DECLARING THE INTENT THAT AFFORDABLE HOUSING CREDITS ARE PERPETUAL AND REMAIN VALID UNTIL REDEEMED, AND REQUESTING THE COUNTIES TO RECOGNIZE THESE CREDITS WITHOUT EXPIRATION DATES.

SR47

THE SENATE

S.R. NO.

47

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE RESOLUTION

DECLARING THE INTENT THAT AFFORDABLE HOUSING CREDITS are
PERPETUAL AND REMAIN VALID UNTIL REDEEMED, AND REQUESTING THE COUNTIES TO
RECOGNIZE these CREDITS WITHOUT EXPIRATION DATES
.

����
WHEREAS, the
2024 Hawaii Housing Planning Study, commissioned by the Hawaii Housing Finance
and Development Corporation, identified a critical and deepening housing
shortage, projecting that the State will require an additional 64,490 housing
units by 2027 to meet demand, which significantly exceeds previous estimates
and underscores the urgency of the State's housing crisis; and

����
WHEREAS, to
address this crisis, the Legislature enacted Act 31, Session Laws of Hawaii
2024 (Act 31), to require the counties to issue affordable housing credits for
housing units constructed under certain programs of the Hawaii Housing Finance
and Development Corporation; and

����
WHEREAS, this
body recognizes that the development of affordable housing is a complex and
capital‑intensive process that often spans many years and requires long‑term
financial planning and stability; and

����
WHEREAS, affordable
housing credits function as a critical incentive for developers who invest
private capital to build affordable units that serve the public interest; and

����
WHEREAS, these
credits are transferable assets that allow developers to satisfy future
affordable housing obligations, thereby facilitating a continuous pipeline of
housing development; and

����
WHEREAS, existing
law mandates the issuance of affordable housing credits on a "one‑credit
for one‑unit" basis and explicitly provides for their
transferability to satisfy county requirements, but does not authorize the
imposition of expiration dates or other time limits on the validity of these
credits; and

����
WHEREAS, memoranda
of agreement and other administrative mechanisms utilized by the counties to
manage affordable housing credits are intended to facilitate their issuance and
tracking in alignment with state law, and are not intended to impose
restrictions such as expiration dates that are not authorized or required under
existing law; and

����
WHEREAS, by ensuring
that administrative agreements and policies do not limit the life, value,
transferability, or utility of affordable housing credits it protects the
incentive established by the Legislature, reduces financial risk, and
encourages continued participation by developers in affordable housing
programs, consistent with the purpose and intent of Act 31; and

����
WHEREAS, this
body intends that an affordable housing credit, once earned and issued in
compliance with state law, constitutes a vested right and a perpetual asset
that remains valid until it is redeemed to satisfy an affordable housing
obligation; now, therefore,

����
BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, that it is the intent of this body that affordable
housing credits issued pursuant to section 46‑15.1, Hawaii Revised
Statutes, including those governed by Act 31, are perpetual in nature and
remain valid and transferable until such time as they are redeemed by a holder
to satisfy an affordable housing obligation; and

����
BE IT FURTHER
RESOLVED that it is the intent of this body that the memoranda of agreement
authorized under section 46-15.1, Hawaii Revised Statutes, between any county
and the Hawaii Housing Finance and Development Corporation or Department of
Hawaiian Home Lands, are administrative instruments intended to facilitate the
efficient issuance, tracking, transfer, and redemption of affordable housing
credits, and are not intended to diminish, restrict, or condition the life,
value, transferability, or utility of such credits beyond the terms established
by statute; and

����
BE IT FURTHER
RESOLVED that the counties are requested to align their administrative rules,
policies, and practices with the statutory framework of section 46‑15.1,
Hawaii Revised Statutes, to ensure that the value and utility of affordable
housing credits are not diminished by administrative time limitations or other
restrictions not specified in the statute; and

����
BE IT FURTHER
RESOLVED that any memoranda of agreement entered into between a county and the
Hawaii Housing Finance and Development Corporation or Department of Hawaiian
Home Lands regarding affordable housing credits is requested to be crafted to
facilitate the efficient administration of the credits while avoiding
provisions that would restrict the life, value, transferability, or utility of
the credits; and

����
BE IT FURTHER
RESOLVED that certified copies of this Resolution be transmitted to the Chairperson
of the Hawaiian Homes Commission; Executive Director of the Hawaii Housing
Finance and Development Corporation; Mayors of the Counties of Hawaii, Kauai,
and Maui; Mayor of the City and County of Honolulu; Chairpersons of the County
Councils of Hawaii, Kauai, and Maui; and Chairperson of the Honolulu City Council.

OFFERED BY:

_____________________________

Report Title:
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Counties;
Affordable Housing Programs; Affordable Housing Credits; Perpetual Duration