental and leasehold projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part.
B. Government Employee Housing Revolving Fund Program
§201H- Government employee housing revolving fund. (a) There is created a government employee housing revolving fund. The proceeds in the revolving fund shall be used for the necessary expenses in administering government employee housing development programs and infrastructure programs on state lands and for carrying out the purposes of government employee housing development and infrastructure programs, including but not limited to:
(1) The expansion of community facilities and infrastructure constructed in conjunction with government employee housing and mixed-use transit-oriented development projects on state lands;
(2) Interim and permanent primary or secondary financing and supplementing building costs; and
(3) Federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for state employee housing projects.
(b) The following may be deposited into the revolving fund:
(1) Appropriations made by the legislature;
(2) Private contributions, repayment of loans, interest, other returns, and moneys from other sources; and
(3) All moneys received or collected by the corporation for the purposes of the revolving fund.
(c) The revolving fund shall be used to provide interim and permanent loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units and units developed under the government employee ninety-nine year leasehold rent-to-own program pursuant to subpart C. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other housing development services or activities as provided in any rules adopted by the corporation pursuant to chapter 91. The rules may provide:
(1) For a means of recapturing loans or grants made from the revolving fund if a rental housing project or a unit developed under the government employee ninety-nine year leasehold rent-to-own program financed under the revolving fund is refinanced or sold at a later date; and
(2) That moneys from the revolving fund shall be leveraged with other financial resources to the extent possible.
(d) Moneys available in the revolving fund shall be used for the purpose of providing, in whole or in part, interim and permanent loans or grants for government employee ninety-nine year leasehold rent-to-own projects and rental housing projects and rental units in mixed-use projects for tenants in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees;
(6) Retired state and county employees; and
(7) The general public.
Sixty per cent of available units shall be for persons and families with incomes at or below one hundred forty per cent of the median family income. For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(e) Should a state or county employee occupying a rental unit leave employment with the State or a county, the tenant may continue to occupy the unit for up to twelve months.
(f) The corporation may provide loans and grants under this section; provided that the corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent; provided further that the underwriting guidelines include a debt-coverage ratio of no less than 1.0 to 1.
(g) Applications for grants shall be made to the corporation and contain the information as required by rules adopted under this subpart. At a minimum, the applicant shall:
(1) Be an eligible applicant for funds under this subpart;
(2) Agree to use state funds exclusively for the purposes of the government employee housing revolving fund program;
(3) Indicate capability to properly use the grant for the purpose of the government employee housing revolving fund program;
(4) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;
(5) Agree not to use state funds for entertainment or perquisites;
(6) Comply with other requirements the corporation may prescribe;
(7) Comply with all applicable federal, state, and county statutes, rules, and ordinances;
(8) Agree to indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with grant funds and procure sufficient insurance to provide this indemnification if requested by the corporation; and
(9) Agree to make available to the corporation all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant's compliance with this subpart.
§201H- Eligible applicants for funds. Eligible applicants for funds shall include state departments and agencies and for-profit organizations, limited liability companies, partnerships, and government agencies that are qualified in accordance with rules adopted by the corporation pursuant to chapter 91.
§201H- Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c);
(2) The leveraging of moneys with the use of fund assets; and
(3) Pre-development activity grants or loans to nonprofit organizations.
(b) Preference shall be given to projects producing units in at least one of the following categories:
(1) Multifamily units;
(2) Attached single-family units;
(3) Apartments;
(4) Townhouses;
(5) Housing units above commercial or industrial space; or
(6) United States Department of Housing and Urban Development mixed-finance development of public housing units.
(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Are committed to serving the target group over a longer period of time;
(3) Increase the integration of income levels of the immediate community area;
(4) Meet the geographic needs of the target group of the proposed government employee housing project, such as proximity to employment centers and services; and
(5) Have favorable past performance in developing, owning, managing, or maintaining affordable rental and rent-to-own housing.
(d) The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
C. Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program
§201H- Government employee ninety-nine year leasehold rent-to-own program. (a) There is established the government employee ninety-nine year leasehold rent-to-own program for the purpose of providing low-cost, leasehold residential condominium units for rent and subsequent sale to government employees on state‑owned lands within a transit-oriented development site. Under the program, dwelling units that are for sale may be rented to program participants, and the corporation may credit a portion of the rent received toward the purchase of the unit.
(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the ten-year period, the participant shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.
(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit.
§201H- Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease.
§201H- Rules; guidelines. (a) Government employee residential condominium units within transit-oriented development sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within a transit-oriented development site.
(b) The design and development contracts for residential condominium units within a transit-oriented development site shall not be subject to chapter 103D.
(c) Development shall be revenue-neutral to the greatest extent possible.
(d) Transit-oriented development sites shall maximize walkability.
§201H- Sale of the leasehold interest of residential condominium units; rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within transit-oriented development sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within a transit-oriented development site:
(1) The person shall be a qualified resident;
(2) The person shall not use a government employee residential condominium unit within a transit-oriented development site for any purpose other than owner-occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential or non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within a transit-oriented development site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within a transit-oriented development site; provided further that an owner of a residential condominium unit within a transit-oriented development site in the process of selling the residential condominium unit may own other real property up to six months before closing on the sale of the residential condominium unit to an eligible buyer;
provided that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within a transit-oriented development site to any tenant or sublessee. The corporation may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median price of residential condominium units within a transit-oriented development site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) An owner of a residential condominium unit within a transit-oriented development site may sell the owner's residential condominium unit; provided that the corporation shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the corporation. If the corporation does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within a transit-oriented development site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(d) The corporation may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
§201H- Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this part, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding subsection (a), no public lands shall be conveyed or leased to the corporation pursuant to this section if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or that county, department, or board.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the authority any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance may be made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Construction contracts. Construction contracts for residential condominium units within a transient-oriented development site shall not be subject to chapter 103D.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation."
