HB 833: HHFDC; DURF; Community Land Trust Equity Pilot Program; Affordable Housing; Reports; Appropriations

A BILL FOR AN ACT

RELATING TO COMMUNITY LAND TRUSTS.

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

     SECTION 1.  The legislature finds that community land trusts are effective at producing and preserving permanently affordable housing, increasing community control and neighborhood stability, and reducing barriers to homeownership for low- to moderate-income households.  Community land trusts provide lasting assets and shared equity homeownership opportunities that foster generational wealth and community stability.

     The legislature also finds that the community land trust shared equity model enables many homeowners to transition to traditional homeownership, with six out of ten community land trust homeowners accumulating enough equity to purchase homes on the open market.  Community land trusts also curb displacement by removing housing from the speculative market and preserving affordable housing in areas facing rising costs.  Community land trusts have also proven effective in post-disaster recovery, preventing predatory investment and ensuring long-term housing affordability.

     The legislature notes that in Hawaii, six community land trusts are currently active, including the Kohala Community Land Trust, Lahaina Community Land Trust, Nā Hale O Maui, Hawaii HomeOwnership Center Housing and Land Trust, Hoʻomaluhia Community Land Trust, and HALE o Hawaiʻi.  The legislature believes that expanding the community land trust ecosystem can further strengthen community ownership, prevent displacement, and help local families stay in Hawaii.

     The purpose of this Act is to support the expansion of community land trusts by authorizing, and appropriating funds for, the Hawaii housing finance and development corporation to establish a community land trust equity pilot program to provide community land trusts with a low-cost line of credit for housing purposes.

     SECTION 2.  (a)  The Hawaii housing finance and development corporation may establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for qualified residents as defined in section 201H-32, Hawaii Revised Statutes.  The corporation shall prioritize applications that require the least amount of state funding per unit, per year.

     (b)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of the community land trust equity pilot program.

     (c)  The Hawaii housing finance and development corporation shall submit interim reports on the status of the community land trust equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, 2028, and 2029.  The Hawaii housing finance and development corporation shall submit a final report on the community land trust equity pilot program, including any findings, recommendations, and proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2030.

     (d)  The community land trust equity pilot program shall cease to exist on June 30, 2030.

     (e)  For purposes of this section, "community land trust" means a nonprofit organization that:

     (1)  Acquires parcels of land primarily for conveyance under long-term ground leases;

     (2)  Transfers ownership of any structural improvements located on leased parcels to the lessees;

     (3)  Has its corporate membership open to any adult resident of a particular geographic area specified in the organization's bylaws;

     (4)  Retains a first option to purchase any structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to households earning no more than one hundred forty per cent of the county area median income; and

     (5)  Is governed by a board of directors that:

          (A)  Includes a majority of members who are elected by the corporate membership; and

          (B)  Is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization.

     SECTION 3.  There is appropriated out of the dwelling unit revolving fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to establish the community land trust equity pilot program pursuant to this Act.

     The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; DURF; Community Land Trust Equity Pilot Program; Affordable Housing; Reports; Appropriations

Description:

Authorizes the Hawaii Housing Finance and Development Corporation to establish a five-year Community Land Trust Equity Pilot Program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for certain households.  Requires reports to the Legislature regarding the pilot program.  Appropriates funds from the Dwelling Unit Revolving Fund for establishment of the pilot program.  Sunsets the pilot program on 6/30/2030.  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.

A BILL FOR AN ACT

RELATING TO COMMUNITY LAND TRUSTS.

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

     SECTION 1.  The legislature finds that community land trusts are effective at producing and preserving permanently affordable housing, increasing community control and neighborhood stability, and reducing barriers to homeownership for low- to moderate-income households.  Community land trusts provide lasting assets and shared equity homeownership opportunities that foster generational wealth and community stability.

     The legislature also finds that a community land trust's shared equity models enable many homeowners to transition to traditional homeownership, with six out of ten community land trust homeowners accumulating enough equity to purchase homes on the open market.  Community land trusts also curb displacement by removing housing from the speculative market and preserving affordable housing in areas facing rising costs.  Community land trusts have proven effective in post-disaster recovery, preventing predatory investment and ensuring long-term housing affordability.

     The legislature notes that in Hawaii, six community land trusts are currently active, including the Kohala Community Land Trust, Lahaina Community Land Trust, Nā Hale O Maui, Hawaii HomeOwnership Center Housing and Land Trust, Hoʻomaluhia Community Land Trust, and HALE o Hawaiʻi.  The legislature believes that expanding the community land trust ecosystem can further strengthen community ownership, prevent displacement, and help local families stay in Hawaii.

     The purpose of this Act is to support the expansion of community land trusts by authorizing, and appropriating funds for, the Hawaii housing finance and development corporation to establish a community land trust equity pilot program to provide community land trusts with a low-cost line of credit for housing purposes.

     SECTION 2.  (a)  The Hawaii housing finance and development corporation may establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing that is affordable to households earning no more than one hundred forty per cent of the county area median income.

