SB 1169: RELATING TO COMMUNITY LAND TRUSTS.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-11
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
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 low- to moderate-income households and report to the Legislature regarding the pilot program. Appropriates funds from the Dwelling Unit Revolving Fund for the establishment of the pilot program. (SD1)
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 low- to moderate-income households and report to the Legislature regarding the pilot program. Appropriates moneys from the Dwelling Unit Revolving Fund for establishment of the pilot program.
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THE SENATE |
S.B. NO. |
1169 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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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's 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 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 for low- to moderate‑income households who are qualified residents as defined in section 201H-32, Hawaii Revised Statutes, with an income not 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 low- and moderate-income households; 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; 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 low- to moderate-income households and report to the Legislature regarding the pilot program. Appropriates funds from the Dwelling Unit Revolving Fund for the establishment of the pilot program. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
1169 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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|
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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 for low- to moderate‑income households.
(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 low- and moderate-income households; 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.
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INTRODUCED BY: |
_____________________________ |
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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 low- to moderate-income 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.
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Date
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Status
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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Feb 12, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 12, 2025 | Reported from HOU (Stand. Com. Rep. No. 288) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 4, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Kanuha, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Aquino. |
| Jan 31, 2025 | The committee(s) on HOU has scheduled a public hearing on 02-04-25 1:00PM; Conference Room 225 & Videoconference. |
| Jan 27, 2025 | Referred to HOU, WAM. |
| Jan 21, 2025 | Passed First Reading. |
| Jan 17, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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| Feb 4, 2025 | The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Hawaii Housing Finance and Development Corporation | ** Support | |
| LIMBY Hawaii | *** Support | Feb 4, 2025 |
| NA | ** Support | |
| Nā Hale O Maui (Housing and Land Enterprise of Maui) | *** Support | Feb 4, 2025 |
STAND. COM. REP. NO. 288
Honolulu, Hawaii
RE: S.B. No. 1169
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 S.B. No. 1169 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 low- to moderate-income households and report to the Legislature regarding the Pilot Program; and
(2) Appropriate funds from the Dwelling Unit Revolving Fund for the establishment of the Pilot Program.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Nā Hale O Maui, LIMBY Hawaiʻi, and three individuals.
Your Committee finds that community land trusts provide an opportunity to preserve affordable for-sale housing over an extended period of time. However, access to capital remains a persistent challenge for community land trusts in the development of housing. While certain organizations have borrowed funds from financial institutions in the past, the existing process is extensive and time-consuming, further delaying prospective projects on lands owned by community land trust organizations. Therefore, this measure offers another pathway to alleviate the State's chronic housing shortage while serving more low- and moderate-income individuals and families statewide.
Your Committee has amended this measure by:
(1) Clarifying that low- and moderate-income households who are qualified residents as defined in section 201H-32, Hawaii Revised Statutes, earning not more than one hundred forty percent of the county area median income shall be eligible for housing in the Community Land Trust Equity Pilot Program; and
(2) 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 S.B. No. 1169, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1169, 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,
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________________________________ STANLEY CHANG, Chair |
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Date
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Testimony PDF
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| Feb 4, 2025 | SB1169_TESTIMONY_HOU_02-04-25_.PDF |
Bill Author
Bill Co-Author(s):