SECTION 3. Section 201H-211, Hawaii Revised Statutes, is amended to read as follows:
"§201H-211 Expenditures of revolving funds under the corporation exempt from appropriation and allotment. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from the revolving funds administered by the corporation under subparts I and J of part III, relating to financing programs, subpart B of part , relating to government employee housing, or section 201H‑80 or 201H-123 may be made by the corporation without appropriation or allotment by the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37-31 to 37-41 shall require the proceeds of the revolving funds identified in subparts I and J of part III, subpart B of part , or section 201H-80 or 201H-123 to be reappropriated annually."
SECTION 4. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development with an executed education
contribution agreement or other like document with the agency for the
contribution of school sites or payment of fees for school land or school
construction; [and
[](5)[]] Any form of development by the Hawaii
community development authority pursuant to part XII of chapter 206E[.];
and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 5. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 6. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of two full-time equivalent (2.0 FTE) positions within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 7. Statutory material to be repealed is
bracketed and stricken. New statutory
material is underscored.
SECTION 8. This Act shall take effect on July 1, 3000.
Report Title:
Government Employee Housing; Hawaii Housing Finance and Development Corporation; Affordable Rental Housing; Leasehold; Rent-to-Own; Revolving Fund; Appropriation
Description:
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental and homeownership opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation:
(1) A government employee housing revolving fund program and an affordable ninety-nine year leasehold rent-to-own program to facilitate the creation of low-cost rental and leasehold residential condominium units for rent and sale to government employees on state-owned land; and
(2) A government employee housing revolving fund to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of projects developed under the affordable rental housing and affordable ninety-nine year leasehold rent-to-own programs.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING
A. General Provisions
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use development as defined in section 201H-12(a).
"Mixed-use transit-oriented development project" means a mixed-use project on a transit-oriented development site.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Qualified resident" has the same meaning as in section 201H-32.
"Transit-oriented development site" means non-ceded state-owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for rental and leasehold projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part.
B. Government Employee Housing Revolving Fund Program
§201H- Government employee housing revolving fund. (a) There is created a government employee housing revolving fund. The proceeds in the revolving fund shall be used for the necessary expenses in administering government employee housing development programs and infrastructure programs on state lands and for carrying out the purposes of government employee housing development and infrastructure programs, including but not limited to:
(1) The expansion of community facilities and infrastructure constructed in conjunction with government employee housing and mixed-use transit-oriented development projects on state lands;
(2) Interim and permanent primary or secondary financing and supplementing building costs; and
(3) Federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for state employee housing projects.
(b) The following may be deposited into the fund:
(1) Appropriations made by the legislature;
(2) Private contributions, repayment of loans, interest, other returns, and moneys from other sources; and
(3) All moneys received or collected by the corporation for the purposes of the revolving fund.
(c) The fund shall be used to provide interim and permanent loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units and units developed under the government employee ninety-nine year leasehold rent-to-own program pursuant to subpart C. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other housing development services or activities as provided in any rules adopted by the corporation pursuant to chapter 91. The rules may provide:
(1) For a means of recapturing loans or grants made from the fund if a rental housing project or a unit developed under the government employee ninety-nine year leasehold rent-to-own program financed under the fund is refinanced or sold at a later date; and
(2) That moneys from the fund shall be leveraged with other financial resources to the extent possible.
(d) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, interim and permanent loans or grants for government employee ninety-nine year leasehold rent-to-own projects and rental housing projects and rental units in mixed-use projects for tenants in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees;
(6) Retired state and county employees; and
(7) The general public.
Sixty per cent of available units shall be for persons and families with incomes at or below one hundred forty per cent of the median family income. For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(e) Should a state or county employee occupying a rental unit leave employment by the State or a county, the tenant may continue to occupy the unit for up to twelve months.
(f) The corporation may provide loans and grants under this section; provided that the corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent; provided further that the underwriting guidelines include a debt-coverage ratio of no less than 1.0 to 1.
§201H- Eligible applicants for funds. Eligible applicants for funds shall include state departments and agencies and for-profit organizations, limited liability companies, partnerships, and government agencies that are qualified in accordance with rules adopted by the corporation pursuant to chapter 91.
§201H- Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c);
(2) The leveraging of moneys with the use of fund assets; and
(3) Pre-development activity grants or loans to nonprofit organizations.
(b) Preference shall be given to projects producing units in at least one of the following categories:
(1) Multifamily units;
(2) Attached single-family units;
(3) Apartments;
(4) Townhouses;
(5) Housing units above commercial or industrial space; or
(6) United States Department of Housing and Urban Development mixed-finance development of public housing units.
(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Are committed to serving the target group over a longer period of time;
(3) Increase the integration of income levels of the immediate community area;
(4) Meet the geographic needs of the target group of the proposed government employee housing project, such as proximity to employment centers and services; and
(5) Have favorable past performance in developing, owning, managing, or maintaining affordable rental and rent-to-own housing.
