HB 1432: RELATING TO HOUSING.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 201H-206, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Loans shall be awarded in the following descending order of priority:

     (1)  Projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development, United States Department of Agriculture Rural Development, and United States Department of the Treasury Community Development Financial Institutions Fund, wherein:

          (A)  At least fifty per cent of the available units are reserved for persons and families having incomes at or below eighty per cent of the median family income and of which at least five per cent of the available units are for persons and families having incomes at or below fifty per cent of the median family income; and

          (B)  The remaining units are reserved for persons and families having incomes at or below one hundred twenty per cent of the median family income; [and]

     (2)  Mixed-income affordable for-sale housing projects or units in a mixed-income affordable for-sale housing project wherein all of the available units are reserved for persons and families having incomes at or below one hundred per cent of the median family income[.]; and

     (3)  Loan funds administered by certified nonprofit community development financial institutions to finance the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for-sale housing for persons and families having incomes set forth in paragraphs (1) and (2).

     (c)  Moneys in the fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for‑sale housing units.  Uses of moneys in the fund may include but are not limited to planning, design, and land acquisition, including the costs of options, agreements of sale, and down payments; [equity] financing as matching funds for nonprofit community development financial institutions[;] to mobilize philanthropic, private, or other public funding sources; or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide that money from the fund shall be leveraged with other financial resources to the extent possible."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Housing; Affordable Homeownership Revolving Fund; Nonprofit Community Development Financial Institutions

Description:

Adds loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to list of loan priorities for the Affordable Homeownership Revolving Fund.  Expands use of funds in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.  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.

A BILL FOR AN ACT

relating to housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 201H-206, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Loans shall be awarded in the following descending order of priority:

     (1)  Projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development, United States Department of Agriculture Rural Development, and United States Department of the Treasury Community Development Financial Institutions Fund, wherein:

          (A)  At least fifty per cent of the available units are reserved for persons and families having incomes at or below eighty per cent of the median family income and of which at least five per cent of the available units are for persons and families having incomes at or below fifty per cent of the median family income; and

          (B)  The remaining units are reserved for persons and families having incomes at or below one hundred twenty per cent of the median family income; [and]

     (2)  Mixed-income affordable for-sale housing projects or units in a mixed-income affordable for-sale housing project wherein all of the available units are reserved for persons and families having incomes at or below one hundred per cent of the median family income[.]; and

     (3)  Loan funds administered by certified nonprofit community development financial institutions to finance the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for-sale housing for persons and families having incomes set forth in paragraphs (b)(1) and (2).

     (c)  Moneys in the fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for‑sale housing units.  Uses of moneys in the fund may include but are not limited to planning, design, and land acquisition, including the costs of options, agreements of sale, and down payments; [equity] financing as matching funds for nonprofit community development financial institutions[;] to mobilize philanthropic, private, or other public funding sources; or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide that money from the fund shall be leveraged with other financial resources to the extent possible."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Housing; Affordable Homeownership Revolving Fund; Nonprofit CDFIs

Description:

Adds loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs)for certain for-sale affordable housing projects to list of loan priorities for the Affordable Homeownership Revolving Fund.  Expands use of moneys in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  488

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1432

      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. 1432 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Add loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund; and

     (2)  Expand use of monies in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.  Your Committee received testimony in opposition to this measure from one individual.  

     Your Committee finds that this measure helps more CDFIs access additional capital from federal, private, and philanthropic sources, which will amplify the impact of the Affordable Homeownership Revolving Fund and ensure broader financial support for projects serving low- and moderate-income families, in alignment with the State's commitment to increasing affordable housing availability.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

     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. 1432, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1432, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,