SB 2787: Rental Housing Revolving Fund; Loans or Grants; Purchasing Rental Units

A BILL FOR AN ACT

relating to the rental housing revolving fund.

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

     SECTION 1.  The legislature finds that the department of Hawaiian home lands uses the rental housing revolving fund to develop housing projects.  The legislature believes that expanding the authorized uses of this fund to provide loans or grants to eligible individuals will not only support the department of Hawaiian home lands in its mission to develop and deliver land to native Hawaiians, but will also assist other middle-class families in Hawaii in purchasing homes.

     Accordingly, the purpose of this Act is to authorize the rental housing revolving fund to be used to provide loans or grants to buyers with incomes between sixty-one and one hundred forty per cent of the median family income to purchase a rental unit.

     SECTION 2.  Section 201H-204, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Activities eligible for assistance from the fund shall include but not be limited to:

     (1)  New construction, rehabilitation, or preservation of low-income rental housing units that meet the criteria for eligibility described in subsection (c) or section 201H-202(f);

     (2)  The leveraging of moneys with the use of fund assets;

     (3)  Pre-development activity grants or loans to nonprofit organizations; [and]

     (4)  Acquisition of housing units for the purpose of preservation as low-income or very low-income housing[.]; and

     (5)  Loans or grants to individuals with incomes between sixty-one per cent and one hundred forty per cent of the median family income to purchase a rental unit."

     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  Statutory material to be repealed is bracketed and stricken.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; provided that the amendments made to section 201H-204(a), Hawaii Revised Statutes, by section 2 of this Act shall not be repealed when that section is reenacted on June 30, 2030, pursuant to section 8 of Act 159, Session Laws of Hawaii 2025.

Report Title:

Rental Housing Revolving Fund; Loans or Grants; Purchasing Rental Units

Description:

Authorizes the Rental Housing Revolving Fund to be used to provide loans or grants to eligible individuals to purchase rental units.

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