HB1715 • 2026

RELATING TO AFFORDABLE HOUSING.

Housing

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: MIYAKE, AMATO, EVSLIN, ILAGAN, KAHALOA, KEOHOKAPU-LEE LOY, KILA, KUSCH, LOWEN, MARTEN, MORIKAWA, OLDS, PERRUSO, REYES ODA, SAYAMA, TAM, TARNAS
Last action: 2026-03-30
Official status: Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
Effective date: Not listed

Plain English Breakdown

The bill text does not provide specific details on enforcement mechanisms or penalties for violations of the resale restrictions.

Rules for Affordable Housing

This bill allows the Hawaii Housing Finance and Development Corporation to designate certain housing units as permanently affordable and sets rules about who can buy them and how they can be sold.

What This Bill Does

Allows HHFDC to choose some homes as 'permanently affordable' if they meet specific criteria.
Requires these homes to be bought by people who qualify based on income, residency, and other factors set by the corporation.
Limits how these homes can be sold or rented out short-term without permission from HHFDC.

Who It Names or Affects

People who want to buy affordable housing in Hawaii.
The Hawaii Housing Finance and Development Corporation (HHFDC).

Terms To Know

Qualified resident: A person who meets certain income, residency, and ownership requirements set by HHFDC.
Permanently affordable housing: Homes that are sold at a fixed price and can only be resold for an amount based on a formula decided by HHFDC to keep them affordable over time.

Limits and Unknowns

The bill does not specify who will enforce the rules or how they will be enforced.
It is unclear what happens if someone violates the resale restrictions.
The effective date of July 1, 3000, suggests this might be a placeholder and needs to be updated.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment allows the Hawaii Housing Finance and Development Corporation to designate certain housing units as permanently affordable, subject to resale restrictions.

The corporation can now designate for-sale housing units as permanently affordable if they meet specific criteria.
Units designated as permanently affordable must be sold to qualified residents and are subject to resale restrictions with the corporation's approval.
Short-term rentals of these units are prohibited, and resale prices are restricted by a formula or index established by the corporation.

The exact criteria for designation and eligibility will be determined through rules adopted by the corporation under chapter 91.

SD1

Hawaii published version SD1

Plain English: This amendment allows the Hawaii Housing Finance and Development Corporation to designate certain for-sale housing units as permanently affordable, subject to resale and occupancy restrictions.

Establishes a framework for designating government-assisted for-sale housing units as 'permanently affordable'.
Sets criteria for eligible buyers of these units, including income requirements and ownership limitations.
Imposes resale restrictions on designated units, requiring approval from the corporation before sale.
Adds provisions to protect against short-term rentals and ensures affordability through price indexing.

The exact details of how resale prices will be indexed are not specified in this amendment text.

Bill History

2026-03-30 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2026-03-30 S
Reported from HOU (Stand. Com. Rep. No. 3274) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2026-03-19 S
The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Elefante, Rhoads; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
2026-03-17 S
The committee(s) on HOU deferred the measure until 03-19-26 1:07PM; Conference Room 225 & Videoconference.
2026-03-12 S
The committee(s) on HOU has scheduled a public hearing on 03-17-26 1:05PM; Conference Room 225 & Videoconference.
2026-03-10 S
Referred to HOU, WAM.
2026-03-06 S
Passed First Reading.
2026-03-06 S
Received from House (Hse. Com. No. 41).
2026-03-05 H
Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Perruso excused (1). Transmitted to Senate.
2026-03-05 H
Reported from FIN (Stand. Com. Rep. No. 863-26), recommending passage on Third Reading.
2026-03-02 H
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.
2026-02-27 H
Bill scheduled for decision making on Monday, 03-02-26 10:00AM in conference room 308 VIA VIDEOCONFERENCE.
2026-02-27 H
The committee(s) on FIN recommend(s) that the measure be deferred until 03-02-26.
2026-02-24 H
Bill scheduled to be heard by FIN on Friday, 02-27-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-19 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Pierick voting aye with reservations; none voting no (0) and none excused (0).
2026-02-19 H
Reported from HSG (Stand. Com. Rep. No. 577-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-02-11 H
The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Evslin, Miyake, Cochran, Grandinetti, Kila, Kitagawa, La Chica, Muraoka; Ayes with reservations: Representative(s) Pierick; Noes: none; and Excused: none.
2026-02-06 H
Bill scheduled to be heard by HSG on Wednesday, 02-11-26 9:00AM in House conference room 430 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to HSG, FIN, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-20 H
Prefiled.

Official Summary Text

RELATING TO AFFORDABLE HOUSING.
Hawaii Housing Finance and Development Corporation; Permanently Affordable For-Sale Housing; Resale Restrictions; Criteria
Authorizes HHFDC to designate certain for-sale units as permanently affordable housing, subject to certain restrictions. Clarifies that certain resale and occupancy restrictions apply only to projects developed prior to a certain date. Amends the definition of "qualified resident" for the purposes of HHFDC housing development programs. Effective 7/1/3000. (SD1)

Current Bill Text

Read the full stored bill text

HB1715

HOUSE OF REPRESENTATIVES

H.B. NO.