(d) The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
C. Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program
§201H- Government employee ninety-nine year leasehold rent-to-own program. (a) There is established the government employee ninety-nine year leasehold rent-to-own program for the purpose of providing low-cost, leasehold residential condominium units for rent and subsequent sale to government employees on state‑owned lands within a transit-oriented development site. Under the program, dwelling units that are for sale may be rented to program participants, and the corporation may credit a portion of the rent received toward the purchase of the unit.
(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the ten-year period, the participant shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.
(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit.
§201H- Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease or extend the term of the lease.
§201H- Rules; guidelines. (a) Government employee residential condominium units within transit-oriented development sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within a transit-oriented development site.
(b) The design and development contracts for residential condominium units within a transit-oriented development site shall not be subject to chapter 103D.
(c) Development shall be revenue-neutral to the greatest extent possible.
(d) Transit-oriented development sites shall maximize walkability.
§201H- Sale of the leasehold interest of residential condominium units; rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within transit-oriented development sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within a transit-oriented development site:
(1) The person shall be a qualified resident;
(2) The person shall not use a government employee residential condominium unit within a transit-oriented development site for any purpose other than owner-occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential or non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within a transit-oriented development site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within a transit-oriented development site; provided further that an owner of a residential condominium unit within a transit-oriented development site in the process of selling the residential condominium unit may own other real property up to six months before closing on the sale of the residential condominium unit to an eligible buyer;
provided that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within a transit-oriented development site to any tenant or sublessee. The corporation may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median price of residential condominium units within a transit-oriented development site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) An owner of a residential condominium unit within a transit-oriented development site may sell the owner's residential condominium unit; provided that the corporation shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the corporation. If the corporation does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within a transit-oriented development site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(d) The corporation may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
§201H- Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this part, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding subsection (a), no public lands shall be conveyed or leased to the corporation pursuant to this section if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or that county, department, or board.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the authority any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance may be made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Construction contracts. Construction contracts for residential condominium units within a transient-oriented development site shall not be subject to chapter 103D.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation."
SECTION 3. Section 201H-211, Hawaii Revised Statutes, is amended to read as follows:
"§201H-211 Expenditures of revolving funds under the corporation exempt from appropriation and allotment. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from the revolving funds administered by the corporation under subparts I and J of part III, relating to financing programs, subpart B of part , relating to government employee housing, or section 201H‑80 or 201H-123 may be made by the corporation without appropriation or allotment by the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37-31 to 37-41 shall require the proceeds of the revolving funds identified in subparts I and J of part III, subpart B of part , or section 201H-80 or 201H-123 to be reappropriated annually."
SECTION 4. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development with an executed education
contribution agreement or other like document with the agency for the
contribution of school sites or payment of fees for school land or school
construction; [and
[](5)[]] Any form of development by the Hawaii
community development authority pursuant to part XII of chapter 206E[.];
and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 5. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 6. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of two full-time equivalent (2.0 FTE) positions within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 3000.
Report Title:
Government Employee Housing; Hawaii Housing Finance and Development Corporation; Affordable Rental Housing; Leasehold; Rent-to-Own; Revolving Fund; Appropriation
Description:
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1298 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is becoming increasingly difficult to recruit and retain state employees. Having affordable rental and homeownership opportunities for state employees will reduce the resignation and outmigration of state employees and fill critical labor needs throughout state government.
The legislature further finds that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of transit-oriented development sites along the transit line in Honolulu, as well as being the landowner of other transit-oriented development sites in each of the other counties, the State and its various departments and attached agencies must be proactive in establishing a unified vision and approach toward redevelopment of its transit-oriented development sites statewide to maximize the benefits of state lands available for redevelopment.
The purpose of this Act is to establish within the Hawaii housing finance and development corporation:
(1) An affordable rental housing program and an affordable ninety-nine year leasehold rent-to-own program to facilitate the creation of low-cost rental and leasehold residential condominium units for rent and sale to government employees on state-owned land; and
(2) A government employee housing revolving fund to provide interim and permanent financing for the infrastructure, pre-development, development, and construction costs of projects developed under the affordable rental housing and affordable ninety-nine year leasehold rent-to-own programs.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GOVERNMENT EMPLOYEE HOUSING
A. General Provisions
§201H- Definitions. As used in this part, unless the context otherwise requires:
"Mixed-use project" means a mixed-use development as defined in section 201H-12(a).
"Mixed-use transit-oriented development project" means a mixed-use project on a transit-oriented development site.
"Owner-occupied residential use" means any use currently permitted in existing residential zones consistent with owner occupancy. "Owner-occupied residential use" does not include renting or subleasing by the owner of a residential condominium unit to any tenant or sublessee.
"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the corporation, including a commercial project, redevelopment project, residential project, or mixed-use project.
"Transit-oriented development site" means non-ceded state-owned lands within a one-mile radius of a planned or existing station connected to a locally preferred alternative for a mass transit project.
§201H- Annual reports. The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded, a description of proposals submitted under this part and action taken on the proposals, and any barriers to developing housing units under this part. The annual report shall include the feasibility of expanding the program and the demand for rental and leasehold projects developed under this part.
§201H- Additional powers. The powers conferred upon the corporation by this part shall be in addition and supplemental to the powers conferred by any other law, and nothing in this part shall be construed as limiting any powers, rights, privileges, or immunities so conferred.
§201H- Rules. The corporation may adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part.
