SB 572: Housing; Affordable Homeownership Revolving Fund; Nonprofit Community Development Financial Institutions

A BILL FOR AN ACT

RELATING TO HOUSING.

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

     SECTION 1.  Section 201H-206, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Loans shall be awarded in the following descending order of priority:

     (1)  Projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development, United States Department of Agriculture Rural Development, and United States Department of the Treasury Community Development Financial Institutions Fund, wherein:

          (A)  At least fifty per cent of the available units are reserved for persons and families having incomes at or below eighty per cent of the median family income and of which at least five per cent of the available units are for persons and families having incomes at or below fifty per cent of the median family income; and

          (B)  The remaining units are reserved for persons and families having incomes at or below one hundred twenty per cent of the median family income; [and]

     (2)  Mixed-income affordable for-sale housing projects or units in a mixed-income affordable for-sale housing project wherein all of the available units are reserved for persons and families having incomes at or below one hundred per cent of the median family income[.]; and

     (3)  Loan funds administered by certified nonprofit community development financial institutions to finance the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for-sale housing for persons and families having incomes set forth in paragraphs (1) and (2).

     (c)  Moneys in the fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for‑sale housing units.  Uses of moneys in the fund may include but are not limited to planning, design, and land acquisition, including the costs of options, agreements of sale, and down payments; [equity] financing as matching funds for nonprofit community development financial institutions[;] to mobilize philanthropic, private, or other public funding sources; or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide that money from the fund shall be leveraged with other financial resources to the extent possible."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Housing; Affordable Homeownership Revolving Fund; Nonprofit Community Development Financial Institutions

Description:

Adds loan funds administered by certified Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund.  Expands the use of moneys in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.  (CD1)

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 HOUSING.

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

     SECTION 1.  Section 201H-206, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Loans shall be awarded in the following descending order of priority:

     (1)  Projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development, United States Department of Agriculture Rural Development, and United States Department of the Treasury Community Development Financial Institutions Fund, wherein:

          (A)  At least fifty per cent of the available units are reserved for persons and families having incomes at or below eighty per cent of the median family income and of which at least five per cent of the available units are for persons and families having incomes at or below fifty per cent of the median family income; and

          (B)  The remaining units are reserved for persons and families having incomes at or below one hundred twenty per cent of the median family income; [and]

     (2)  Mixed-income affordable for-sale housing projects or units in a mixed-income affordable for-sale housing project wherein all of the available units are reserved for persons and families having incomes at or below one hundred per cent of the median family income[.]; and

     (3)  Loan funds administered by certified nonprofit community development financial institutions to finance the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for-sale housing for persons and families having incomes set forth in paragraphs (1) and (2).

     (c)  Moneys in the fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for‑sale housing units.  Uses of moneys in the fund may include but are not limited to planning, design, and land acquisition, including the costs of options, agreements of sale, and down payments; [equity] financing as matching funds for nonprofit community development financial institutions[;] to mobilize philanthropic, private, or other public funding sources; or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide that money from the fund shall be leveraged with other financial resources to the extent possible."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Housing; Affordable Homeownership Revolving Fund; Nonprofit Community Development Financial Institutions

Description:

Adds loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund.  Expands the use of moneys in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.  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 HOUSING.

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

     SECTION 1.  Section 201H-206, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Loans shall be awarded in the following descending order of priority:

     (1)  Projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development, United States Department of Agriculture Rural Development, and United States Department of the Treasury Community Development Financial Institutions Fund, wherein:

          (A)  At least fifty per cent of the available units are reserved for persons and families having incomes at or below eighty per cent of the median family income and of which at least five per cent of the available units are for persons and families having incomes at or below fifty per cent of the median family income; and

          (B)  The remaining units are reserved for persons and families having incomes at or below one hundred twenty per cent of the median family income; [and]

     (2)  Mixed-income affordable for-sale housing projects or units in a mixed-income affordable for-sale housing project wherein all of the available units are reserved for persons and families having incomes at or below one hundred per cent of the median family income[.]; and

     (3)  Loan funds administered by certified nonprofit community development financial institutions to finance the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for-sale housing for persons and families having incomes set forth in paragraphs (b)(1) and (2).

     (c)  Moneys in the fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for‑sale housing units.  Uses of moneys in the fund may include but are not limited to planning, design, and land acquisition, including the costs of options, agreements of sale, and down payments; [equity] financing as matching funds for nonprofit community development financial institutions[;] to mobilize philanthropic, private, or other public funding sources; or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide that money from the fund shall be leveraged with other financial resources to the extent possible."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2050.

Report Title:

Housing; Affordable Homeownership Revolving Fund; Nonprofit CDFIs

Description:

Adds loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs)for certain for-sale affordable housing projects to list of loan priorities for the Affordable Homeownership Revolving Fund.  Expands use of moneys in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.  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 housing.

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

     SECTION 1.  Section 201H-206, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Loans shall be awarded in the following descending order of priority:

     (1)  Projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development, United States Department of Agriculture Rural Development, and United States Department of the Treasury Community Development Financial Institutions Fund, wherein:

          (A)  At least fifty per cent of the available units are reserved for persons and families having incomes at or below eighty per cent of the median family income and of which at least five per cent of the available units are for persons and families having incomes at or below fifty per cent of the median family income; and

          (B)  The remaining units are reserved for persons and families having incomes at or below one hundred twenty per cent of the median family income; [and]

     (2)  Mixed-income affordable for-sale housing projects or units in a mixed-income affordable for-sale housing project wherein all of the available units are reserved for persons and families having incomes at or below one hundred per cent of the median family income[.]; and

     (3)  Loan funds administered by certified nonprofit community development financial institutions to finance the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for-sale housing for persons and families having incomes set forth in paragraphs (b)(1) and (2).