1715

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to affordable housing
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The legislature finds that the State must
take proactive steps to preserve the long-term affordability of
government-assisted for-sale housing units.
�
Currently, affordability restrictions for
these housing units expire after ten years, at which point the units may be
sold at market rates.
�
This undermines
the State's investment in housing subsidies and exacerbates the housing
shortage.
�
To address this, the
legislature finds it necessary to establish a framework for the designation and
regulation of permanently affordable for-sale housing, including price indexing
that allows homeowners to build equity while preserving affordability across
generations.

����
The
purpose of this Act is to:

����
(1)
�
Authorize the Hawaii housing finance and
development corporation to designate certain for-sale units as permanently
affordable housing, subject to certain restrictions; and

����
(2)
�
Clarify that certain resale and occupancy
restrictions apply only to projects developed prior to a certain date.

����
SECTION 2.
�
Chapter 201H, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

����
"
�201H-
�
Permanently
affordable for-sale housing; designation; resale restrictions.
�
(a)
�
The corporation may designate
a for-sale housing unit as permanently affordable if the unit is:

����
(1)
�
Developed or
assisted by the corporation; and

����
(2)
�
Sold to an
eligible buyer under criteria established by the corporation by rule.

����
(b) Any unit designated as permanently
affordable under this section shall be:

����
(1)
�
Sold to a
qualified resident as defined in section 201H-32;

����
(2)
�
Subject to
resale only with the written approval of the corporation, which may exercise
its first option to purchase or assign the unit to another qualified purchaser;

����
(3)
�
Prohibited from
being used as a short-term rental, including rental periods of less than ninety
days;

����
(4)
�
Restricted by a
resale price formula or index established by the corporation's program
agreement, which may include the Honolulu Housing Affordability Index or other
reasonable affordability measure;

����
(5)
�
Enforced
through deed restrictions, covenants, or other legal instruments recorded
against the unit;

����
(6)
�
Subject to
additional terms and conditions as established by rule under chapter 91; and

����
(7)
�
Subject to
waiver or extinguishment of restrictions as provided in the program agreement,
or as otherwise authorized by the corporation to preserve the intent of the
program or comply with federal law.

����
(c)
�

The corporation shall adopt rules under chapter 91 to implement this
section, including but not limited to:

����
(1)
�
Criteria for
designation and eligibility; and

����
(2)
�
Procedures for
resale and transfer of ownership.
"

����
SECTION
3
.
�
Section
201H-32, Hawaii Revised Statutes, is amended by amending the definition of
"qualified resident" to read as follows:

����
"
"Qualified resident"
means a person who:

����
(1)
�
Is a citizen of
the United States or a resident alien;

����
(2)
�
Is at least
eighteen years of age;
and

����
(3)
�
Is domiciled in
the State and physically resides in the dwelling unit purchased or rented under
this chapter[
;

����
(4)
�
In the case of
the purchase of real property in fee simple or leasehold, has a gross income
sufficient to qualify for the loan to finance the purchase; or in the case of a
rental, demonstrates an ability to pay rent as determined by the corporation
and meets any additional criteria established by the corporation for the
respective rental housing development for which the applicant is applying; and

����
(5)
�
Meets the
following qualifications:

���������
(A)
�
Is
a person who either by the person's self, or together with spouse or household
member, does not own a majority interest in fee simple or leasehold lands
suitable for dwelling purposes or a majority interest in lands under any trust
agreement or other fiduciary arrangement in which another person holds the
legal title to the land; and

���������
(B)
�
Is
a person whose spouse or household member does not own a majority interest in
fee simple or leasehold lands suitable for dwelling purposes or more than a
majority interest in lands under any trust agreement or other fiduciary
arrangement in which another person holds the legal title to the land, except
when husband and wife are living apart under a decree of separation from bed
and board issued by the family court pursuant to section 580-71;

provided that for purchasers of market-priced
units in an economically integrated housing project, the term "qualified
resident" means a person who is a citizen of the United States or a
resident alien; is domiciled in the State and shall physically reside in the
dwelling unit purchased; is at least eighteen years of age; and meets other
qualifications as determined by the developer
]."

����
SECTION
4
.
�
Section
201H-47, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

����
"(a)
�
The following restrictions shall apply to the
transfer of real property developed and sold under this chapter[
,
]
before
,
whether in
fee simple or leasehold:

����
(1)
�
For a period of
ten years after the purchase, whether by lease, assignment of lease, deed, or
agreement of sale, if the purchaser wishes to transfer title to the real
property, the corporation shall have the first option to purchase the real
property at a price that shall not exceed the sum of:

���������
(A)
�
The original cost
to the purchaser, as defined in rules adopted by the corporation;

���������
(B)
�
The cost of any
improvements added by the purchaser, as defined in rules adopted by the
corporation;

���������
(C)
�
Simple interest on
the original cost and capital improvements to the purchaser at the rate of one
per cent per year; and

���������
(D)
�
The amount, if
any, previously paid by the purchaser to the corporation as the corporation's
share of net appreciation in the real property;

����
(2)
�
The corporation
may purchase the real property either:

���������
(A)
�
By conveyance free
and clear of all mortgages and liens; or

���������
(B)
�
By conveyance
subject to existing mortgages and liens.

