HB 2476: Counties; Housing Infrastructure Growth Bonds; Constitutional Amendments
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2026-02-19
Current Status:
Failed
(2026-03-10: Referred to EIG, JDC/WAM.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
Proposes a constitutional change allowing the Legislature to let counties and other local governments issue housing infrastructure growth bonds. Those bonds would be paid only from the extra property tax revenue created inside a designated area (the increase in assessed value there) and would be excluded from calculations of a county's funded debt.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds for specified public works, public improvements, or other actions necessary for housing and community development, and exclude these bonds from determinations of the funded debt of the political subdivisions. Effective 7/1/3000. (HD2)
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds, and exclude these bonds from determinations of the funded debt of the political subdivisions for specified public works, public improvements, or other actions necessary for housing and community development. Effective 7/1/3000. (HD1)
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds, and exclude these bonds from determinations of the funded debt of the political subdivisions for specified public works, public improvements, or other actions necessary for new housing development.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2476 |
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THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
PROPOSING AMENDMENTS TO ARTICLE VII, SECTIONS 12 AND 13, OF THE HAWAII STATE CONSTITUTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii faces a severe and ongoing shortage of housing for local residents and that this crisis cannot be solved without large, sustained investments in the infrastructure needed to produce new homes. In particular, there is a shortage of infrastructure in transit-oriented development areas and other priority growth areas across all counties. State-funded planning efforts and the Hawaii TOD Infrastructure Financing and Delivery Strategy Study documented that four transit-oriented-development pilot areas alone will require hundreds of millions of dollars in new water, wastewater, drainage, road, and sea-level-rise mitigation projects to support thousands of new homes. Existing funding mechanisms--individual project-by-project contributions and irregular capital improvement program appropriations--are fragmented, inequitable, and insufficient to provide the scale and timing of revenue needed for these infrastructure investments. Without adequate funding for housing infrastructure, Hawaii will not be able to solve its dire shortage of housing.
The legislature further finds that counties have limited tools to raise the revenues necessary to support housing-enabling infrastructure. The Hawaii TOD Infrastructure Financing and Delivery Strategy Study, funded by the legislature pursuant to Act 88, Session Laws of Hawaii 2021, concluded that additional tools, especially value capture mechanisms, are needed to supplement existing county and state resources and to provide access to regular, large sources of funds and financing that do not interfere with counties' normal bonding activities.
The legislature also finds that housing infrastructure growth bonds are a proven value capture tool used in many other jurisdictions to help fund housing-enabling infrastructure. Through this form of financing, commonly implemented through tax increment financing, a county may establish a district and use a portion of the future growth in real property tax revenues--generated by new development and appreciation of existing properties within that district--to pay for present-day infrastructure. Housing infrastructure growth bonds do not require creating a new tax or increasing property tax rates. Instead, they designate a portion of the natural growth in property tax revenues, which is generated by new development and rising property values within a designated area, and allow those revenues to be pledged to bonds that provide upfront capital for infrastructure.
In addition, the legislature finds that the Hawaii TOD Infrastructure Financing and Delivery Strategy Study specifically recommended that the State first authorize a ballot measure for a constitutional amendment to clearly permit counties to issue housing infrastructure growth bonds and exclude such bonds from county debt limits and then amend the tax increment financing statutes to allow additional flexibility, including non-contiguous districts; the use of tax increment from higher-value areas to support infrastructure in areas of need; and, where appropriate, the capture of certain state-level tax increments.
Therefore, the purpose of this Act is to propose amendments to article VII, sections 12 and 13, of the Hawaii State Constitution to:
(1) Expressly authorize the legislature to empower the counties and other political subdivisions of the State to issue housing infrastructure growth bonds, a form of financing payable solely from incremental real property tax revenues generated within designated districts;
(2) Clarify that these bonds are payable solely from those incremental real property tax revenues and need not be supported by countywide tax increases; and
(3) Exclude such bonds from county debt limit calculations to the extent they are in fact repaid from those incremental revenues.
It is the intent of the legislature that if the proposed constitutional amendments are approved by the electorate, subsequent implementing legislation and county ordinances will establish housing infrastructure growth bond programs consistent with these findings and the best-practice recommendations of the Hawaii TOD Infrastructure Financing and Delivery Strategy Study so that new development helps pay for the housing-enabling infrastructure it requires while safeguarding county fiscal health and advancing affordable housing goals statewide.
SECTION 2. Article VII, section 12, of the Constitution of the State of Hawaii is amended to read as follows:
"DEFINITIONS; ISSUANCE OF INDEBTEDNESS
Section 12. For the purposes of this article:
1. The term "bonds" shall include bonds, notes and other instruments of indebtedness.
2. The term "community development" means the planning, acquisition, ownership, construction, reconstruction, rehabilitation, or improvement of capital projects or improvements, including real or personal property, or any interest therein, that advances a community's values, culture, and vision. Community development shall be limited to capital assets and shall not include operating expenses.
3. The term "dam and reservoir owner" means any person who has a right to, title to, or an interest in, a dam, a reservoir, or the property upon which a dam, a reservoir, or appurtenant work is located or proposed to be located.
[2.] 4. The term "general obligation bonds"
means all bonds for the payment of the principal and interest of which the full
faith and credit of the State or a political subdivision are pledged and,
unless otherwise indicated, includes reimbursable general obligation bonds.
5. The term "housing infrastructure growth bonds" means all bonds, the principal of and interest on which are payable from and secured solely by all real property taxes levied by a political subdivision, such as a county, on the assessed valuation of the real property in a designated district established by the political subdivision that is in excess of the assessed valuation of the real property for the fiscal year before the effective date specified by resolution of the political subdivision of the specified public works, public improvements or other actions necessary for housing and community development by the political subdivision within the designated district.
[3.] 6. The term "net revenues" or
"net user tax receipts" means the revenues or receipts derived from:
a. A public undertaking, improvement or system remaining after the costs of operation, maintenance and repair of the public undertaking, improvement or system, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made; or
b. Any payments or return on security under a loan program or a loan thereunder, after the costs of operation and administration of the loan program, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made.
[4. The term "dam and reservoir owner"
means any person who has a right to, title to, or an interest in, a dam, a
reservoir, or the property upon which a dam, a reservoir, or appurtenant work
is located or proposed to be located.
5.] 7. The term "person" means an
individual, firm, partnership, corporation, association, cooperative or other
legal entity, governmental body or agency, board, bureau or other
instrumentality thereof, or any combination of the foregoing.
[6.] 8. The term "rates, rentals and
charges" means all revenues and other moneys derived from the operation or
lease of a public undertaking, improvement or system, or derived from any
payments or return on security under a loan program or a loan thereunder;
provided that insurance premium payments, assessments and surcharges, shall
constitute rates, rentals and charges of a state property insurance program.
[7.] 9. The term "reimbursable general
obligation bonds" means general obligation bonds issued for a public
undertaking, improvement or system from which revenues, or user taxes, or a
combination of both, may be derived for the payment of the principal and
interest as reimbursement to the general fund and for which reimbursement is
required by law, and, in the case of general obligation bonds issued by the
State for a political subdivision, general obligation bonds for which the
payment of the principal and interest as reimbursement to the general fund is
required by law to be made from the revenue of the political subdivision.
