HOUSE OF REPRESENTATIVES

H.B. NO.

1833

THIRTY-SECOND LEGISLATURE, 2024

H.D. 1

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 there is a need for twenty-six thousand affordable rental housing units for Hawaii's workforce.  The legislature further finds that the rental housing revolving fund provides "equity gap" low-interest loans to affordable housing owners and developers on a competitive basis.  In the past, the Hawaii housing finance and development corporation prioritized the award of rental housing revolving funds to projects that received federal and state low-income housing tax credit allocations.  As a result, most of the rental housing revolving fund has been targeted at tier 1 households, which are households with incomes below sixty per cent of the area median incomes.

     In 2022, the legislature broadened the scope of the rental housing revolving fund to assist tier 2 households, or households with incomes between sixty and one hundred per cent of the area median income.  This was done to encourage the development of affordable rental housing for working families.  In response to the Hawaii housing finance and development corporation, eleven applications totaling one thousand four hundred five residential units sought financing.  Based on funding appropriated by the legislature, four projects totaling seven hundred fifty-nine units were awarded.

     The legislature further finds that due to high interest rates, high costs of construction, and a strong demand for affordable rental housing for working families, additional moneys from the rental housing revolving fund targeted at tier 2 households is needed.  To ensure the financial feasibility of tier 2 projects and to reduce the state subsidy to affordable rental units serving lower area median incomes, the maximum area median income should be increased from one hundred to one hundred twenty per cent of the area median income.

     Accordingly, the purpose of this Act is to appropriate funds for the rental housing revolving fund, with a set aside for mixed-income rental projects or units in mixed-income rental projects targeted at households with incomes between sixty and one hundred twenty per cent of the median family income in Hawaii.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the rental housing revolving fund established by section 201H-202, Hawaii Revised Statutes.

     SECTION 3.  There is appropriated out of the rental housing revolving fund the sum of $           or so much thereof as may be necessary for fiscal year 2024-2025 to carry out the purposes of the rental housing revolving fund; provided that up to $           shall be allocated for mixed-income rental projects or units in mixed-income rental projects targeted for individuals and families with incomes above sixty per cent and at or below one hundred twenty per cent of the median family income for the State; provided further that any unexpended or unencumbered balance of the appropriation made by this Act as of June 30, 2025, may be used for other rental housing projects and allowable contingencies for existing awardees and shall be exempt from section 201H-202(e), Hawaii Revised Statutes.

     The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act; provided that the appropriation shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided further that all moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment and hiring of      full-time equivalent (     FTE) finance specialist position to carry out the purposes of this Act.

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

     SECTION 5.  In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No.     , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $           or      per cent.  In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $           or      per cent.  The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $           or      per cent.  The reasons for exceeding the general fund expenditure ceiling are that:

     (1)  The appropriation made in this Act is necessary to serve the public interest; and

     (2)  The appropriation made in this Act meets the needs addressed by this Act.

     SECTION 6.  This Act shall take effect on July 1, 3000.

 


 

Report Title:

Rental Housing Revolving Fund; Affordable Housing; Positions; Appropriation; Expenditure Ceiling

 

Description:

Appropriates funds into and out of the rental housing revolving fund to provide loans or grants for mixed-income rental projects or units in mixed-income rental projects for qualifying individuals and families.  Appropriates funds for an unspecified number of finance specialist positions to assist with these loans and grants.  Effective 7/1/3000.  (HD1)

 

 

 

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