This amendment changes who approves tax breaks for affordable housing projects by giving that power to the state's Hawaii Housing Finance and Development Corporation instead of local counties.
Hawaii2026Enacted
HB2385
HB2385: Changing Who Approves Tax Exemptions for Affordable Housing
Last scannedAug 24, 2026, 11:30 PM
In one sentence
Starting January 1, 2027, this law allows the Hawaii Housing Finance and Development Corporation to approve tax breaks for certain affordable rental housing projects developed under county assistance programs.
What it does
- Transfers the power to approve and certify general excise tax exemptions from counties to the Hawaii Housing Finance and Development Corporation (HHFDC) for specific projects starting January 1, 2027.
- Applies this new approval process only to housing development projects created under county assistance programs approved by HHFDC.
- Sets an end date of July 1, 2031, after which the law stops being in force unless renewed.
- Confirms that counties retain powers similar to HHFDC for developing and financing low- and moderate-income housing projects.
Who it affects
- The Hawaii Housing Finance and Development Corporation (HHFDC).
- County governments running housing incentive programs.
- Developers of affordable rental housing units under county assistance programs approved by HHFDC.
- Households with incomes at or below one hundred percent of the area median family income living in these new projects.
Limits and unknowns
- The official text provided does not state the exact effective date for this Act beyond the January 1, 2027 start of new approvals.
- The source material cuts off before listing all income limits and tax cost caps for projects approved under specific contracts.
Plain language
Terms to know
- General Excise Tax Exemption
- A rule that lets certain housing projects avoid paying a specific state tax on their business activities if approved by HHFDC.
- Area Median Family Income
- The middle point of family incomes in a local area, used to decide who qualifies for affordable housing units under this law.
- Sunset Date
- A specific date when a law automatically stops working unless lawmakers pass it again; here, July 1, 2031.
Official record
Sources
Official summary
RELATING TO HOUSING. HHFDC; Housing Development Projects; General Excise Tax Exemptions; County Housing Incentive Programs Beginning 1/1/2027, authorizes the Hawaii Housing Finance and Development Corporation, instead of the counties, to approve and certify general excise tax exemptions for certain housing development projects developed under county housing incentive programs. Sunsets 7/1/2031. (CD1)
Official activity
Bill history
- Act 215, on 07/08/2026 (Gov. Msg. No. 1317).H
- Act 215, 07/08/2026 (Gov. Msg. No. 1317).S
- Received notice of passage on Final Reading in House (Hse. Com. No. 888).S
- Transmitted to Governor.H
- Received notice of Final Reading (Sen. Com. No. 816).H
- Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Ratcliffe voting no (1) and none excused (0).H
- Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.S
- 48 Hrs. Notice (as amended CD 1) 05-06-26S
- Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 51-26).S
- Forty-eight (48) hours notice Wednesday, 05-06-26.H
- Reported from Conference Committee (Conf Com. Rep. No. 51-26) as amended in (CD 1).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, Hashimoto, Elefante; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.S
- The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 2 Ayes: Representative(s) Evslin, Miyake; Ayes with reservations: none; 1 Noes: Representative(s) Cochran; and 1 Excused: Representative(s) Ilagan.H
- Conference Committee Meeting will reconvene on Wednesday 04-29-26 10:00AM in conference room 224.H
- Bill scheduled for Conference Committee Meeting on Tuesday, 04-28-26 10:03AM in conference room 224.H
- Received notice of Senate conferees (Sen. Com. No. 760).H
- Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Elefante.S
- Received notice of appointment of House conferees (Hse. Com. No. 799).S
- House Conferees Appointed: Evslin, Ilagan, Miyake Co-Chairs; Cochran.H
- Received notice of disagreement (Hse. Com. No. 780).S
Changes
Amendments
5 stored
This amendment gives Hawaii counties new powers similar to state housing agencies to help build affordable homes and allows them to receive tax breaks for projects started before July 1, 2026.
This amendment gives Hawaii counties new powers to build affordable housing and allows them to receive tax breaks similar to those currently given only to state programs.
This amendment gives Hawaii counties more power to build affordable housing and allows them to receive tax breaks similar to those given to state projects.
This amendment gives Hawaii counties new powers to build affordable housing and allows them to receive tax breaks similar to those currently given only to a state corporation.