SB 1229: HHFDC; DURF; Dwelling Unit Revolving Fund Equity Pilot Program; Interim Financing

A BILL FOR AN ACT

RELATING TO THE DWELLING UNIT REVOLVING FUND.

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

     SECTION 1.  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] into the revolving fund.  The proceeds in the revolving fund shall be used [to]:

     (1)  To reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund[, for the];

     (2)  For necessary expenses in administering housing development programs and regional state infrastructure programs[,]; and [for carrying]

     (3)  To carry 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, purchasing equity in for‑sale housing development projects, interim primary or secondary financing, 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."

     SECTION 2.  Act 92, Session Laws of Hawaii 2023, is amended as follows:

     1.  By amending section 2 to read:

     "SECTION 2.  (a)  The Hawaii housing finance and development corporation [may] shall establish a [five-year] dwelling unit revolving fund equity pilot program, which shall be funded by the dwelling unit revolving fund, to address the high, unmet demand of for-sale units by Hawaii residents, specifically bona fide residents of the State who:

     (1)  [Own no other] Do not hold a majority interest in any residential real property;

     (2)  Receive no gift funds; and

     (3)  Work in a profession that is facing a labor shortage as defined by the corporation, including health care workers, educators, law enforcement officers, [including] staff at correctional facilities, [or] and agricultural field workers.

The corporation shall give preference to for-sale housing development projects that are developed under any government assistance program approved by the corporation pursuant to section 201H-36(a)(2), Hawaii Revised Statutes.

     (b)  The Hawaii housing finance and development corporation may purchase equity in for-sale housing development projects; provided that this equity shall be allocated to specific units within the housing development projects and the price to be paid by each eligible buyer of a unit shall be reduced by the Hawaii housing finance and development corporation's equity amount for that unit.

     (c)  If a buyer sells the buyer's unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value prior to the expiration of the thirty‑year period; provided further that this requirement shall run with the deed for each unit until the obligation to repay the appreciated equity value has been satisfied.

     (d)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this section, including rules that establish the methods by which appreciated equity values shall be calculated, assessed, and satisfied.

     (e)  The Hawaii housing finance and development corporation may establish criteria for the prioritization of eligible buyers based on state goals and policies and submit a report on this criteria to the legislature no later than twenty days prior to the convening of the regular session of 2024.

     (f)  The Hawaii housing finance and development corporation shall submit interim reports on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2024, 2025, 2026, [and] 2027[.], 2028, and 2029.  The Hawaii housing finance and development corporation shall submit a final report on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular session of [2028.] 2030.

     (g)  As used in this section:

     "Housing development project" means a plan, design, or undertaking by the Hawaii housing finance and development corporation or an eligible developer for the development of units.  "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

     "Unit" means:

     (1)  The structure and land upon which the structure is constructed, whether on fee simple or leasehold property, developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes; or

     (2)  Improved or unimproved real property that is developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes.

"Unit" includes dwelling units."

     2.  By amending section 5 to read:

     "SECTION 5.  This Act shall take effect on July 1, 2023, and shall be repealed on June 30, [2028;] 2030; provided that:

     (1)  Section 201H-47, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act; and

     (2)  The requirements imposed pursuant to section 2(c) of this Act shall remain in effect and run with the deed after June 30, [2028.] 2030."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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

Report Title:

HHFDC; DURF; Dwelling Unit Revolving Fund Equity Pilot Program; Interim Financing

Description:

Extends the Dwelling Unit Revolving Fund Equity Pilot Program to 6/30/2030.  Gives preference to for-sale housing development projects developed under governmental assistance programs approved by the Hawaii Housing Finance and Development Corporation.  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 THE DWELLING UNIT REVOLVING FUND.

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

     SECTION 1.  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] into the revolving fund.  The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering housing development programs and regional state infrastructure programs, and for 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, purchasing equity in for‑sale housing development projects, interim primary or secondary financing, 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."

     SECTION 2.  Act 92, Session Laws of Hawaii 2023, is amended as follows:

     1.  By amending section 2 to read:

     "SECTION 2.  (a)  The Hawaii housing finance and development corporation [may] shall establish a [five-year] dwelling unit revolving fund equity pilot program, which shall be funded by the dwelling unit revolving fund, to address the high, unmet demand of for-sale units by Hawaii residents, specifically bona fide residents of the State who:

     (1)  [Own no other] Do not hold a majority interest in any residential real property;

     (2)  Receive no gift funds; and

     (3)  Work in a profession that is facing a labor shortage as defined by the corporation, including health care workers, educators, law enforcement officers, [including] staff at correctional facilities, [or] and agricultural field workers.