B. Government Employee Housing Revolving Fund Program
§201H- Government employee housing revolving fund. (a) There is created a government employee housing revolving fund. The funds appropriated for the purpose of the government employee housing revolving fund and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited into the revolving fund. The proceeds in the revolving fund shall be used for the necessary expenses in administering government employee housing development programs and infrastructure programs on state lands and for carrying out the purposes of government employee housing development and infrastructure programs, including but not limited to the expansion of community facilities and infrastructure constructed in conjunction with government employee housing and mixed-use transit-oriented development projects on state lands; interim and permanent primary or secondary financing and supplementing building costs; and federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for state employee housing projects.
(b) The following may be deposited into the fund:
(1) Appropriations made by the legislature; and
(2) Private contributions, repayment of loans, interest, other returns, and moneys from other sources.
(c) The fund shall be used to provide loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units and units developed under the government employee ninety-nine year leasehold rent-to-own program pursuant to subpart C. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project or a unit developed under the government employee ninety-nine year leasehold rent-to-own program financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible.
(d) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans or grants for government employee ninety-nine year leasehold rent-to-own projects and rental housing projects and rental units in mixed-use projects for tenants in the following order of priority:
(1) Newly hired permanent full-time state employees;
(2) Other permanent full-time state employees;
(3) Permanent full-time county employees;
(4) Permanent part-time state and county employees;
(5) Temporary state and county employees;
(6) Retired state and county employees; and
(7) The general public.
All available units shall be for persons and families with incomes at or below one hundred forty per cent of the median family income. For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.
(e) Should a state or county employee occupying a rental unit leave employment by the State or a county, the tenant may continue to occupy the unit for up to twelve months.
(f) The corporation may provide loans and grants under this section; provided that the corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and that under no circumstances shall the rules permit the loan-to-value ratio to exceed one hundred per cent; provided further that the underwriting guidelines include a debt-coverage ratio of not less than 1.0 to 1.
§201H- Eligible applicants for funds. Eligible applicants for funds shall include nonprofit and for-profit organizations, limited liability companies, partnerships, and government agencies that are qualified in accordance with rules adopted by the corporation pursuant to chapter 91.
§201H- Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:
(1) New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c);
(2) The leveraging of moneys with the use of fund assets; and
(3) Pre-development activity grants or loans to nonprofit organizations.
(b) Preference shall be given to projects producing units in at least one of the following categories:
(1) Multifamily units;
(2) Attached single-family units;
(3) Apartments;
(4) Townhouses; or
(5) Housing units above commercial or industrial space; and
(6) United States Department of Housing and Urban Development mixed-finance development of public housing units.
(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the following criteria that are listed in descending order of priority:
(1) Serve the original target group;
(2) Are committed to serving the target group over a longer period of time;
(3) Increase the integration of income levels of the immediate community area;
(4) Meet the geographic needs of the target group of the proposed government employee housing project, such as proximity to employment centers and services; and
(5) Have favorable past performance in developing, owning, managing, or maintaining affordable rental and rent-to-own housing.
(d) The corporation may include other criteria as it deems necessary to carry out the purposes of this subpart.
C. Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program
§201H- Government employee ninety-nine year leasehold rent-to-own program. (a) There is established the government employee ninety-nine year leasehold rent-to-own program for the purpose of providing low-cost, leasehold residential condominium units for rent and subsequent sale to government employees on state‑owned lands within a transit-oriented development site. Under the program, dwelling units that are for sale may be rented to program participants, and the corporation shall credit a portion of the rent received toward the purchase of the unit.
(b) The sales price shall be established at the beginning of the rental term and shall remain fixed for the first ten years after the rental agreement is executed. During this period, the participant shall have the option of purchasing the unit at the designated sales price. If the participant does not elect to purchase the unit within the ten-year period, the participant shall forfeit the right to continue living in the unit and the unit shall be made available to another purchaser or renter.
(c) The corporation shall have the right to reestablish the sales price upon expiration of the option period or upon resale of the unit.
§201H- Leasehold condominiums on state lands. (a) The corporation may sell leasehold units in condominiums organized pursuant to chapter 514B and developed under this part on state land to a qualified resident as defined in section 201H‑32.
(b) The term of the lease may be for ninety-nine years, and the corporation may extend or modify the fixed rental period of the lease or extend the term of the lease.
§201H- Rules; guidelines. (a) Government employee residential condominium units within transit-oriented development sites shall not be advertised for rent, rented, or used for any purpose other than owner-occupied residential use. The corporation, by rule, shall establish penalties for violations of this subsection up to and including forced sale of a residential condominium unit within a transit-oriented development site.
(b) The design and development contracts for residential condominium units within a transit-oriented development site shall be subject to chapter 103D.
(c) Development shall be revenue-neutral to the greatest extent possible.
(d) Transit-oriented development sites shall maximize walkability.
