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HB1009
HOUSE OF REPRESENTATIVES
H.B. NO.
1009
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE DWELLING
UNIT REVOLVING FUND
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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Chapter 201H, Hawaii Revised Statutes, is amended
by adding a new section to subpart I, part III, to be appropriately designated and
to read as follows:
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"
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201H-
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Dwelling unit revolving fund equity program.
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(a)
�
The corporation may purchase equity in for-sale housing development projects
in the form of a second mortgage loan, provided that:
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(1)
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The equity shall be allocated to specific units
within the housing development project; and
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(2)
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The contribution from each eligible buyer of
a unit shall be reduced by the corporation
'
s equity
amount for that unit.
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(b)
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Eligible buyers shall be bona fide residents of the State and
shall not own a majority interest in any residential real property.
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The corporation may establish additional qualifications
for the eligible buyer, which may include a requirement that the eligible buyer
work in a profession that is facing a labor shortage, as determined by the corporation,
and a requirement that gift funds shall not exceed thirty-five per cent of the unit
purchase price.
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(c)
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The corporation may establish criteria for the prioritization
of eligible buyers.
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(d)
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If a buyer sells the unit within thirty years of the date of the
buyer
'
s purchase of the unit, then at the time of the sale, the buyer
shall repay to the corporation the corporation
'
s equity and equity percentage share of the appreciated unit value,
if any; provided that if the buyer does not sell the unit within thirty years of
the date of the buyer
'
s purchase of the unit, then upon refinance, obtaining additional
financing, transfer of title, non-owner occupancy or rental of the unit or any part
of the unit, the buyer shall repay to the corporation the corporation
'
s equity and equity percentage share of the appreciated unit value,
if any, prior to the expiration of the thirty-year period; provided further that
this requirement shall run with the deed or lease initially conveyed for each unit
until the obligation to repay the equity and equity percentage share, if any, has
been satisfied.
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(e)
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With the prior approval
of the corporation, the eligible developer may repay, in the form of equity in project
units under the program, a part or all of the interim financing made under this
subpart and secured by a mortgage on the for‑sale housing development project.
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(f)
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The corporation shall establish rules pursuant
to chapter 91 to implement this section.
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(g)
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The following words or terms as used in this section shall have
the following meanings unless a different meaning clearly appears from the context:
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"
Housing
development project" means a plan, design, or undertaking
by the corporation or an eligible developer for the development of units.
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"Housing development project" includes
all real and personal property, buildings and improvements, commercial space, lands
for farming and gardening, community facilities acquired or constructed or to be
acquired or constructed, and all tangible or intangible assets held or used in connection
with the housing development project.
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"
Unit
" means:
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(1)
�
The structure and land upon which the structure is constructed,
whether on fee simple or leasehold property, developed for residential purposes
pursuant to chapter 201H; or
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(2)
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Improved or unimproved real property that is developed for residential
purposes pursuant to chapter 201H.
"Unit" includes dwelling
units.
"
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SECTION
2.
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Section 201H-191, Hawaii Revised Statutes,
is amended by amending subsection (a) to read as follows:
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(a)
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There
is created a dwelling unit revolving fund.
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The funds appropriated for the purpose of the dwelling unit revolving fund
and all moneys received or collected by the corporation for the purpose of the revolving
fund shall be deposited [
in
]
into
the revolving fund.
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The proceeds in the revolving fund shall be used
to reimburse the general fund to pay the interest on general obligation bonds issued
for the purposes of the revolving fund, for the necessary expenses in administering
housing development programs and regional state infrastructure programs, and for
carrying out the purposes of housing development programs and regional state infrastructure
programs, including but not limited to the expansion of community facilities and
regional state infrastructure constructed in conjunction with housing and mixed-use
transit‑oriented development projects,
purchasing equity in for‑sale
housing development projects, interim primary or secondary financing,
permanent
primary or secondary financing, and supplementing building costs, federal guarantees
required for operational losses, and all things required by any federal agency in
the construction and receipt of federal funds or low
‑
income housing tax credits for
housing projects."
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SECTION 3.
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Act 92, Session
Laws of Hawaii 2023, is amended by amending section 2 to read as follows:
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SECTION 2.