The corporation shall give preference to for-sale housing development projects that are developed under any government assistance program approved by the corporation pursuant to section 201H-36(a)(2), Hawaii Revised Statutes.

     (b)  The Hawaii housing finance and development corporation may purchase equity in for-sale housing development projects; provided that this equity shall be allocated to specific units within the housing development projects and the price to be paid by each eligible buyer of a unit shall be reduced by the Hawaii housing finance and development corporation's equity amount for that unit.

     (c)  If a buyer sells the buyer's unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value prior to the expiration of the thirty‑year period; provided further that this requirement shall run with the deed for each unit until the obligation to repay the appreciated equity value has been satisfied.

     (d)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this section, including rules that establish the methods by which appreciated equity values shall be calculated, assessed, and satisfied.

     (e)  The Hawaii housing finance and development corporation may establish criteria for the prioritization of eligible buyers based on state goals and policies and submit a report on this criteria to the legislature no later than twenty days prior to the convening of the regular session of 2024.

     (f)  The Hawaii housing finance and development corporation shall submit interim reports on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2024, 2025, 2026, [and] 2027[.], 2028, and 2029.  The Hawaii housing finance and development corporation shall submit a final report on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular session of [2028.] 2030.

     (g)  As used in this section:

     "Housing development project" means a plan, design, or undertaking by the Hawaii housing finance and development corporation or an eligible developer for the development of units.  "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

     "Unit" means:

     (1)  The structure and land upon which the structure is constructed, whether on fee simple or leasehold property, developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes; or

     (2)  Improved or unimproved real property that is developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes.

"Unit" includes dwelling units."

     2.  By amending section 5 to read:

     "SECTION 5.  This Act shall take effect on July 1, 2023, and shall be repealed on June 30, [2028;] 2030; provided that :

     (1)  Section 201H-47, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act; and

     (2)  The requirements imposed pursuant to section 2(c) of this Act shall remain in effect and run with the deed after June 30, [2028.] 2030."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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

Report Title:

Hawaii Housing Finance and Development Corporation; DURF; Dwelling Unit Revolving Fund Equity Program; Interim Financing

Description:

Extends the Dwelling Unit Revolving Fund Equity Pilot Program to 6/30/2030.  Gives preference to projects developed under governmental assistance programs pursuant to section 201H‑36(a)(2), HRS.  Effective 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.

A BILL FOR AN ACT

RELATING TO THE DWELLING UNIT REVOLVING FUND.

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

     SECTION 1.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to part III, subpart I, to be appropriately designated and to read as follows:

     "§201H-    Dwelling unit revolving fund equity program.  (a)  The corporation may purchase equity in for-sale housing development projects secured by a recorded instrument as determined by the corporation; provided that:

     (1)  The equity shall be allocated to specific units within the housing development project; and

     (2)  The contribution from each eligible buyer of a unit shall be reduced by the corporation's equity amount for that unit.

The corporation shall give preference to for-sale housing development projects that are developed under any government assistance program approved by the corporation under section 201H-36(a)(2).

     (b)  Eligible buyers shall be bona fide residents of the State and shall not hold a majority interest in any residential real property.  The corporation may establish additional qualifications for the eligible buyer, which may include a requirement that the eligible buyer work in a profession that is facing a labor shortage, as determined by the corporation, and a requirement that gift funds shall not exceed thirty-five per cent of the unit purchase price.

     (c)  The corporation may establish criteria for the prioritization of eligible buyers.

     (d)  If a buyer sells the unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the corporation the corporation's equity and equity percentage share of the appreciated unit value, if any; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then upon refinance, obtaining additional financing, transfer of title, non-owner occupancy, or rental of the unit or any part of the unit, the buyer shall repay to the corporation the corporation's equity and equity percentage share of the appreciated unit value, if any, before the expiration of the thirty-year period; provided further that this requirement shall be a restriction that runs with the land until the obligation to repay the equity and equity percentage share, if any, has been satisfied.

     (e)  The corporation shall establish rules pursuant to chapter 91 to implement this section.

