STAND. COM. REP. NO. 3096

Honolulu, Hawaii

RE: H.B. No. 1833

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 1833, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE RENTAL HOUSING REVOLVING FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Appropriate 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; and

(2) Appropriate funds for finance specialist positions.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Catholic Charities Hawaiʻi, Partners in Care, Hawaiʻi Association of REALTORS, Pacific Housing Assistance Corporation, Maui Chamber of Commerce, NAIOP Hawaii, and one individual.

Your Committee finds that historically the Hawaii Housing Finance and Development Corporation prioritized the award of Rental Housing Revolving Fund funds to projects that received federal and state Low-Income Housing Tax Credit allocations, resulting in most of the Rental Housing Revolving Fund being used for tier 1 households, which are households with incomes below sixty percent of the area median incomes. Your Committee also finds that 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 percent of the area median income. Therefore, this measure aims to ensure the financial feasibility of tier 2 projects and to reduce the state subsidy to affordable rental units serving lower area median incomes by raising the income limit.

Your Committee has amended this measure by:

(1) Inserting language to prioritize the award of Rental Housing Revolving Fund funds to projects on state- or county-owned lands or lands with a perpetual affordability commitment;

(2) Clarifying the lapse date of funds as June 30, 2026; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1833, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1833, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair