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HB1724
HOUSE OF REPRESENTATIVES
H.B. NO.
1724
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to the hawaii housing finance and development corporation
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
�
Chapter 201H, Hawaii Revised Statutes, is
amended by adding a new section to part III, subpart I, to be appropriately
designated and to read as follows:
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"
�201H-
�
Dwelling
unit revolving fund equity program.
�
(a)
�
There is established a dwelling unit
revolving fund equity program, which shall be funded by the dwelling unit
revolving fund and administered by the corporation, to address the high, unmet
demand of for-sale units by state residents.
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(b)
�
The corporation may purchase equity in
for-sale housing development projects secured by a recorded instrument as
determined by the corporation; 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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(c)
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An eligible buyer of a unit shall be a qualified
resident as defined in
section 201H-32.
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(d)
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The corporation may establish criteria for the
prioritization of eligible buyers.
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(e)
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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 corporation:
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(1)
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The corporation's purchased equity; and
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(2)
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The corporation's equity percentage share, if any.
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(f)
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If the buyer does not sell the buyer's unit
within thirty years from the date the buyer purchased the unit, then upon the
earliest of the following, the buyer shall repay to the corporation the
corporation's equity and equity percentage share, if any:
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(1)
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When the buyer refinances the unit;
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(2)
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When the buyer obtains additional financing secured by
the unit;
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(3)
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When the buyer transfers the title to the unit;
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(4)
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When the buyer c
eases
owner-occupancy of the unit or rents
the unit or any part of the unit; or
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(5)
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At any time before the expiration of the thirty-year
period.
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(g)
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The repayment obligation described in
subsections (e) and (f) 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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(h)
�
The corporation shall adopt rules pursuant
to chapter 91 to implement this section.
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(i)
�
As used
in this section, unless the
context otherwise requires:
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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)
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The structure
and land upon which the structure is constructed, whether in fee simple or
leasehold, developed for residential purposes pursuant to this chapter; or
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(2)
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Improved or
unimproved real property that is developed for residential purposes pursuant to
this chapter.
"Unit" includes dwelling units.
"
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SECTION
2
.
�
Section
201H-191, Hawaii Revised Statutes, is amended by amending subsection (a) to
read as follows:
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"(a)
�
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.
�
The proceeds in the revolving fund shall be
used:
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(1)
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To reimburse the
general fund to pay the interest on general obligation bonds issued for the
purposes of the revolving fund;
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(2)
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For necessary
expenses in administering housing development programs, regional state
infrastructure programs, and the government employee housing program pursuant
to part V; and
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(3)
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To carry out the
purposes of housing development programs, regional state infrastructure
programs, and the government employee housing program pursuant to part V, 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.
�
Act 92, Session Laws of Hawaii 2023, is
amended as follows:
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1.
�
By amending section 2 to read:
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"SECTION 2.
�
[
(a)
�
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)
�
Own no other
real property;
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(2)
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Receive no gift
funds; and
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(3)
�
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)
�
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)
�
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)
�
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:
����
(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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2.
�
By
amending section 5 to read:
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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 4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
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SECTION 5.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
HHFDC;
Dwelling Unit Revolving Fund Equity Program; Computation of Interest; Dwelling
Unit Revolving Fund
Description:
Makes the
Dwelling Unit Revolving Fund Equity Pilot Program permanent, with modifications
that include changing the computation of interest that a purchaser of certain
real property is required to pay to the Hawaii Housing Finance Development
Corporation upon the purchaser's sale or assignment of the real property after
a specified period of time.
�
Expands the
use of proceeds in the Dwelling Unit Revolving Fund to include purchasing
equity in for-sale housing development projects and interim primary or secondary
financing.
�
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.