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[
(a)
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The Hawaii housing finance
and development corporation may establish a five-year dwelling unit revolving fund
equity pilot program, which shall be funded by the dwelling unit revolving fund,
to address the high, unmet demand of for-sale units by Hawaii residents, specifically
residents who:
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(1)
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Own no other real property;
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(2)
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Receive no gift funds; and
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(3)
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Work in a profession that is facing a shortage as defined by the
corporation, including health care workers, educators, law enforcement officers,
including staff at correctional facilities, or agricultural field workers.
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(b)
�
The Hawaii housing
finance and development corporation may purchase equity in for-sale housing development
projects; provided that this equity shall be allocated to specific units within
the housing development projects and the price to be paid by each eligible buyer
of a unit shall be reduced by the Hawaii housing finance and development corporation's
equity amount for that unit.
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(c)
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If a buyer sells the
buyer's unit within thirty years of the date of the buyer's purchase of the unit,
then at the time of the sale, the buyer shall repay to the Hawaii housing finance
and development corporation the corporation's appreciated equity value; provided
that if the buyer does not sell the unit within thirty years of the date of the
buyer's purchase of the unit, then the buyer shall repay to the Hawaii housing finance
and development corporation the corporation's appreciated equity value prior to
the expiration of the thirty
‑
year period; provided further that this requirement shall run
with the deed for each unit until the obligation to repay the appreciated equity
value has been satisfied.
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(d)
�
The Hawaii housing
finance and development corporation may establish rules pursuant to chapter 91,
Hawaii Revised Statutes, to implement this section, including rules that establish
the methods by which appreciated equity values shall be calculated, assessed, and
satisfied.
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(e)
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The Hawaii housing
finance and development corporation may establish criteria for the prioritization
of eligible buyers based on state goals and policies and submit a report on this
criteria to the legislature no later than twenty days prior to the convening of
the regular session of 2024.
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(f)
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The Hawaii housing
finance and development corporation shall submit interim reports on the dwelling
unit revolving fund equity pilot program to the legislature no later than twenty
days prior to the convening of the regular sessions of 2024, 2025, 2026, and 2027.
�
The Hawaii housing finance and development corporation
shall submit a final report on the dwelling unit revolving fund equity pilot program
to the legislature no later than twenty days prior to the convening of the regular
session of 2028.
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(g)
�
As used in this section:
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"Housing development project" means a plan, design,
or undertaking by the Hawaii housing finance and development corporation or an eligible
developer for the development of units.
�
"Housing
development project" includes all real and personal property, buildings and
improvements, commercial space, lands for farming and gardening, community facilities
acquired or constructed or to be acquired or constructed, and all tangible or intangible
assets held or used in connection with the housing development project.
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"Unit" means:
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(1)
�
The structure and land upon which the structure is constructed,
whether on fee simple or leasehold property, developed for residential purposes
pursuant to chapter 201H, Hawaii Revised Statutes; or
����
(2)
�
Improved or unimproved real property that is developed for residential
purposes pursuant to chapter 201H, Hawaii Revised Statutes.
"Unit" includes dwelling
units.
]
Repealed.
"
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SECTION
4.
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Act 92, Session Laws of Hawaii 2023, is
amended by amending section 5 to read as follows:
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"SECTION 5.
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This Act
shall take effect on July 1, 2023[
, and shall be repealed on June 30, 2028; provided
that:
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(1)
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Section 201H-47, Hawaii Revised Statutes, shall be reenacted in
the form in which it read on the day prior to the effective date of this Act; and
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(2)
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The requirements imposed pursuant to section 2(c) of this Act
shall remain in effect and run with the deed after June 30, 2028
]."
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SECTION 5.
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Statutory material
to be repealed is bracketed and stricken.
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New statutory material is underscored.
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SECTION
6.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
BY REQUEST
Report Title:
Hawaii Housing Finance and Development Corporation; Dwelling Unit
Revolving Fund; Dwelling Unit Revolving Fund Equity Program; Interim Financing
Description:
Makes the Dwelling Unit Revolving Fund Equity Pilot Program
permanent.
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Allows partial or full repayment
of Dwelling Unit Revolving Fund interim loans in the form of unit equity through
the Dwelling Unit Revolving Fund Equity Program.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.