HB 740: Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Counties; Accessory Dwelling Units; Purchase of Equity; Voluntary Deed Restrictions; Appropriation
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-04-03
Current Status:
Failed
(2026-04-02: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties for the purchase of equity in an accessory dwelling unit by the State. Specifies eligible homeowners or homebuyers for the Program to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on the property. Appropriates moneys for infrastructure projects. Sunsets 1/1/2031. Takes effect 7/1/2050. (SD2)
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties for the purchase of equity in an accessory dwelling unit by the State. Specifies eligible homeowners or homebuyers for the Program to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on the property. Sunsets 1/1/2031. Takes effect 7/1/2050. (SD1)
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property. Effective 7/1/3000. (HD2)
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property. Effective 7/1/3000. (HD1)
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
740 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature believes that it is important to promote the development of additional housing while securing that housing for local residents working in Hawaii.
Accordingly, the purpose of this Act is to establish an accessory dwelling unit financing and deed restriction program under the Hawaii housing finance and development corporation.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
"SUBPART . Accessory Dwelling Unit Financing And Deed Restriction Program
§201H-A Definitions. As used in this subpart, unless the context otherwise requires:
"Accessory dwelling unit" means an accessory or a second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot on which the primary dwelling unit of the owner is located.
"Development costs" includes costs associated with site preparation, architectural or engineering design, permits, soil tests, impact fees, and property survey.
"Eligible homeowner or homebuyer" means a person or family, without regard to race, creed, national origin, or sex, who:
(1) Is a citizen of the United States or a resident alien;
(2) Is a resident domiciled in the State;
(3) Is at least eighteen years of age;
(4) Agrees to sell to the county and place a deed restriction on the primary dwelling unit and accessory dwelling unit that is in compliance with section 201H‑C;
(5) Agrees to comply with annual reporting requirements as provided pursuant to section 201H-F;
(6) Owns no other real property; and
(7) Meets any other qualifications as established by rules adopted by the corporation or county.
"Qualified business" means a corporation, partnership, sole proprietorship, trust, or foundation, or any other individual or organization carrying on a business, whether or not operated for profit, that:
(1) Has a physical presence within the State;
(2) Has a current and valid business license to operate in the State;
(3) Pays state income taxes pursuant to chapter 235; and
(4) Is generally recognized as an operating business within the community.
"Qualified business" includes state and county departments and agencies.
§201H-B Accessory dwelling unit financing and deed restriction program; established. (a) There shall be established within the corporation an accessory dwelling unit financing and deed restriction program. Under the accessory dwelling unit financing and deed restriction program, the corporation may allocate funds from the rental housing revolving fund established pursuant to section 201H-202 to a county to:
(1) Purchase equity from eligible homeowners or homebuyers to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of accessory dwelling units; and
(2) Purchase deed restrictions from eligible homeowners or homebuyers to be placed on the primary dwelling units and accessory dwelling unit funded pursuant to this subpart.
(b) Upon application by a county, in a form prescribed by the corporation, the corporation may allocate a dollar amount necessary for a county to carry out subsection (a); provided that the total contribution amount from a county distributed per accessory dwelling unit shall not exceed eight per cent of the appraised value of the property; provided further that the corporation shall not allocate more than $2,000,000 per year under this subpart.
A county may use up to per cent of allocated funds for administrative costs.
(c) A county may deposit funds received from the corporation pursuant to subsection (b) into an escrow account until the purchase of a deed restriction is finalized.
(d) Applications for the purchase of equity shall be made to the counties and contain the information as required by rules adopted under this subpart. At a minimum, the applicant shall:
(1) Be an eligible homeowner or homebuyer under this subpart who shall own no other real property;
(2) Agree to use state funds exclusively for the purposes of this program;
(3) Indicate capability to properly use the funds for the purpose of the accessory dwelling unit financing and deed restriction program;
(4) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;
(5) Agree not to use state funds for purposes of entertainment or perquisites;
(6) Comply with other requirements as the county may prescribe;
(7) Comply with all applicable federal, state, and county statutes, rules, and ordinances;
(8) Agree to indemnify and hold harmless the State, county and the officers, agents, and employees of the State and county from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this subpart and procure sufficient insurance to provide this indemnification if requested to do so by the corporation; and
(9) Agree to make available to the county all records the applicant may have relating to the purchase of equity, to allow state agencies to monitor the applicant's compliance with this section;
provided that the county shall prioritize homeowners or homebuyers that are government employees; provided further that eligible homeowners or homebuyers shall agree to prioritize tenancy of the accessory dwelling unit to tenants that are government employees.
(e) No eligible homeowner or homebuyer shall be eligible for funds under this subpart if a deed restriction that satisfies section 201H-C already runs with the land on which an accessory dwelling unit that was funded pursuant to this subpart is located.
(f) Any initial lease for tenancy offered at a property with a deed restriction placed pursuant to this subpart shall be for a minimum of six months. An initial lease may transfer to a month-to-month lease upon completion of the original term.
(g) The deed restriction placed and owned by the county pursuant to this subpart shall take first priority over other restrictions on the property, if applicable; provided that for a planned community under chapter 421J, a deed restriction may be secondary only to conditions, covenants, and restrictions with a requisite first position.
(h) Counties shall be responsible for validating the evidence and ensuring compliance with this subpart. Counties may contract with non-government persons or entities to ensure compliance with this subpart. Counties shall report any property not in compliance with this subpart to the corporation.
(i) If a property with a deed restriction in place pursuant to this subpart is sold to a nonresident, or at sale it is determined that any dwelling unit on the property has been rented to a nonresident, the corporation may bring action against the homeowner in the appropriate circuit court and shall be entitled to fifty per cent of appreciation at the time of sale, to be collected by the corporation and placed in the rental housing revolving fund established under section 201H‑202.
(j) A homeowner participating in the purchase of equity established pursuant to this subpart shall repay the corporation its prorated share of the appraised value of the completed accessory dwelling unit, with appreciation, within fifteen years or upon sale or transfer of the property, whichever occurs first.
(k) If a county does not expend moneys allocated pursuant to this section within one year of receipt, the moneys shall be returned to the corporation and placed in the rental housing revolving fund established pursuant to section 201H-202.
(l) The corporation and each county may establish, revise, charge, and collect fees and premiums and impose costs as necessary, reasonable, or convenient to effectuate the purposes of this subpart.
(m) The corporation may adopt rules pursuant to chapter 91 for the purposes of this subpart. Each county may adopt rules pursuant to chapter 91 for purposes of this subpart; provided that the rules shall not conflict with rules adopted by the corporation.
§201H-C Deed restriction; requirements. (a) Notwithstanding any other law to the contrary, a deed restriction shall be recorded against the property and shall run with the land in perpetuity, binding all future owners, successors, and assigns.
(b) Notwithstanding any other law to the contrary, a deed restriction placed on a property and owned by a county pursuant to this subpart shall require that each dwelling unit on the property be occupied exclusively by an owner-occupants or tenants who:
(1) Works an average of thirty hours or more per week at a qualified business;
(2) Is involuntarily unemployed:
(A) From a job in which the owner-occupant or tenant worked an average of thirty hours or more per week at a qualified business at the time of initial occupancy; and
(B) For a period of less than three hundred sixty‑five days;
(3) Is retired; provided that the retiree:
(A) Was sixty-five years of age or older at the time of retirement; and
(B) Worked an average of thirty hours or more per week at a qualified business within the county; or
(4) Has a disability, as defined in section 515-2; provided that the owner or tenant with a disability worked an average of thirty hours or more per week at a qualified business;
provided that owner-occupants shall prioritize prospective tenants who are government employees.
§201H-D Remedies. A county that reasonably believes a property with a deed restriction in place pursuant to this subpart is not in compliance with this subpart may bring action against the owner of the property for civil remedies based in contract or real property law, including but not limited to claiming a lien or obtaining specific performance.
§201H-E Environmental impact statement; conveyance tax; procurement code; exemptions. (a) An action on property with a deed restriction in place pursuant to this subpart shall be exempt from chapter 343.
(b) Property sold for which a county has purchased a deed restriction pursuant to this subpart shall be exempt from chapter 247.
(c) Any contract entered into by a county pursuant to this subpart shall be exempt from chapter 103D.
§201H-F Annual reporting. No later than of each year, beginning in the year following the first year of occupancy of the property after the deed restriction has been entered into, the owner of the property shall submit a written statement with accompanying evidence to the county verifying the property was occupied by a qualified owner-occupant or tenant during all of the prior calendar year; provided that, if applicable, a copy of the lease form currently used for the property shall be submitted with the statement."
SECTION 3. Section 46-15.2, Hawaii Revised Statutes, is amended to read as follows:
"§46-15.2 Housing; additional county powers. In addition and supplemental to the powers granted to counties by section 46-15.1, a county shall have and may exercise any of the following powers:
(1) To provide assistance and aid to persons of low- and moderate-income in acquiring housing by:
(A) Providing loans secured by a mortgage;
(B) Acquiring the loans from private lenders where the county has made advance commitment to acquire the loans; and
(C) Making and executing contracts with private lenders or a public agency for the origination and servicing of the loans and paying the reasonable value of the services;
(2) In connection with the exercise of any powers granted under this section or section 46-15.1, to establish one or more loan programs and to issue bonds under chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1; provided that:
(A) If bonds are issued pursuant to chapter 47 to finance one or more loan programs, the county may establish qualifications for the program or programs as it deems appropriate;
(B) If bonds are issued pursuant to chapter 49 to finance one or more loan programs, the loan program or programs shall comply with part III, subpart B of chapter 201H, to the extent applicable;
(C) If bonds are issued pursuant to section 47-4 or chapter 49, any loan program established pursuant to this section or any county-owned dwelling units constructed under section 46-15.1 shall be and constitute an "undertaking" under section 49‑1 and chapter 49 shall apply to the loan program or county-owned dwelling units to the extent applicable;
(D) In connection with the establishment of any loan program pursuant to this section, a county may employ financial consultants, attorneys, real estate counselors, appraisers, and other consultants as may be required in the judgment of the county and fix and pay their compensation from funds available to the county therefor;
(E) Notwithstanding any limitation otherwise established by law, with respect to the rate of interest on any loan made under any loan program established pursuant to this section, the loan may bear a rate or rates of interest per year as the county shall determine; provided that no loan made from the proceeds of any bonds of the county shall be under terms or conditions that would cause the interest on the bonds to be deemed subject to income taxation by the United States;
(F) Notwithstanding any limitation otherwise established by law, with respect to the amount of compensation permitted to be paid for the servicing of loans made under any loan program established pursuant to this section, a county may fix any reasonable compensation as the county may determine;
(G) Notwithstanding the requirement of any other law, a county may establish separate funds and accounts with respect to bonds issued pursuant to chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1 as the county may deem appropriate;
(H) Notwithstanding
any provision of chapter 47 or 49 or of any other law, but subject to the
limitations of the state constitution, bonds issued to provide moneys to carry
out the purposes of this section or section 46-15.1 may [be]:
(i) Be
sold at public or private sale at a price; [may bear]
(ii) Bear
interest at a rate or rates per year; [may be]
(iii) Be
payable at a time or times; [may mature]
(iv) Mature
at a time or times; [may be]
(v) Be
made redeemable before maturity at the option of the county, the holder, or
both, at a price or prices and upon terms and conditions; and [may be]
(vi) Be issued in coupon or registered form, or both, as the county may determine;
(I) If deemed necessary or advisable, the county may designate a national or state bank or trust company within or without the State to serve as trustee for the holders of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, and enter into a trust indenture, trust agreement, or indenture of mortgage with the trustee whereby the trustee may be authorized to receive and receipt for, hold, and administer the proceeds of the bonds and to apply the proceeds to the purposes for which the bonds are issued, or to receive and receipt for, hold, and administer the revenues and other receipts derived by the county from the application of the proceeds of the bonds and to apply the revenues and receipts to the payment of the principal of, or interest on the bonds, or both. Any trust indenture, trust agreement, or indenture of mortgage entered into with the trustee may contain any covenants and provisions as may be deemed necessary, convenient, or desirable by the county to secure the bonds. The county may pledge and assign to the trustee any agreements related to the application of the proceeds of the bonds and the rights of the county thereunder, including the rights to revenues and receipts derived thereunder. Upon appointment of the trustee, the director of finance of the county may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the bonds; or may elect to limit the functions the director of finance performs as a fiscal agent; and may appoint a trustee to serve as the fiscal agent; and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, as the director of finance deems necessary, advisable, or expedient, including without limitation the holding of the bonds and coupons that have been paid and the supervision and conduction or the destruction thereof in accordance with law;
(J) If a trustee is not appointed to collect, hold, and administer the proceeds of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, or the revenues and receipts derived by the county from the application of the proceeds of the bonds, as provided in subparagraph (I), the director of finance of the county may hold the proceeds or revenues and receipts in a separate account in the treasury of the county, to be applied solely to the carrying out of the ordinance, trust indenture, trust agreement, or indenture of mortgage, if any, authorizing or securing the bonds; and
(K) Any law to the contrary notwithstanding, the investment of funds held in reserves and sinking funds related to bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1 shall comply with section 201H‑77; provided that any investment that requires approval by the county council pursuant to section 46-48 or 46-50 shall first be approved by the county council;
(3) To acquire
policies of insurance and enter into banking arrangements as the county may
deem necessary to better secure bonds issued to provide money to carry out the
purposes of this section or section 46‑15.1, including without limitation
contracting for a support facility or facilities as may be necessary with
respect to bonds issued with a right of the holders to put the bonds and
contracting for interest rate swaps; [and]
(4) To enter into negotiations for, and purchase deed restrictions on, housing properties from eligible homeowners and homebuyers pursuant to subpart , part III of chapter 201H; and
[(4)] (5) To do any and all other things
necessary or appropriate to carry out the purposes and exercise the powers
granted in section 46-15.1 and this section."