[8.] 10. The term "revenue bonds" means all
bonds payable from the revenues, or user taxes, or any combination of both, of
a public undertaking, improvement, system or loan program and any loan made
thereunder and secured as may be provided by law, including a loan program to
provide loans to a state property insurance program providing hurricane
insurance coverage to the general public.
[9.] 11. The term "special purpose revenue
bonds" means all bonds payable from rental or other payments made to an
issuer by a person pursuant to contract and secured as may be provided by law.
[10.] 12. The term "user tax" means a tax on
goods or services or on the consumption thereof, the receipts of which are
substantially derived from the consumption, use or sale of goods and services
in the utilization of the functions or services furnished by a public
undertaking, improvement or system; provided that mortgage recording taxes
shall constitute user taxes of a state property insurance program.
The legislature, by a majority vote
of the members to which each house is entitled, shall authorize the issuance of
all general obligation bonds, bonds issued under special improvement statutes
and revenue bonds issued by or on behalf of the State and shall prescribe by
general law the manner and procedure for such issuance. The legislature by general law shall
authorize political subdivisions to issue general obligation bonds, bonds
issued under special improvement statutes [and], revenue bonds and
housing infrastructure growth bonds and shall prescribe the manner and
procedure for such issuance. All such
bonds issued by or on behalf of a political subdivision shall be authorized by
the governing body of such political subdivision.
Special purpose revenue bonds shall only be authorized or issued to finance facilities of or for, or to loan the proceeds of such bonds to assist:
1. Manufacturing, processing or industrial enterprises;
2. Utilities serving the general public;
3. Health care facilities provided to the general public by not-for-profit corporations;
4. Early childhood education and care facilities provided to the general public by not-for-profit corporations;
5. Low and moderate income government housing programs;
6. Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges and universities;
7. Agricultural enterprises; or
8. Dam and reservoir owners; provided that the bonds are issued for and the proceeds are used to offer loans to assist dam and reservoir owners to improve their facilities to protect public safety and provide significant benefits to the general public as important water sources,
each of which is hereinafter referred to in this paragraph as a special purpose entity.
The legislature, by a two-thirds
vote of the members to which each house is entitled, may enact enabling
legislation for the issuance of special purpose revenue bonds separately for
each special purpose entity, and, by a two-thirds vote of the members to which
each house is entitled and by separate legislative bill, may authorize the
State to issue special purpose revenue bonds for each single project or
multi-project program of each special purpose entity; provided that the
issuance of such special purpose revenue bonds is found to be in the public
interest by the legislature; [and] provided further that the State may
combine into a single issue of special purpose revenue bonds two or more
proposed issues of special purpose revenue bonds to assist:
(1) Not-for-profit
private nonsectarian and sectarian elementary schools, secondary schools,
colleges[,] and universities;
(2) Dam and reservoir owners; or
(3) Agricultural enterprises,
separately authorized as aforesaid, in the total amount not exceeding the aggregate of the proposed separate issues of special purpose revenue bonds. The legislature may enact enabling legislation to authorize political subdivisions to issue special purpose revenue bonds. If so authorized, a political subdivision by a two-thirds vote of the members to which its governing body is entitled and by separate ordinance may authorize the issuance of special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the governing body of the political subdivision. No special purpose revenue bonds shall be secured directly or indirectly by the general credit of the issuer or by any revenues or taxes of the issuer other than receipts derived from payments by a person or persons under contract or from any security for such contract or contracts or special purpose revenue bonds and no moneys other than such receipts shall be applied to the payment thereof. The governor shall provide the legislature in November of each year with a report on the cumulative amount of all special purpose revenue bonds authorized and issued, and such other information as may be necessary."
SECTION 3. Article VII, section 13, of the Constitution of the State of Hawaii is amended to read as follows:
"DEBT LIMIT; EXCLUSIONS
Section 13. General obligation bonds may be issued by the
State; provided that such bonds at the time of issuance would not cause the
total amount of principal and interest payable in the current or any future
fiscal year, whichever is higher, on such bonds and on all outstanding general
obligation bonds to exceed: a sum equal
to twenty percent of the average of the general fund revenues of the State in
the three fiscal years immediately preceding such issuance until June 30,
1982; and thereafter, a sum equal to eighteen and one-half percent of the
average of the general fund revenues of the State in the three fiscal years
immediately preceding such issuance.
Effective July 1, 1980, the legislature shall include a declaration
of findings in every general law authorizing the issuance of general obligation
bonds that the total amount of principal and interest, estimated for such bonds
and for all bonds authorized and unissued and calculated for all bonds issued and
outstanding, will not cause the debt limit to be exceeded at the time of
issuance. Any bond issue by or on behalf
of the State may exceed the debt limit if an emergency condition is declared to
exist by the governor and concurred to by a two-thirds vote of the members to
which each house of the legislature is entitled. For the purpose of this paragraph, general
fund revenues of the State shall not include moneys received as grants from the
federal government and receipts in reimbursement of any reimbursable general
obligation bonds [which] that are excluded as permitted by this
section.
A sum equal to fifteen percent of the total of the assessed values for tax rate purposes of real property in each political subdivision, as determined by the last tax assessment rolls pursuant to law, is established as the limit of the funded debt of such political subdivision that is outstanding and unpaid at any time.
All general obligation bonds for a term exceeding two years shall be in serial form maturing in substantially equal installments of principal, or maturing in substantially equal installments of both principal and interest. The first installment of principal of general obligation bonds and of reimbursable general obligation bonds shall mature not later than five years from the date of issue of such series. The last installment on general obligation bonds shall mature not later than twenty-five years from the date of such issue and the last installment on general obligation bonds sold to the federal government, on reimbursable general obligation bonds and on bonds constituting instruments of indebtedness under which the State or a political subdivision incurs a contingent liability as a guarantor shall mature not later than thirty-five years from the date of such issue. The interest and principal payments of general obligation bonds shall be a first charge on the general fund of the State or political subdivision, as the case may be.
In determining the power of the State to issue general obligation bonds or the funded debt of any political subdivision under section 12, the following shall be excluded:
1. Bonds that have matured, or that mature in the then current fiscal year, or that have been irrevocably called for redemption and the redemption date has occurred or will occur in the then fiscal year, or for the full payment of which moneys or securities have been irrevocably set aside.
2. Revenue bonds, if the issuer thereof is obligated by law to impose rates, rentals and charges for the use and services of the public undertaking, improvement or system or the benefits of a loan program or a loan thereunder or to impose a user tax, or to impose a combination of rates, rentals and charges and user tax, as the case may be, sufficient to pay the cost of operation, maintenance and repair, if any, of the public undertaking, improvement or system or the cost of maintaining a loan program or a loan thereunder and the required payments of the principal of and interest on all revenue bonds issued for the public undertaking, improvement or system or loan program, and if the issuer is obligated to deposit such revenues or tax or a combination of both into a special fund and to apply the same to such payments in the amount necessary therefor.
