SCR 77: declaring the intent that projects with housing units that qualify for housing credits under act 31, SESSION laws of hawaii 2024, are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the hawaii housing finance and development corporation before july 1, 2031, and requesting the Corporation and each county to include certain information when approving housing projects for housing credits.

SENATE CONCURRENT

RESOLUTION

declaring the intent that projects with housing units that qualify for housing credits under act 31, SESSION laws of hawaii 2024, are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the hawaii housing finance and development corporation before july 1, 2031, and requesting the Corporation and each county to include certain information when approving housing projects for housing credits.

     WHEREAS, the State is currently facing a severe housing crisis, with a 2019 study commissioned by the Department of Business, Economic Development, and Tourism finding that the State will require an additional 50,156 homes by 2025; and

     WHEREAS, the study identified the following housing shortages by county:  the City and County of Honolulu required 22,168 new units, Hawaii County required 13,303 new units, Maui County required 10,404 new units, and Kauai County required 4,281 new units; and

     WHEREAS, the affordability of housing has been further exacerbated by a sharp rise in mortgage and construction financing costs, including an increase in the average thirty-year fixed residential mortgage interest rate from 3.11 percent in December 2021 to 6.42 percent in December 2022 and an increase in the one-month term of the secured overnight financing rate from 0.05 percent to 4.30 percent over the same period; and

     WHEREAS, to address this issue, the Legislature enacted Act 31, Session Laws of Hawaii 2024 (Act 31), which requires the counties to issue housing credits for housing units that are constructed under the various programs of the Hawaii Housing Finance and Development Corporation; and

     WHEREAS, Act 31 is set to be repealed on July 1, 2031, which is causing uncertainty regarding whether housing projects that were approved before July 1, 2031, would still be eligible for housing credits after that date; and

     WHEREAS, there is a need to clarify the intentions of the Legislature regarding the application of Act 31 to housing projects approved before July 1, 2031; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the House of Representatives concurring, that it is the intent of this body that projects with housing units that qualify for housing credits under Act 31 are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031; and

     BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is requested to include the following in its approving action when approving a housing project that utilizes section 201H-38, Hawaii Revised Statutes, and qualifies for housing credits under Act 31:

     (1)  A statement regarding an eligible developer's rights to receive housing credits;

     (2)  The number of housing units that qualify to earn housing credits; and

     (3)  The number of housing credits available to be earned; and

     BE IT FURTHER RESOLVED that each county is requested to include the following in its approving action when approving a housing project that utilizes section 201H-38, Hawaii Revised Statutes, and qualifies for housing credits under Act 31:

     (1)  A statement regarding an eligible developer's rights to receive housing credits;

     (2)  The number of housing units that qualify to earn housing credits; and

     (3)  The number of housing credits available to be earned; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation; Mayors of the Counties of Hawaii, Maui, and Kauai; Mayor of the City and County of Honolulu; Chairpersons of the Hawaii, Maui, and Kauai County Councils; and Chairperson of the Honolulu City Council.

Report Title: 

HHFDC; Counties; Housing Credits; Act 31, SLH 2024; Eligible Developers

SENATE CONCURRENT

RESOLUTION

declaring the intent that projects with housing units that qualify for housing credits under act 31, SESSION laws of hawaii 2024, are still eligible to receive housing credits after the repeal of that act if the housing projects were approved by the hawaii housing finance and development corporation before july 1, 2031, and requesting the Corporation and each county to include certain information when approving housing projects for housing credits.