SECTION 4. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
(1) Solicited or entered
into before July 1, 1994, unless the parties agree to its application to a
contract solicited or entered into [prior to] before July 1,
1994;
(2) To disburse funds, irrespective of their source:
(A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;
(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;
(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;
(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;
(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;
(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;
(G) To governmental bodies of the State;
(H) As loans, under loan programs administered by
a governmental body; [and]
(I) For contracts awarded in accordance with chapter 103F; and
(J) For the purchase of deed restrictions for the accessory dwelling unit financing and deed restriction program established under subpart , part III of chapter 201H;
(3) To procure goods, services, or construction from a governmental body other than the university of Hawaii bookstores, from the federal government, or from another state or its political subdivision;
(4) To procure the following goods or services that are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
(A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi‑judicial proceedings;
(B) Works of art for museum or public display;
(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;
(D) Meats and foodstuffs for the Kalaupapa settlement;
(E) Opponents for athletic contests;
(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;
(G) Performances, including entertainment, speeches, and cultural and artistic presentations;
(H) Goods and services for commercial resale by the State;
(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds;
(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside the State;
(K) Financing agreements under chapter 37D;
(L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that:
(i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph;
(ii) Awards over $2,500 shall comply with section 103D-310(c); and
(iii) Awards over $500,000 shall be approved by the superintendent of education; and
(M) Any other goods or services that the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
(5) That are specific procurements expressly exempt from any or all of the requirements of this chapter by:
(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and
(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT), that require certain non-construction and non‑software development procurements by the comptroller to be conducted in accordance with its terms."
SECTION 5. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority:
(1) For projects that were awarded low-income housing credits pursuant to paragraph (2), priority shall be given to projects with a perpetual affordability commitment;
(2) Projects or units in projects that are allocated low‑income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;
provided that the corporation
may establish rules to ensure full occupancy of fund projects; [and]
(3) Mixed-income
rental projects or units in a mixed‑income rental project wherein all of
the available units are for persons and families with incomes at or below one
hundred forty per cent of the median family income[.]; and
(4) The administration and purchase of deed restrictions as part of the accessory dwelling unit financing and deed restriction program under subpart ; provided that there shall be no area median income requirements for moneys expended for the purposes of this program."
SECTION 6. Section 247-3, Hawaii Revised Statutes, is amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1 shall not apply to:
(1) Any document or
instrument that is executed [prior to] before January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed;
(4) Any document or
instrument between [husband and wife,] spouses, reciprocal
beneficiaries, or parent and child, in which only a nominal consideration is
paid;
(5) Any document or instrument in which there is a consideration of $100 or less paid or to be paid;
(6) Any document or
instrument conveying real property that is executed pursuant to an agreement of
sale, and where applicable, any assignment of the agreement of sale, or
assignments thereof; provided that the taxes under this chapter have been fully
paid upon the agreement of sale, and where applicable, upon [such]
assignment or assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment of agreement of sale, instrument or writing in which the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof for delinquent taxes or assessments;
(9) Any document or instrument conveying real property to the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof pursuant to the threat of the exercise or the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or easements;
(11) Any document or instrument whereby owners partition their property, whether by mutual agreement or judicial action; provided that the value of each owner's interest in the property after partition is equal in value to that owner's interest before partition;
(12) Any document or instrument between marital partners or reciprocal beneficiaries who are parties to a divorce action or termination of reciprocal beneficiary relationship that is executed pursuant to an order of the court in the divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the grantor's revocable living trust, or from a grantor's revocable living trust to the grantor as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein, from an entity that is a party to a merger or consolidation under chapter 414, 414D, 415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;
(16) Any document or
instrument conveying real property, or any interest therein, from a dissolving
limited partnership to its corporate general partner that owns, directly or
indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of
the federal Internal Revenue Code of 1986, as amended, to the constructive
ownership of interests in the partnership; [and
[](17)[]] Any
document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[.]; and
(18) Any document or instrument conveying real property with a county-owned deed restriction pursuant to subpart , part III of chapter 201H, including any document or instrument conveying the county-owned deed restriction."
SECTION 7. Section 525-4, Hawaii Revised Statutes, is amended to read as follows:
"§525-4 Exclusions from statutory rule against perpetuities. Section 525-1 shall not apply to:
(1) A fiduciary's power to sell, lease, or mortgage property, and the power of a fiduciary to determine principal and income;
(2) A discretionary power of a trustee to distribute principal before termination of a trust;
(3) A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision;
(4) A property interest in or a power of appointment with respect to a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses;
(5) A property
interest, power of appointment, or arrangement that was not subject to the
common-law rule against perpetuities or is excluded by any other applicable law;
[or]
(6) A trust described
in chapter 554G[.]; or
(7) A property interest in property with a county-owned deed restriction in place pursuant to subpart , part III of chapter 201H."
SECTION 8. The Hawaii housing finance and development corporation shall submit a report of its evaluation of the accessory dwelling unit financing and deed restriction program established in section 2 of this Act, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2031.
SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the dwelling unit revolving fund.
SECTION 10. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 for infrastructure projects.
The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.
SECTION 11. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 13. This Act shall take effect on July 1, 2050; provided that the amendments made to section 103D-102(b), Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is reenacted on July 1, 2027, pursuant to section 4 of Act 150, Session Laws of Hawaii 2024; provided further that section 6 shall take effect on January 1, 2026; provided further that this Act shall be repealed on January 1, 2031, and sections 46-15.2, 103D-102, 201H-202, 247-3, and 525‑4, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.
Report Title:
Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Counties; Accessory Dwelling Units; Purchase of Equity; Voluntary Deed Restrictions; Appropriation
Description:
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties for the purchase of equity in an accessory dwelling unit by the State. Specifies eligible homeowners or homebuyers for the Program to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on the property. Appropriates moneys for infrastructure projects. Sunsets 1/1/2031. Takes effect 7/1/2050. (SD2)
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. |
740 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature believes that it is important to promote the development of additional housing while securing that housing for local residents working in Hawaii.
Accordingly, the purpose of this Act is to establish an accessory dwelling unit financing and deed restriction program under the Hawaii housing finance and development corporation.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
"SUBPART . Accessory Dwelling Unit Financing And Deed Restriction Program
§201H-A Definitions. As used in this subpart, unless the context otherwise requires:
"Accessory dwelling unit" means an accessory or a second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot on which the primary dwelling unit of the owner is located.
"Development costs" includes costs associated with site preparation, architectural or engineering design, permits, soil tests, impact fees, and property survey.
"Eligible homeowner or homebuyer" means a person or family, without regard to race, creed, national origin, or sex, who:
(1) Is a citizen of the United States or a resident alien;
(2) Is a resident domiciled in the State;
(3) Is at least eighteen years of age;
(4) Agrees to sell to the county and place a deed restriction on the primary dwelling unit and accessory dwelling unit that is in compliance with section 201H‑C;
(5) Agrees to comply with annual reporting requirements as provided pursuant to section 201H-F;
(6) Owns no other real property; and
(7) Meets any other qualifications as established by rules adopted by the corporation or county.
"Qualified business" means a corporation, partnership, sole proprietorship, trust, or foundation, or any other individual or organization carrying on a business, whether or not operated for profit, that:
(1) Has a physical presence within the State;
(2) Has a current and valid business license to operate in the State;
(3) Pays state income taxes pursuant to chapter 235; and
(4) Is generally recognized as an operating business within the community.
"Qualified business" includes state and county departments and agencies.
§201H-B Accessory dwelling unit financing and deed restriction program; established. (a) There shall be established within the corporation an accessory dwelling unit financing and deed restriction program. Under the accessory dwelling unit financing and deed restriction program, the corporation may allocate funds from the rental housing revolving fund established pursuant to section 201H-202 to a county to:
(1) Purchase equity from eligible homeowners or homebuyers to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of accessory dwelling units; and
(2) Purchase deed restrictions from eligible homeowners or homebuyers to be placed on the primary dwelling units and accessory dwelling unit funded pursuant to this subpart.
(b) Upon application by a county, in a form prescribed by the corporation, the corporation may allocate a dollar amount necessary for a county to carry out subsection (a); provided that the total contribution amount from a county distributed per accessory dwelling unit shall not exceed eight per cent of the appraised value of the property; provided further that the corporation shall not allocate more than $2,000,000 per year under this subpart.
A county may use up to per cent of allocated funds for administrative costs.
(c) A county may deposit funds received from the corporation pursuant to subsection (b) into an escrow account until the purchase of a deed restriction is finalized.
(d) Applications for the purchase of equity shall be made to the counties and contain the information as required by rules adopted under this subpart. At a minimum, the applicant shall:
(1) Be an eligible homeowner or homebuyer under this subpart who shall own no other real property;
(2) Agree to use state funds exclusively for the purposes of this program;
(3) Indicate capability to properly use the funds for the purpose of the accessory dwelling unit financing and deed restriction program;
(4) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;
(5) Agree not to use state funds for purposes of entertainment or perquisites;
(6) Comply with other requirements as the county may prescribe;
(7) Comply with all applicable federal, state, and county statutes, rules, and ordinances;
(8) Agree to indemnify and hold harmless the State, county and the officers, agents, and employees of the State and county from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided under this subpart and procure sufficient insurance to provide this indemnification if requested to do so by the corporation; and
(9) Agree to make available to the county all records the applicant may have relating to the purchase of equity, to allow state agencies to monitor the applicant's compliance with this section;
provided that the county shall prioritize homeowners or homebuyers that are government employees; provided further that eligible homeowners or homebuyers shall agree to prioritize tenancy of the accessory dwelling unit to tenants that are government employees.
(e) No eligible homeowner or homebuyer shall be eligible for funds under this subpart if a deed restriction that satisfies section 201H-C already runs with the land on which an accessory dwelling unit that was funded pursuant to this subpart is located.
(f) Any initial lease for tenancy offered at a property with a deed restriction placed pursuant to this subpart shall be for a minimum of six months. An initial lease may transfer to a month-to-month lease upon completion of the original term.
(g) The deed restriction placed and owned by the county pursuant to this subpart shall take first priority over other restrictions on the property, if applicable; provided that for a planned community under chapter 421J, a deed restriction may be secondary only to conditions, covenants, and restrictions with a requisite first position.
(h) Counties shall be responsible for validating the evidence and ensuring compliance with this subpart. Counties may contract with non-government persons or entities to ensure compliance with this subpart. Counties shall report any property not in compliance with this subpart to the corporation.
(i) If a property with a deed restriction in place pursuant to this subpart is sold to a nonresident, or at sale it is determined that any dwelling unit on the property has been rented to a nonresident, the corporation may bring action against the homeowner in the appropriate circuit court and shall be entitled to fifty per cent of appreciation at the time of sale, to be collected by the corporation and placed in the rental housing revolving fund established under section 201H‑202.
(j) A homeowner participating in the purchase of equity established pursuant to this subpart shall repay the corporation its prorated share of the appraised value of the completed accessory dwelling unit, with appreciation, within fifteen years or upon sale or transfer of the property, whichever occurs first.
(k) If a county does not expend moneys allocated pursuant to this section within one year of receipt, the moneys shall be returned to the corporation and placed in the rental housing revolving fund established pursuant to section 201H-202.
(l) The corporation and each county may establish, revise, charge, and collect fees and premiums and impose costs as necessary, reasonable, or convenient to effectuate the purposes of this subpart.
(m) The corporation may adopt rules pursuant to chapter 91 for the purposes of this subpart. Each county may adopt rules pursuant to chapter 91 for purposes of this subpart; provided that the rules shall not conflict with rules adopted by the corporation.
§201H-C Deed restriction; requirements. (a) Notwithstanding any other law to the contrary, a deed restriction shall be recorded against the property and shall run with the land in perpetuity, binding all future owners, successors, and assigns.
(b) Notwithstanding any other law to the contrary, a deed restriction placed on a property and owned by a county pursuant to this subpart shall require that each dwelling unit on the property be occupied exclusively by an owner-occupants or tenants who:
(1) Works an average of thirty hours or more per week at a qualified business;
(2) Is involuntarily unemployed:
(A) From a job in which the owner-occupant or tenant worked an average of thirty hours or more per week at a qualified business at the time of initial occupancy; and
(B) For a period of less than three hundred sixty‑five days;
(3) Is retired; provided that the retiree:
(A) Was sixty-five years of age or older at the time of retirement; and
(B) Worked an average of thirty hours or more per week at a qualified business within the county; or
(4) Has a disability, as defined in section 515-2; provided that the owner or tenant with a disability worked an average of thirty hours or more per week at a qualified business;
provided that owner-occupants shall prioritize prospective tenants who are government employees.
§201H-D Remedies. A county that reasonably believes a property with a deed restriction in place pursuant to this subpart is not in compliance with this subpart may bring action against the owner of the property for civil remedies based in contract or real property law, including but not limited to claiming a lien or obtaining specific performance.
§201H-E Environmental impact statement; conveyance tax; procurement code; exemptions. (a) An action on property with a deed restriction in place pursuant to this subpart shall be exempt from chapter 343.
(b) Property sold for which a county has purchased a deed restriction pursuant to this subpart shall be exempt from chapter 247.
(c) Any contract entered into by a county pursuant to this subpart shall be exempt from chapter 103D.
§201H-F Annual reporting. No later than of each year, beginning in the year following the first year of occupancy of the property after the deed restriction has been entered into, the owner of the property shall submit a written statement with accompanying evidence to the county verifying the property was occupied by a qualified owner-occupant or tenant during all of the prior calendar year; provided that, if applicable, a copy of the lease form currently used for the property shall be submitted with the statement."
SECTION 3. Section 46-15.2, Hawaii Revised Statutes, is amended to read as follows:
"§46-15.2 Housing; additional county powers. In addition and supplemental to the powers granted to counties by section 46-15.1, a county shall have and may exercise any of the following powers:
(1) To provide assistance and aid to persons of low- and moderate-income in acquiring housing by:
(A) Providing loans secured by a mortgage;
(B) Acquiring the loans from private lenders where the county has made advance commitment to acquire the loans; and
(C) Making and executing contracts with private lenders or a public agency for the origination and servicing of the loans and paying the reasonable value of the services;
(2) In connection with the exercise of any powers granted under this section or section 46-15.1, to establish one or more loan programs and to issue bonds under chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1; provided that:
(A) If bonds are issued pursuant to chapter 47 to finance one or more loan programs, the county may establish qualifications for the program or programs as it deems appropriate;
(B) If bonds are issued pursuant to chapter 49 to finance one or more loan programs, the loan program or programs shall comply with part III, subpart B of chapter 201H, to the extent applicable;
(C) If bonds are issued pursuant to section 47-4 or chapter 49, any loan program established pursuant to this section or any county-owned dwelling units constructed under section 46-15.1 shall be and constitute an "undertaking" under section 49‑1 and chapter 49 shall apply to the loan program or county-owned dwelling units to the extent applicable;
(D) In connection with the establishment of any loan program pursuant to this section, a county may employ financial consultants, attorneys, real estate counselors, appraisers, and other consultants as may be required in the judgment of the county and fix and pay their compensation from funds available to the county therefor;
(E) Notwithstanding any limitation otherwise established by law, with respect to the rate of interest on any loan made under any loan program established pursuant to this section, the loan may bear a rate or rates of interest per year as the county shall determine; provided that no loan made from the proceeds of any bonds of the county shall be under terms or conditions that would cause the interest on the bonds to be deemed subject to income taxation by the United States;
(F) Notwithstanding any limitation otherwise established by law, with respect to the amount of compensation permitted to be paid for the servicing of loans made under any loan program established pursuant to this section, a county may fix any reasonable compensation as the county may determine;
(G) Notwithstanding the requirement of any other law, a county may establish separate funds and accounts with respect to bonds issued pursuant to chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1 as the county may deem appropriate;
(H) Notwithstanding
any provision of chapter 47 or 49 or of any other law, but subject to the
limitations of the state constitution, bonds issued to provide moneys to carry
out the purposes of this section or section 46-15.1 may [be]:
(i) Be
sold at public or private sale at a price; [may bear]
(ii) Bear
interest at a rate or rates per year; [may be]
(iii) Be
payable at a time or times; [may mature]
(iv) Mature
at a time or times; [may be]
(v) Be
made redeemable before maturity at the option of the county, the holder, or
both, at a price or prices and upon terms and conditions; and [may be]
(vi) Be issued in coupon or registered form, or both, as the county may determine;
(I) If deemed necessary or advisable, the county may designate a national or state bank or trust company within or without the State to serve as trustee for the holders of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, and enter into a trust indenture, trust agreement, or indenture of mortgage with the trustee whereby the trustee may be authorized to receive and receipt for, hold, and administer the proceeds of the bonds and to apply the proceeds to the purposes for which the bonds are issued, or to receive and receipt for, hold, and administer the revenues and other receipts derived by the county from the application of the proceeds of the bonds and to apply the revenues and receipts to the payment of the principal of, or interest on the bonds, or both. Any trust indenture, trust agreement, or indenture of mortgage entered into with the trustee may contain any covenants and provisions as may be deemed necessary, convenient, or desirable by the county to secure the bonds. The county may pledge and assign to the trustee any agreements related to the application of the proceeds of the bonds and the rights of the county thereunder, including the rights to revenues and receipts derived thereunder. Upon appointment of the trustee, the director of finance of the county may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the bonds; or may elect to limit the functions the director of finance performs as a fiscal agent; and may appoint a trustee to serve as the fiscal agent; and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, as the director of finance deems necessary, advisable, or expedient, including without limitation the holding of the bonds and coupons that have been paid and the supervision and conduction or the destruction thereof in accordance with law;
(J) If a trustee is not appointed to collect, hold, and administer the proceeds of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, or the revenues and receipts derived by the county from the application of the proceeds of the bonds, as provided in subparagraph (I), the director of finance of the county may hold the proceeds or revenues and receipts in a separate account in the treasury of the county, to be applied solely to the carrying out of the ordinance, trust indenture, trust agreement, or indenture of mortgage, if any, authorizing or securing the bonds; and
(K) Any law to the contrary notwithstanding, the investment of funds held in reserves and sinking funds related to bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1 shall comply with section 201H‑77; provided that any investment that requires approval by the county council pursuant to section 46-48 or 46-50 shall first be approved by the county council;
(3) To acquire
policies of insurance and enter into banking arrangements as the county may
deem necessary to better secure bonds issued to provide money to carry out the
purposes of this section or section 46‑15.1, including without limitation
contracting for a support facility or facilities as may be necessary with
respect to bonds issued with a right of the holders to put the bonds and
contracting for interest rate swaps; [and]
(4) To enter into negotiations for, and purchase deed restrictions on, housing properties from eligible homeowners and homebuyers pursuant to subpart , part III of chapter 201H; and
[(4)] (5) To do any and all other things
necessary or appropriate to carry out the purposes and exercise the powers
granted in section 46-15.1 and this section."
SECTION 4. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
(1) Solicited or entered
into before July 1, 1994, unless the parties agree to its application to a
contract solicited or entered into [prior to] before July 1,
1994;
(2) To disburse funds, irrespective of their source:
(A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;
(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;
(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;
(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;
(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;
(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;
(G) To governmental bodies of the State;
(H) As loans, under loan programs administered by
a governmental body; [and]
(I) For contracts awarded in accordance with chapter 103F; and
(J) For the purchase of deed restrictions for the accessory dwelling unit financing and deed restriction program established under subpart , part III of chapter 201H;
(3) To procure goods, services, or construction from a governmental body other than the university of Hawaii bookstores, from the federal government, or from another state or its political subdivision;
(4) To procure the following goods or services that are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
(A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi‑judicial proceedings;
(B) Works of art for museum or public display;
(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;
(D) Meats and foodstuffs for the Kalaupapa settlement;
(E) Opponents for athletic contests;
(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;
(G) Performances, including entertainment, speeches, and cultural and artistic presentations;
(H) Goods and services for commercial resale by the State;
(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds;
(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside the State;
(K) Financing agreements under chapter 37D;
(L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that:
(i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph;
(ii) Awards over $2,500 shall comply with section 103D-310(c); and
(iii) Awards over $500,000 shall be approved by the superintendent of education; and
(M) Any other goods or services that the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
(5) That are specific procurements expressly exempt from any or all of the requirements of this chapter by:
(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and
(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT), that require certain non-construction and non‑software development procurements by the comptroller to be conducted in accordance with its terms."
SECTION 5. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans for rental housing projects demonstrating project readiness, efficiency, and feasibility acceptable to the corporation in the following order of priority:
(1) For projects that were awarded low-income housing credits pursuant to paragraph (2), priority shall be given to projects with a perpetual affordability commitment;
(2) Projects or units in projects that are allocated low‑income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:
(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and
(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;
provided that the corporation
may establish rules to ensure full occupancy of fund projects; [and]
(3) Mixed-income
rental projects or units in a mixed‑income rental project wherein all of
the available units are for persons and families with incomes at or below one
hundred forty per cent of the median family income[.]; and
(4) The administration and purchase of deed restrictions as part of the accessory dwelling unit financing and deed restriction program under subpart ; provided that there shall be no area median income requirements for moneys expended for the purposes of this program."
SECTION 6. Section 247-3, Hawaii Revised Statutes, is amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1 shall not apply to:
(1) Any document or
instrument that is executed [prior to] before January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed;
(4) Any document or
instrument between [husband and wife,] spouses, reciprocal
beneficiaries, or parent and child, in which only a nominal consideration is
paid;
(5) Any document or instrument in which there is a consideration of $100 or less paid or to be paid;
(6) Any document or
instrument conveying real property that is executed pursuant to an agreement of
sale, and where applicable, any assignment of the agreement of sale, or
assignments thereof; provided that the taxes under this chapter have been fully
paid upon the agreement of sale, and where applicable, upon [such]
assignment or assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment of agreement of sale, instrument or writing in which the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof for delinquent taxes or assessments;
(9) Any document or instrument conveying real property to the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof pursuant to the threat of the exercise or the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or easements;
(11) Any document or instrument whereby owners partition their property, whether by mutual agreement or judicial action; provided that the value of each owner's interest in the property after partition is equal in value to that owner's interest before partition;
(12) Any document or instrument between marital partners or reciprocal beneficiaries who are parties to a divorce action or termination of reciprocal beneficiary relationship that is executed pursuant to an order of the court in the divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the grantor's revocable living trust, or from a grantor's revocable living trust to the grantor as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein, from an entity that is a party to a merger or consolidation under chapter 414, 414D, 415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;
(16) Any document or
instrument conveying real property, or any interest therein, from a dissolving
limited partnership to its corporate general partner that owns, directly or
indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of
the federal Internal Revenue Code of 1986, as amended, to the constructive
ownership of interests in the partnership; [and
[](17)[]] Any
document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[.]; and
(18) Any document or instrument conveying real property with a county-owned deed restriction pursuant to subpart , part III of chapter 201H, including any document or instrument conveying the county-owned deed restriction."
SECTION 7. Section 525-4, Hawaii Revised Statutes, is amended to read as follows:
"§525-4 Exclusions from statutory rule against perpetuities. Section 525-1 shall not apply to:
(1) A fiduciary's power to sell, lease, or mortgage property, and the power of a fiduciary to determine principal and income;
(2) A discretionary power of a trustee to distribute principal before termination of a trust;
(3) A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision;
(4) A property interest in or a power of appointment with respect to a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses;
(5) A property
interest, power of appointment, or arrangement that was not subject to the
common-law rule against perpetuities or is excluded by any other applicable law;
[or]
(6) A trust described
in chapter 554G[.]; or
(7) A property interest in property with a county-owned deed restriction in place pursuant to subpart , part III of chapter 201H."
SECTION 8. The Hawaii housing finance and development corporation shall submit a report of its evaluation of the accessory dwelling unit financing and deed restriction program established in section 2 of this Act, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2031.
SECTION 9. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect on July 1, 2050; provided that the amendments made to section 103D-102(b), Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is reenacted on July 1, 2027, pursuant to section 4 of Act 150, Session Laws of Hawaii 2024; provided further that section 6 shall take effect on January 1, 2026; provided further that this Act shall be repealed on January 1, 2031, and sections 46-15.2, 103D-102, 201H-202, 247-3, and 525‑4, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.
Report Title:
Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Counties; Accessory Dwelling Units; Purchase of Equity; Voluntary Deed Restrictions
Description:
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties for the purchase of equity in an accessory dwelling unit by the State. Specifies eligible homeowners or homebuyers for the Program to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on the property. Sunsets 1/1/2031. Takes effect 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
740 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature believes that it is important to promote the development of additional housing while securing that housing for local residents working in Hawaii.
Accordingly, the purpose of this Act is to establish an accessory dwelling unit financing and deed restriction program under the Hawaii housing finance and development corporation.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
"SUBPART . Accessory Dwelling Unit Financing And Deed Restriction Program
§201H-A Definitions. As used in this subpart, unless the context otherwise requires:
"Accessory dwelling unit" means an accessory or a second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot on which the primary dwelling unit of the owner is located.
"Development costs" includes costs associated with site preparation, architectural or engineering design, permits, soil tests, impact fees, and property survey.
"Eligible homeowner or homebuyer" means a person or family, without regard to race, creed, national origin, or sex, who:
(1) Is a citizen of the United States or a resident alien;
(2) Is a resident domiciled in the State;
(3) Is at least eighteen years of age;
(4) Agrees to sell to the county and place a deed restriction on the primary dwelling unit and accessory dwelling unit that is in compliance with section 201H‑C;
(5) Agrees to comply with annual reporting requirements as provided pursuant to section 201H-F;
(6) Owns no other property with a deed restriction pursuant to this subpart; and
(7) Meets any other qualifications as established by rules adopted by the corporation or county.
"Qualified business" means a corporation, partnership, sole proprietorship, trust, or foundation, or any other individual or organization carrying on a business, whether or not operated for profit, that:
(1) Has a physical presence within the State;
(2) Has a current and valid business license to operate in the State;
(3) Pays state income taxes pursuant to chapter 235; and
(4) Is generally recognized as an operating business within the community.
"Qualified business" includes state and county departments and agencies.
§201H-B Accessory dwelling unit financing and deed restriction program; established. (a) There shall be established within the corporation an accessory dwelling unit financing and deed restriction program. Under the accessory dwelling unit financing and deed restriction program, the corporation may allocate funds from the dwelling unit revolving fund established under section 201H-191 to a county to:
(1) Provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit; and
(2) Purchase a deed restriction from eligible homeowners or homebuyers to be placed on the primary dwelling unit and accessory dwelling unit funded pursuant to this subpart.
(b) Upon application by a county, in a form prescribed by the corporation, the corporation may allocate an annual lump sum, in an amount to be determined by the corporation, necessary for a county to purchase a voluntary deed restriction from an eligible homeowner or homebuyer; provided that the corporation shall not distribute funds solely based on the population size of a county.