     (f)  For the purposes of this section:

     "Housing development project" means a plan, design, or undertaking by the corporation or an eligible developer for the development of units.  "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

     "Unit" means:

     (1)  The structure and the land upon which the structure is constructed, whether fee simple or leasehold property, developed for residential purposes pursuant to this chapter; or

     (2)  Improved or unimproved real property that is developed for residential purposes pursuant to this chapter.

"Unit" includes dwelling units."

     SECTION 2.  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] into the revolving fund.  The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering housing development programs and regional state infrastructure programs, and for 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, purchasing equity in for‑sale housing development projects, interim primary or secondary financing, 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."

     SECTION 3.  Act 92, Session Laws of Hawaii 2023, is amended as follows:

     1.  By amending section 2 to read:

     "SECTION 2.  [(a)  The Hawaii housing finance and development corporation may establish a five-year dwelling unit revolving fund equity pilot program, which shall be funded by the dwelling unit revolving fund, to address the high, unmet demand of for-sale units by Hawaii residents, specifically residents who:

     (1)  Own no other real property;

     (2)  Receive no gift funds; and

     (3)  Work in a profession that is facing a shortage as defined by the corporation, including health care workers, educators, law enforcement officers, including staff at correctional facilities, or agricultural field workers.

     (b)  The Hawaii housing finance and development corporation may purchase equity in for-sale housing development projects; provided that this equity shall be allocated to specific units within the housing development projects and the price to be paid by each eligible buyer of a unit shall be reduced by the Hawaii housing finance and development corporation's equity amount for that unit.

     (c)  If a buyer sells the buyer's unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value prior to the expiration of the thirty-year period; provided further that this requirement shall run with the deed for each unit until the obligation to repay the appreciated equity value has been satisfied.

     (d)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this section, including rules that establish the methods by which appreciated equity values shall be calculated, assessed, and satisfied.

     (e)  The Hawaii housing finance and development corporation may establish criteria for the prioritization of eligible buyers based on state goals and policies and submit a report on this criteria to the legislature no later than twenty days prior to the convening of the regular session of 2024.

     (f)  The Hawaii housing finance and development corporation shall submit interim reports on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2024, 2025, 2026, and 2027.  The Hawaii housing finance and development corporation shall submit a final report on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2028.

     (g)  As used in this section:

     "Housing development project" means a plan, design, or undertaking by the Hawaii housing finance and development corporation or an eligible developer for the development of units.  "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

     "Unit" means:

     (1)  The structure and land upon which the structure is constructed, whether on fee simple or leasehold property, developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes; or

     (2)  Improved or unimproved real property that is developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes.

"Unit" includes dwelling units.]  Repealed."

     2.  By amending section 5 to read:

     "SECTION 5.  This Act shall take effect on July 1, 2023[, and shall be repealed on June 30, 2028; provided that:

     (1)  Section 201H-47, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act; and

     (2)  The requirements imposed pursuant to section 2(c) of this Act shall remain in effect and run with the deed after June 30, 2028]."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Hawaii Housing Finance and Development Corporation; DURF; Dwelling Unit Revolving Fund Equity Program; Interim Financing

Description:

Makes the Dwelling Unit Revolving Fund Equity Pilot Program permanent.  Gives preference to projects developed under governmental assistance programs pursuant to section 201H‑36(a)(2), HRS.  (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 the dwelling unit revolving fund.

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

     SECTION 1.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to part III, subpart I, to be appropriately designated and to read as follows:

     "§201H-     Dwelling unit revolving fund equity program.  (a)  The corporation may purchase equity in for-sale housing development projects in the form of a second mortgage loan; provided that:

     (1)  The equity shall be allocated to specific units within the housing development project; and

     (2)  The contribution from each eligible buyer of a unit shall be reduced by the corporation's equity amount for that unit.

The corporation shall give preference to for-sale housing development projects that are developed under any government assistance program approved by the corporation under section 201H-36(a)(2).

     (b)  Eligible buyers shall be bona fide residents of the State and shall not hold a majority interest in any residential real property.  The corporation may establish additional qualifications for the eligible buyer, which may include a requirement that the eligible buyer work in a profession that is facing a labor shortage, as determined by the corporation, and a requirement that gift funds shall not exceed thirty-five per cent of the unit purchase price.

     (c)  The corporation may establish criteria for the prioritization of eligible buyers.

