THE SENATE	S.C.R. NO.	213
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

urging the hawaii housing finance and development corporation to prioritize the allocation of funds from the rental housing revolving fund and dwelling unit revolving fund to BE USED TO enhance credit AND GUARANTEE AND INSURE LOANS THAT PRIVATE FINANCIAL INSTITUTIONS MAKE TO developers of housing that is exclusively FOR hawaii residents WHO ARE OWNER- OR RENTER-OCCUPANTS AND WHO OWN NO OTHER REAL PROPERTY.

WHEREAS, the State is experiencing a severe housing crisis and innovative and unique solutions are needed to increase the supply of housing in the State; and

WHEREAS, most developers of affordable rental housing projects rely on federal and state low-income housing tax credits, which only represent a fraction of the total development costs for a project; and

WHEREAS, developers that utilize low-income housing tax credits are required to rent the units to households making a certain percentage of the area median income, which can further affect a developer's ability to obtain long-term private loans for additional development costs, due to limited projected cash-flow; and

WHEREAS, the remaining "gap" in costs for developers to build affordable rental housing units hinders the rate of development in the State, which is further slowed during times when borrowing power is more limited due to high interest rates; and

WHEREAS, the Rental Housing Revolving Fund, which is funded in part by the real estate conveyance tax and administered by the Hawaii Housing Finance and Development Corporation, provides "equity gap" low-interest loans or grants to qualified owners and developers for the development, construction, acquisition, preservation, and substantial rehabilitation of affordable housing and rental housing units; and

WHEREAS, the Dwelling Unit Revolving Fund is also a fund administered by the Hawaii Housing Finance and Development Corporation to provide loans or grants for the acquisition of real property; development and construction of residential, commercial, and industrial properties; interim and permanent loans to developers; and all things necessary to carry out the purposes of the Housing Development Program, including administrative expenses; and

WHEREAS, utilizing the Rental Housing Revolving Fund and the Dwelling Unit Revolving Fund to enhance credit and guarantee and insure loans that private financial institutions make to developers of affordable housing would enable the State to create much more affordable housing units for the same amounts appropriated to these funds; now, therefore,

BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, the House of Representatives concurring, that the Hawaii Housing Finance and Development Corporation is urged to prioritize the allocation of funds from the Rental Housing Revolving Fund and Dwelling Unit Revolving Fund to be used to enhance credit and guarantee and insure loans that private financial institutions make to developers of housing that is exclusively for Hawaii residents who are owner- or renter-occupants and who own no other real property; and

BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation.

OFFERED BY:

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Report Title:

Hawaii Housing Finance and Development Corporation; Feasibility Study; Report; Credit Enhancement; Private Loans; Affordable Housing Developers