3. Special purpose revenue bonds, if the issuer thereof is required by law to contract with a person obligating such person to make rental or other payments to the issuer in an amount at least sufficient to make the required payment of the principal of and interest on such special purpose revenue bonds.
4. Bonds issued under special improvement statutes when the only security for such bonds is the properties benefited or improved or the assessments thereon.
5. General obligation bonds issued for assessable improvements, but only to the extent that reimbursements to the general fund for the principal and interest on such bonds are in fact made from assessment collections available therefor.
6. Reimbursable general obligation bonds issued for a public undertaking, improvement or system but only to the extent that reimbursements to the general fund are in fact made from the net revenue, or net user tax receipts, or combination of both, as determined for the immediately preceding fiscal year.
7. Reimbursable general obligation bonds issued
by the State for any political subdivision, whether issued before or after the
effective date of this section, but only for as long as reimbursement by the
political subdivision to the State for the payment of principal and interest on
such bonds is required by law; provided that in the case of bonds issued after
the effective date of this section, the consent of the governing body of the
political subdivision has first been obtained; [and] provided further
that during the period that such bonds are excluded by the State, the principal
amount then outstanding shall be included within the funded debt of such
political subdivision.
8. Bonds constituting instruments of indebtedness under which the State or any political subdivision incurs a contingent liability as a guarantor, but only to the extent the principal amount of such bonds does not exceed seven percent of the principal amount of outstanding general obligation bonds not otherwise excluded under this section; provided that the State or political subdivision shall establish and maintain a reserve in an amount in reasonable proportion to the outstanding loans guaranteed by the State or political subdivision as provided by law.
9. Bonds issued by or on behalf of the State or by any political subdivision to meet appropriations for any fiscal period in anticipation of the collection of revenues for such period or to meet casual deficits or failures of revenue, if required to be paid within one year, and bonds issued by or on behalf of the State to suppress insurrection, to repel invasion, to defend the State in war or to meet emergencies caused by disaster or act of God.
10. Housing infrastructure growth bonds issued pursuant to section 12 of this article.
The total outstanding indebtedness of the State or funded debt of any political subdivision and the exclusions therefrom permitted by this section shall be made annually and certified by law or as provided by law. For the purposes of section 12 and this section, amounts received from on-street parking may be considered and treated as revenues of a parking undertaking.
Nothing in section 12 or in this section shall prevent the refunding of any bond at any time."
SECTION 4. The question to be printed on the ballot shall be as follows:
"Shall the Hawaii State Constitution be amended to authorize counties to issue housing infrastructure growth bonds, the repayment of which shall be secured solely by the incremental increase in real property tax revenues attributable to the increase in assessed real property values within a designated district established for housing-related public improvements?"
SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.
SECTION 6. This Act shall take effect on July 1, 3000; provided that these amendments shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.
Report Title:
Counties; Housing Infrastructure Growth Bonds; Constitutional Amendments
Description:
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds for specified public works, public improvements, or other actions necessary for housing and community development, and exclude these bonds from determinations of the funded debt of the political subdivisions. 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.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2476 |
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THIRTY-THIRD LEGISLATURE, 2026 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
PROPOSING AMENDMENTS TO ARTICLE VII, SECTIONS 12 AND 13, OF THE HAWAII STATE CONSTITUTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii faces a severe and ongoing shortage of housing for local residents and that this crisis cannot be solved without large, sustained investments in the infrastructure needed to produce new homes. In particular, there is a shortage of infrastructure in transit-oriented development areas and other priority growth areas across all counties. State-funded planning efforts and the Hawaii TOD Infrastructure Financing and Delivery Strategy Study documented that four transit-oriented-development pilot areas alone will require hundreds of millions of dollars in new water, wastewater, drainage, road, and sea-level-rise mitigation projects to support thousands of new homes. Existing funding mechanisms--individual project-by-project contributions and irregular capital improvement program appropriations--are fragmented, inequitable, and insufficient to provide the scale and timing of revenue needed for these infrastructure investments. Without adequate funding for housing infrastructure, Hawaii will not be able to solve its dire shortage of housing.
The legislature further finds that counties have limited tools to raise the revenues necessary to support housing-enabling infrastructure. The TOD Infrastructure Financing and Delivery Strategy Study, funded by the legislature pursuant to Act 88, Session Laws of Hawaii 2021, concluded that additional tools, especially value capture mechanisms, are needed to supplement existing county and state resources and to provide access to regular, large sources of funds and financing that do not interfere with counties' normal bonding activities.
The legislature also finds that housing infrastructure growth bonds are a proven value capture tool used in many other jurisdictions to help fund housing-enabling infrastructure. Through this form of financing, commonly implemented through tax increment financing, a county may establish a district and use a portion of the future growth in real property tax revenues--generated by new development and appreciation of existing properties within that district--to pay for present-day infrastructure. Housing infrastructure growth bonds do not require creating a new tax or increasing property tax rates. Instead, they designate a portion of the natural growth in property tax revenues, which is generated by new development and rising property values within a designated area, and allow those revenues to be pledged to bonds that provide upfront capital for infrastructure.
In addition, the legislature finds that the TOD Infrastructure Financing and Delivery Strategy Study specifically recommended that the State first authorize a ballot measure for a constitutional amendment to clearly permit counties to issue housing infrastructure growth bonds and exclude such bonds from county debt limits and then amend the tax increment financing statutes to allow additional flexibility, including non-contiguous districts; the use of tax increment from higher-value areas to support infrastructure in areas of need; and, where appropriate, the capture of certain state-level tax increments.
Therefore, the purpose of this Act is to propose amendments to article VII, sections 12 and 13, of the Hawaii State Constitution to:
(1) Expressly authorize the legislature to empower the counties and other political subdivisions of the State to issue housing infrastructure growth bonds, a form of financing payable solely from incremental real property tax revenues generated within designated districts;
(2) Clarify that these bonds are payable solely from those incremental real property tax revenues and need not be supported by countywide tax increases; and
(3) Exclude such bonds from county debt limit calculations to the extent they are in fact repaid from those incremental revenues.
It is the intent of the legislature that if the proposed constitutional amendments are approved by the electorate, subsequent implementing legislation and county ordinances will establish housing infrastructure growth bond programs consistent with these findings and the best-practice recommendations of the TOD Infrastructure Financing and Delivery Strategy Study so that new development helps pay for the housing-enabling infrastructure it requires while safeguarding county fiscal health and advancing affordable housing goals statewide.
SECTION 2. Article VII, section 12, of the Constitution of the State of Hawaii is amended to read as follows:
"DEFINITIONS; ISSUANCE OF INDEBTEDNESS
Section 12. For the purposes of this article:
1. The term "bonds" shall include bonds, notes and other instruments of indebtedness.
2. The term "general obligation bonds" means all bonds for the payment of the principal and interest of which the full faith and credit of the State or a political subdivision are pledged and, unless otherwise indicated, includes reimbursable general obligation bonds.
3. The term "net revenues" or "net user tax receipts" means the revenues or receipts derived from:
a. A public undertaking, improvement or system remaining after the costs of operation, maintenance and repair of the public undertaking, improvement or system, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made; or
b. Any payments or return on security under a loan program or a loan thereunder, after the costs of operation and administration of the loan program, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made.
