RELATING TO COMMUNITY LAND TRUSTS.

HB833

HOUSE OF REPRESENTATIVES

H.B. NO.

833

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to community land trusts
.

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

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SECTION 1.
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The legislature finds that community land trusts are effective at
producing and preserving permanently affordable housing, increasing community
control and neighborhood stability, and reducing barriers to homeownership for
low- to moderate-income households.
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Community land trusts provide lasting assets
and shared equity homeownership opportunities that foster generational wealth and
community stability.

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The legislature also finds that a
community land trust's shared equity models enable many homeowners to transition
to traditional homeownership, with six out of ten community land trust homeowners
accumulating enough equity to purchase homes on the open market.
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Community land trusts also curb displacement
by removing housing from the speculative market and preserving affordable
housing in areas facing rising costs.
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Community
land trusts have proven effective in post-disaster recovery, preventing
predatory investment and ensuring long-term housing affordability.

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The legislature notes that in
Hawaii, five community land trusts are currently active, including the Lahaina
Community Land Trust, Na Hale o Maui, Hawaii HomeOwnership Center's Housing and
Land Trust, Ho
ʻ
omaluhui
Community Land Trust, and HALE o Hawaii.
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The legislature believes that expanding the community
land trust ecosystem can further strengthen community ownership, prevent
displacement, and help local families stay in Hawaii.

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The purpose of this Act is to
support the expansion of community land trusts by authorizing the Hawaii
housing finance and development corporation to establish a community land trust
equity pilot program to provide community land trusts with a low-cost line of
credit for housing purposes.

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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 community land trust equity pilot program to provide community land
trusts with a line of credit to fund the acquisition, rehabilitation,
renovation, or construction of housing that is affordable to households earning
no more than one hundred forty per cent of the county area median income.

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(b)
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The Hawaii housing finance and development corporation may establish
rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the
purposes of the community land trust equity pilot program.

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(c)
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The Hawaii housing finance and development corporation shall submit
interim reports on the status of the community land trust equity pilot program
to the legislature no later than twenty days prior to the convening of the
regular sessions of 2026, 2027, 2028, and 2029.
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The Hawaii housing finance and development corporation shall submit a
final report on the community land trust equity pilot program, including any
findings, recommendations, and proposed legislation, to the legislature no
later than twenty days prior to the convening of the regular session of 2030.

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(d)
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The community land trust equity pilot program shall cease to exist on
June 30, 2030.

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(e)
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For purposes of this section, "community
land trust" means a nonprofit organization that:

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(1)
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Acquires parcels of land primarily for
conveyance under long-term ground leases;

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(2)
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Transfers ownership of any structural
improvements located on leased parcels to the lessees;

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(3)
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Has its corporate membership open to any adult
resident of a particular geographic area specified in the organization's
bylaws;

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(4)
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Retains a first option to purchase any
structural improvement at a price determined by formula that is designed to
ensure that the improvement remains affordable to households earning no more
than one hundred forty per cent of the county area median income; and

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(5)
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Is governed by a board of directors that:

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(A)
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Includes a majority of members who are elected
by the corporate membership; and

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(B)
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Is composed of equal numbers of lessees,
corporate members who are not lessees, and any other category of persons
described in the bylaws of the organization.

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SECTION
3.
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There is appropriated out of the
dwelling unit revolving fund the sum of $5,000,000 or so much thereof as may be
necessary for fiscal year 2025-2026 and the same sum or so much thereof as may
be necessary for fiscal year 2026-2027 for the Hawaii housing finance and
development corporation to establish the community land trust equity pilot
program pursuant to this Act.

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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 4.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

HHFDC;
Community Land Trust Equity Pilot Program; Affordable Housing; Reports; Dwelling
Unit Revolving Fund; Appropriation

Description:

Authorizes
the Hawaii Housing Finance and Development Corporation to establish a five-year
community land trust equity pilot program to provide community land trusts with
a line of credit to fund the acquisition, rehabilitation, renovation, or
construction of housing for certain households and report to the Legislature
regarding the pilot program.
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Appropriates
moneys from the Dwelling Unit Revolving Fund for establishment of the pilot
program.

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