     (b)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of the community land trust equity pilot program.

     (c)  The Hawaii housing finance and development corporation shall submit interim reports on the status of the community land trust equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, 2028, and 2029.  The Hawaii housing finance and development corporation shall submit a final report on the community land trust equity pilot program, including any findings, recommendations, and proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2030.

     (d)  The community land trust equity pilot program shall cease to exist on June 30, 2030.

     (e)  For purposes of this section, "community land trust" means a nonprofit organization that:

     (1)  Acquires parcels of land primarily for conveyance under long-term ground leases;

     (2)  Transfers ownership of any structural improvements located on leased parcels to the lessees;

     (3)  Has its corporate membership open to any adult resident of a particular geographic area specified in the organization's bylaws;

     (4)  Retains a first option to purchase any structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to households earning no more than one hundred forty per cent of the county area median income; and

     (5)  Is governed by a board of directors that:

          (A)  Includes a majority of members who are elected by the corporate membership; and

          (B)  Is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization.

     SECTION 3.  There is appropriated out of the dwelling unit revolving fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to establish the community land trust equity pilot program pursuant to this Act.

     The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

HHFDC; Community Land Trust Equity Pilot Program; Affordable Housing; Reports; Dwelling Unit Revolving Fund; Appropriation

Description:

Authorizes the Hawaii Housing Finance and Development Corporation to establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for certain households.  Requires a report to the Legislature regarding the pilot program.  Appropriates funds from the Dwelling Unit Revolving Fund for establishment of the pilot program.  Sunsets the pilot program on 6/30/2030.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to community land trusts.

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

     SECTION 1.  The legislature finds that community land trusts are effective at producing and preserving permanently affordable housing, increasing community control and neighborhood stability, and reducing barriers to homeownership for low- to moderate-income households.  Community land trusts provide lasting assets and shared equity homeownership opportunities that foster generational wealth and community stability.

     The legislature also finds that a community land trust's shared equity models enable many homeowners to transition to traditional homeownership, with six out of ten community land trust homeowners accumulating enough equity to purchase homes on the open market.  Community land trusts also curb displacement by removing housing from the speculative market and preserving affordable housing in areas facing rising costs.  Community land trusts have proven effective in post-disaster recovery, preventing predatory investment and ensuring long-term housing affordability.

     The legislature notes that in Hawaii, five community land trusts are currently active, including the Lahaina Community Land Trust, Na Hale o Maui, Hawaii HomeOwnership Center's Housing and Land Trust, Hoʻomaluhui Community Land Trust, and HALE o Hawaii.  The legislature believes that expanding the community land trust ecosystem can further strengthen community ownership, prevent displacement, and help local families stay in Hawaii.

     The purpose of this Act is to support the expansion of community land trusts by authorizing the Hawaii housing finance and development corporation to establish a community land trust equity pilot program to provide community land trusts with a low-cost line of credit for housing purposes.

     SECTION 2.  (a)  The Hawaii housing finance and development corporation may establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing that is affordable to households earning no more than one hundred forty per cent of the county area median income.

     (b)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of the community land trust equity pilot program.

     (c)  The Hawaii housing finance and development corporation shall submit interim reports on the status of the community land trust equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, 2028, and 2029.  The Hawaii housing finance and development corporation shall submit a final report on the community land trust equity pilot program, including any findings, recommendations, and proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2030.

     (d)  The community land trust equity pilot program shall cease to exist on June 30, 2030.

     (e)  For purposes of this section, "community land trust" means a nonprofit organization that:

     (1)  Acquires parcels of land primarily for conveyance under long-term ground leases;

     (2)  Transfers ownership of any structural improvements located on leased parcels to the lessees;

     (3)  Has its corporate membership open to any adult resident of a particular geographic area specified in the organization's bylaws;

     (4)  Retains a first option to purchase any structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to households earning no more than one hundred forty per cent of the county area median income; and

     (5)  Is governed by a board of directors that:

          (A)  Includes a majority of members who are elected by the corporate membership; and

          (B)  Is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization.

     SECTION 3.  There is appropriated out of the dwelling unit revolving fund the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to establish the community land trust equity pilot program pursuant to this Act.

     The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

HHFDC; Community Land Trust Equity Pilot Program; Affordable Housing; Reports; Dwelling Unit Revolving Fund; Appropriation

Description:

Authorizes the Hawaii Housing Finance and Development Corporation to establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for certain households and report to the Legislature regarding the pilot program.  Appropriates moneys from the Dwelling Unit Revolving Fund for establishment of the pilot program.

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

STAND. COM. REP. NO. 1826

Honolulu, Hawaii

RE:    H.B. No. 833

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 833, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY LAND TRUSTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to grow and preserve the inventory of affordable housing by supporting the expansion of community land trusts.