(c) A county may deposit funds received from the corporation pursuant to subsection (b) into an escrow account until the purchase of a deed restriction is finalized.
(d) Applications for grants shall be made to the counties and contain the information as required by rules adopted under this subpart. At a minimum, the applicant shall:
(1) Be an eligible homeowner or homebuyer under this subpart;
(2) Agree to use state funds exclusively for the purposes of this program;
(3) Indicate capability to properly use the grant for the purpose of the accessory dwelling unit financing and deed restriction program;
(4) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;
(5) Agree not to use state funds for purposes of entertainment or perquisites;
(6) Comply with other requirements as the county may prescribe;
(7) Comply with all applicable federal, state, and county statutes, rules, and ordinances;
(8) Agree to indemnify and save harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder and procure sufficient insurance to provide this indemnification if requested to do so by the corporation; and
(9) Agree to make available to the county all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant's compliance with this section.
(e) No eligible homeowner or homebuyer shall be granted funds under this subpart if a deed restriction that satisfies section 201H-C already runs with the land on which an accessory dwelling unit that was funded pursuant to this subpart is located.
(f) Any initial lease for tenancy offered at a property with a deed restriction placed pursuant to this subpart shall be for a minimum of six months. An initial lease may transfer to a month-to-month lease upon completion of the original term.
(g) The deed restriction placed and owned by the county pursuant to this subpart shall take first priority over other restrictions on the property, if applicable; provided that for a planned community under chapter 421J, a deed restriction may be secondary only to conditions, covenants, and restrictions with a requisite first position.
(h) Counties shall be responsible for validating the evidence and ensuring compliance with this subpart. Counties may contract with non-government persons or entities to ensure compliance with this subpart. Counties shall report any property not in compliance with this subpart to the corporation.
(i) If a property with a deed restriction in place pursuant to this subpart is sold to a nonresident, or at sale it is determined that any dwelling unit on the property has been rented to a nonresident, the corporation may bring action against the homeowner in the appropriate circuit court and shall be entitled to fifty per cent of appreciation at the time of sale, to be collected by the corporation and placed in the dwelling unit revolving fund established under section 201H-191.
(j) If a county does not expend moneys allocated pursuant to this section within one year of receipt, the moneys shall be returned to the corporation and placed in the dwelling unit revolving fund established under section 201H-191.
(k) The corporation and each county may establish, revise, charge, and collect fees and premiums and impose costs as necessary, reasonable, or convenient to effectuate the purposes of this subpart.
(l) The corporation may adopt rules pursuant to chapter 91 for the purposes of this subpart. Each county may adopt rules pursuant to chapter 91 for purposes of this subpart; provided that the rules shall not conflict with rules adopted by the corporation.
§201H-C Deed restriction; requirements. (a) Notwithstanding any other law to the contrary, a deed restriction shall be recorded against the property and shall run with the land in perpetuity, binding all future owners, successors, and assigns.
(b) Notwithstanding any other law to the contrary, a deed restriction placed on a property and owned by a county pursuant to this subpart shall require that the property be occupied by at least one owner-occupant or tenant who:
(1) Works an average of thirty hours or more per week at a qualified business;
(2) Is involuntarily unemployed:
(A) From a job in which the owner-occupant or tenant worked an average of thirty hours or more per week at a qualified business at the time of initial occupancy; and
(B) For a period of less than three hundred sixty-five days;
(3) Is retired; provided that the retiree:
(A) Was sixty-five years of age or older at the time of retirement; and
(B) Worked an average of thirty hours or more per week at a qualified business within the county; or
(4) Has a disability, as defined in section 515-2; provided that the owner or tenant with a disability worked an average of thirty hours or more per week at a qualified business.
§201H-D Remedies. A county that reasonably believes a property with a deed restriction in place pursuant to this subpart is not in compliance with this subpart may bring action against the owner of the property for civil remedies based in contract or real property law, including but not limited to claiming a lien or obtaining specific performance.
§201H-E Environmental impact statement; conveyance tax; procurement code; exemptions. (a) An action on property with a deed restriction in place pursuant to this subpart shall be exempt from chapter 343.
(b) Property sold for which a county has purchased a deed restriction pursuant to this subpart shall be exempt from chapter 247.
(c) Any contract entered into by a county pursuant to this subpart shall be exempt from chapter 103D.
§201H-F Annual reporting. No later than of each year, beginning in the year following the first year of occupancy of the property after the deed restriction has been entered into, the owner of the property shall submit a written statement with accompanying evidence to the county verifying the property was occupied by a qualified owner-occupant or tenant during all of the prior calendar year; provided that, if applicable, a copy of the lease form currently used for the property shall be submitted with the statement."
SECTION 3. Section 46-15.2, Hawaii Revised Statutes, is amended to read as follows:
"§46-15.2 Housing; additional county powers. In addition and supplemental to the powers granted to counties by section 46-15.1, a county shall have and may exercise any of the following powers:
(1) To provide assistance and aid to persons of low- and moderate-income in acquiring housing by:
(A) Providing loans secured by a mortgage;
(B) Acquiring the loans from private lenders where the county has made advance commitment to acquire the loans; and
(C) Making and executing contracts with private lenders or a public agency for the origination and servicing of the loans and paying the reasonable value of the services;
(2) In connection with the exercise of any powers granted under this section or section 46-15.1, to establish one or more loan programs and to issue bonds under chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1; provided that:
(A) If bonds are issued pursuant to chapter 47 to finance one or more loan programs, the county may establish qualifications for the program or programs as it deems appropriate;
(B) If bonds are issued pursuant to chapter 49 to finance one or more loan programs, the loan program or programs shall comply with part III, subpart B of chapter 201H, to the extent applicable;
(C) If bonds are issued pursuant to section 47-4 or chapter 49, any loan program established pursuant to this section or any county-owned dwelling units constructed under section 46-15.1 shall be and constitute an "undertaking" under section 49‑1 and chapter 49 shall apply to the loan program or county-owned dwelling units to the extent applicable;
(D) In connection with the establishment of any loan program pursuant to this section, a county may employ financial consultants, attorneys, real estate counselors, appraisers, and other consultants as may be required in the judgment of the county and fix and pay their compensation from funds available to the county therefor;
(E) Notwithstanding any limitation otherwise established by law, with respect to the rate of interest on any loan made under any loan program established pursuant to this section, the loan may bear a rate or rates of interest per year as the county shall determine; provided that no loan made from the proceeds of any bonds of the county shall be under terms or conditions that would cause the interest on the bonds to be deemed subject to income taxation by the United States;
(F) Notwithstanding any limitation otherwise established by law, with respect to the amount of compensation permitted to be paid for the servicing of loans made under any loan program established pursuant to this section, a county may fix any reasonable compensation as the county may determine;
(G) Notwithstanding the requirement of any other law, a county may establish separate funds and accounts with respect to bonds issued pursuant to chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1 as the county may deem appropriate;
(H) Notwithstanding
any provision of chapter 47 or 49 or of any other law, but subject to the
limitations of the state constitution, bonds issued to provide moneys to carry
out the purposes of this section or section 46-15.1 may [be]:
(i) Be
sold at public or private sale at a price; [may bear]
(ii) Bear
interest at a rate or rates per year; [may be]
(iii) Be
payable at a time or times; [may mature]
(iv) Mature
at a time or times; [may be]
(v) Be
made redeemable before maturity at the option of the county, the holder, or
both, at a price or prices and upon terms and conditions; and [may be]
(vi) Be issued in coupon or registered form, or both, as the county may determine;
(I) If deemed necessary or advisable, the county may designate a national or state bank or trust company within or without the State to serve as trustee for the holders of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, and enter into a trust indenture, trust agreement, or indenture of mortgage with the trustee whereby the trustee may be authorized to receive and receipt for, hold, and administer the proceeds of the bonds and to apply the proceeds to the purposes for which the bonds are issued, or to receive and receipt for, hold, and administer the revenues and other receipts derived by the county from the application of the proceeds of the bonds and to apply the revenues and receipts to the payment of the principal of, or interest on the bonds, or both. Any trust indenture, trust agreement, or indenture of mortgage entered into with the trustee may contain any covenants and provisions as may be deemed necessary, convenient, or desirable by the county to secure the bonds. The county may pledge and assign to the trustee any agreements related to the application of the proceeds of the bonds and the rights of the county thereunder, including the rights to revenues and receipts derived thereunder. Upon appointment of the trustee, the director of finance of the county may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the bonds; or may elect to limit the functions the director of finance performs as a fiscal agent; and may appoint a trustee to serve as the fiscal agent; and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, as the director of finance deems necessary, advisable, or expedient, including without limitation the holding of the bonds and coupons that have been paid and the supervision and conduction or the destruction thereof in accordance with law;
(J) If a trustee is not appointed to collect, hold, and administer the proceeds of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, or the revenues and receipts derived by the county from the application of the proceeds of the bonds, as provided in subparagraph (I), the director of finance of the county may hold the proceeds or revenues and receipts in a separate account in the treasury of the county, to be applied solely to the carrying out of the ordinance, trust indenture, trust agreement, or indenture of mortgage, if any, authorizing or securing the bonds; and
(K) Any law to the contrary notwithstanding, the investment of funds held in reserves and sinking funds related to bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1 shall comply with section 201H-77; provided that any investment that requires approval by the county council pursuant to section 46-48 or 46-50 shall first be approved by the county council;
(3) To acquire
policies of insurance and enter into banking arrangements as the county may
deem necessary to better secure bonds issued to provide money to carry out the
purposes of this section or section 46-15.1, including without limitation
contracting for a support facility or facilities as may be necessary with
respect to bonds issued with a right of the holders to put the bonds and
contracting for interest rate swaps; [and]
(4) To enter into negotiations for, and purchase deed restrictions on, housing properties from eligible homeowners and homebuyers pursuant to subpart , part III of chapter 201H; and
[(4)] (5) To do any and all other things
necessary or appropriate to carry out the purposes and exercise the powers
granted in section 46-15.1 and this section."
SECTION 4. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
(1) Solicited or entered
into before July 1, 1994, unless the parties agree to its application to a
contract solicited or entered into [prior to] before July 1,
1994;
(2) To disburse funds, irrespective of their source:
(A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;
(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;
(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;
(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;
(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;
(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;
(G) To governmental bodies of the State;
(H) As loans, under loan programs administered by
a governmental body; [and]
(I) For contracts awarded in accordance with chapter 103F; and
(J) For the purchase of deed restrictions for the accessory dwelling unit financing and deed restriction program established under subpart , part III of chapter 201H;
(3) To procure goods, services, or construction from a governmental body other than the university of Hawaii bookstores, from the federal government, or from another state or its political subdivision;
(4) To procure the following goods or services that are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
(A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi-judicial proceedings;
(B) Works of art for museum or public display;
(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;
(D) Meats and foodstuffs for the Kalaupapa settlement;
(E) Opponents for athletic contests;
(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;
(G) Performances, including entertainment, speeches, and cultural and artistic presentations;
(H) Goods and services for commercial resale by the State;
(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds;
(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside the State;
(K) Financing agreements under chapter 37D;
(L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that:
(i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph;
(ii) Awards over $2,500 shall comply with section 103D-310(c); and
(iii) Awards over $500,000 shall be approved by the superintendent of education; and
(M) Any other goods or services that the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
(5) That are specific procurements expressly exempt from any or all of the requirements of this chapter by:
(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and
(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT), that require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms."
SECTION 5. Section 201H-191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There [is] shall be created a
dwelling unit revolving fund. The funds
appropriated for the purpose of the dwelling unit revolving fund and all moneys
received or collected by the corporation for the purpose of the revolving fund
shall be deposited in the revolving fund.
The proceeds in the revolving fund shall be used [to reimburse] for:
(1) Reimbursements
to the general fund to pay the interest on general obligation bonds issued
for the purposes of the revolving fund[, for the necessary];
(2) Necessary
expenses in administering housing development programs and regional state
infrastructure programs[, and for carrying];
(3) Carrying
out the purposes of housing development programs and regional state
infrastructure programs, including but not limited to the expansion of
community facilities and regional state infrastructure constructed in
conjunction with housing and mixed-use transit-oriented development projects,
permanent primary or secondary financing, and supplementing building costs,
federal guarantees required for operational losses, and all things required by
any federal agency in the construction and receipt of federal funds or low-income
housing tax credits for housing projects[.]; and
(4) The administration and purchase of deed restrictions as part of the accessory dwelling unit financing and deed restriction program under subpart ; provided that there shall be no area median income requirements for moneys expended for the purposes of this program."
SECTION 6. Section 247-3, Hawaii Revised Statutes, is amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1 shall not apply to:
(1) Any document or
instrument that is executed [prior to] before January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed;
(4) Any document or instrument between husband and wife, reciprocal beneficiaries, or parent and child, in which only a nominal consideration is paid;
(5) Any document or instrument in which there is a consideration of $100 or less paid or to be paid;
(6) Any document or instrument conveying real property that is executed pursuant to an agreement of sale, and where applicable, any assignment of the agreement of sale, or assignments thereof; provided that the taxes under this chapter have been fully paid upon the agreement of sale, and where applicable, upon such assignment or assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment of agreement of sale, instrument or writing in which the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof for delinquent taxes or assessments;
(9) Any document or instrument conveying real property to the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof pursuant to the threat of the exercise or the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or easements;
(11) Any document or instrument whereby owners partition their property, whether by mutual agreement or judicial action; provided that the value of each owner's interest in the property after partition is equal in value to that owner's interest before partition;
(12) Any document or instrument between marital partners or reciprocal beneficiaries who are parties to a divorce action or termination of reciprocal beneficiary relationship that is executed pursuant to an order of the court in the divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the grantor's revocable living trust, or from a grantor's revocable living trust to the grantor as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein, from an entity that is a party to a merger or consolidation under chapter 414, 414D, 415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;
(16) Any document or
instrument conveying real property, or any interest therein, from a dissolving
limited partnership to its corporate general partner that owns, directly or
indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of
the federal Internal Revenue Code of 1986, as amended, to the constructive
ownership of interests in the partnership; [and
[](17)[]] Any
document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[.]; and
(18) Any document or instrument conveying real property with a county-owned deed restriction pursuant to subpart , part III of chapter 201H, including any document or instrument conveying such a county-owned deed restriction."
