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HB1727
HOUSE OF REPRESENTATIVES
H.B. NO.
1727
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to the rental housing revolving fund
.
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 J, to be
appropriately designated and to read as follows:
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"
�201H-
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Transfer of moneys; subaccounts.
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Notwithstanding any law to the
contrary, the corporation, with the approval of the director of finance, may
transfer moneys between the rental housing revolving fund and any subaccount
established under this chapter, and between subaccounts established under this chapter,
without further legislative authorization, for purposes consistent with this
chapter.
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The corporation may also return
unexpended or uncommitted funds from any subaccount established under this chapter
to the rental housing revolving fund, to be used for any lawful purpose of the
fund.
"
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SECTION 2.
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Section 201H-202, Hawaii Revised Statutes, is
amended by amending subsection (e) to read as follows:
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"(e)
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Except as provided in subsection (f), moneys
available in the fund shall be used for the purpose of providing, in whole or
in part, loans for rental housing projects demonstrating project readiness,
efficiency, and feasibility acceptable to the corporation in the following
order of priority:
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(1)
�
Projects
or units in projects that are allocated low-income housing credits pursuant to
the state housing credit ceiling under section 42(h) of the Internal Revenue
Code of 1986, as amended, or projects or units in projects that are funded by
programs of the United States Department of Housing and Urban Development and
United States Department of Agriculture Rural Development wherein:
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(A)
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At least fifty per
cent of the available units are for persons and families with incomes at or
below eighty per cent of the
area
median [
family
] income of which
at least five per cent of the available units are for persons and families with
incomes at or below thirty per cent of the
area
median [
family
]
income; and
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(B)
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The remaining
units are for persons and families with incomes at or below one hundred per
cent of the
area
median [
family
] income;
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provided that the corporation
may establish rules to ensure full occupancy of fund projects; provided further
that f
or projects that were
awarded low-income housing credits pursuant to this paragraph, priority shall
be given to p
rojects with a perpetual affordability commitment.
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For purposes of this paragraph,
"perpetual" means the useful life of the project; and
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(2)
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Mixed-income rental projects or units in a mixed-income rental
project for [
persons and families
]
households at a range of income
levels, but primarily for households
with incomes at or below one hundred forty
per cent of the
area
median [
family
] income."
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SECTION
3.
�
Act 159, Session Laws of Hawaii 2025,
is amended by amending section 8 to read as follows:
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"SECTION
8.
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This Act shall take effect upon its
approval[
; provided that sections 2 and 3 of this Act shall be repealed on
June 30, 2030, and sections 201H-202 and 201H-204, Hawaii Revised Statutes,
shall be reenacted in the form in which they read on the day prior to the
effective date of this Act
]."
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SECTION
4.
�
The director of finance is authorized
to transfer moneys from the rental housing revolving fund to the mixed-income
subaccount of the rental housing revolving fund in an amount not to exceed
$100,000,000 for fiscal year 2026-2027.
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SECTION
5.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $100,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 to be deposited into the
mixed-income subaccount of the rental housing revolving fund established under
section 201H-202(f), Hawaii Revised Statutes.
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SECTION
6.
�
There is appropriated out of the
mixed-income subaccount of the rental housing revolving fund established under
section 201H-202(f), Hawaii Revised Statutes, the sum of $100,000,000 or so
much thereof as may be necessary for fiscal year 2026-2027 for the purposes of
the subaccount.
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The sums
appropriated shall be expended by the Hawaii housing finance and development
corporation for the purposes of this Act.
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SECTION
7.
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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 8.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
HHFDC;
Rental Housing Revolving Fund; Mixed-Income Subaccount; Transfer of Moneys; Mixed-Income
Rental Projects; Appropriation
Description:
Specifies
the conditions upon which the Hawaii Housing Finance and Development
Corporation may transfer moneys from within the Rental Housing Revolving Fund to
a subaccount and between subaccounts of the fund.
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Clarifies what constitutes a mixed-income
rental project for purposes of loans funded through the Mixed-Income Subaccount.
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Repeals the sunset date for the Mixed-Income
Subaccount.
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Authorizes the Director of
Finance to deposit rental housing revolving funds into the Mixed-Income
Subaccount.
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Appropriates funds.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.