§201H- Sale of the leasehold interest of residential condominium units; rules; guidelines. (a) The corporation shall adopt rules pursuant to chapter 91 for the sale of the leasehold interest of residential condominium units under its control within transit-oriented development sites; provided that each lease shall be for a term of ninety‑nine years. The rules shall include the following requirements for an eligible buyer or owner of a residential condominium unit within a transit-oriented development site:
(1) The person shall be a qualified resident of the State, as defined in section 201H-32;
(2) The person shall not use a government employee residential condominium unit within a transit-oriented development site for any purpose other than owner-occupied residential use; and
(3) The person, the person's spouse, or any other person intending to live with the eligible buyer or owner, shall not own any other real property, including any residential or non-residential property, beneficial ownership of trusts, and co-ownership or fractional ownership, while owning a residential condominium unit within a transit-oriented development site; provided that an eligible buyer may own real property up to six months after closing on the purchase of a residential condominium unit within a transit-oriented development site; provided further that an owner of a residential condominium unit within a transit-oriented development site in the process of selling the residential condominium unit may own other real property up to six months prior to closing on the sale of the residential condominium unit to an eligible buyer;
provided further that the rules adopted pursuant to this subsection may require at least fifty per cent of the residential condominium units be sold to an individual or household with an income of up to one hundred forty per cent of the area median income. The rules shall include strict enforcement of owner-occupancy, including a prohibition on renting or subleasing a residential condominium unit within a transit-oriented development site to any tenant or sublessee. The corporation may also establish rules for a minimum number of days residents shall be physically present on the premises and a maximum number of days non-residents may have access to the premises.
(b) The median price of residential condominium units within a transit-oriented development site shall be priced at the minimum levels necessary to ensure that the development is revenue-neutral for the State.
(c) An owner of a residential condominium unit within a transit-oriented development site may sell the owner's residential condominium unit; provided that the corporation shall have the right of first refusal to purchase the residential condominium unit for certain period of time and for a buyback price to be determined by the corporation. If the corporation does not exercise its right to purchase the residential condominium unit, the residential condominium unit may be sold by the owner to an eligible buyer. Upon the death of the owner of a residential condominium unit within a transit-oriented development site, the residential condominium unit may be transferred to the deceased's heir by devise or as any other real property under existing law; provided that the deceased's heir shall meet the requirements listed in subsection (a); provided further that if the deceased's heir does not meet requirements to accept transfer of the residential condominium unit, the deceased's heir shall sell the residential condominium unit to an eligible buyer.
(e) The corporation may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, military transfer, serious illness, or other hardship circumstances as determined by the executive director.
§201H- Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the corporation for the purposes of this part, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may convey or lease those lands to the corporation upon terms and conditions as may be agreed to by the parties.
(b) Notwithstanding subsection (a), no public lands shall be conveyed or leased to the corporation pursuant to this section if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or that county, department, or board.
§201H- Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its county council, without public auction, sealed bids, or public notice, may sell, lease, grant, or convey to the authority any real property owned by the county that the corporation certifies to be necessary for the purposes of this part. The sale, lease, grant, or conveyance shall be made with or without consideration and upon terms and conditions as may be agreed upon by the county and the corporation. Certification shall be evidenced by a formal request from the corporation. Before the sale, lease, grant, or conveyance may be made to the corporation, a public hearing shall be held by the county council to consider the same. Notice of the hearing shall be published at least six days before the date set for the hearing in the publication and in the manner as may be designated by the county council.
§201H- Condemnation of real property. The corporation, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this part, may acquire the property, including property already devoted to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for any other public use without the consent of the corporation. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the urban redevelopment site or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the corporation.
§201H- Construction contracts. Construction contracts for residential condominium units within a transient-oriented development site shall be subject to chapter 103D.
§201H- Lease of projects. Notwithstanding any law to the contrary, the corporation, without recourse to chapter 103D, may lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a commercial project to any person, upon terms and conditions as may be approved by the corporation; provided that all revenues generated from the lease shall be used to support the purpose of this part.
§201H- Assistance by state and county agencies. Any state or county agency, upon request of the corporation, may render services for the purposes of this part.
§201H- Lands no longer needed. Lands acquired by the corporation from another government agency that are no longer needed by the corporation for the program shall be returned to the previous owner of those lands. Lands acquired by the corporation from a private party that are owned by the corporation and designated for the program but are subsequently no longer needed for the program shall be retained by the corporation."
SECTION 3. Section 201H-211, Hawaii Revised Statutes, is amended to read as follows:
"§201H-211 Expenditures of revolving funds under the corporation exempt from appropriation and allotment. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from the revolving funds administered by the corporation under subparts I and J of part III, relating to financing programs, subpart B of part , relating to government employee housing, or section 201H‑80 or 201H-123 may be made by the corporation without appropriation or allotment by the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37-31 to 37-41 shall require the proceeds of the revolving funds identified in subparts I and J of part III, subpart B of part , or section 201H-80 or 201H-123 to be reappropriated annually."
SECTION 4. Section 302A-1603, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The following shall be exempt from this section:
(1) Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;
(2) Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;
(3) All nonresidential development;
(4) Any development with an executed education
contribution agreement or other like document with the agency for the
contribution of school sites or payment of fees for school land or school
construction; [and
[](5)[]] Any form of development by the Hawaii
community development authority pursuant to part XII of chapter 206E[.];
and
(6) Any form of development by the Hawaii housing finance and development corporation pursuant to part of chapter 201H."
SECTION 5. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to:
(1) Adopt rules;
(2) Engage the community; and
(3) Conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 6. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of two full-time equivalent (2.0 FTE) positions within the Hawaii housing finance and development corporation.
