SUPPORTING THE USE OF THE DWELLING UNIT REVOLVING FUND TO FUND PREDEVELOPMENT COSTS FOR ANY GOVERNMENT AFFORDABLE HOUSING DEVELOPMENT PROJECT THROUGH INTERIM LOANS TO EXPEDITE THE DELIVERY OF AFFORDABLE HOUSING TO HAWAII'S RESIDENTS.

SR45

THE SENATE

S.R. NO.

45

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE RESOLUTION

supporting the use of the dwelling unit revolving fund to
fund predevelopment costs for any government affordable housing development
project through interim loans to expedite the delivery of affordable housing to
hawaii's residents
.

����
WHEREAS, the
Hawaii Housing Finance and Development Corporation utilizes the Dwelling Unit
Revolving Fund to fund predevelopment costs associated with affordable housing
projects on land it owns or otherwise administers; and

����
WHEREAS, financing
of the predevelopment phase for affordable housing projects is a much higher
risk than financing the construction phase, as there are more variables that
could render the project impracticable, with a higher possibility of the lender
not recouping the loan; and

����
WHEREAS, the
predevelopment phase of an affordable housing development project may include
but not be limited to in-depth analysis of site particularities; undertaking of
multiple technical studies on the parcel and the proposed project; creating
conceptual designs, site plans, and construction drawings; conducting
environmental assessments; preparing and submitting documentation for all
needed permits, approvals, and financing for the construction of the project;
and more; and

����
WHEREAS, the
Hawaii Housing Finance and Development Corporation has not historically used
the Dwelling Unit Revolving Fund to finance predevelopment costs associated
with projects owned or administered by entities other than itself due to the
higher risk of financing; and

����
WHEREAS, not
all counties in the State have flexible funding available that can be used for
affordable housing project predevelopment costs; and

����
WHEREAS, access
to predevelopment funding is critical to advancing affordable housing
development; now, therefore,

����
BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, that this body supports the use of the Dwelling Unit
Revolving Fund to fund predevelopment costs for any government affordable
housing development project through interim loans to expedite the delivery of
affordable housing to Hawaii's residents; and

����
BE IT FURTHER
RESOLVED that this body supports interim predevelopment loans provided through
the Dwelling Unit Revolving Fund being paid back to the Hawaii Housing Finance
and Development Corporation by the developer through the project's permanent
financing source; and

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BE IT FURTHER
RESOLVED that certified copies of this Resolution be transmitted to the
Executive Director of the Hawaii Housing Finance and Development Corporation
and Chairperson of the Board of Directors of the Hawaii Housing Finance and
Development Corporation.

OFFERED BY:

_____________________________

Report Title:
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Dwelling
Unit Revolving Fund; Predevelopment Costs; Government Affordable Housing
Projects