This amendment changes rules for Hawaii's housing program to keep homes affordable longer by removing some financial checks, limiting how many properties a person can own while buying these units, and allowing long-term rentals instead of forcing owners to live there forever.
Hawaii2026Enacted
HB1740
Changes to Hawaii Housing Rules for Qualified Residents
Last scannedAug 24, 2026, 11:30 PM
In one sentence
This law removes some financial checks and land ownership limits for qualified residents buying or renting affordable housing, while adding rules that require most units in certain projects to be sold only to local residents with permanent deed restrictions.
What it does
- Removes the rule stopping qualified residents from owning a majority interest in land before buying an approved home.
- Stops the requirement for buyers or renters to prove they can pay rent through the housing corporation, since lenders and landlords already check this.
- Limits each person to holding a majority interest in only one property suitable for living, requiring them to sell it within two years if they own more.
- Requires that at least 80% of units in certain projects be sold to qualified residents who must live there as owners for at least one year.
- Adds permanent deed restrictions on these homes so future buyers must also be local residents and cannot use the home just for investment or short-term stays.
Who it affects
- People in Hawaii who want to buy or rent affordable housing approved by the state corporation.
- The Hawaii Housing Finance and Development Corporation, which manages these projects.
- Developers building homes under this program.
Limits and unknowns
- The law does not specify if these changes apply to all existing housing projects or only new ones approved after this date.
- Details about how long-term rentals work under the new rules are left for future decisions by the corporation.
Plain language
Terms to know
- Qualified resident
- A person who is a U.S. citizen or legal alien, at least 18 years old, and lives in Hawaii as their permanent home.
- Perpetual deed restriction
- A rule written into the property ownership papers that stays forever to limit who can buy or live there.
- Majority interest in land
- Owning more than half of a piece of land suitable for building a home on it.
Official record
Sources
Official summary
RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION. HHFDC; Qualified Residents; Affordable Housing; Housing Development; Exemptions; Owner-Occupancy; Deed Restrictions Repeals the prohibition against qualified residents for Hawaii Housing Finance and Development Corporation-approved projects holding a majority interest in land and repeals the requirement that qualified residents demonstrate financial viability or ability to pay rent. Limits a qualified resident from owning a majority interest in no more than one property suitable for dwelling purposes, but requiring the disposal of such property within two years. Amends exemptions from statutes, ordinances, charter provisions, and rules for certain housing projects developed by the Corporation that satisfy certain conditions, including requirements related to employment, owner-occupancy, and deed restrictions. (CD1)
Official activity
Bill history
- Act 210, on 07/08/2026 (Gov. Msg. No. 1312).H
- Act 210, 07/08/2026 (Gov. Msg. No. 1312).S
- Received notice of passage on Final Reading in House (Hse. Com. No. 888).S
- Transmitted to Governor.H
- Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Belatti, Cochran, Garcia, Gedeon, Grandinetti, Iwamoto, Muraoka, Perruso voting no (8) and none excused (0).H
- Received notice of Final Reading (Sen. Com. No. 814).H
- Passed Final Reading, as amended (CD 1). Ayes, 24; Aye(s) with reservations: Senator(s) Dela Cruz, McKelvey. Noes, 0 (none). Excused, 1 (Senator(s) Fukunaga).S
- Deferred one day 05-06-26.H
- 48 Hrs. Notice (as amended CD 1) 05-01-26S
- Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 29-26).S
- Forty-eight (48) hours notice Friday, 05-01-26.H
- Reported from Conference Committee (Conf Com. Rep. No. 29-26) as amended in (CD 1).H
- The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Evslin, Hashem, Miyake; Ayes with reservations: none; 1 Noes: Representative(s) Cochran; and 0 Excused: none.H
- The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Elefante, Rhoads; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.S
- Conference Committee Meeting will reconvene on Tuesday 04-28-26 10:05AM in conference room 224.H
- Conference Committee Meeting will reconvene on Monday 04-27-26 10:05AM in conference room 224.H
- Bill scheduled for Conference Committee Meeting on Friday, 04-24-26 10:05AM in conference room 224.H
- Received notice of Senate conferees (Sen. Com. No. 713).H
- Senate Conferees Appointed: Chang Chair; Elefante Co-Chair; Rhoads.S
- Received notice of appointment of House conferees (Hse. Com. No. 786).S
Changes
Amendments
5 stored
This amendment changes rules for Hawaii housing projects to keep homes affordable forever by removing some financial checks on buyers and adding permanent restrictions that require residents to live in the state.
This amendment changes rules for Hawaii housing projects to keep homes affordable forever by removing some financial checks on buyers and requiring permanent deed restrictions.
This amendment changes rules for Hawaii housing projects to keep homes affordable forever by removing some financial checks on buyers and adding permanent restrictions that require residents to live in the state.
This amendment changes rules for Hawaii housing projects to keep homes affordable forever and makes it easier for local residents to buy them by removing strict ownership tests.