4. The term "dam and reservoir owner" means any person who has a right to, title to, or an interest in, a dam, a reservoir, or the property upon which a dam, a reservoir, or appurtenant work is located or proposed to be located.
5. The term "person" means an individual, firm, partnership, corporation, association, cooperative or other legal entity, governmental body or agency, board, bureau or other instrumentality thereof, or any combination of the foregoing.
6. The term "rates, rentals and charges" means all revenues and other moneys derived from the operation or lease of a public undertaking, improvement or system, or derived from any payments or return on security under a loan program or a loan thereunder; provided that insurance premium payments, assessments and surcharges, shall constitute rates, rentals and charges of a state property insurance program.
7. The term "reimbursable general obligation bonds" means general obligation bonds issued for a public undertaking, improvement or system from which revenues, or user taxes, or a combination of both, may be derived for the payment of the principal and interest as reimbursement to the general fund and for which reimbursement is required by law, and, in the case of general obligation bonds issued by the State for a political subdivision, general obligation bonds for which the payment of the principal and interest as reimbursement to the general fund is required by law to be made from the revenue of the political subdivision.
8. The term "revenue bonds" means all bonds payable from the revenues, or user taxes, or any combination of both, of a public undertaking, improvement, system or loan program and any loan made thereunder and secured as may be provided by law, including a loan program to provide loans to a state property insurance program providing hurricane insurance coverage to the general public.
9. The term "special purpose revenue bonds" means all bonds payable from rental or other payments made to an issuer by a person pursuant to contract and secured as may be provided by law.
10. The term "housing infrastructure growth bonds" means all bonds, the principal of and interest on which are payable from and secured solely by all real property taxes levied by a political subdivision, such as a county, on the assessed valuation of the real property in a designated district established by the political subdivision that is in excess of the assessed valuation of the real property for the fiscal year prior to the effective date specified by resolution of the political subdivision of the specified public works, public improvements or other actions necessary for housing and community development by the political subdivision within the designated district.
[10.] 11. The term "user tax" means a tax on
goods or services or on the consumption thereof, the receipts of which are
substantially derived from the consumption, use or sale of goods and services
in the utilization of the functions or services furnished by a public
undertaking, improvement or system; provided that mortgage recording taxes
shall constitute user taxes of a state property insurance program.
The legislature, by a majority vote
of the members to which each house is entitled, shall authorize the issuance of
all general obligation bonds, bonds issued under special improvement statutes
and revenue bonds issued by or on behalf of the State and shall prescribe by
general law the manner and procedure for such issuance. The legislature by general law shall
authorize political subdivisions to issue general obligation bonds, bonds
issued under special improvement statutes [and], revenue bonds and
housing infrastructure growth bonds and shall prescribe the manner and
procedure for such issuance. All such
bonds issued by or on behalf of a political subdivision shall be authorized by
the governing body of such political subdivision.
Special purpose revenue bonds shall only be authorized or issued to finance facilities of or for, or to loan the proceeds of such bonds to assist:
1. Manufacturing, processing or industrial enterprises;
2. Utilities serving the general public;
3. Health care facilities provided to the general public by not-for-profit corporations;
4. Early childhood education and care facilities provided to the general public by not-for-profit corporations;
5. Low and moderate income government housing programs;
6. Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges and universities;
7. Agricultural enterprises; or
8. Dam and reservoir owners; provided that the bonds are issued for and the proceeds are used to offer loans to assist dam and reservoir owners to improve their facilities to protect public safety and provide significant benefits to the general public as important water sources,
each of which is hereinafter referred to in this paragraph as a special purpose entity.
The legislature, by a two-thirds vote of the members to which each house is entitled, may enact enabling legislation for the issuance of special purpose revenue bonds separately for each special purpose entity, and, by a two-thirds vote of the members to which each house is entitled and by separate legislative bill, may authorize the State to issue special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the legislature; and provided further that the State may combine into a single issue of special purpose revenue bonds two or more proposed issues of special purpose revenue bonds to assist:
(1) Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges, and universities;
(2) Dam and reservoir owners; or
(3) Agricultural enterprises,
separately authorized as aforesaid, in the total amount not exceeding the aggregate of the proposed separate issues of special purpose revenue bonds. The legislature may enact enabling legislation to authorize political subdivisions to issue special purpose revenue bonds. If so authorized, a political subdivision by a two-thirds vote of the members to which its governing body is entitled and by separate ordinance may authorize the issuance of special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the governing body of the political subdivision. No special purpose revenue bonds shall be secured directly or indirectly by the general credit of the issuer or by any revenues or taxes of the issuer other than receipts derived from payments by a person or persons under contract or from any security for such contract or contracts or special purpose revenue bonds and no moneys other than such receipts shall be applied to the payment thereof. The governor shall provide the legislature in November of each year with a report on the cumulative amount of all special purpose revenue bonds authorized and issued, and such other information as may be necessary."
SECTION 3. Article VII, section 13, of the Constitution of the State of Hawaii is amended to read as follows:
"DEBT LIMIT; EXCLUSIONS
Section 13. General obligation bonds may be issued by the State; provided that such bonds at the time of issuance would not cause the total amount of principal and interest payable in the current or any future fiscal year, whichever is higher, on such bonds and on all outstanding general obligation bonds to exceed: a sum equal to twenty percent of the average of the general fund revenues of the State in the three fiscal years immediately preceding such issuance until June 30, 1982; and thereafter, a sum equal to eighteen and one-half percent of the average of the general fund revenues of the State in the three fiscal years immediately preceding such issuance. Effective July 1, 1980, the legislature shall include a declaration of findings in every general law authorizing the issuance of general obligation bonds that the total amount of principal and interest, estimated for such bonds and for all bonds authorized and unissued and calculated for all bonds issued and outstanding, will not cause the debt limit to be exceeded at the time of issuance. Any bond issue by or on behalf of the State may exceed the debt limit if an emergency condition is declared to exist by the governor and concurred to by a two-thirds vote of the members to which each house of the legislature is entitled. For the purpose of this paragraph, general fund revenues of the State shall not include moneys received as grants from the federal government and receipts in reimbursement of any reimbursable general obligation bonds which are excluded as permitted by this section.
A sum equal to fifteen percent of the total of the assessed values for tax rate purposes of real property in each political subdivision, as determined by the last tax assessment rolls pursuant to law, is established as the limit of the funded debt of such political subdivision that is outstanding and unpaid at any time.
All general obligation bonds for a term exceeding two years shall be in serial form maturing in substantially equal installments of principal, or maturing in substantially equal installments of both principal and interest. The first installment of principal of general obligation bonds and of reimbursable general obligation bonds shall mature not later than five years from the date of issue of such series. The last installment on general obligation bonds shall mature not later than twenty-five years from the date of such issue and the last installment on general obligation bonds sold to the federal government, on reimbursable general obligation bonds and on bonds constituting instruments of indebtedness under which the State or a political subdivision incurs a contingent liability as a guarantor shall mature not later than thirty-five years from the date of such issue. The interest and principal payments of general obligation bonds shall be a first charge on the general fund of the State or political subdivision, as the case may be.