SECTION 7. Section 525-4, Hawaii Revised Statutes, is amended to read as follows:
"§525-4 Exclusions from statutory rule against perpetuities. Section 525-1 shall not apply to:
(1) A fiduciary's power to sell, lease, or mortgage property, and the power of a fiduciary to determine principal and income;
(2) A discretionary power of a trustee to distribute principal before termination of a trust;
(3) A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision;
(4) A property interest in or a power of appointment with respect to a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses;
(5) A property
interest, power of appointment, or arrangement that was not subject to the
common-law rule against perpetuities or is excluded by any other applicable law;
[or]
(6) A trust described
in chapter 554G[.]; or
(7) A property interest in property with a county-owned deed restriction in place pursuant to subpart , part III of chapter 201H."
SECTION 8. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 3000; provided that the amendments made to section 103D-102(b), Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is reenacted on July 1, 2027, pursuant to section 4 of Act 150, Session Laws of Hawaii 2024.
Report Title:
HHFDC; Counties; Accessory Dwelling Units; Grants; Voluntary Deed Restrictions; Dwelling Unit Revolving Fund
Description:
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property. 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. |
740 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature believes that it is important to promote the development of additional housing while securing that housing for local residents working in Hawaii.
Accordingly, the purpose of this Act is to establish an accessory dwelling unit financing and deed restriction program under the Hawaii housing finance and development corporation.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
" . Accessory Dwelling Unit Financing And Deed Restriction Program
§201H-A Definitions. As used in this subpart, unless the context otherwise requires:
"Accessory dwelling unit" means an accessory or a second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot on which the primary dwelling unit of the owner is located.
"Development costs" includes costs associated with site preparation, architectural or engineering design, permits, soil tests, impact fees, and property survey.
"Eligible homeowner or homebuyer" means a person or family, without regard to race, creed, national origin, or sex, who:
(1) Is a citizen of the United States or a resident alien;
(2) Is a resident domiciled in the State;
(3) Is at least eighteen years of age;
(4) Agrees to sell to the county and place a deed restriction on the primary dwelling unit and accessory dwelling unit that is in compliance with section 201H‑C;
(5) Agrees to comply with annual reporting requirements as provided pursuant to section 201H-F;
(6) Owns no other property with a deed restriction pursuant to this subpart; and
(7) Meets any other qualifications as established by rules adopted by the corporation or county.
"Qualified business" means a corporation, partnership, sole proprietorship, trust or foundation, or any other individual or organization carrying on a business, whether or not operated for profit that:
(1) Has a physical presence within the State;
(2) Has a current and valid business license to operate in the State;
(3) Pays state income taxes pursuant to chapter 235; and
(4) Is generally recognized as an operating business within the community.
"Qualified business" includes state and county departments and agencies.
§201H-B Accessory dwelling unit financing and deed restriction program; established. (a) There is established within the corporation an accessory dwelling unit financing and deed restriction program. Under the accessory dwelling unit financing and deed restriction program, the corporation may allocate funds from the dwelling unit revolving fund established under section 201H-191 to a county to:
(1) Provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit; and
(2) Purchase a deed restriction from eligible homeowners or homebuyers to be placed on the primary dwelling unit and accessory dwelling unit funded pursuant to this subpart.
(b) Upon application by a county, in a form prescribed by the corporation, the corporation may allocate an annual lump sum, in an amount to be determined by the corporation, necessary for a county to purchase a voluntary deed restriction from an eligible homeowner or homebuyer; provided that the corporation shall not distribute funds solely based on the population size of a county.
(c) A county may deposit funds received from the corporation pursuant to subsection (b) into an escrow account until the purchase of a deed restriction is finalized.
(d) No eligible homeowner or homebuyer shall be granted funds under this subpart if a deed restriction that satisfies section 201H-C already runs with the land on which an accessory dwelling unit that was funded pursuant to this subpart is located.
(e) Any initial lease for tenancy offered at a property with a deed restriction placed pursuant to this subpart shall be for a minimum of six months. An initial lease may transfer to a month-to-month lease upon completion of the original term.
(f) The deed restriction placed and owned by the county pursuant to this subpart shall take first priority over other restrictions on the property, if applicable; provided that for a planned community under chapter 421J, a deed restriction may be secondary only to conditions, covenants, and restrictions with a requisite first position.
(g) Counties shall be responsible for validating the evidence and ensuring compliance with this subpart. Counties may contract with non-government persons or entities to ensure compliance with this subpart. Counties shall report any property not in compliance with this subpart to the corporation.
(h) If a property with a deed restriction in place pursuant to this subpart is sold to a nonresident, or at sale it is determined that any dwelling unit on the property has been rented to a nonresident, the corporation may bring action against the homeowner in the appropriate circuit court and shall be entitled to fifty per cent of appreciation at the time of sale, to be collected by the corporation and placed in the dwelling unit revolving fund established under section 201H-191.
(i) If a county does not expend moneys allocated pursuant to this section within one year of receipt, the moneys shall be returned to the corporation and placed in the dwelling unit revolving fund established under section 201H-191.
(j) The corporation and each county may establish, revise, charge, and collect fees and premiums and impose costs as necessary, reasonable, or convenient to effectuate the purposes of this subpart.
(k) The corporation may adopt rules pursuant to chapter 91 for the purposes of this subpart. Each county may adopt rules pursuant to chapter 91 for purposes of this subpart; provided that the rules shall not conflict with rules adopted by the corporation.
§201H-C Deed restriction; requirements. (a) Notwithstanding any other law to the contrary, a deed restriction shall be recorded against the property and shall run with the land in perpetuity, binding all future owners, successors, and assigns.
(b) Notwithstanding any other law to the contrary, a deed restriction placed on a property and owned by a county pursuant to this subpart shall require that the property be occupied by at least one owner-occupant or tenant who:
(1) Works an average of thirty hours or more per week at a qualified business;
(2) Is involuntarily unemployed:
(A) From a job in which the owner-occupant or tenant worked an average of thirty hours or more per week at a qualified business at the time of initial occupancy; and
(B) For a period of less than three hundred sixty-five days;
(3) Is retired; provided that the retiree:
(A) Was sixty-five years of age or older at the time of retirement; and
(B) Worked an average of thirty hours or more per week at a qualified business within the county; or
(4) Has a disability, as defined in section 515-2; provided that the owner or tenant with a disability worked an average of thirty hours or more per week at a qualified business.
§201H-D Remedies. A county that reasonably believes a property with a deed restriction in place pursuant to this subpart is not in compliance with this subpart may bring action against the owner of the property for civil remedies based in contract or real property law, including but not limited to claiming a lien or obtaining specific performance.
§201H-E Conveyance tax; environmental impact statement; procurement code; exemptions. (a) An action on property with a deed restriction in place pursuant to this subpart shall be exempt from chapter 343.
(b) Property sold for which a county has purchased a deed restriction pursuant to this subpart shall be exempt from chapter 247.
(c) Any contract entered into by a county pursuant to this subpart shall be exempt from chapter 103D.
§201H-F Annual reporting. No later than of each year, beginning in the year following the first year of occupancy of the property after the deed restriction has been entered into, the owner of the property shall submit a written statement with accompanying evidence to the county verifying the property was occupied by a qualified owner-occupant or tenant during all of the prior calendar year; provided that, if applicable, a copy of the lease form currently used for the property shall be submitted with the statement."
SECTION 3. Section 46-15.2, Hawaii Revised Statutes, is amended to read as follows:
"§46-15.2 Housing; additional county powers. In addition and supplemental to the powers granted to counties by section 46-15.1, a county shall have and may exercise any of the following powers:
(1) To provide assistance and aid to persons of low- and moderate-income in acquiring housing by:
(A) Providing loans secured by a mortgage;
(B) Acquiring the loans from private lenders where the county has made advance commitment to acquire the loans; and
(C) Making and executing contracts with private lenders or a public agency for the origination and servicing of the loans and paying the reasonable value of the services;
(2) In connection with the exercise of any powers granted under this section or section 46-15.1, to establish one or more loan programs and to issue bonds under chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1; provided that:
(A) If bonds are issued pursuant to chapter 47 to finance one or more loan programs, the county may establish qualifications for the program or programs as it deems appropriate;
(B) If bonds are issued pursuant to chapter 49 to finance one or more loan programs, the loan program or programs shall comply with part III, subpart B of chapter 201H, to the extent applicable;
(C) If bonds are issued pursuant to section 47-4 or chapter 49, any loan program established pursuant to this section or any county-owned dwelling units constructed under section 46-15.1 shall be and constitute an "undertaking" under section 49‑1 and chapter 49 shall apply to the loan program or county-owned dwelling units to the extent applicable;
(D) In connection with the establishment of any loan program pursuant to this section, a county may employ financial consultants, attorneys, real estate counselors, appraisers, and other consultants as may be required in the judgment of the county and fix and pay their compensation from funds available to the county therefor;
(E) Notwithstanding any limitation otherwise established by law, with respect to the rate of interest on any loan made under any loan program established pursuant to this section, the loan may bear a rate or rates of interest per year as the county shall determine; provided that no loan made from the proceeds of any bonds of the county shall be under terms or conditions that would cause the interest on the bonds to be deemed subject to income taxation by the United States;
(F) Notwithstanding any limitation otherwise established by law, with respect to the amount of compensation permitted to be paid for the servicing of loans made under any loan program established pursuant to this section, a county may fix any reasonable compensation as the county may determine;
(G) Notwithstanding the requirement of any other law, a county may establish separate funds and accounts with respect to bonds issued pursuant to chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1 as the county may deem appropriate;
(H) Notwithstanding
any provision of chapter 47 or 49 or of any other law, but subject to the
limitations of the state constitution, bonds issued to provide moneys to carry
out the purposes of this section or section 46-15.1 may [be]:
(i) Be
sold at public or private sale at a price; [may bear]
(ii) Bear
interest at a rate or rates per year; may be payable at a time or times; [may
mature]
(iii) Mature
at a time or times; [may be]
(iv) Be
made redeemable before maturity at the option of the county, the holder, or
both, at a price or prices and upon terms and conditions; and [may be]
(v) Be issued in coupon or registered form, or both, as the county may determine;
(I) If deemed necessary or advisable, the county may designate a national or state bank or trust company within or without the State to serve as trustee for the holders of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, and enter into a trust indenture, trust agreement, or indenture of mortgage with the trustee whereby the trustee may be authorized to receive and receipt for, hold, and administer the proceeds of the bonds and to apply the proceeds to the purposes for which the bonds are issued, or to receive and receipt for, hold, and administer the revenues and other receipts derived by the county from the application of the proceeds of the bonds and to apply the revenues and receipts to the payment of the principal of, or interest on the bonds, or both. Any trust indenture, trust agreement, or indenture of mortgage entered into with the trustee may contain any covenants and provisions as may be deemed necessary, convenient, or desirable by the county to secure the bonds. The county may pledge and assign to the trustee any agreements related to the application of the proceeds of the bonds and the rights of the county thereunder, including the rights to revenues and receipts derived thereunder. Upon appointment of the trustee, the director of finance of the county may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the bonds; or may elect to limit the functions the director of finance performs as a fiscal agent; and may appoint a trustee to serve as the fiscal agent; and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, as the director of finance deems necessary, advisable, or expedient, including without limitation the holding of the bonds and coupons that have been paid and the supervision and conduction or the destruction thereof in accordance with law;
(J) If a trustee is not appointed to collect, hold, and administer the proceeds of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, or the revenues and receipts derived by the county from the application of the proceeds of the bonds, as provided in subparagraph (I), the director of finance of the county may hold the proceeds or revenues and receipts in a separate account in the treasury of the county, to be applied solely to the carrying out of the ordinance, trust indenture, trust agreement, or indenture of mortgage, if any, authorizing or securing the bonds; and
(K) Any law to the contrary notwithstanding, the investment of funds held in reserves and sinking funds related to bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1 shall comply with section 201H-77; provided that any investment that requires approval by the county council pursuant to section 46-48 or 46-50 shall first be approved by the county council;
(3) To acquire
policies of insurance and enter into banking arrangements as the county may
deem necessary to better secure bonds issued to provide money to carry out the
purposes of this section or section 46-15.1, including without limitation
contracting for a support facility or facilities as may be necessary with
respect to bonds issued with a right of the holders to put the bonds and
contracting for interest rate swaps; [and]
(4) To enter into negotiations for, and purchase deed restrictions on, housing properties from eligible homeowners and homebuyers pursuant to subpart , part III of chapter 201H; and
[(4)] (5) To do any and all other things
necessary or appropriate to carry out the purposes and exercise the powers
granted in section 46-15.1 and this section."