���������
If the real property is
conveyed in the manner provided in subparagraph (A), it shall be conveyed to
the corporation only after all mortgages and liens are released.
�
If the real property is conveyed in the
manner provided in subparagraph (B), the corporation shall acquire the real
property subject to any first mortgage created for the purpose of securing the
payment of a loan of funds expended solely for the purchase of the real
property by the seller; and any mortgage or lien created for any other purpose;
provided that the corporation has previously consented to it in writing.

�������������
The corporation's interest
created by this section shall constitute a statutory lien on the real property
and shall be superior to any other mortgage or lien, except for any first
mortgage created for the purpose of securing the payment of a loan of funds
expended solely for the purchase of the real property by the seller; any
mortgage insured or held by a federal housing agency; and any mortgage or lien
created for any other purpose; provided that the corporation has previously
consented to it in writing.
�
The amount
paid by the corporation to the seller shall be the difference, if any, between
the purchase price determined by paragraph (1)(A) to (D), and the total of the
outstanding principal balances of the mortgages and liens assumed by the
corporation;

����
(3)
�
A purchaser may
refinance real property developed and sold under this chapter; provided that
the purchaser shall not refinance the real property within ten years from the
date of purchase for an amount in excess of the purchase price as determined by
paragraph (1)(A) to (C); provided further that the purchaser shall obtain the
corporation's written consent if any restriction on the transfer of the real
property remains applicable;

����
(4)
�
After the end of
the tenth year from the date of initial purchase or execution of an agreement
of sale, the purchaser may sell the real property and sell or assign the
property free from any price restrictions; provided that the purchaser shall be
required to pay to the corporation the sum of:

���������
(A)
�
The balance of any
mortgage note, agreement of sale, or other amount owing to the corporation;

���������
(B)
�
Any subsidy or
deferred sales price made by the corporation in the acquisition, development,
construction, and sale of the real property, and any other amount expended by
the corporation not counted as costs under section 201H-45 but charged to the
real property by good accounting practice as determined by the corporation
whose books shall be prima facie evidence of the correctness of the costs;

���������
(C)
�
Interest on the
subsidy or deferred sales price, if applicable, and any other amount expended
at a rate established by the corporation computed as to the subsidy or deferred
sales price, if applicable, from the date of purchase or execution of the
agreement of sale, and as to any amount expended, from the date of expenditure;
provided that the computed interest shall not extend beyond thirty years from
the date of purchase or execution of the agreement of sale of the real
property.
�
If any proposed sale or transfer
will not generate an amount sufficient to pay the corporation the sum as
computed under this paragraph, the corporation shall have the first option to
purchase the real property at a price that shall not exceed the sum as computed
under paragraphs (1) and (2); and

���������
(D)
�
The corporation's
share of appreciation in the real property as determined under rules adopted
pursuant to chapter 91, when applicable;

����
(5)
�
Notwithstanding
any provision in this section to the contrary, pursuant to rules adopted by the
corporation, the subsidy or deferred sales price described in paragraph (4)(B)
and any interest accrued pursuant to paragraph (4)(C) may be paid, in part or in
full, at any time; and

����
(6)
�
Notwithstanding
any provision in this section to the contrary, the corporation's share of
appreciation in the real property described in paragraph (4)(D):

���������
(A)
�
Shall apply when
the sales price of the real property that is developed and sold under this
chapter is less than the then-current, unencumbered, fair market value of the
real property, as determined by a real property appraisal obtained prior to the
closing of the sale;

���������
(B)
�
Shall be a
restriction that runs with the land until it is paid in full and released by
the corporation, or extinguished pursuant to subsection (f); and

���������
(C)
�
May be paid, in
part or in full, at any time after recordation of the sale."

����
SECTION
5.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 6.
�
This Act shall take effect on July 1, 2026;
provided that the amendments made to section 201H-47, Hawaii Revised Statutes, by
this Act shall not be repealed when that section is reenacted on June 30, 2028,
pursuant to section 5 of Act 92, Session Laws of Hawaii 2023.

INTRODUCED BY:

_____________________________

Report Title:

Hawaii
Housing Finance and Development Corporation; Permanently Affordable For-sale
Housing; Resale Restrictions; Criteria

Description:

Authorizes
HHFDC to designate certain for-sale units as permanently affordable housing,
subject to certain restrictions.
�

Clarifies that certain resale and occupancy restrictions apply only to
projects developed prior to a certain date.
�

Amends the definition of "qualified resident" for the purposes
of HHFDC housing development programs.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.