In determining the power of the State to issue general obligation bonds or the funded debt of any political subdivision under section 12, the following shall be excluded:
1. Bonds that have matured, or that mature in the then current fiscal year, or that have been irrevocably called for redemption and the redemption date has occurred or will occur in the then fiscal year, or for the full payment of which moneys or securities have been irrevocably set aside.
2. Revenue bonds, if the issuer thereof is obligated by law to impose rates, rentals and charges for the use and services of the public undertaking, improvement or system or the benefits of a loan program or a loan thereunder or to impose a user tax, or to impose a combination of rates, rentals and charges and user tax, as the case may be, sufficient to pay the cost of operation, maintenance and repair, if any, of the public undertaking, improvement or system or the cost of maintaining a loan program or a loan thereunder and the required payments of the principal of and interest on all revenue bonds issued for the public undertaking, improvement or system or loan program, and if the issuer is obligated to deposit such revenues or tax or a combination of both into a special fund and to apply the same to such payments in the amount necessary therefor.
3. Special purpose revenue bonds, if the issuer thereof is required by law to contract with a person obligating such person to make rental or other payments to the issuer in an amount at least sufficient to make the required payment of the principal of and interest on such special purpose revenue bonds.
4. Bonds issued under special improvement statutes when the only security for such bonds is the properties benefited or improved or the assessments thereon.
5. General obligation bonds issued for assessable improvements, but only to the extent that reimbursements to the general fund for the principal and interest on such bonds are in fact made from assessment collections available therefor.
6. Reimbursable general obligation bonds issued for a public undertaking, improvement or system but only to the extent that reimbursements to the general fund are in fact made from the net revenue, or net user tax receipts, or combination of both, as determined for the immediately preceding fiscal year.
7. Reimbursable general obligation bonds issued by the State for any political subdivision, whether issued before or after the effective date of this section, but only for as long as reimbursement by the political subdivision to the State for the payment of principal and interest on such bonds is required by law; provided that in the case of bonds issued after the effective date of this section, the consent of the governing body of the political subdivision has first been obtained; and provided further that during the period that such bonds are excluded by the State, the principal amount then outstanding shall be included within the funded debt of such political subdivision.
8. Bonds constituting instruments of indebtedness under which the State or any political subdivision incurs a contingent liability as a guarantor, but only to the extent the principal amount of such bonds does not exceed seven percent of the principal amount of outstanding general obligation bonds not otherwise excluded under this section; provided that the State or political subdivision shall establish and maintain a reserve in an amount in reasonable proportion to the outstanding loans guaranteed by the State or political subdivision as provided by law.
9. Bonds issued by or on behalf of the State or by any political subdivision to meet appropriations for any fiscal period in anticipation of the collection of revenues for such period or to meet casual deficits or failures of revenue, if required to be paid within one year, and bonds issued by or on behalf of the State to suppress insurrection, to repel invasion, to defend the State in war or to meet emergencies caused by disaster or act of God.
10. Housing infrastructure growth bonds issued pursuant to section 12 of this article.
The total outstanding indebtedness of the State or funded debt of any political subdivision and the exclusions therefrom permitted by this section shall be made annually and certified by law or as provided by law. For the purposes of section 12 and this section, amounts received from on-street parking may be considered and treated as revenues of a parking undertaking.
Nothing in section 12 or in this section shall prevent the refunding of any bond at any time."
SECTION 4. The question to be printed on the ballot shall be as follows:
"Shall the Hawaii State Constitution be amended to authorize counties to issue housing infrastructure growth bonds, the repayment of which shall be secured solely by the incremental increase in real property tax revenues attributable to the increase in assessed real property values within a designated district established for housing-related public improvements?"
SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.
SECTION 6. This Act shall take effect on July 1, 3000; provided that these amendments shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.
Report Title:
Counties; Housing Infrastructure Growth Bonds; Constitutional Amendments
Description:
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds, and exclude these bonds from determinations of the funded debt of the political subdivisions for specified public works, public improvements, or other actions necessary for housing and community development. 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.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2476 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
PROPOSING AMENDMENTS TO ARTICLE VII, SECTIONS 12 AND 13, OF THE HAWAII state CONSTITUTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii faces a severe and ongoing shortage of housing for local residents and that this crisis cannot be solved without large, sustained investments in the infrastructure needed to produce new homes. In particular, there is a shortage of infrastructure in transit-oriented development areas and other priority growth areas across all counties. State-funded planning efforts and the Hawaii TOD Infrastructure Financing and Delivery Strategy Study documented that four transit-oriented-development pilot areas alone will require hundreds of millions of dollars in new water, wastewater, drainage, road, and sea-level-rise mitigation projects to support thousands of new homes. Existing funding mechanisms--individual project-by-project contributions and irregular capital improvement program appropriations--are fragmented, inequitable, and insufficient to provide the scale and timing of revenue needed for these infrastructure investments. Without adequate funding for housing infrastructure, Hawaii will not be able to solve its dire shortage of housing.
The legislature further finds that counties have limited tools to raise the revenues necessary to support housing-enabling infrastructure. The TOD Infrastructure Financing and Delivery Strategy Study, funded by the legislature pursuant to Act 88, Session Laws of Hawaii 2021, concluded that additional tools, especially value capture mechanisms, are needed to supplement existing county and state resources and to provide access to regular, large sources of funds and financing that do not interfere with counties' normal bonding activities.
The legislature also finds that housing infrastructure growth bonds are a proven value capture tool used in many other jurisdictions to help fund housing-enabling infrastructure. Through this form of financing, commonly implemented through tax increment financing, a county may establish a district and use a portion of the future growth in real property tax revenues--generated by new development and appreciation of existing properties within that district--to pay for present-day infrastructure. Housing infrastructure growth bonds do not require creating a new tax or increasing property tax rates. Instead, they designate a portion of the natural growth in property tax revenues, which is generated by new development and rising property values within a designated area, and allow those revenues to be pledged to bonds that provide upfront capital for infrastructure.
In addition, the legislature finds that the TOD Infrastructure Financing and Delivery Strategy Study specifically recommended that the State first authorize a ballot measure for a constitutional amendment to clearly permit counties to issue housing infrastructure growth bonds and exclude such bonds from county debt limits and then amend the tax increment financing statutes to allow additional flexibility, including non-contiguous districts; the use of tax increment from higher-value areas to support infrastructure in areas of need; and, where appropriate, the capture of certain state-level tax increments.
Therefore, the purpose of this Act is to propose amendments to article VII, sections 12 and 13, of the Hawaii State Constitution to:
(1) Expressly authorize the legislature to empower the counties and other political subdivisions of the State to issue housing infrastructure growth bonds, a form of financing payable solely from incremental real property tax revenues generated within designated districts;
(2) Clarify that these bonds are payable solely from those incremental real property tax revenues and need not be supported by countywide tax increases; and
(3) Exclude such bonds from county debt limit calculations to the extent they are in fact repaid from those incremental revenues.
It is the intent of the legislature that if the proposed constitutional amendments are approved by the electorate, subsequent implementing legislation and county ordinances will establish housing infrastructure growth bond programs consistent with these findings and the best-practice recommendations of the TOD Infrastructure Financing and Delivery Strategy Study so that new development helps pay for the housing-enabling infrastructure it requires while safeguarding county fiscal health and advancing affordable housing goals statewide.