SECTION 4. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
(1) Solicited or entered into before July 1, 1994, unless the parties agree to its application to a contract solicited or entered into prior to July 1, 1994;
(2) To disburse funds, irrespective of their source:
(A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;
(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;
(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;
(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;
(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;
(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;
(G) To governmental bodies of the State;
(H) As loans, under loan programs administered by
a governmental body; [and]
(I) For contracts awarded in accordance with chapter 103F; and
(J) For the purchase of deed restrictions for the accessory dwelling unit financing and deed restriction program established under subpart , part III of chapter 201H;
(3) To procure goods, services, or construction from a governmental body other than the university of Hawaii bookstores, from the federal government, or from another state or its political subdivision;
(4) To procure the following goods or services that are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
(A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi-judicial proceedings;
(B) Works of art for museum or public display;
(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;
(D) Meats and foodstuffs for the Kalaupapa settlement;
(E) Opponents for athletic contests;
(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;
(G) Performances, including entertainment, speeches, and cultural and artistic presentations;
(H) Goods and services for commercial resale by the State;
(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds;
(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside the State;
(K) Financing agreements under chapter 37D;
(L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that:
(i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph;
(ii) Awards over $2,500 shall comply with section 103D-310(c); and
(iii) Awards over $500,000 shall be approved by the superintendent of education; and
(M) Any other goods or services that the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
(5) That are specific procurements expressly exempt from any or all of the requirements of this chapter by:
(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and
(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT), that require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms."
SECTION 5. Section 201H-191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is created a dwelling unit revolving
fund. The funds appropriated for the
purpose of the dwelling unit revolving fund and all moneys received or
collected by the corporation for the purpose of the revolving fund shall be
deposited in the revolving fund. The
proceeds in the revolving fund shall be used [to reimburse] for:
(1) Reimbursements
to the general fund to pay the interest on general obligation bonds issued
for the purposes of the revolving fund[, for the necessary];
(2) Necessary
expenses in administering housing development programs and regional state
infrastructure programs[, and for carrying];
(3) Carrying
out the purposes of housing development programs and regional state
infrastructure programs, including but not limited to the expansion of
community facilities and regional state infrastructure constructed in
conjunction with housing and mixed-use transit-oriented development projects,
permanent primary or secondary financing, and supplementing building costs,
federal guarantees required for operational losses, and all things required by
any federal agency in the construction and receipt of federal funds or low‑income
housing tax credits for housing projects[.]; and
(4) The administration and purchase of deed restrictions as part of the accessory dwelling unit financing and deed restriction program under subpart ; provided that there shall be no area median income requirements for moneys expended for the purposes of this program."
SECTION 6. Section 247-3, Hawaii Revised Statutes, is amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1 shall not apply to:
(1) Any document or instrument that is executed prior to January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed;
(4) Any document or instrument between husband and wife, reciprocal beneficiaries, or parent and child, in which only a nominal consideration is paid;
(5) Any document or instrument in which there is a consideration of $100 or less paid or to be paid;
(6) Any document or instrument conveying real property that is executed pursuant to an agreement of sale, and where applicable, any assignment of the agreement of sale, or assignments thereof; provided that the taxes under this chapter have been fully paid upon the agreement of sale, and where applicable, upon such assignment or assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment of agreement of sale, instrument or writing in which the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof for delinquent taxes or assessments;
(9) Any document or instrument conveying real property to the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof pursuant to the threat of the exercise or the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or easements;
(11) Any document or instrument whereby owners partition their property, whether by mutual agreement or judicial action; provided that the value of each owner's interest in the property after partition is equal in value to that owner's interest before partition;
(12) Any document or instrument between marital partners or reciprocal beneficiaries who are parties to a divorce action or termination of reciprocal beneficiary relationship that is executed pursuant to an order of the court in the divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the grantor's revocable living trust, or from a grantor's revocable living trust to the grantor as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein, from an entity that is a party to a merger or consolidation under chapter 414, 414D, 415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;
(16) Any document or
instrument conveying real property, or any interest therein, from a dissolving
limited partnership to its corporate general partner that owns, directly or
indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of
the federal Internal Revenue Code of 1986, as amended, to the constructive
ownership of interests in the partnership; [and
[](17)[]] Any
document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[.]; and
(18) Any document or instrument conveying real property with a county owned deed restriction pursuant to subpart , part III of chapter 201H."
SECTION 7. Section 525-4, Hawaii Revised Statutes, is amended to read as follows:
"§525-4 Exclusions from statutory rule against perpetuities. Section 525-1 shall not apply to:
(1) A fiduciary's power to sell, lease, or mortgage property, and the power of a fiduciary to determine principal and income;
(2) A discretionary power of a trustee to distribute principal before termination of a trust;
(3) A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision;
(4) A property interest in or a power of appointment with respect to a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses;
(5) A property
interest, power of appointment, or arrangement that was not subject to the
common-law rule against perpetuities or is excluded by any other applicable law;
[or]
(6) A trust described
in chapter 554G[.]; or
(7) A property interest in property with a county owned deed restriction in place pursuant to subpart , part III of chapter 201H."
SECTION 8. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 3000.
Report Title:
HHFDC; Counties; Accessory Dwelling Units; Grants; Voluntary Deed Restrictions; Dwelling Unit Revolving Fund
Description:
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property. 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. |
740 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature believes that it is important to promote the development of additional housing while securing that housing for local residents working in Hawaii.
Accordingly, the purpose of this Act is to establish an accessory dwelling unit financing and deed restriction program under the Hawaii housing finance and development corporation.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:
" . ACCESSORY DWELLING UNIT FINANCING AND DEED RESTRICTION PROGRAM
§201H-A Definitions. As used in this subpart, unless the context otherwise requires:
"Accessory dwelling unit" means an accessory or a second dwelling unit that includes its own kitchen, bedroom, and bathroom facilities, and is attached or detached from the primary dwelling unit on the zoning lot on which the primary dwelling unit of the owner is located.
"Development costs" includes costs associated with site preparation, architectural or engineering design, permits, soil tests, impact fees, and property survey.
"Eligible homeowner or homebuyer" means a person or family, without regard to race, creed, national origin, or sex, who:
(1) Is a citizen of the United States or a resident alien;
(2) Is a resident domiciled in the State;
(3) Is at least eighteen years of age;
(4) Agrees to sell to the county and place a deed restriction on the primary dwelling unit and accessory dwelling unit that is in compliance with section 201H-C;
(5) Agrees to comply with annual reporting requirements as provided pursuant to section 201H-E;
(6) Owns no other property with a deed restriction pursuant to this subpart; and
(7) Meets any other qualifications as established by rules adopted by the corporation or county.
"Qualified business" means a corporation, partnership, sole proprietorship, trust or foundation, or any other individual or organization carrying on a business, whether or not operated for profit:
(1) With a physical presence within the State;
(2) With a current and valid business license to operate in the State;
(3) That pays state income taxes pursuant to chapter 235; and
(4) Is generally recognized as an operating business within the community.
"Qualified business" includes state and county departments and agencies.
§201H-B Accessory dwelling unit financing and deed restriction program; established. (a) There is established within the corporation an accessory dwelling unit financing and deed restriction program. Under the accessory dwelling unit financing and deed restriction program, the corporation may allocate funds from the dwelling unit revolving fund established under section 201H-191 to a county to:
(1) Provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non‑reoccurring closing costs associated with the construction of an accessory dwelling unit; and
(2) Purchase a deed restriction from eligible homebuyers or homeowners to be placed on the primary dwelling unit and accessory dwelling unit funded pursuant to this subpart.
(b) Upon application by a county, in a form prescribed by the corporation, the corporation shall allocate a dollar amount necessary for a county to carry out subsection (a);provided that a county shall apply for no less than $ at a time.
(c) A county may deposit funds received from the corporation pursuant to subsection (b) into an escrow account until the purchase of a deed restriction is finalized.
(d) No eligible homeowner or homebuyer shall be granted funds under this subpart if a deed restriction that satisfies section 201H-C already runs with the land on which an accessory dwelling unit that was funded pursuant to this subpart is located.
(e) Any initial lease for tenancy offered at a property with a deed restriction placed pursuant to this subpart shall be for a minimum of six months. An initial lease may transfer to a month-to-month lease upon completion of the original term.
(f) The deed restriction placed and owned by the county pursuant to this subpart shall take first priority over other restrictions on the property, if applicable.
(g) Counties shall be responsible for validating the evidence and ensuring compliance with this subpart; provided that counties may contract with non-government persons or entities to ensure compliance with this subpart. Counties shall report any property not in compliance with this subpart to the corporation.
(h) If a property with a deed restriction in place pursuant to this subpart is sold to a nonresident, or at sale it is determined that any dwelling unit on the property has been rented to a nonresident, the corporation may bring action against the homeowner in the appropriate circuit court and shall be entitled to fifty per cent of appreciation at the time of sale, to be collected by the corporation and placed in the dwelling unit revolving fund established under section 201H-191.
(i) If a county does not expend moneys allocated pursuant to this section within one year of receipt, the moneys shall be returned to the corporation and placed in the dwelling unit revolving fund established under section 201H-191.
(j) The corporation and each county may establish, revise, charge, and collect fees, premiums, and impose costs as necessary, reasonable, or convenient to effectuate the purposes of this subpart.
(k) The corporation may adopt rules pursuant to chapter 91 for the purposes of this subpart. Each county may adopt rules pursuant to chapter 91 for purposes of this subpart; provided that the rules shall not conflict with rules adopted by the corporation.
§201H-C Deed restriction; requirements. (a) Notwithstanding any other law to the contrary, a deed restriction shall be recorded against the property and shall run with the land in perpetuity, binding all future owners, successors, and assigns.
(b) Notwithstanding any other law to the contrary, a deed restriction placed on a property and owned by a county pursuant to this subpart shall require that the property be occupied by at least one owner-occupant or tenant who:
(1) Works an average of thirty hours or more per week at a qualified business within the State;
(2) Is involuntarily unemployed:
(A) From a job in which the owner-occupant or tenant worked an average of thirty hours or more per week at a qualified business within the State at the time of initial occupancy; and
(B) For a period of less than three hundred sixty-five days;
(3) Is retired; provided that the retiree:
(A) Was sixty-five years of age or older at the time of retirement; and
(B) Worked an average of thirty hours or more per week at a qualified business within the county for ten consecutive years immediately preceding retirement; or
(4) Has a disability, as defined in section 515-2; provided that the owner or tenant with a disability worked an average of thirty hours or more per week at a qualified business within the State for five consecutive years immediately prior to the determination of disability.
§201H-D Remedies. A county that reasonably believes a property with a deed restriction in place pursuant to this subpart is not in compliance with this subpart may bring action against the owner of the property for civil remedies based in contract or real property law, including but not limited to claiming a lien or obtaining specific performance.
§201H-E Conveyance tax; environmental impact statement; procurement code; exemptions. (a) An action on property with a deed restriction in place pursuant to this subpart shall be exempt from chapter 343.
(b) Property sold for which a county has purchased a deed restriction pursuant to this subpart shall be exempt from chapter 247.
§201H-F Annual reporting. No later than of each year, beginning in the year following the first year of occupancy of the property after the deed restriction has been entered into, the owner of the property shall submit a written statement with accompanying evidence to the county verifying the property was occupied by a qualified owner-occupant or tenant during all of the prior calendar year; provided that, if applicable, a copy of the lease form currently used for the property shall be submitted with the statement."
SECTION 3. Section 46-15.2, Hawaii Revised Statutes, is amended to read as follows:
"§46-15.2 Housing; additional county powers. In addition and supplemental to the powers granted to counties by section 46-15.1, a county shall have and may exercise any of the following powers:
(1) To provide assistance and aid to persons of low- and moderate-income in acquiring housing by:
(A) Providing loans secured by a mortgage;
(B) Acquiring the loans from private lenders where the county has made advance commitment to acquire the loans; and
(C) Making and executing contracts with private lenders or a public agency for the origination and servicing of the loans and paying the reasonable value of the services;
(2) In connection with the exercise of any powers granted under this section or section 46-15.1, to establish one or more loan programs and to issue bonds under chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1; provided that:
(A) If bonds are issued pursuant to chapter 47 to finance one or more loan programs, the county may establish qualifications for the program or programs as it deems appropriate;
(B) If bonds are issued pursuant to chapter 49 to finance one or more loan programs, the loan program or programs shall comply with part III, subpart B of chapter 201H, to the extent applicable;
(C) If bonds are issued pursuant to section 47-4 or chapter 49, any loan program established pursuant to this section or any county-owned dwelling units constructed under section 46-15.1 shall be and constitute an "undertaking" under section 49‑1 and chapter 49 shall apply to the loan program or county-owned dwelling units to the extent applicable;
(D) In connection with the establishment of any loan program pursuant to this section, a county may employ financial consultants, attorneys, real estate counselors, appraisers, and other consultants as may be required in the judgment of the county and fix and pay their compensation from funds available to the county therefor;
(E) Notwithstanding any limitation otherwise established by law, with respect to the rate of interest on any loan made under any loan program established pursuant to this section, the loan may bear a rate or rates of interest per year as the county shall determine; provided that no loan made from the proceeds of any bonds of the county shall be under terms or conditions that would cause the interest on the bonds to be deemed subject to income taxation by the United States;
(F) Notwithstanding any limitation otherwise established by law, with respect to the amount of compensation permitted to be paid for the servicing of loans made under any loan program established pursuant to this section, a county may fix any reasonable compensation as the county may determine;
(G) Notwithstanding the requirement of any other law, a county may establish separate funds and accounts with respect to bonds issued pursuant to chapter 47 or 49 to provide moneys to carry out the purposes of this section or section 46-15.1 as the county may deem appropriate;
(H) Notwithstanding any provision of chapter 47 or 49 or of any other law, but subject to the limitations of the state constitution, bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1 may be sold at public or private sale at a price; may bear interest at a rate or rates per year; may be payable at a time or times; may mature at a time or times; may be made redeemable before maturity at the option of the county, the holder, or both, at a price or prices and upon terms and conditions; and may be issued in coupon or registered form, or both, as the county may determine;
(I) If deemed necessary or advisable, the county may designate a national or state bank or trust company within or without the State to serve as trustee for the holders of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, and enter into a trust indenture, trust agreement, or indenture of mortgage with the trustee whereby the trustee may be authorized to receive and receipt for, hold, and administer the proceeds of the bonds and to apply the proceeds to the purposes for which the bonds are issued, or to receive and receipt for, hold, and administer the revenues and other receipts derived by the county from the application of the proceeds of the bonds and to apply the revenues and receipts to the payment of the principal of, or interest on the bonds, or both. Any trust indenture, trust agreement, or indenture of mortgage entered into with the trustee may contain any covenants and provisions as may be deemed necessary, convenient, or desirable by the county to secure the bonds. The county may pledge and assign to the trustee any agreements related to the application of the proceeds of the bonds and the rights of the county thereunder, including the rights to revenues and receipts derived thereunder. Upon appointment of the trustee, the director of finance of the county may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the bonds; or may elect to limit the functions the director of finance performs as a fiscal agent; and may appoint a trustee to serve as the fiscal agent; and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, as the director of finance deems necessary, advisable, or expedient, including without limitation the holding of the bonds and coupons that have been paid and the supervision and conduction or the destruction thereof in accordance with law;
(J) If a trustee is not appointed to collect, hold, and administer the proceeds of bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1, or the revenues and receipts derived by the county from the application of the proceeds of the bonds, as provided in subparagraph (I), the director of finance of the county may hold the proceeds or revenues and receipts in a separate account in the treasury of the county, to be applied solely to the carrying out of the ordinance, trust indenture, trust agreement, or indenture of mortgage, if any, authorizing or securing the bonds; and
(K) Any law to the contrary notwithstanding, the investment of funds held in reserves and sinking funds related to bonds issued to provide moneys to carry out the purposes of this section or section 46-15.1 shall comply with section 201H-77; provided that any investment that requires approval by the county council pursuant to section 46-48 or 46-50 shall first be approved by the county council;
(3) To acquire
policies of insurance and enter into banking arrangements as the county may
deem necessary to better secure bonds issued to provide money to carry out the
purposes of this section or section 46-15.1, including without limitation
contracting for a support facility or facilities as may be necessary with
respect to bonds issued with a right of the holders to put the bonds and
contracting for interest rate swaps; [and]
(4) To enter into negotiations for, and purchase deed restrictions on, housing properties from eligible homeowners and homebuyers pursuant to subpart , part III of chapter 201H; and
[(4)] (5) To do any and all other things
necessary or appropriate to carry out the purposes and exercise the powers
granted in section 46-15.1 and this section."
