SB1114

THE SENATE	S.B. NO.	1114
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE DWELLING UNIT REVOLVING FUND.

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

SECTION 1. (a) The Hawaii housing finance and development corporation shall establish a five-year dwelling unit revolving fund equity pilot program to address the high, unmet demand of for-sale units by Hawaii residents, specifically those residents earning more than eighty per cent and up to one hundred twenty per cent of the area median income.

(b) The Hawaii housing finance and development corporation shall purchase equity in for-sale housing development projects; provided that this equity shall be allocated to specific units within the housing development projects and the price to be paid by each eligible buyer of a unit shall be reduced by the Hawaii housing finance and development corporation's equity amount for that unit.

(c) If a buyer sells the buyer's unit within thirty years of the date of the buyer's purchase of the unit, then at the time of the sale, the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value; provided that if the buyer does not sell the unit within thirty years of the date of the buyer's purchase of the unit, then before the expiration of this thirty‑year period, the buyer shall repay to the Hawaii housing finance and development corporation the corporation's appreciated equity value; provided further that this requirement shall run with the deed for each unit until the obligation to repay the appreciated equity value has been satisfied.

(d) The Hawaii housing finance and development corporation shall establish rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this section, including rules establishing the methods by which appreciated equity values shall be calculated, assessed, and satisfied.

(e) The Hawaii housing finance and development corporation shall submit interim reports on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2024, 2025, 2026, 2027, and 2028. The Hawaii housing finance and development corporation shall submit a final report on the dwelling unit revolving fund equity pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2029.

(f) As used in this section:

"Housing development project" means a plan, design, or undertaking by the Hawaii housing finance and development corporation or an eligible developer for the development of units. "Housing development project" includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with the housing development project.

"Unit" means:

(1) The structure and land upon which the structure is constructed, whether on fee simple or leasehold property, developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes; or

(2) Improved or unimproved real property that is developed for residential purposes pursuant to chapter 201H, Hawaii Revised Statutes.

"Unit" includes dwelling units.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the dwelling unit revolving fund.

SECTION 3. There is appropriated out of the dwelling unit revolving fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the dwelling unit revolving fund equity pilot program established pursuant to this Act.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $120,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment and hiring of one full-time equivalent (1.00 FTE) housing development specialist III position to support the dwelling unit revolving fund equity pilot program.

The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2023, and shall be repealed on June 30, 2028.

INTRODUCED BY:	_____________________________