The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2025.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Government Employee Housing; Hawaii Housing Finance and Development Corporation; Affordable Rental Housing; Leasehold; Rent-to-own; Appropriation
Description:
Requires the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program. Establishes the Government Employee Housing Revolving Fund. Appropriates funds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
Date
|
Status
|
|---|---|
| Jun 3, 2025 | Act 166, on 06/03/2025 (Gov. Msg. No. 1266). |
| Jun 3, 2025 | Act 166, 06/03/2025 (Gov. Msg. No. 1266). |
| May 1, 2025 | Transmitted to Governor. |
| May 2, 2025 | Received notice of passage on Final Reading in House (Hse. Com. No. 821). |
| May 1, 2025 | Received notice of Final Reading (Sen. Com. No. 888). |
| Apr 30, 2025 | Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Garcia, Muraoka, Pierick voting no (3) and Representative(s) Cochran excused (1). |
| Apr 30, 2025 | Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none. |
| Apr 25, 2025 | 48 Hrs. Notice (as amended CD 1) 04-30-25 |
| Apr 25, 2025 | Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 236). |
| Apr 25, 2025 | Forty-eight (48) hours notice Wednesday, 04-30-25. |
| Apr 25, 2025 | Reported from Conference Committee (Conf Com. Rep. No. 236) as amended in (CD 1). |
| Apr 25, 2025 | The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 4 Ayes: Representative(s) Evslin, Sayama, Miyake, Kapela; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Pierick. |
| Apr 25, 2025 | The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Aquino, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Apr 25, 2025 | Received notice of change in Senate conferees (Sen. Com. No. 882). |
| Apr 25, 2025 | Senate Conferees Changed: Senator Kanuha added as Co-Chair. Senator Hashimoto discharged as Co-Chair. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 4:30 PM; Conference Room 225. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 3:30 PM; Conference Room 016. |
| Apr 24, 2025 | Conference committee meeting to reconvene on 04-25-25 10:30AM; Conference Room 224. |
| Apr 23, 2025 | Conference committee meeting scheduled for 04-24-25 10:31AM; Conference Room 224. |
| Apr 22, 2025 | Received notice of Senate conferees (Sen. Com. No. 862). |
| Apr 22, 2025 | Senate Conferees Appointed: Chang Chair; Aquino, Hashimoto Co-Chairs; Fevella. |
| Apr 21, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 755). |
| Apr 17, 2025 | House Conferees Appointed: Evslin, Sayama, Miyake Co-Chairs; Kapela, Pierick. |
| Apr 11, 2025 | Received notice of disagreement (Hse. Com. No. 704). |
| Apr 10, 2025 | House disagrees with Senate amendment (s). |
| Apr 8, 2025 | Returned from Senate (Sen. Com. No. 757) in amended form (SD 1). |
| Apr 8, 2025 | Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 4, 2025 | One Day Notice 04-08-25. |
| Apr 4, 2025 | Reported from WAM (Stand. Com. Rep. No. 1794) with recommendation of passage on Third Reading. |
| Apr 3, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Apr 1, 2025 | The committee(s) on WAM will hold a public decision making on 04-03-25 10:01AM; Conference Room 211 & Videoconference. |
| Mar 21, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Mar 21, 2025 | Reported from HOU/LBT (Stand. Com. Rep. No. 1294) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Mar 18, 2025 | The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 3 Aye(s): Senator(s) Aquino, Lee, C., Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Ihara, Moriwaki. |
| Mar 18, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 11, 2025 | The committee(s) on HOU/LBT has scheduled a public hearing on 03-18-25 1:00PM; Conference Room 225 & Videoconference. |
| Mar 6, 2025 | Referred to HOU/LBT, WAM. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 354). |
| Mar 4, 2025 | Passed Third Reading as amended in HD 3 with none voting aye with reservations; Representative(s) Muraoka voting no (1) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. |
| Feb 28, 2025 | Forty-eight (48) hours notice Tuesday, 03-04-25. |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 1040) as amended in HD 3, recommending passage on Third Reading. |
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kitagawa, Ward. |
| Feb 21, 2025 | Proposed draft of Bill scheduled to be heard by FIN on Tuesday, 02-25-25 10:00AM in House conference room 308 VIA VIDEOCONFERENCE. Copy of proposed draft available at www.capitol.hawaii.gov. |
| Feb 14, 2025 | Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; Representative(s) Garcia, Muraoka, Pierick voting no (3) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4). |
| Feb 14, 2025 | Reported from LAB (Stand. Com. Rep. No. 659) as amended in HD 2, recommending referral to FIN. |
| Feb 11, 2025 | The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Feb 7, 2025 | Bill scheduled to be heard by LAB on Tuesday, 02-11-25 9:00AM in House conference room 309 VIA VIDEOCONFERENCE. |
| Feb 4, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on LAB with none voting aye with reservations; Representative(s) Garcia, Muraoka, Pierick voting no (3) and Representative(s) Cochran, Kong, Ward excused (3). |
| Feb 4, 2025 | Reported from HSG (Stand. Com. Rep. No. 141) as amended in HD 1, recommending passage on Second Reading and referral to LAB. |
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica; Ayes with reservations: none; 2 Noes: Representative(s) Muraoka, Pierick; and 1 Excused: Representative(s) Cochran. |
| Jan 27, 2025 | Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Jan 27, 2025 | Referred to HSG, LAB, FIN, referral sheet 4 |
| Jan 23, 2025 | Introduced and Pass First Reading. |
| Jan 22, 2025 | Pending introduction. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 30, 2025 | Final Reading | House Floor |
Passed |
|
| Apr 30, 2025 | Final Reading | Senate Floor |
Passed |
|
| Apr 8, 2025 | Third Reading | Senate Floor |
Passed |
|
| Apr 3, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Ways and Means |
Passed |
|
| Mar 18, 2025 | The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Labor and Technology |
Passed |
|
| Mar 18, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
|
| Mar 4, 2025 | Third Reading | House Floor |
Passed |
|
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
|
| Feb 11, 2025 | The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Labor |
Passed |
|
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Hawaii Government Employees Association, AFSCME Local 152 | *** Support | Apr 3, 2025 |
| Hawaii Housing Finance and Development Corporation | *** Support | Apr 3, 2025 |
| Maui Chamber of Commerce | *** Support | Apr 3, 2025 |
| United Public Workers, AFSCME Local 646 | *** Support | Apr 3, 2025 |
CONFERENCE COMMITTEE REP. NO. 236
Honolulu, Hawaii
, 2025
RE: H.B. No. 1298
H.D. 3
S.D. 1
C.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madam and Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1298, H.D. 3, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to establish within the Hawaii Housing Finance and Development Corporation a Government Employee Housing Revolving Fund Program and a Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program.
