HOUSE OF REPRESENTATIVES	H.B. NO.	2513
THIRTY-FIRST LEGISLATURE, 2022
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:

SECTION 1. The legislature finds that the development of rental housing for households making between sixty-one and one hundred per cent of the of area median income is not financially feasible. Although funding is set aside each year for the rental housing revolving fund, these funds are used as gap financing in conjunction with federal and state low-income housing tax credit financed projects serving sixty per cent of area median income and below.

The legislature further finds that although the rental housing revolving fund allows funding up to one-hundred and forty per cent of area median income, it rarely gets used for families above sixty per cent of area median income, as the demand for the funds in the revolving fund far exceed available funding. Although general excise tax waivers and county subsidies help reduce development costs, new workforce rental housing is very difficult to build without state subsidies.

The legislature also finds that strategies are needed to keep local residents in the State. Having affordable rental housing opportunities for working families will reduce domestic outmigration and fill critical labor needs throughout the State.

The purpose of this Act is to set aside a certain amount of funds in the rental housing revolving fund for housing projects and units that are targeted to families with incomes between sixty-one and one hundred per cent of median family income.

SECTION 2. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans or grants for rental housing projects in the following order of priority:

(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:

(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the 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 median family income; and

(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;

provided that the corporation may establish rules to ensure full occupancy of fund projects; and

(2) Mixed-income rental projects or units in a mixed‑income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income[.]; provided that the first $150,000,000 shall be used for projects or units in a mixed-income rental project for persons and families with incomes between sixty-one per cent and one hundred per cent of the median family income."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Rental Housing Revolving Fund; Affordable Housing

Description:

Requires a certain amount of funds in the rental housing revolving fund be used to provide loans or grants to mixed-income rental projects or units for persons and families with incomes between sixty-one and one hundred per cent of the median family income.

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