     (d)  If a buyer sells the unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the corporation the corporation's equity and equity percentage share of the appreciated unit value, if any; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then upon refinance, obtaining additional financing, transfer of title, non-owner occupancy, or rental of the unit or any part of the unit, the buyer shall repay to the corporation the corporation's equity and equity percentage share of the appreciated unit value, if any, prior to the expiration of the thirty-year period; provided further that this requirement shall be a restriction that runs with the land until the obligation to repay the equity and equity percentage share, if any, has been satisfied.

     (e)  With the prior approval of the corporation, the eligible developer may repay, in the form of equity in project units under the program, a part or all of the interim financing made under this subpart and secured by a mortgage on the for‑sale housing development project.

     (f)  The corporation shall establish rules pursuant to chapter 91 to implement this section.

     (g)  In this section, unless the context otherwise requires:

     "Housing development project" means a plan, design, or undertaking by the corporation or an eligible developer for the development of units.  "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

     "Unit" means:

     (1)  The structure and the land upon which the structure is constructed, whether fee simple or leasehold property, developed for residential purposes pursuant to this chapter; or

     (2)  Improved or unimproved real property that is developed for residential purposes pursuant to this chapter.  "Unit" includes dwelling units."

     SECTION 2.  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] into the revolving fund.  The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering housing development programs and regional state infrastructure programs, and for 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, purchasing equity in for‑sale housing development projects, interim primary or secondary financing, 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."

     SECTION 3.  Act 92, Session Laws of Hawaii 2023, is amended as follows:

     1.  By amending section 2 to read:

     "SECTION 2.  [(a)  The Hawaii housing finance and development corporation may establish a five-year dwelling unit revolving fund equity pilot program, which shall be funded by the dwelling unit revolving fund, to address the high, unmet demand of for-sale units by Hawaii residents, specifically residents who:

     (1)  Own no other real property;

     (2)  Receive no gift funds; and

     (3)  Work in a profession that is facing a shortage as defined by the corporation, including health care workers, educators, law enforcement officers, including staff at correctional facilities, or agricultural field workers.

     (b)  The Hawaii housing finance and development corporation may purchase equity in for-sale housing development projects; provided that this equity shall be allocated to specific units within the housing development projects and the price to be paid by each eligible buyer of a unit shall be reduced by the Hawaii housing finance and development corporation's equity amount for that unit.

     (c)  If a buyer sells the buyer's unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value prior to the expiration of the thirty-year period; provided further that this requirement shall run with the deed for each unit until the obligation to repay the appreciated equity value has been satisfied.

     (d)  The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this section, including rules that establish the methods by which appreciated equity values shall be calculated, assessed, and satisfied.

     (e)  The Hawaii housing finance and development corporation may establish criteria for the prioritization of eligible buyers based on state goals and policies and submit a report on this criteria to the legislature no later than twenty days prior to the convening of the regular session of 2024.

     (f)  The Hawaii housing finance and development corporation shall submit interim reports on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2024, 2025, 2026, and 2027.  The Hawaii housing finance and development corporation shall submit a final report on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2028.

     (g)  As used in this section:

     "Housing development project" means a plan, design, or undertaking by the Hawaii housing finance and development corporation or an eligible developer for the development of units.  "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

     "Unit" means:

     (1)  The structure and land upon which the structure is constructed, whether on fee simple or leasehold property, developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes; or

     (2)  Improved or unimproved real property that is developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes.

"Unit" includes dwelling units.]  Repealed."

     2.  By amending section 5 to read:

     "SECTION 5.  This Act shall take effect on July 1, 2023[, and shall be repealed on June 30, 2028; provided that:

     (1)  Section 201H-47, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act; and

     (2)  The requirements imposed pursuant to section 2(c) of this Act shall remain in effect and run with the deed after June 30, 2028]."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

Hawaii Housing Finance and Development Corporation; Dwelling Unit Revolving Fund; Dwelling Unit Revolving Fund Equity Program; Interim Financing

Description:

Makes the Dwelling Unit Revolving Fund Equity Pilot Program permanent.  Allows partial or full repayment of Dwelling Unit Revolving Fund interim loans in the form of unit equity through the Dwelling Unit Revolving Fund Equity Program. Gives preference to projects developed under governmental assistance programs pursuant to section 201H-36(a)(2).

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.  1913

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1229

      S.D. 2

      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 S.B. No. 1229, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT REVOLVING FUND,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Extend the Dwelling Unit Revolving Fund Equity Pilot Program to June 30, 2030; and

     (2)  Require the Hawaii Housing Finance and Development Corporation to give a preference to for-sale housing development projects that are developed under governmental assistance programs approved by the Corporation.