     Specifically, this measure:

     (1)  Authorizes the Hawaii Housing Finance and Development Corporation to establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for qualified residents as defined in section 201H-32, Hawaii Revised Statutes;

     (2)  Appropriates an unspecified amount from the dwelling unit revolving fund to support the community land trust equity pilot program; and

     (3)  Requires the Corporation to submit to the Legislature annual interim status reports on the program and a final report on the program, including findings, recommendations, and proposed legislation.

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Na Hale O Maui, and three individuals.

     Your Committee finds that community land trusts provide shared equity homeownership opportunities that foster generational wealth and community stability.  Your Committee further finds that community land trusts effectively aid post-disaster recovery by discouraging predatory investment and contributing to long-term housing affordability.  Your Committee notes that community land trusts face difficulty obtaining financing to acquire and rehabilitate housing.  Additional financial support will enable community land trusts to increase their inventory of housing and help ensure affordability in perpetuity of a greater number of homes.

     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. 833, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 1180

Honolulu, Hawaii

RE:    H.B. No. 833

       H.D. 1

       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. 833, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY LAND TRUSTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Authorize the Hawaii Housing Finance and Development Corporation to establish a five-year Community Land Trust Equity Pilot Program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for certain households;

     (2)  Require a report to the Legislature regarding the pilot program;

     (3)  Appropriate funds from the Dwelling Unit Revolving Fund for establishment of the pilot program; and

     (4)  Sunset the pilot program on June 30, 2030.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Office of Housing and Community Development of the County of Hawaiʻi, Kohala Community Land Trust, Council for Native Hawaiian Advancement, Maui Chamber of Commerce, and two individuals.

     Your Committee finds that community land trusts can reduce barriers to homeownership by producing and preserving long-term affordable housing.  As a shared equity model, community land trusts are an innovative approach to maintaining affordability for housing units for future generations and remove a portion of the inventory from the speculative market to increase options for local families.  Studies have also shown that six out of ten community land trust homeowners accumulate enough equity to purchase homes on the open market.  Because one of the biggest challenges for community land trusts is obtaining financing to acquire and rehabilitate housing, this measure provides capital to enable community land trusts to quickly take advantage of opportunities and further address the State's chronic housing shortage.

     Your Committee notes that to effectuate the Community Land Trust Equity Pilot Program, a significant amount of state funds are needed.  According to the Hawaii Housing Finance and Development Corporation at a public hearing on this measure, fifty dwelling units are planned, with each unit costing an average of $500,000.  Therefore, it is necessary to revolve funds rapidly to ensure a sustainable, continuous pipeline of housing construction.

     Your Committee has amended this measure by:

     (1)  Clarifying that the Community Land Trust Equity Pilot Program shall fund housing that is for qualified residents as defined in section 201H-32, Hawaii Revised Statues, rather than households earning not more than one hundred forty percent of the area median income;

     (2)  Inserting language requiring the Hawaii Housing Finance and Development Corporation to prioritize applications requiring the least amount of state funds per unit, per year;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committee notes that this measure contains an unspecified appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $25,000,000 for the establishment of the Community Land Trust Equity Pilot Program. 

     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. 833, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 833, H.D. 1, 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,

STAND. COM. REP. NO.  1121

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 833

      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 Finance, to which was referred H.B. No. 833, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY LAND TRUSTS,"

begs leave to report as follows:

     The purpose of this measure is to support the expansion of community land trusts by authorizing, and appropriating funds for, the Hawaii Housing Finance and Development Corporation to establish a five-year Community Land Trust Equity Pilot Program to provide community land trusts with a low-cost line of credit for affordable housing purposes.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Kohala Community Land Trust; Council for Native Hawaiian Advancement; Lahaina Community Land Trust; LIMBY Hawaiʻi; Maui Chamber of Commerce; HI Good Neighbor; and one individual.

     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. 833, H.D. 1, and recommends that it pass Third Reading.

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

STAND. COM. REP. NO.  487

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 833

      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. 833 entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY LAND TRUSTS,"

begs leave to report as follows:

     The purpose of this measure is to support the expansion of community land trusts by authorizing, and appropriating funds for, the Hawaii Housing Finance and Development Corporation to establish a Community Land Trust Equity Pilot Program to provide community land trusts with a low-cost line of credit for housing purposes.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; County of Hawaiʻi Office of Housing and Community Development; Nā Hale O Maui; Kohala Community Land Trust; Lahaina Community Land Trust; LIMBY Hawaiʻi; Maui Chamber of Commerce; and four individuals.

     Your Committee finds that community land trusts are effective tools for producing and preserving permanently affordable housing, fostering generational wealth, and enhancing neighborhood stability.  By removing housing from the speculative market and providing shared equity opportunities, community land trusts help prevent displacement and support low- to moderate-income families.  This measure authorizes a pilot program to expand these efforts, which can help preserve long-term housing affordability in the State.

     Your Committee has amended this measure by:

     (1)  Changing the appropriation to the unspecified amount;

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

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $5,000,000.

     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. 833, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 833, H.D. 1, and be referred to your Committee on Finance.

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