Your Committee on Conference has amended this measure by:
(1) Deleting language establishing a Government Employee Housing Revolving Fund Program and a Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program;
(2) Establishing a Government Employee Housing Program that is to be financed by the Dwelling Unit Revolving Fund to facilitate the creation of affordable residential rental units;
(3) Inserting an appropriation of $200,000 for each year of the 2025-2027 fiscal biennium for the Hawaii Housing Finance and Development Corporation to conduct planning for the Government Employee Housing Program;
(4) Inserting an appropriation of $160,000 for each year of the 2025-2027 fiscal biennium for the establishment of one full-time equivalent position within the Hawaii Housing Finance and Development Corporation;
(5) Changing the effective date to July 1, 2025; and
(6) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1298, H.D. 3, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1298, H.D. 3, S.D. 1, C.D. 1.
Respectfully submitted on behalf of the managers:
|
ON THE PART OF THE SENATE |
|
ON THE PART OF THE HOUSE |
|
____________________________ STANLEY CHANG Chair |
|
____________________________ LUKE A. EVSLIN Co-Chair |
|
____________________________ HENRY J.C. AQUINO Co-Chair |
|
____________________________ JACKSON D. SAYAMA Co-Chair |
|
____________________________ DRU KANUHA Co-Chair |
|
____________________________ TYSON K. MIYAKE Co-Chair |
|
|
|
|
STAND. COM. REP. NO. 1794
Honolulu, Hawaii
RE: H.B. No. 1298
H.D. 3
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 1298, H.D. 3, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose and intent of this measure is to create affordable housing opportunities for state workers to improve worker recruitment and retention.
Specifically, this measure:
(1) Establishes within the Hawaii Housing Finance and Development Corporation the Government Employee Housing Revolving Fund Program and Government Employee Ninety‑Nine-Year Leasehold Rent-to-Own Program to facilitate the development of affordable housing and low‑cost rental and leasehold residential condominium units for rent and sale to government employees and the general public on state-owned land;
(2) Creates the government employee housing revolving fund to finance affordable housing projects under the programs established pursuant to paragraph (1); and
(3) Makes appropriations.
Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, United Public Workers, Hawaii Government Employees Association, and Maui Chamber of Commerce.
Your Committee received written comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.
Your Committee finds that it is becoming increasingly difficult to recruit and retain state employees. Your Committee further finds that increasing affordable rental and homeownership opportunities for state employees will help to reduce the resignation and outmigration of state employees, while also making state employment more attractive to job seekers.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1298, H.D. 3, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
|
|
|
________________________________ DONOVAN M. DELA CRUZ, Chair |
|
|
|
|
STAND. COM. REP. NO. 1294
Honolulu, Hawaii
RE: H.B. No. 1298
H.D. 3
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Housing and Labor and Technology, to which was referred H.B. No. 1298, H.D. 3, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
beg leave to report as follows:
The purpose and intent of this measure is to:
(1) Require the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety‑Nine Year Leasehold Rent-to-Own Program;
(2) Establish the Government Employee Housing Revolving Fund; and
Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaii Government Employees Association, AFSCME Local 152, AFL‑CIO; United Public Workers, AFSCME Local 646, AFL-CIO; and Maui Chamber of Commerce.
Your Committees received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.
Your Committees find that the State's chronic shortage of housing has led to increasing unaffordability of existing supply, causing higher levels of outmigration of existing and prospective state employees. Presently, the State's lack of affordable rental housing and homeownership opportunities limit the ability for individuals and families to remain in the State to pursue careers with state and county agencies, which are also facing critical vacancy rates. Prioritizing housing options primarily for governor employees can increase recruitment and retention efforts and alleviate the high cost of housing for working families. Therefore, this measure offers homeownership opportunities to stabilize the cost of housing for government employees.
Your Committees have amended this measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the records of votes of the members of your Committees on Housing and Labor and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1298, H.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1298, H.D. 3, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Housing and Labor and Technology,
|
________________________________ HENRY J.C. AQUINO, Chair |
|
________________________________ STANLEY CHANG, Chair |
STAND. COM. REP. NO. 1040
Honolulu, Hawaii
, 2025
RE: H.B. No. 1298
H.D. 3
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 1298, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Require the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program;
(2) Establish the Government Employee Housing Revolving Fund; and
(3) Appropriate funds out of the Dwelling Unit Revolving Fund for the Hawaii Housing Finance and Development Corporation to adopt rules, engage the community, conduct site and pre-development planning for at least one government employee rental or ninety-nine year leasehold rent-to-own project in each county, and establish positions.