     (c)  Moneys in the fund shall be used to provide loans for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable for‑sale housing units.  Uses of moneys in the fund may include but are not limited to planning, design, and land acquisition, including the costs of options, agreements of sale, and down payments; [equity] financing as matching funds for nonprofit community development financial institutions[;] to mobilize philanthropic, private, or other public funding sources; or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91.  The rules may provide that money from the fund shall be leveraged with other financial resources to the extent possible."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Housing; Affordable Homeownership Revolving Fund; Nonprofit CDFIs

Description:

Adds loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs)for certain for-sale affordable housing projects to list of loan priorities for the Affordable Homeownership Revolving Fund.  Expands use of moneys in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

CONFERENCE COMMITTEE REP. NO. 124

Honolulu, Hawaii

                 , 2025

RE:    S.B. No. 572

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 572, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Add loan funds administered by certified Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund; and

     (2)  Expand the use of moneys in the revolving fund to allow financing as matching funds for CDFIs to mobilize other funding sources.

     Your Committee on Conference finds that financing for housing development in the State remains access to a significant barrier to increasing the supply of affordable housing.  CDFIs use public funds to attract private capital with the goal of increasing affordable housing and economic development in the community.  This measure will enable CDFIs to access additional capital, thereby increasing the resources available for affordable for-sale housing projects.

     Your Committee on Conference has amended this measure by making it effective upon its approval.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 572, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 572, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

STAND. COM. REP. NO.  1909

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 572

      S.D. 1

      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. 572, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Add loan funds administered by nonprofit community development financial institutions for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund; and

     (2)  Expand the use of Affordable Homeownership Revolving Fund monies to allow financing as matching funds for nonprofit community development financial institutions to mobilize other funding sources.

     Your Committee received testimony in support of 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. 572, S.D. 1, 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.  1348

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 572

      S.D. 1

      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. 572, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Add loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund; and

     (2)  Expand the use of Affordable Homeownership Revolving Fund monies to allow financing as matching funds for CDFIs to mobilize other funding sources.  

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaii Habitat for Humanity Association; and Council for Native Hawaiian Advancement.  

     Your Committee finds that CDFIs use public funds to attract private capital with the goal of increasing affordable housing and economic development in the community.  This measure helps more CDFIs access additional capital from federal, private, and philanthropic sources, which will amplify the impact of the Affordable Homeownership Revolving Fund and ensure broader financial support for projects serving low- and moderate-income families, in alignment with the State's commitment to increasing affordable housing availability.

     Your Committee has amended this measure by:

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

     (2)  Making a technical, nonsubstantive amendment 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. 572, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 572, S.D. 1, 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. 760

Honolulu, Hawaii

RE:    S.B. No. 572

       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 Ways and Means, to which was referred S.B. No. 572 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow community development financial institutions to access additional capital from federal, private, and philanthropic sources.

Specifically, this measure:

     (1)  Adds loan funds administered by community development financial institutions for certain for-sale affordable housing projects to the list of priorities for the Affordable Homeownership Revolving Fund; and

     (2)  Expands the use of moneys in the Affordable Homeownership Revolving Fund to allow financing as matching funds for community development financial institutions to mobilize other funding sources.

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

     Your Committee finds that the Affordable Homeownership Revolving Fund was established by the Legislature to support development of affordable housing.  Your Committee further finds that expanding the priorities and use of monies in the revolving fund will enable community development financial institutions to access additional capital from federal, private, and philanthropic sources and thus increase the resources available for affordable for-sale housing projects.

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

     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. 572, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 572, S.D. 1.

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

STAND. COM. REP. NO. 141

Honolulu, Hawaii

RE:    S.B. No. 572

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. 572 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Add loan funds administered by Nonprofit Community Development Financial Institutions (CDFIs) for certain for-sale affordable housing projects to the list of loan priorities for the Affordable Homeownership Revolving Fund (AHRF); and

     (2)  Expand use of funds in the AHRF to allow financing as matching funds for CDFIs to mobilize other funding sources.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Hawaii Habitat for Humanity Association, and Hawaiʻi Community Lending.

     Your Committee finds that Act 227, Session Laws of Hawaii 2021, established the AHRF to offer loans to nonprofit CDFIs and nonprofit housing development organizations that develop affordable homeownership housing projects.  With expanded access to additional capital from federal, private, and philanthropic sources, for-sale projects funded with AHRF funds can achieve faster fund recapture through loan repayments, ensuring AHRF sustainability and longevity.  Therefore, this measure mobilizes funding for homeownership projects that will increase the State's limited housing inventory.

     Your Committee notes the testimony provided by the Hawaii Housing Finance and Development Corporation (HHFDC) at the public hearing on this measure.  According to HHFDC, the AHRF received an initial appropriation of $5 million.  Presently, one project has received committed funding from the AHRF of approximately $1.8 million for four units.  The proposed loan terms for this project are structured as a construction loan to assist with the development on a draw down basis, with a ten-year term, to be repaid at one percent interest.

     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. 572 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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