SECTION 2. Article VII, section 12, of the Constitution of the State of Hawaii is amended to read as follows:
"DEFINITIONS; ISSUANCE OF INDEBTEDNESS
Section 12. For the purposes of this article:
1. The term "bonds" shall include bonds, notes and other instruments of indebtedness.
2. The term "general obligation bonds" means all bonds for the payment of the principal and interest of which the full faith and credit of the State or a political subdivision are pledged and, unless otherwise indicated, includes reimbursable general obligation bonds.
3. The term "net revenues" or "net user tax receipts" means the revenues or receipts derived from:
a. A public undertaking, improvement or system remaining after the costs of operation, maintenance and repair of the public undertaking, improvement or system, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made; or
b. Any payments or return on security under a loan program or a loan thereunder, after the costs of operation and administration of the loan program, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made.
4. The term "dam and reservoir owner" means any person who has a right to, title to, or an interest in, a dam, a reservoir, or the property upon which a dam, a reservoir, or appurtenant work is located or proposed to be located.
5. The term "person" means an individual, firm, partnership, corporation, association, cooperative or other legal entity, governmental body or agency, board, bureau or other instrumentality thereof, or any combination of the foregoing.
6. The term "rates, rentals and charges" means all revenues and other moneys derived from the operation or lease of a public undertaking, improvement or system, or derived from any payments or return on security under a loan program or a loan thereunder; provided that insurance premium payments, assessments and surcharges, shall constitute rates, rentals and charges of a state property insurance program.
7. The term "reimbursable general obligation bonds" means general obligation bonds issued for a public undertaking, improvement or system from which revenues, or user taxes, or a combination of both, may be derived for the payment of the principal and interest as reimbursement to the general fund and for which reimbursement is required by law, and, in the case of general obligation bonds issued by the State for a political subdivision, general obligation bonds for which the payment of the principal and interest as reimbursement to the general fund is required by law to be made from the revenue of the political subdivision.
8. The term "revenue bonds" means all bonds payable from the revenues, or user taxes, or any combination of both, of a public undertaking, improvement, system or loan program and any loan made thereunder and secured as may be provided by law, including a loan program to provide loans to a state property insurance program providing hurricane insurance coverage to the general public.
9. The term "special purpose revenue bonds" means all bonds payable from rental or other payments made to an issuer by a person pursuant to contract and secured as may be provided by law.
10. The term "housing infrastructure growth bonds" means all bonds, the principal of and interest on which are payable from and secured solely by all real property taxes levied by a political subdivision, such as a county, on the assessed valuation of the real property in a designated district established by the political subdivision that is in excess of the assessed valuation of the real property for the fiscal year prior to the effective date specified by resolution of the political subdivision of the specified public works, public improvements, or other actions necessary for new housing development by the political subdivision within the designated district.
[10.] 11. The term "user tax" means a tax on
goods or services or on the consumption thereof, the receipts of which are
substantially derived from the consumption, use or sale of goods and services
in the utilization of the functions or services furnished by a public
undertaking, improvement or system; provided that mortgage recording taxes
shall constitute user taxes of a state property insurance program.
The legislature, by a majority vote
of the members to which each house is entitled, shall authorize the issuance of
all general obligation bonds, bonds issued under special improvement statutes
and revenue bonds issued by or on behalf of the State and shall prescribe by
general law the manner and procedure for such issuance. The legislature by general law shall
authorize political subdivisions to issue general obligation bonds, bonds
issued under special improvement statutes [and], revenue bonds and
housing infrastructure growth bonds and shall prescribe the manner and
procedure for such issuance. All such
bonds issued by or on behalf of a political subdivision shall be authorized by
the governing body of such political subdivision.
Special purpose revenue bonds shall only be authorized or issued to finance facilities of or for, or to loan the proceeds of such bonds to assist:
1. Manufacturing, processing or industrial enterprises;
2. Utilities serving the general public;
3. Health care facilities provided to the general public by not-for-profit corporations;
4. Early childhood education and care facilities provided to the general public by not-for-profit corporations;
5. Low and moderate income government housing programs;
6. Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges and universities;
7. Agricultural enterprises; or
8. Dam and reservoir owners; provided that the bonds are issued for and the proceeds are used to offer loans to assist dam and reservoir owners to improve their facilities to protect public safety and provide significant benefits to the general public as important water sources,
each of which is hereinafter referred to in this paragraph as a special purpose entity.
The legislature, by a two-thirds vote of the members to which each house is entitled, may enact enabling legislation for the issuance of special purpose revenue bonds separately for each special purpose entity, and, by a two-thirds vote of the members to which each house is entitled and by separate legislative bill, may authorize the State to issue special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the legislature; and provided further that the State may combine into a single issue of special purpose revenue bonds two or more proposed issues of special purpose revenue bonds to assist:
(1) Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges, and universities;
(2) Dam and reservoir owners; or
(3) Agricultural enterprises,
separately authorized as aforesaid, in the total amount not exceeding the aggregate of the proposed separate issues of special purpose revenue bonds. The legislature may enact enabling legislation to authorize political subdivisions to issue special purpose revenue bonds. If so authorized, a political subdivision by a two-thirds vote of the members to which its governing body is entitled and by separate ordinance may authorize the issuance of special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the governing body of the political subdivision. No special purpose revenue bonds shall be secured directly or indirectly by the general credit of the issuer or by any revenues or taxes of the issuer other than receipts derived from payments by a person or persons under contract or from any security for such contract or contracts or special purpose revenue bonds and no moneys other than such receipts shall be applied to the payment thereof. The governor shall provide the legislature in November of each year with a report on the cumulative amount of all special purpose revenue bonds authorized and issued, and such other information as may be necessary."
SECTION 3. Article VII, section 13, of the Constitution of the State of Hawaii is amended to read as follows:
"DEBT LIMIT; EXCLUSIONS
Section 13. General obligation bonds may be issued by the State; provided that such bonds at the time of issuance would not cause the total amount of principal and interest payable in the current or any future fiscal year, whichever is higher, on such bonds and on all outstanding general obligation bonds to exceed: a sum equal to twenty percent of the average of the general fund revenues of the State in the three fiscal years immediately preceding such issuance until June 30, 1982; and thereafter, a sum equal to eighteen and one-half percent of the average of the general fund revenues of the State in the three fiscal years immediately preceding such issuance. Effective July 1, 1980, the legislature shall include a declaration of findings in every general law authorizing the issuance of general obligation bonds that the total amount of principal and interest, estimated for such bonds and for all bonds authorized and unissued and calculated for all bonds issued and outstanding, will not cause the debt limit to be exceeded at the time of issuance. Any bond issue by or on behalf of the State may exceed the debt limit if an emergency condition is declared to exist by the governor and concurred to by a two-thirds vote of the members to which each house of the legislature is entitled. For the purpose of this paragraph, general fund revenues of the State shall not include moneys received as grants from the federal government and receipts in reimbursement of any reimbursable general obligation bonds which are excluded as permitted by this section.