SECTION 4. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
(1) Solicited or entered into before July 1, 1994, unless the parties agree to its application to a contract solicited or entered into prior to July 1, 1994;
(2) To disburse funds, irrespective of their source:
(A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;
(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;
(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;
(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;
(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;
(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;
(G) To governmental bodies of the State;
(H) As loans, under loan programs administered by
a governmental body; [and]
(I) For contracts awarded in accordance with chapter 103F; and
(J) For the purchase of deed restrictions for the accessory dwelling unit financing and deed restriction program established under subpart , part III of chapter 201H;
(3) To procure goods, services, or construction from a governmental body other than the university of Hawaii bookstores, from the federal government, or from another state or its political subdivision;
(4) To procure the following goods or services that are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
(A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi-judicial proceedings;
(B) Works of art for museum or public display;
(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;
(D) Meats and foodstuffs for the Kalaupapa settlement;
(E) Opponents for athletic contests;
(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;
(G) Performances, including entertainment, speeches, and cultural and artistic presentations;
(H) Goods and services for commercial resale by the State;
(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds;
(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside the State;
(K) Financing agreements under chapter 37D;
(L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that:
(i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph;
(ii) Awards over $2,500 shall comply with section 103D-310(c); and
(iii) Awards over $500,000 shall be approved by the superintendent of education; and
(M) Any other goods or services that the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
(5) That are specific procurements expressly exempt from any or all of the requirements of this chapter by:
(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and
(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT), that require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms."
SECTION 5. Section 201H-191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is created a dwelling unit revolving
fund. The funds appropriated for the
purpose of the dwelling unit revolving fund and all moneys received or
collected by the corporation for the purpose of the revolving fund shall be
deposited in the revolving fund. The
proceeds in the revolving fund shall be used [to reimburse] for:
(1) Reimbursements
to the general fund to pay the interest on general obligation bonds issued
for the purposes of the revolving fund[, for the necessary];
(2) Necessary
expenses in administering housing development programs and regional state
infrastructure programs[, and for carrying];
(3) Carrying
out the purposes of housing development programs and regional state
infrastructure programs, including but not limited to the expansion of
community facilities and regional state infrastructure constructed in conjunction
with housing and mixed-use transit-oriented development projects, permanent
primary or secondary financing, and supplementing building costs, federal
guarantees required for operational losses, and all things required by any
federal agency in the construction and receipt of federal funds or low‑income
housing tax credits for housing projects[.]; and
(4) The administration of and purchase of deed restrictions as part of the accessory dwelling unit financing and deed restriction program under subpart ; provided that there shall be no area median income requirements for moneys expended for the purposes of this program."
SECTION 6. Section 247-3, Hawaii Revised Statutes, is amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1 shall not apply to:
(1) Any document or instrument that is executed prior to January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed;
(4) Any document or instrument between husband and wife, reciprocal beneficiaries, or parent and child, in which only a nominal consideration is paid;
(5) Any document or instrument in which there is a consideration of $100 or less paid or to be paid;
(6) Any document or instrument conveying real property that is executed pursuant to an agreement of sale, and where applicable, any assignment of the agreement of sale, or assignments thereof; provided that the taxes under this chapter have been fully paid upon the agreement of sale, and where applicable, upon such assignment or assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment of agreement of sale, instrument or writing in which the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof for delinquent taxes or assessments;
(9) Any document or instrument conveying real property to the United States or any agency or instrumentality thereof or the State or any agency, instrumentality, or governmental or political subdivision thereof pursuant to the threat of the exercise or the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or easements;
(11) Any document or instrument whereby owners partition their property, whether by mutual agreement or judicial action; provided that the value of each owner's interest in the property after partition is equal in value to that owner's interest before partition;
(12) Any document or instrument between marital partners or reciprocal beneficiaries who are parties to a divorce action or termination of reciprocal beneficiary relationship that is executed pursuant to an order of the court in the divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the grantor's revocable living trust, or from a grantor's revocable living trust to the grantor as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein, from an entity that is a party to a merger or consolidation under chapter 414, 414D, 415A, 421, 421C, 425, 425E, or 428 to the surviving or new entity;
(16) Any document or
instrument conveying real property, or any interest therein, from a dissolving
limited partnership to its corporate general partner that owns, directly or
indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of
the federal Internal Revenue Code of 1986, as amended, to the constructive
ownership of interests in the partnership; [and
[](17)[]] Any
document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[.]; and
(18) Any document or instrument conveying real property with a county owned deed restriction pursuant to subpart , part III of chapter 201H."
SECTION 7. Section 525-4, Hawaii Revised Statutes, is amended to read as follows:
"§525-4 Exclusions from statutory rule against perpetuities. Section 525-1 shall not apply to:
(1) A fiduciary's power to sell, lease, or mortgage property, and the power of a fiduciary to determine principal and income;
(2) A discretionary power of a trustee to distribute principal before termination of a trust;
(3) A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision;
(4) A property interest in or a power of appointment with respect to a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses;
(5) A property
interest, power of appointment, or arrangement that was not subject to the
common-law rule against perpetuities or is excluded by any other applicable law;
[or]
(6) A trust described
in chapter 554G[.]; or
(7) A property interest in property with a county owned deed restriction in place pursuant to subpart , part III of chapter 201H."
SECTION 8. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 2025.
|
INTRODUCED BY: |
_____________________________ |
Report Title:
HHFDC; Counties; Accessory Dwelling Units; Grants; Voluntary Deed Restrictions; Dwelling Unit Revolving Fund
Description:
Establishes the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
Date
|
Status
|
|---|---|
| Apr 2, 2026 | Received notice of the discharge of all House Conferees (Hse. Com. No. 457). |
| Apr 1, 2026 | House Conferee(s) discharged. |
| Mar 20, 2026 | Received notice of all Senate conferees being discharged (Sen. Com. No. 409). |
| Mar 20, 2026 | Senate Conferee(s) discharged. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 4:30 PM; Conference Room 225. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 3:30 PM; Conference Room 016. |
| Apr 24, 2025 | Conference committee meeting to reconvene on 04-25-25 10:30AM; Conference Room 224. |
| Apr 23, 2025 | Conference committee meeting to reconvene on 04-24-25 10:30AM; Conference Room 224. |
| Apr 22, 2025 | Conference committee meeting to reconvene on 04-23-25 10:30AM; Conference Room 224. |
| Apr 21, 2025 | Conference committee meeting scheduled for 04-22-25 10:25AM; Conference Room 224. |
| Apr 17, 2025 | Received notice of Senate conferees (Sen. Com. No. 826). |
| Apr 17, 2025 | Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Fevella. |
| Apr 15, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 732). |
| Apr 14, 2025 | House Conferees Appointed: Evslin, Poepoe, Miyake Co-Chairs; Grandinetti, Muraoka. |
| Apr 11, 2025 | Received notice of disagreement (Hse. Com. No. 704). |
| Apr 10, 2025 | House disagrees with Senate amendment (s). |
| Apr 8, 2025 | Returned from Senate (Sen. Com. No. 671) in amended form (SD 2). |
| Apr 8, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 3, 2025 | 48 Hrs. Notice 04-08-25. |
| Apr 3, 2025 | Reported from WAM (Stand. Com. Rep. No. 1659) with recommendation of passage on Third Reading, as amended (SD 2). |
| Mar 31, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 28, 2025 | The committee(s) on WAM will hold a public decision making on 03-31-25 10:02AM; Conference Room 211 & Videoconference. |
| Mar 20, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Mar 20, 2025 | Reported from HOU (Stand. Com. Rep. No. 1179) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Mar 11, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Kanuha; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Aquino, Fevella. |
| Mar 7, 2025 | The committee(s) on HOU has scheduled a public hearing on 03-11-25 1:10PM; Conference Room 225 & Videoconference. |
| Mar 6, 2025 | Referred to HOU, WAM. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 277). |
| Mar 4, 2025 | Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate. |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 1128), recommending passage on Third Reading. |
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kitagawa, Ward. |
| Feb 21, 2025 | Bill scheduled to be heard by FIN on Tuesday, 02-25-25 10:00AM in House conference room 308 VIA VIDEOCONFERENCE. |
| Feb 13, 2025 | Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Reyes Oda voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kitagawa, Ward excused (3). |
| Feb 13, 2025 | Reported from JHA (Stand. Com. Rep. No. 617) as amended in HD 2, recommending referral to FIN. |
| Feb 6, 2025 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Cochran, Hashem, Kahaloa, Perruso, Takayama, Todd; Ayes with reservations: Representative(s) Shimizu; Noes: none; and 1 Excused: Representative(s) Garcia. |
| Feb 3, 2025 | Bill scheduled to be heard by JHA on Thursday, 02-06-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE. |
| Feb 3, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on JHA with Representative(s) Garcia, Shimizu voting aye with reservations; Representative(s) Muraoka, Pierick voting no (2) and Representative(s) Cochran, Ward excused (2). |
| Feb 3, 2025 | Reported from HSG (Stand. Com. Rep. No. 53) as amended in HD 1, recommending passage on Second Reading and referral to JHA. |
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica; Ayes with reservations: none; 2 Noes: Representative(s) Muraoka, Pierick; and 1 Excused: Representative(s) Cochran. |
| Jan 27, 2025 | Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Jan 21, 2025 | Referred to HSG, JHA, FIN, referral sheet 2 |
| Jan 21, 2025 | Introduced and Pass First Reading. |
| Jan 17, 2025 | Pending introduction. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 8, 2025 | Third Reading | Senate Floor |
Passed |
|
| Mar 31, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
|
| Mar 11, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
|
| Mar 4, 2025 | Third Reading | House Floor |
Passed |
|
| Feb 25, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
|
| Feb 6, 2025 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Judiciary & Hawaiian Affairs |
Passed |
|
| Jan 29, 2025 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| AARP Hawaii | ** Support | |
| aio | ** Support | |
| Catholic Charities Hawai‘i | *** Support | Mar 31, 2025 |
| Chamber of Commerce Hawaii | *** Support | Mar 31, 2025 |
| Council for Native Hawaiian Advancement | ** Support | |
| County Council, County of Maui | *** Support | Mar 11, 2025 |
| County of Hawai‘i Office of Housing and Community Development | *** Support | Feb 6, 2025 |
| Hawaii Housing Finance and Development Corporation | *** Support | Mar 31, 2025 |
| Hawaii Gas | ** Support | |
| Hawaiʻi Children's Action Network Speaks! | ** Support | |
| Hawaiʻi Community Foundation | ** Support | |
| Hawaiʻi Community Foundation | *** Support | Mar 31, 2025 |
| Hawaiʻi Gas | *** Support | Feb 25, 2025 |
| Hawai‘i Appleseed Center for Law and Economic Justice | *** Support | Mar 31, 2025 |
| Hawai‘i YIMBY | *** Support | Mar 31, 2025 |
| Holomua Collaborative | *** Support | Mar 31, 2025 |
| Hope Services Hawaii, Inc. | *** Support | Mar 31, 2025 |
| Housing Hawaiʻi's Future | ** Support | |
| HPM BUILDING SUPPLY | *** Support | Mar 31, 2025 |
| Mana Up | *** Support | Mar 31, 2025 |
| Maui Chamber of Commerce | ** Support | |
| Office of Housing and Community Development of the County of Hawaiʻi | ** Support | |
| Office of Hawaiian Affairs | ** Support | |
| Office of Housing and Community Development of the County of Hawaiʻi | ** Support | |
| Office of Housing of the City and County of Honolulu | ** Support | |
| Save Medicaid Hawaii | ** Support | |
| Title Guaranty of Hawaii | ** Support | |
| Title Guaranty of Hawai‘i | *** Support | Mar 31, 2025 |
| Tori Richard, Ltd | ** Support | |
| TORI RICHARD, LTD. | ** Support | |
| We Are One, Inc. | *** Support | Mar 31, 2025 |
STAND. COM. REP. NO. 1659
Honolulu, Hawaii
RE: H.B. No. 740
H.D. 2
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 740, H.D. 2, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose and intent of this measure is to establish an accessory dwelling unit financing and deed restriction program under the Hawaii Housing Finance and Development Corporation.
Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Catholic Charities Hawaii, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Community Foundation, Holomua Collaborative, Hope Services Hawaii, HPM Building Supply, Mana Up, The Chamber of Commerce Hawaii, Title Guaranty of Hawaii, We Are One, Inc., YIMBY Hawaii, and eight individuals.
Your Committee received written comments on this measure from the Department of Taxation and Hawaii Association of REALTORS.
Your Committee finds that increasing the supply of accessory dwelling units is an important strategy to help address the shortage of rental housing units in Hawaii. Your Committee further finds that the costs of constructing accessory dwelling units can be prohibitive for homeowners. Your Committee believes that providing financial assistance for these projects will encourage homeowners to build accessory dwelling units and thereby help increase the rental housing supply. In addition, restricting the occupancy of the properties to owner-occupants or tenants who work at or are retired from work at a Hawaii business will ensure that the benefits of the assistance program continue to accrue to the Hawaii workforce housing supply.
Your Committee has amended this measure by appropriating an unspecified amount, for fiscal year 2025-2026, into and out of the Dwelling Unit Revolving Fund, to be expended by the Hawaii Housing Finance and Development Corporation for the purposes of infrastructure projects.
Your Committee recommends an appropriation amount of $20,000,000 into the Dwelling Unit Revolving Fund.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 740, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 740, H.D. 2, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
|
|
|
________________________________ DONOVAN M. DELA CRUZ, Chair |
|
|
|
|
STAND. COM. REP. NO. 1179
Honolulu, Hawaii
RE: H.B. No. 740
H.D. 2
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Housing, to which was referred H.B. No. 740, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose and intent of this measure is to establish the Accessory Dwelling Unit Financing and Deed Restriction Program to allocate funds to the counties to provide grants to eligible homeowners or homebuyers to finance construction costs, development costs, and non-reoccurring closing costs associated with the construction of an accessory dwelling unit and purchase deed restrictions on such property.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Office of Hawaiian Affairs, one member of the Maui County Council, Office of Housing of the City and County of Honolulu, Office of Housing and Community Development of the County of Hawaiʻi, Hawaii Appleseed Center for Law and Economic Justice, Hawaiʻi YIMBY, Housing Hawaiʻi's Future, Hawaiʻi Children's Action Network Speaks!, Maui Chamber of Commerce, Catholic Charities Hawaiʻi, Council for Native Hawaiian Advancement, Save Medicaid Hawaii, Hawaiʻi Community Foundation, Chamber of Commerce Hawaii, and six individuals.
Your Committee received comments on this measure from the Department of Taxation, Hawaiʻi Association of REALTORS, Holomua Collaborative, and Tax Foundation of Hawaii.
Your Committee finds that the State is experiencing a chronic housing shortage. An accessory dwelling unit (ADU) is a small, separate living area that is attached or detached from a primary single-family residence on a single-family lot and is an important type of housing that can efficiently add gentle density to existing, established neighborhoods. While ADUs can help increase the supply of lower-cost housing, there are many financial barriers for homeowners interested in constructing ADUs, including high construction costs, financing challenges, and infrastructure insufficiencies. Incentivizing the construction of ADUs through the deed restriction program established by this measure could help increase housing stock that aligns with specific community needs while ensuring the units constructed are occupied by local workers, thereby maintaining employment within the State and preventing the conversion of the units into vacation rentals or investment properties and reducing speculation in the State's housing market.
Your Committee notes, however, that the counties already have the authority to implement the ADU and deed restriction program proposed in this measure. Maui County initiated a similar grant program that includes an owner-occupancy requirement, buyback program, and equity sharing. Therefore, the Legislature should study Maui County's deed restriction program before committing additional state funds for the development of a similar program.
Your Committee additionally recognizes the concerns raised by the Office of Housing of the City and County of Honolulu, generally supporting ADUs as an innovative approach to increase housing inventory but noting the County's existing challenges to implement this measure in its current form with regard to capacity, lack of positions and staff, potential impacts to real property tax revenues, eligibility criteria, implementation timelines, enforceability, and potential liability. Your Committee finds that these issues merit further consideration and respectfully requests that these concerns be examined by subsequent Committees that choose to deliberate on this measure as it continues through the legislative process.
Your Committee further notes that loans or other forms of investment, rather than a grant program, would allow the State to recover on its investment, thereby enabling the State to finance additional ADUs in the future. For example, the Dwelling Unit Revolving Fund Equity Program enables the State to share in the capital gain of units receiving state funds. Alternatively, other ways for the State to unlock the value of its investment and maximize future housing construction should be explored.
Your Committee has amended this measure by:
(1) Changing the source of funding from the Dwelling Unit Revolving Fund to the Rental Housing Revolving Fund;
(2) Changing the Accessory Dwelling Unit Financing and Deed Restriction Program from a grant program to an equity purchase program;
(3) Clarifying that the Hawaii Housing Finance and Development Corporation (HHFDC) may allocate a dollar amount necessary for a county to carry out the program; provided that the total contribution amount from a county distributed per accessory dwelling unit shall not exceed eight percent of the appraised value of the property;
(4) Specifying that HHFDC shall not allocate more than $2,000,000 per year for the program between all counties;
(5) Authorizing the counties to use an unspecified percentage of awarded funds for administrative costs;
(6) Clarifying that eligible homeowners or homebuyers under the program shall own no other real property;
(7) Expanding the terms of the required indemnification agreement to include the counties and county officers, agents, and employees;
(8) Inserting language to require the program to prioritize homeowners or homebuyers and prospective tenants that are government employees;
(9) Inserting language to require a homeowner participating in the purchase of equity program to repay HHFDC its prorated share of the appraised value of the completed accessory dwelling unit, with appreciation, within fifteen years or upon sale or transfer of the property, whichever occurs first;
(10) Clarifying that each dwelling unit on the property shall be occupied exclusively by owner-occupants or tenants who meet certain eligibility criteria;
(11) Requiring HHFDC to submit a report to the Legislature evaluating the program no later than twenty days prior to the convening of the Regular Session of 2031;
(12) Clarifying the exemption to the Conveyance Tax shall apply to taxable years beginning January 1, 2026;
(13) Sunsetting the program on December 31, 2030;
(14) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(15) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
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. 740, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 740, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Housing,
|
|
|
________________________________ STANLEY CHANG, Chair |
|
|
|
|
STAND. COM. REP. NO. 1128
Honolulu, Hawaii
, 2025
RE: H.B. No. 740
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 740, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; one member of the Maui County Council; Hawaii Children's Action Network Speaks!; Hawaii Appleseed Center for Law & Economic Justice; Chamber of Commerce Hawaii; Hawaii Community Foundation; Hawaii YIMBY; Council for Native Hawaiian Advancement; Holomua Collaborative; Title Guaranty of Hawaii; HPM Building Supply; Mana Up; Hawaii Gas; aio; Tori Richard, Ltd.; AARP Hawaii; Catholic Charities Hawaii; Housing Hawaii's Future; Maui Chamber of Commerce; Save Medicaid Hawaii; and four individuals.
Your Committee received comments on this measure from the Department of Taxation; Office of Housing of the City and County of Honolulu; Hawaii Association of REALTORS; Tax Foundation of Hawaii; and LIMBY 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. 740, H.D. 2, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
|
|
|
____________________________ KYLE T. YAMASHITA, Chair |
|
|
|
|
STAND. COM. REP. NO. 617
Honolulu, Hawaii
, 2025
RE: H.B. No. 740
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 740, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; one member of the Maui County Council; Office of Housing and Community Development of the County of Hawaiʻi; Catholic Charities Hawaiʻi; Hawaiʻi YIMBY; Hawaii Appleseed Center for Law & Economic Justice; Holomua Collaborative; Hawaiʻi Community Foundation; Title Guaranty Hawaii; Hawaiʻi Gas; Mana Up; HPM Building Supply; aio; Tori Richard, Ltd; Housing Hawaiʻi's Future; Chamber of Commerce Hawaii; Maui Chamber of Commerce; and one individual. Your Committee received comments on this measure from the Department of the Attorney General; Department of Taxation; Hawaiʻi Association of REALTORS; and Tax Foundation of Hawaii.
Your Committee finds that this measure offers an effective solution to increase housing supply, especially in residential areas with available space for additional dwellings. Your Committee further finds that the Department of the Attorney General testified that the measure does not appear to contain legally sufficient standards for the award of such grants involving public money as required by the Hawaii State Constitution.
Accordingly, your Committee has amended this measure by:
(1) Inserting appropriate standards for grant awards;
(2) Clarifying the exemption from conveyance taxes; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
Your Committee notes that the Department of Taxation is requesting that the conveyance tax exemption take effect on January 1, 2026, to allow for form and instruction changes necessary to implement the proposed exemption.
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. 740, 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. 740, 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 |
STAND. COM. REP. NO. 53
Honolulu, Hawaii
, 2025
RE: H.B. No. 740
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. 740 entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose of this measure is to establish an Accessory Dwelling Unit Financing and Deed Restriction Program under the Hawaii Housing Finance and Development Corporation.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; one member of the Maui County Council; Hawaii Appleseed Center for Law & Economic Justice; Catholic Charities Hawaiʻi; Hawaiʻi YIMBY; Holomua Collaborative; Housing Hawaiʻi's Future; Hawaii Community Foundation; Title Guaranty Hawaii; Mana Up; Hawaii Gas; HPM Building Supply; aio; Tori Richard, Ltd.; Maui Chamber of Commerce; and four individuals. Your Committee received comments on this measure from the Department of Taxation and Hawaii Association of REALTORS.
Your Committee finds that accessory dwelling units are an innovative way to help alleviate the severe lack of housing for Hawaii residents. Despite this, the upfront costs for designing and permitting are barriers for many homeowners to develop an accessory dwelling unit. This measure offers a practical solution to create immediate housing opportunities through ensuring long-term affordability through deed restrictions, thereby preserving these units for Hawaii's workforce.
Your Committee notes that the intent of the Legislature with this measure is for the amount paid to the property owner to be the market rate for a deed restriction. Ideally, through a negotiation process between the county and the property owner, the rate will be high enough to incentivize a property owner to sell a deed restriction, while low enough that it remains an effective use of government funds. It is also the intent of your Committee to not subject any instruments by which a deed restriction is placed on a dwelling unit under the Accessory Dwelling Unit Financing and Deed Restriction Program (Program) to the conveyance tax.
Your Committee has amended this measure by:
(1) Authorizing the Hawaii Housing Finance and Development Corporation to allocate an annual lump sum, to be determined by the Corporation, rather than requiring the counties to apply for a specific minimum amount;
(2) Prohibiting the Hawaii Housing Finance and Development Corporation from distributing funds under the Program solely based on the population size of a county;
(3) Clarifying that for a planned community, a deed restriction placed and owned by a county may be secondary only to conditions, covenants, and restrictions with a requisite first position;
(4) Deleting language that would have required a retiree or an individual with a disability to have worked for ten consecutive years and five consecutive years, respectively, in the county or State, to qualify as an owner-occupant under the Program;
(5) Exempting any contract entered into by a county under the Program from the Procurement Code;
(6) Changing the effective date to July 1, 3000, to encourage further discussion; and
(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
Your Committee also notes that while language that could have been construed as a durational requirement for a retiree or an individual with a disability was removed from this measure, your Committee is working with the Department of the Attorney General on language that can withstand constitutional scrutiny to ensure that bona fide residents of the State can benefit from the Accessory Dwelling Unit Financing and Deed Restriction Program.
Your Committee further notes that the Department of Taxation requested in its testimony that should this measure pass the Legislature, an effective date of January 1, 2026 be included, to allow the Department sufficient time to make changes necessary for the implementation of the new conveyance tax exemption.
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. 740, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 740, 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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| Mar 31, 2025 | HB740_SD1_TESTIMONY_WAM_03-31-25_.PDF |
| Mar 11, 2025 | HB740_HD2_TESTIMONY_HOU_03-11-25_.PDF |
| Feb 25, 2025 | HB740_HD2_TESTIMONY_FIN_02-25-25_.PDF |
| Feb 6, 2025 | HB740_HD1_TESTIMONY_JHA_02-06-25_.PDF |
| Jan 29, 2025 | HB740_TESTIMONY_HSG_01-29-25_.PDF |
Discussed in Hearing
36SEC
Conference Committee
19SEC
Conference Committee
27SEC
Conference Committee
4MIN
Senate Standing Committee on Hawaiian Affairs
4MIN
Senate Standing Committee on Housing
4MIN
Senate Standing Committee on Public Safety and Military Affairs
27MIN
House Standing Committee on Finance
7MIN
House Standing Committee on Judiciary & Hawaiian Affairs
Bill Author
