Bills

SB 40: HHFDC; Bond Volume Cap Recycling Program; Line of Credit; Revenue Bonds

Session Year: 2025-2026
House: Senate
Latest Version Date: 2025-03-17

Current Status:

Failed

(2025-12-08: Carried over to 2026 Regular Session.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

Version:

Authorizes the Hawaii Housing Finance and Development Corporation to utilize revenue bonds when securing a line of credit or other instrument of indebtedness for the Bond Volume Cap Recycling Program. Effective 7/1/3000. (HD1)

Date	Status
Dec 8, 2025	Carried over to 2026 Regular Session.
Mar 18, 2025	Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ward excused (2).
Mar 18, 2025	Reported from HSG (Stand. Com. Rep. No. 1350) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
Mar 14, 2025	The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Cochran, Pierick.
Mar 11, 2025	Bill scheduled to be heard by HSG on Friday, 03-14-25 9:00AM in House conference room 430 VIA VIDEOCONFERENCE.
Mar 6, 2025	Referred to HSG, FIN, referral sheet 19
Mar 6, 2025	Pass First Reading
Mar 4, 2025	Received from Senate (Sen. Com. No. 71) in amended form (SD 2).
Mar 4, 2025	Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.
Feb 27, 2025	48 Hrs. Notice 03-04-25.
Feb 27, 2025	Reported from WAM (Stand. Com. Rep. No. 755) with recommendation of passage on Third Reading, as amended (SD 2).
Feb 19, 2025	The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
Feb 14, 2025	The committee(s) on WAM will hold a public decision making on 02-19-25 10:02AM; Conference Room 211 & Videoconference.
Jan 29, 2025	Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
Jan 29, 2025	Reported from HOU (Stand. Com. Rep. No. 1) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
Jan 23, 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 17, 2025	The committee(s) on HOU has scheduled a public hearing on 01-23-25 1:30PM; Conference Room 225 & Videoconference.
Jan 16, 2025	Referred to HOU, WAM.
Jan 15, 2025	Introduced and passed First Reading.
Jan 8, 2025	Pending Introduction.

Date	Description	Location	Votes
Mar 14, 2025	The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS	House Standing Committee on Housing	7 0 2 Passed
Mar 4, 2025	Third Reading	Senate Floor	25 0 0 Passed
Feb 19, 2025	The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Ways and Means	13 0 0 Passed
Jan 23, 2025	The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Housing	4 0 1 Passed

Key

Pro

Against

Did Not Vote

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.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
Hawaii Housing Finance	** Support
Hawaii Housing Finance and Development Corporation	** Support

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

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STAND. COM. REP. NO. 1350

Honolulu, Hawaii

, 2025

RE: S.B. No. 40

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. 40, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO STATE FINANCES,"

begs leave to report as follows:

The purpose of this measure is to authorize the Hawaii Housing Finance and Development Corporation to utilize revenue bonds when securing a line of credit or other instrument of indebtedness for the Bond Volume Cap Recycling Program.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that a line of credit is needed for private activity bond recycling to provide liquidity and ensure that funds are readily available to pay off existing bonds as they mature or are redeemed. The line of credit acts as a financial bridge, maintaining continuity in funding and avoiding disruptions in the financing structure, which is critical for compliance with federal law for qualified bonds. This measure will allow the Hawaii Housing Finance and Development Corporation to retire old bonds while waiting for new bonds to be issued or for cash flows from the underlying projects to become available.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

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. 40, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 40, 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,

____________________________

LUKE A. EVSLIN, Chair

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STAND. COM. REP. NO. 755

Honolulu, Hawaii

RE: S.B. No. 40

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. 40, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE FINANCES,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Hawaii Housing Finance and Development Corporation to utilize revenue bonds when securing the line of credit for the Bond Volume Cap Recycling Program.

Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that the Hawaii Housing Finance and Development Corporation needs a line of credit to provide liquidity for private activity bond recycling. Your Committee also finds that the line of credit will help provide financial stability to the Corporation for its financing structure, which will ensure efficiency in its financial operations.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 40, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 40, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair

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STAND. COM. REP. NO. 1

Honolulu, Hawaii

RE: S.B. No. 40

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. 40 entitled:

"A BILL FOR AN ACT RELATING TO STATE FINANCES,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Hawaii Housing Finance and Development Corporation to secure a line of credit or other instrument of indebtedness for the Bond Volume Cap Recycling Program.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the Hawaii Housing Finance and Development Corporation (HHFDC) requires a line of credit to provide liquidity for private activity bond recycling. HHFDC utilizes available funds to pay off existing bonds as they are matured or redeemed, allowing HHFDC to retire old bonds upon issuance of new bonds or cash flow from existing projects. As the line of credit provides financial stability for HHFDC's financing structure, ensuring continuity of funding is necessary for the timely completion of HHFDC's housing projects. This measure ensures efficiency in HHFDC's financial operations by providing continuity of funding with minimal disruptions, which is critical for compliance with federal requirements.

Your Committee further finds that pursuant to Act 35, Session Laws of Hawaii 2024, HHFDC received continued line of credit funding for fiscal year 2024-2025. However, to ensure continuity of funding for the line of credit, HHFDC will need to request a line of credit at the start of every fiscal biennium. According to HHFDC's testimony at the public hearing on this measure, alternative forms of indebtedness, or other sources of cash such as private bank loans and taxable bonds, would be detrimental to the State's debt ceiling. As the line of credit is a federal requirement for the Bond Volume Cap Recycling Program, your Committee encourages the administration to study other means to secure the line of credit without having to pass a measure through the Legislature every fiscal biennium.

Your Committee has amended this measure by specifying that the Hawaii Housing Finance and Development Corporation is authorized to utilize revenue bonds when securing the line of credit for the Bond Volume Cap Recycling 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 S.B. No. 40, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 40, 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,

________________________________

STANLEY CHANG, Chair

Discussed in Hearing

23SEC

House Standing Committee on Housing

4MIN

Senate Standing Committee on Housing

View Older Hearings

Authors shown for version:
SB40_HD1 (3/17/2025)

THE SENATE	S.B. NO.	40
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
STATE OF HAWAII		H.D. 1

THE SENATE	S.B. NO.	40
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
STATE OF HAWAII

THE SENATE	S.B. NO.	40
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII

THE SENATE	S.B. NO.	40
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

INTRODUCED BY:	_____________________________