A sum equal to fifteen percent of the total of the assessed values for tax rate purposes of real property in each political subdivision, as determined by the last tax assessment rolls pursuant to law, is established as the limit of the funded debt of such political subdivision that is outstanding and unpaid at any time.
All general obligation bonds for a term exceeding two years shall be in serial form maturing in substantially equal installments of principal, or maturing in substantially equal installments of both principal and interest. The first installment of principal of general obligation bonds and of reimbursable general obligation bonds shall mature not later than five years from the date of issue of such series. The last installment on general obligation bonds shall mature not later than twenty-five years from the date of such issue and the last installment on general obligation bonds sold to the federal government, on reimbursable general obligation bonds and on bonds constituting instruments of indebtedness under which the State or a political subdivision incurs a contingent liability as a guarantor shall mature not later than thirty-five years from the date of such issue. The interest and principal payments of general obligation bonds shall be a first charge on the general fund of the State or political subdivision, as the case may be.
In determining the power of the State to issue general obligation bonds or the funded debt of any political subdivision under section 12, the following shall be excluded:
1. Bonds that have matured, or that mature in the then current fiscal year, or that have been irrevocably called for redemption and the redemption date has occurred or will occur in the then fiscal year, or for the full payment of which moneys or securities have been irrevocably set aside.
2. Revenue bonds, if the issuer thereof is obligated by law to impose rates, rentals and charges for the use and services of the public undertaking, improvement or system or the benefits of a loan program or a loan thereunder or to impose a user tax, or to impose a combination of rates, rentals and charges and user tax, as the case may be, sufficient to pay the cost of operation, maintenance and repair, if any, of the public undertaking, improvement or system or the cost of maintaining a loan program or a loan thereunder and the required payments of the principal of and interest on all revenue bonds issued for the public undertaking, improvement or system or loan program, and if the issuer is obligated to deposit such revenues or tax or a combination of both into a special fund and to apply the same to such payments in the amount necessary therefor.
3. Special purpose revenue bonds, if the issuer thereof is required by law to contract with a person obligating such person to make rental or other payments to the issuer in an amount at least sufficient to make the required payment of the principal of and interest on such special purpose revenue bonds.
4. Bonds issued under special improvement statutes when the only security for such bonds is the properties benefited or improved or the assessments thereon.
5. General obligation bonds issued for assessable improvements, but only to the extent that reimbursements to the general fund for the principal and interest on such bonds are in fact made from assessment collections available therefor.
6. Reimbursable general obligation bonds issued for a public undertaking, improvement or system but only to the extent that reimbursements to the general fund are in fact made from the net revenue, or net user tax receipts, or combination of both, as determined for the immediately preceding fiscal year.
7. Reimbursable general obligation bonds issued by the State for any political subdivision, whether issued before or after the effective date of this section, but only for as long as reimbursement by the political subdivision to the State for the payment of principal and interest on such bonds is required by law; provided that in the case of bonds issued after the effective date of this section, the consent of the governing body of the political subdivision has first been obtained; and provided further that during the period that such bonds are excluded by the State, the principal amount then outstanding shall be included within the funded debt of such political subdivision.
8. Bonds constituting instruments of indebtedness under which the State or any political subdivision incurs a contingent liability as a guarantor, but only to the extent the principal amount of such bonds does not exceed seven percent of the principal amount of outstanding general obligation bonds not otherwise excluded under this section; provided that the State or political subdivision shall establish and maintain a reserve in an amount in reasonable proportion to the outstanding loans guaranteed by the State or political subdivision as provided by law.
9. Bonds issued by or on behalf of the State or by any political subdivision to meet appropriations for any fiscal period in anticipation of the collection of revenues for such period or to meet casual deficits or failures of revenue, if required to be paid within one year, and bonds issued by or on behalf of the State to suppress insurrection, to repel invasion, to defend the State in war or to meet emergencies caused by disaster or act of God.
10. Housing infrastructure growth bonds issued pursuant to section 12 of this article.
The total outstanding indebtedness of the State or funded debt of any political subdivision and the exclusions therefrom permitted by this section shall be made annually and certified by law or as provided by law. For the purposes of section 12 and this section, amounts received from on-street parking may be considered and treated as revenues of a parking undertaking.
Nothing in section 12 or in this section shall prevent the refunding of any bond at any time."
SECTION 4. The question to be printed on the ballot shall be as follows:
"Shall the Hawaii State Constitution be amended to authorize counties to issue housing infrastructure growth bonds, the repayment of which shall be secured solely by the incremental increase in real property tax revenues attributable to the increase in assessed real property values within a designated district established for housing-related public improvements?"
SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.
SECTION 6. These amendments shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Counties; Housing Infrastructure Growth Bonds; Constitutional Amendments
Description:
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds, and exclude these bonds from determinations of the funded debt of the political subdivisions for specified public works, public improvements, or other actions necessary for new housing development.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Mar 10, 2026 | Referred to EIG, JDC/WAM. |
| Mar 10, 2026 | Passed First Reading. |
| Mar 10, 2026 | Received from House (Hse. Com. No. 213). |
| Mar 6, 2026 | Notice of a bill proposing constitutional amendment in the form of (HD 2) transmitted to Governor pursuant to Article XVII, Section 3. |
| Mar 6, 2026 | Passed Third Reading with Representative(s) Cochran, Iwamoto, Shimizu voting aye with reservations; none voting no (0) and Representative(s) Perruso, Quinlan, Sayama excused (3). Transmitted to Senate. |
| Mar 6, 2026 | Reported from FIN (Stand. Com. Rep. No. 1000-26), recommending passage on Third Reading. |
| Mar 2, 2026 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Templo, Yamashita, Gedeon, Reyes Oda; Ayes with reservations: Representative(s) Hartsfield, Perruso; Noes: none; and 1 Excused: Representative(s) Alcos. |
| Feb 27, 2026 | Bill scheduled for decision making on Monday, 03-02-26 10:00AM in conference room 308 VIA VIDEOCONFERENCE. |
| Feb 27, 2026 | The committee(s) on FIN recommend(s) that the measure be deferred until 03-02-26. |
| Feb 24, 2026 | Bill scheduled to be heard by FIN on Friday, 02-27-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 20, 2026 | Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; Representative(s) Cochran voting no (1) and Representative(s) Quinlan excused (1). |
| Feb 20, 2026 | Reported from JHA (Stand. Com. Rep. No. 752-26) as amended in HD 2, recommending referral to FIN. |
| Feb 18, 2026 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Kahaloa, Takayama, Garcia; Ayes with reservations: Representative(s) Shimizu; 1 Noes: Representative(s) Cochran; and 2 Excused: Representative(s) Hashem, Sayama. |
| Feb 13, 2026 | Bill scheduled to be heard by JHA on Wednesday, 02-18-26 2:00PM in House conference room 325 VIA VIDEOCONFERENCE. |
| Feb 11, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and Representative(s) Holt excused (1). |
| Feb 11, 2026 | Reported from HSG (Stand. Com. Rep. No. 140-26) as amended in HD 1, recommending passage on Second Reading and referral to JHA. |
| Feb 6, 2026 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Cochran, Grandinetti, Kila, Kitagawa, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) La Chica. |
| Feb 3, 2026 | Bill scheduled to be heard by HSG on Friday, 02-06-26 9:30AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Feb 2, 2026 | Referred to HSG, JHA, FIN, referral sheet 6 |
| Jan 28, 2026 | Introduced and Pass First Reading. |
| Jan 27, 2026 | Pending introduction. |
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Date
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Description
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Location
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Votes
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| Mar 6, 2026 | Third Reading | House Floor |
Passed |
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| Mar 2, 2026 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
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| Feb 18, 2026 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Judiciary & Hawaiian Affairs |
Passed |
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| Feb 6, 2026 | 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.