Your Committee received testimony in support of this measure from the Maui Chamber of Commerce.
Prior to the hearing on this measure, your Committee posted and made available for public review a proposed H.D. 3, which amends this measure by:
(1) Codifying a purpose section in statute;
(2) Specifying that grants shall only be made to state departments and agencies pursuant to adopted rules; and
(3) Removing the exemption of Government Employee Housing Revolving Fund expenditures from legislative appropriation and allotment requirements.
Your Committee received testimony in support of the proposed H.D. 3 from the Hawaii Housing Finance and Development Corporation; United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO. Your Committee received comments on the proposed H.D. 3 from the Department of Budget and Finance and Tax Foundation of Hawaii.
Your Committee has amended this measure by adopting the proposed H.D. 3 and further amending the measure by changing the positions to an unspecified number.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1298, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1298, H.D. 3.
Respectfully submitted on behalf of the members of the Committee on Finance,
|
|
|
____________________________ KYLE T. YAMASHITA, Chair |
|
|
|
|
STAND. COM. REP. NO. 659
Honolulu, Hawaii
, 2025
RE: H.B. No. 1298
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Labor, to which was referred H.B. No. 1298, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Require the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program; and
(2) Establish the Government Employee Housing Revolving Fund.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; United Public Workers, AFSCME Local 646, AFL-CIO; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Maui Chamber of Commerce; and one individual. Your Committee received comments on this measure from the Department of the Attorney General and Tax Foundation of Hawaii.
Your Committee finds that the State's high cost-of-living contributes to unaffordable housing prices and makes it difficult for residents to save money to own a home. Your Committee also finds that many government employees do not earn enough wages to own property, especially when they have families to provide for. Your Committee believes that this measure can provide a path toward home ownership for government employees, and possibly attract candidates to apply for government jobs.
Your Committee has amended this measure by:
(1) Inserting grant standards as recommended by the Department of the Attorney General to comply with the requirements for awarding grants of public money in article VII, section 4 of the Hawaii State Constitution; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1298, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1298, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Labor,
|
|
|
____________________________ JACKSON D. SAYAMA, Chair |
|
|
|
|
STAND. COM. REP. NO. 141
Honolulu, Hawaii
, 2025
RE: H.B. No. 1298
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Housing, to which was referred H.B. No. 1298 entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Require the Hawaii Housing Finance and Development Corporation to establish a Government Employee Housing Revolving Fund Program and Government Employee Ninety-Nine Year Leasehold Rent-to-Own Program; and
(2) Establish the Government Employee Housing Revolving Fund.
Your Committee finds that there is a critical need to attract and retain State and County employees. Your Committee further finds that rising costs of housing has become a significant barrier to workforce stability, forcing many residents to leave the State in search of more affordable housing opportunities. Your Committee believes that providing affordable housing opportunities on state owned land, particularly in transit-oriented development areas, will enhance the quality of life of government employees, attract qualified candidates, and support the State's broader goals of sustainable growth.
Your Committee has amended this measure by:
(1) Clarifying that the Government Employee Housing Revolving Fund (Revolving Fund) shall be used to provide interim and permanent loans and grants;
(2) Specifying that sixty percent of available units funded with monies from the Revolving Fund, rather than all, shall be for persons and families with incomes at or below one hundred forty percent of the area median income;
(3) Specifying that state departments and agencies, instead of nonprofit organizations, are eligible applicants for funding under the Government Employee Housing Revolving Fund Program;
(4) Authorizing, rather than requiring, the Hawaii Housing Finance and Development Corporation to credit a portion of rent toward the purchase of a unit under the Government Employee Ninety-Nine Year Lease hold Rent-to-Own Program;
(5) Exempting, rather than subjecting, design and development contracts for residential condominium units within a transit-oriented development site and construction contracts from the State Procurement Code;
(6) Changing the effective date to July 1, 3000, to encourage further discussion; and
(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
Your Committee notes that in its testimony, the Hawaii Housing Finance and Development Corporation requested $450,000 out of the Dwelling Unit Revolving Fund for the establishment of two full time equivalent (2.00 FTE) to administer the programs established by this measure.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1298, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1298, H.D. 1, and be referred to your Committee on Labor.
Respectfully submitted on behalf of the members of the Committee on Housing,
|
|
|
____________________________ LUKE A. EVSLIN, Chair |
|
|
|
|
|
Date
|
Testimony PDF
|
|---|---|
| Apr 3, 2025 | HB1298_SD1_TESTIMONY_WAM_04-03-25_.PDF |
| Mar 18, 2025 | HB1298_HD3_TESTIMONY_HOU-LBT_03-18-25_.PDF |
| Feb 25, 2025 | HB1298_HD2_TESTIMONY_FIN_02-25-25_.PDF |
| Feb 10, 2025 | HB1298_HD1_TESTIMONY_LAB_02-11-25_.PDF |
| Jan 29, 2025 | HB1298_TESTIMONY_HSG_01-29-25_.PDF |
Discussed in Hearing
45SEC
Conference Committee
1MIN
Conference Committee
1MIN
Senate Standing Committee on Housing
1MIN
Senate Standing Committee on Labor and Technology
1MIN
Senate Standing Committee on Water and Land
59SEC
House Standing Committee on Finance
5MIN
House Standing Committee on Labor
4MIN
House Standing Committee on Housing
Bill Author
Bill Co-Author(s):