     Your Committee received testimony in support of this measure from one member of the Maui County Council; Department of Human Resources of the City and County of Honolulu; Hawaiʻi Community Foundation; Holomua Collaborative; Maui Chamber of Commerce; and Hawaii Appleseed Center for Law & Economic Justice.  Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation.

     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 S.B. No. 1229, S.D. 2, 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.  1347

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1229

      S.D. 2

      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 S.B. No. 1229, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT REVOLVING FUND,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Extend the Dwelling Unit Revolving Fund Equity Pilot Program to June 30, 2030; and

     (2)  Require Hawaii Housing Finance and Development Corporation to give a preference to for-sale housing development projects that are developed under governmental assistance programs approved by the 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; Hawaiʻi Community Foundation; Maui Chamber of Commerce; Hawaiʻi State Teachers Association; Stanford Carr Development, LLC; Castle & Cooke Homes Hawaii, Inc.; and one individual.

     Your Committee finds that the Dwelling Unit Revolving Fund plays a critical role in financing housing development and addressing Hawaii's severe housing shortage.  The expansion of the Dwelling Unit Revolving Fund Equity Pilot Program ensures greater access to for-sale housing for local residents, particularly those in high-demand professions.  This measure will support long-term housing stability while maintaining the Revolving Fund's sustainability.

     Your Committee has amended this measure by:

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

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

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1229, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1229, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

STAND. COM. REP. NO. 770

Honolulu, Hawaii

RE:    S.B. No. 1229

       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 S.B. No. 1229, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT REVOLVING FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to make permanent the dwelling unit revolving fund equity pilot program and prioritize projects developed under government assistance programs pursuant to section 201H-36, Hawaii Revised Statutes.

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, County of Maui County Council, Hawaii Community Foundation, Holomua Collaborative, and two individuals.

     Your Committee finds that the dwelling unit revolving fund equity pilot program has been a success.  The Hawaii Housing Finance and Development Corporation reports strong participation interest from developers.  Your Committee further finds that approximately $7,400,000 of the $10,000,000 currently authorized has been committed.  Accordingly, extending this program will continue to help address Hawaii's housing crisis.

     Your Committee has amended this measure by:

     (1)  Removing language making the dwelling unit revolving fund equity pilot program permanent;

     (2)  Extending the pilot program to June 30, 2030;

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

     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 S.B. No. 1229, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1229, S.D. 2.

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

STAND. COM. REP. NO. 144

Honolulu, Hawaii

RE:    S.B. No. 1229

       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. 1229 entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT REVOLVING FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Make the Dwelling Unit Revolving Fund Equity Pilot Program permanent;

     (2)  Authorize partial or full repayment of Dwelling Unit Revolving Fund (DURF) interim loans in the form of unit equity through the Dwelling Unit Revolving Fund Equity Program; and

     (3)  Give preference to projects developed under governmental assistance programs pursuant to section 201H-36(a)(2), Hawaii Revise Statutes.

     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 and Economic Justice, Hawaiʻi Community Foundation, and Holomua Collaborative.

     Your Committee finds that Act 92, Session Laws of Hawaii 2023, established the Dwelling Unit Revolving Fund Equity Pilot Program, which authorized HHFDC to purchase a share of equity in units in certain for-sale developments and offer the units to residents working in a profession facing a shortage, who do not own any other real property, and receive no gift funds, thereby reducing the contribution made by the eligible buyers to make the units more affordable.  Presently, three housing development projects are participating in the Equity Pilot Program with a total of $7.4 million committed to existing projects.  However, high interest rates have stalled certain for-sale housing projects.  Therefore, making the Equity Pilot Program permanent and utilizing loans from DURF will ensure projects can proceed.  Accordingly, this measure makes homeownership attainable for Hawaii's local working families while alleviating workforce shortages in the State's critical industries.

     Your Committee has amended this measure by:

     (1)  Clarifying that HHFDC may purchase equity in for-sale housing development projects secured by a recorded instrument as determined by HHFDC, rather than in the form of a second mortgage loan;

     (2)  Deleting language that, with prior approval from HHFDC,  would have authorized an eligible developer to repay, in the form of equity in project units under the program, a part or all of the interim financing made available under the program in favor of the amendments in section 2 of this measure; and

     (3)  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. 1229, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1229, 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,