SB 2553: HHFDC; Affordable Rental Housing; Housing Loan and Mortgage Program; Report

A BILL FOR AN ACT

RELATING TO THE HOUSING LOAN AND MORTGAGE PROGRAM.

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

     SECTION 1.  The legislature finds that the affordable housing shortage continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents.  As the cost of housing increases, the State must continue to assist residents in obtaining affordable rental housing.

     The purpose of this Act is to:

     (1)  Provide housing assistance to residents by increasing the Hula Mae multifamily revenue bond authorization; and

     (2)  Require the Hawaii housing finance and development corporation to report to the legislature on its plan to meet statewide demand for housing at the sixty to one hundred forty per cent area median income levels.

     SECTION 2.  Act 291, Session Laws of Hawaii 1980, as amended by Act 304, Session Laws of Hawaii 1996, as amended by Act 185, Session Laws of Hawaii 2004, as amended by Acts 231 and 249, Session Laws of Hawaii 2007, as amended by Act 121, Session Laws of Hawaii 2008, as amended by Act 138, Session Laws of Hawaii 2012, as amended by Act 162, Session Laws of Hawaii 2014, as amended by Act 175, Session Laws of Hawaii 2017, as amended by Act 42, Session Laws of Hawaii 2020, is amended by amending section 11 to read as follows:

     "SECTION 11.  Issuance of revenue bond; amount authorized.  Revenue bonds may be issued by the Hawaii housing finance and development corporation pursuant to part III of chapter 39 and subpart A of part III of chapter 201H, Hawaii Revised Statutes, in an aggregate principal amount not to exceed [$3,000,000,000] $4,000,000,000 at the times and in the amounts as the Hawaii housing finance and development corporation deems advisable for the purpose of undertaking and maintaining any of the housing loan programs under subpart A of part III of chapter 201H, Hawaii Revised Statutes, relating to the funding or purchasing of eligible project loans.  Revenue bonds treated as refunding bonds under the Internal Revenue Code of 1986, as amended (or successor thereto), shall not count against the aggregate principal amount authorized under this section."

     SECTION 3.  The Hawaii housing finance and development corporation shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.  The report shall document the following:

     (1)  The Hawaii housing finance and development corporation's plan to produce enough housing at the sixty to one hundred forty per cent area median income levels to meet statewide demand;

     (2)  An explanation for how the plan meets demand in the most financially and land efficient manner possible; and

     (3)  The process for the selection of specific parcels where the housing will be built.

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

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

HHFDC; Affordable Rental Housing; Housing Loan and Mortgage Program; Report

Description:

Increases the Hula Mae Multifamily Revenue Bond authorization ceiling amount to continue financing affordable rental housing statewide.  Requires the Hawaii Housing Finance and Development Corporation to report to the Legislature on its plan to meet statewide housing demand at the sixty to one hundred forty per cent area median income levels.  Effective 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 the housing loan and mortgage program.

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

     SECTION 1.  The legislature finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents.  As the cost of housing increases, the State must continue to assist residents in obtaining affordable rental housing.

     The purpose of this Act is to provide that assistance by increasing the Hula Mae multifamily revenue bond authorization.

     SECTION 2.  Act 291, Session Laws of Hawaii 1980, as amended by Act 304, Session Laws of Hawaii 1996, as amended by Act 185, Session Laws of Hawaii 2004, as amended by Acts 231 and 249, Session Laws of Hawaii 2007, as amended by Act 121, Session Laws of Hawaii 2008, as amended by Act 138, Session Laws of Hawaii 2012, as amended by Act 162, Session Laws of Hawaii 2014, as amended by Act 175, Session Laws of Hawaii 2017, as amended by Act 42, Session Laws of Hawaii 2020, is amended by amending section 11 to read as follows:

     "SECTION 11.  Issuance of revenue bond, amount authorized.  Revenue bonds may be issued by the Hawaii housing finance and development corporation pursuant to part III of chapter 39 and subpart A of part III of chapter 201H, Hawaii Revised Statutes, in an aggregate principal amount not to exceed [$3,000,000,000] $5,000,000,000 at the times and in the amounts as the Hawaii housing finance and development corporation deems advisable for the purpose of undertaking and maintaining any of the housing loan programs under subpart A of part III of chapter 201H, Hawaii Revised Statutes, relating to the funding or purchasing of eligible project loans.  Revenue bonds treated as refunding bonds under the Internal Revenue Code of 1986, as amended (or successor thereto), shall not count against the $5,000,000,000 Hula Mae multifamily revenue bond authorization."

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

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Affordable Rental Housing; Housing Loan and Mortgage Program

Description:

Increases the Hula Mae Multifamily Revenue Bond authorization ceiling amount to continue financing affordable rental housing statewide.

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. 2403

Honolulu, Hawaii

RE:     S.B. No. 2553

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 2553 entitled:

"A BILL FOR AN ACT RELATING TO THE HOUSING LOAN AND MORTGAGE PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the Hula Mae Multifamily Revenue Bond authorization ceiling amount to continue financing affordable rental housing statewide.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Maui Chamber of Commerce; Hawaiʻi Association of REALTORS; Stanford Carr Development, LLC; AARP Hawaii; and one individual.

     Your Committee received testimony in opposition to this measure from one individual.

     Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that revenue bonds play a critical role in the State's housing production goals.  Specifically, the federal Low-Income Tax Credit program requires the use of tax-exempt bonds authorized by Act 291, Session Laws of Hawaii 1980.  Act 291 set the initial bond authorization cap at $122,500,000.  However, the Legislature has repeatedly raised the bond authorization cap as construction costs and demand continue to rise.  This measure further increases the bond authorization cap to ensure a continued supply of housing production in the State.

     Your Committee has amended this measure by:

     (1)  Reducing the aggregate principal authorization ceiling amount from $5 billion to $4 billion;

     (2)  Clarifying that revenue bonds treated as refunding bonds shall not count against the aggregate principal amount authorized by this measure;

     (3)  Inserting language requiring the Hawaii Housing Finance and Development Corporation to report to the Legislature on its plan to provide housing at the sixty to one hundred forty per cent area median income levels;

     (4)  Amending section 1 to reflect its amended purpose;

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

     (6)  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. 2553, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2553, 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,