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Organization
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Position
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Date
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| Avalon Development Company | ** Support | |
| Castle & Cook Homes Hawaiʻi, Inc. | ** Support | |
| D.R. Horton Hawaii | ** Support | |
| General Contractors Association of Hawaii | ** Support | |
| Hawaii Community Development Authority | ** Support | |
| Hawaii Housing Finance and Development Corporation | ** Support | |
| Hawaii Public Housing Authority | ** Support | |
| Hawaiʻi Association of REALTORS | ** Support | |
| Hawaiʻi Regional Council of Carpenters | ** Support | |
| Hawai‘i Community Development Authority | *** Support | Feb 28, 2026 |
| Housing Hawaiʻi's Future | ** Support | |
| International Union Of Operating Engineers Local 3 | ** Support | |
| Kobayashi Group | *** Support | Feb 6, 2026 |
| Kobayashi Group | ** Support | |
| Maui County Council | *** Support | Feb 28, 2026 |
| Move Oahu Forward | ** Support | |
| NAIOP Hawaii | ** Support | |
| Navian Hawaii | ** Support | |
| Office of Planning and Sustainable Development | ** Support | |
| PACIFIC RESOURCE PARTNERSHIP | ** Support | |
| Stanford Carr Development, LLC | ** Support |
STAND. COM. REP. NO. 1000-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2476
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 2476, H.D. 2, entitled:
"A BILL FOR AN ACT PROPOSING AMENDMENTS TO ARTICLE VII, SECTIONS 12 AND 13, OF THE HAWAII STATE CONSTITUTION,"
begs leave to report as follows:
The purpose of this measure is to propose constitutional amendments to:
(1) Expressly empower the Legislature to authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds for specified public works, public improvements, or other actions necessary for housing and community development;
(2) Clarify that these bonds are repayable solely from incremental real property tax increases and need not be supported by countywide tax increases; and
(3) Exclude these bonds from determinations of the funded debt of the political subdivisions.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaii Public Housing Authority; Office of Planning and Sustainable Development; Hawaii Community Development Authority; one member of the Maui County Council; Hawaiʻi Regional Council of Carpenters; Pacific Resource Partnership; Navian Hawaii; Housing Hawaiʻi's Future; Hawaiʻi Association of REALTORS; D.R. Horton Hawaii; NAIOP Hawaii; General Contractors Association of Hawaii; Avalon Development Company; Castle & Cook Homes Hawaiʻi, Inc.; Move Oahu Forward; and Stanford Carr Development, LLC. Your Committee received comments on this measure from the Office of the Mayor of the City and County of Honolulu and Tax Foundation of Hawaii.
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. 2476, H.D. 2, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ CHRIS TODD, Chair |
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STAND. COM. REP. NO. 752-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2476
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2476, H.D. 1, entitled:
"A BILL FOR AN ACT PROPOSING AMENDMENTS TO ARTICLE VII, SECTIONS 12 AND 13, OF THE HAWAII STATE CONSTITUTION,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Hawaii Public Housing Authority; Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Hawaiʻi Community Development Authority; Hawaiʻi Association of REALTORS; Castle & Cooke Homes Hawaiʻi, Inc.; Housing Hawaiʻi's Future; NAIOP Hawaii; General Contractors Association of Hawaii; Pacific Resource Partnership; Hawaii Regional Council of Carpenters; Stanford Carr Development; and one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of the Attorney General; Tax Foundation of Hawaii; and one individual.
Your Committee finds that Hawaii's ongoing housing shortage cannot be addressed without substantial, sustained investment in the infrastructure necessary to support new housing development, particularly in transit-oriented development areas and other priority growth areas across the State. Expressly authorizing counties to issue housing infrastructure growth bonds and excluding such bonds from county debt limit calculations, when repaid solely from incremental revenues, will provide counties with a flexible financing tool to support housing-enabling infrastructure.
Your Committee has amended this measure by:
(1) Including a definition for "community development"; 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 Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2476, 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. 2476, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,
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____________________________ DAVID A. TARNAS, Chair |
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STAND. COM. REP. NO. 140-26
Honolulu, Hawaii
, 2026
RE: H.B. No. 2476
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Madame:
Your Committee on Housing, to which was referred H.B. No. 2476 entitled:
"A BILL FOR AN ACT PROPOSING AMENDMENTS TO ARTICLE VII, SECTIONS 12 AND 13, OF THE HAWAII STATE CONSTITUTION,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaii Public Housing Authority; Office of Planning and Sustainable Development; Hawaii Community Development Authority; Pacific Resource Partnership; Hawaii Regional Council of Carpenters; Hawaiʻi Association of REALTORS; D.R. Horton Hawaiʻi; NAIOP Hawaii; Housing Hawaiʻi's Future; International Union of Operating Engineers Local 3; Stanford Carr Development, LLC; and Kobayashi Group. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Tax Foundation of Hawaii and one individual.
Your Committee finds that Hawaii continues to face a persistent shortage of housing, in large part because the infrastructure needed to support new development is underbuilt, outdated, or lacking entirely in many priority growth areas. Existing funding methods are fragmented, unpredictable, and insufficient, while major housing infrastructure needs continue to grow. Your Committee further finds that housing infrastructure growth bonds are a proven tool used in many other jurisdictions to help fund infrastructure projects needed for housing development. Your Committee believes that Hawaii has much to gain from these types of bonds that are necessary to allow future growth in real property tax revenues. This measure is the first step to realize this growth.
Your Committee has amended this measure by:
(1) Clarifying the authorized uses of housing infrastructure growth bonds to include other actions necessary for housing and community development;
(2) Changing the effective date to July 1, 3000, to encourage further discussion; and
(3) 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. 2476, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2476, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Housing,
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____________________________ LUKE A. EVSLIN, Chair |
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Date
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Testimony PDF
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| Feb 28, 2026 | HB2476_HD2_TESTIMONY_FIN_02-27-26_.PDF |
| Feb 18, 2026 | HB2476_HD1_TESTIMONY_JHA_02-18-26_.PDF |
| Feb 6, 2026 | HB2476_TESTIMONY_HSG_02-06-26_.PDF |
Discussed in Hearing
14MIN
House Standing Committee on Finance
10MIN
House Standing Committee on Judiciary & Hawaiian Affairs
1MIN
House Standing Committee on Judiciary & Hawaiian Affairs
6MIN
House Standing Committee on Housing
6MIN
House Standing Committee on Water & Land
1MIN
House Standing Committee on Housing
1MIN