     WHEREAS, the State of Hawaii is currently facing a severe housing crisis, with a 2019 study commissioned by the Department of Business, Economic Development, and Tourism finding that the State will require an additional 50,156 homes by 2025; and

     WHEREAS, the study identified the following housing shortages by county:  the City and County of Honolulu required 22,168 new units, Hawaii County required 13,303 new units, Maui County required 10,404 new units, and Kauai County required 4,281 new units; and

     WHEREAS, the affordability of housing has been further exacerbated by a sharp rise in mortgage and construction financing costs, including an increase in the average thirty-year fixed residential mortgage interest rate from 3.11 percent in December 2021 to 6.42 percent in December 2022 and an increase in the one-month term of the secured overnight financing rate from 0.05 percent to 4.30 percent over the same period; and

     WHEREAS, to address this issue, the Legislature enacted Act 31, Session Laws of Hawaii 2024 (Act 31), which requires the counties to issue housing credits for housing units that are constructed under the various programs of the Hawaii Housing Finance and Development Corporation; and

     WHEREAS, Act 31 is set to be repealed on July 1, 2031, which is causing uncertainty regarding whether housing projects that were approved before July 1, 2031, would still be eligible for housing credits after that date; and

     WHEREAS, there is a need to clarify the intentions of the Legislature regarding the application of Act 31 to housing projects approved before July 1, 2031; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the House of Representatives concurring, that it is the intent of this body that projects with housing units that qualify for housing credits under Act 31 are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031; and

     BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is requested to include the following in its approving action when approving a housing project that utilizes section 201H-38, Hawaii Revised Statutes, and qualifies for housing credits under Act 31:

     (1)  A statement regarding an eligible developer's rights to receive housing credits;

     (2)  The number of housing units that qualify to earn housing credits; and

     (3)  The number of housing credits available to be earned; and

     BE IT FURTHER RESOLVED that each county is requested to include the following in its approving action when approving a housing project that utilizes section 201H-38, Hawaii Revised Statutes and qualifies for housing credits under Act 31:

     (1)  A statement regarding an eligible developer's rights to receive housing credits;

     (2)  The number of housing units that qualify to earn housing credits; and

     (3)  The number of housing credits available to be earned; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation; Mayors of the Counties of Hawaii, Maui, and Kauai; Mayor of the City and County of Honolulu; Chairpersons of the Hawaii Maui, and Kauai County Councils; and Chairperson of the Honolulu City Council.

Report Title: 

HHFDC; Counties; Housing Credits; Act 31, SLH 2024; Eligible Developers

STAND. COM. REP. NO. 1452

Honolulu, Hawaii

RE:    S.C.R. No. 77

       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.C.R. No. 77 entitled:

"SENATE CONCURRENT RESOLUTION DECLARING THE INTENT THAT PROJECTS WITH HOUSING UNITS THAT QUALIFY FOR HOUSING CREDITS UNDER ACT 31, SESSION LAWS OF HAWAII 2024, ARE STILL ELIGIBLE TO RECEIVE HOUSING CREDITS AFTER THE REPEAL OF THAT ACT IF THE HOUSING PROJECTS WERE APPROVED BY THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION BEFORE JULY 1, 2031, AND REQUESTING THE CORPORATION AND EACH COUNTY TO INCLUDE CERTAIN INFORMATION WHEN APPROVING HOUSING PROJECTS FOR HOUSING CREDITS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Declare the intent that projects with housing units that qualify for housing credits under Act 31, Session Laws of Hawaii 2024, are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031; and

     (2)  Request the Hawaii Housing Finance and Development Corporation and each county to include certain information in actions approving housing projects for housing credits.

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

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

     Your Committee finds that Act 31, Session Laws of Hawaii 2024 (Act 31), required the counties to issue affordable housing credits for affordable housing units that are constructed under the various programs administered by the Hawaii Housing Finance and Development Corporation (HHFDC).  However, the provisions of Act 31 will sunset on July 1, 2031, creating uncertainty for projects approved, but not completed, by that date.  As the State seeks to address the existing housing shortage, ensuring housing developers can access HHFDC programs to lower the cost of housing will empower more individuals and residents to achieve homeownership and a lower cost of living.  Therefore, this measure affirms the Legislature's commitment to the development of housing units that remain affordable for working individuals and families.

     Your Committee has amended this measure by 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 concurs with the intent and purpose of S.C.R. No. 77, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 77, S.D. 1.

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