SR 45: supporting the use of the dwelling unit revolving fund to fund predevelopment costs for any government affordable housing development project through interim loans to expedite the delivery of affordable housing to hawaii's residents.

SENATE RESOLUTION

supporting the use of the dwelling unit revolving fund to fund predevelopment costs for any government affordable housing development project through interim loans to expedite the delivery of affordable housing to hawaii's residents.

     WHEREAS, the Hawaii Housing Finance and Development Corporation utilizes the Dwelling Unit Revolving Fund to fund predevelopment costs associated with affordable housing projects on land it owns or otherwise administers; and

     WHEREAS, financing of the predevelopment phase for affordable housing projects is a much higher risk than financing the construction phase, as there are more variables that could render the project impracticable, with a higher possibility of the lender not recouping the loan; and

     WHEREAS, the predevelopment phase of an affordable housing development project may include but not be limited to in-depth analysis of site particularities; undertaking of multiple technical studies on the parcel and the proposed project; creating conceptual designs, site plans, and construction drawings; conducting environmental assessments; preparing and submitting documentation for all needed permits, approvals, and financing for the construction of the project; and more; and

     WHEREAS, the Hawaii Housing Finance and Development Corporation has not historically used the Dwelling Unit Revolving Fund to finance predevelopment costs associated with projects owned or administered by entities other than itself due to the higher risk of financing; and

     WHEREAS, not all counties in the State have flexible funding available that can be used for affordable housing project predevelopment costs; and

     WHEREAS, access to predevelopment funding is critical to advancing affordable housing development; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that this body supports the use of the Dwelling Unit Revolving Fund to fund predevelopment costs for any government affordable housing development project through interim loans to expedite the delivery of affordable housing to Hawaii's residents; and

     BE IT FURTHER RESOLVED that this body supports interim predevelopment loans provided through the Dwelling Unit Revolving Fund being paid back to the Hawaii Housing Finance and Development Corporation by the developer through the project's permanent financing source; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation and Chairperson of the Board of Directors of the Hawaii Housing Finance and Development Corporation.

Report Title: 

Dwelling Unit Revolving Fund; Predevelopment Costs; Government Affordable Housing Projects