CONFERENCE COMMITTEE REP. NO. 128-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2060

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2060, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Specify the conditions upon which the Hawaii Housing Finance and Development Corporation may transfer moneys from within the Rental Housing Revolving Fund to a subaccount and between subaccounts of the revolving fund;

(2) Authorize the Rental Housing Revolving Fund to be used to provide any and all forms of financing; and

(3) Expand the funding priorities of, and appropriate funds into and out of, the Mixed-Income Subaccount.

Your Committee on Conference finds that the State's growing affordable and mixed-income housing needs require more flexible financing tools and greater efficiency in how rental housing resources are deployed. The existing structure of the Mixed-Income Subaccount limits the State's ability to fully support projects that maximize affordability, minimize state subsidy per unit, and appropriately leverage publicly owned lands or partnerships. By expanding eligible financing types, clarifying project prioritization criteria, and allowing fund transfers, this measure aligns housing investments with community needs and accelerates the production of mixed-income housing.

Your Committee on Conference has amended this measure by:

(1) Deleting language that would have created a new, separate section in chapter 201H, Hawaii Revised Statutes, authorizing the Hawaii Housing Finance and Development Corporation (HHFDC) to transfer moneys from the Rental Housing Revolving Fund (RHRF) to a subaccount of the RHRF and between subaccounts of the RHRF;

(2) Inserting a definition for "mixed-income rental project";

(3) Authorizing certain moneys to be deposited into the RHRF or the Mixed-Income Subaccount of the RHRF;

(4) Authorizing moneys in the Mixed-Income Subaccount of the RHRF to be used to provide loans for mixed-income rental housing projects or units that are primarily for persons and families with incomes at or below one hundred forty percent of the median family income, as provided in section 201H-202, Hawaii Revised Statutes;

(5) Clarifying that moneys in the Mixed-Income Subaccount shall be used for any and all forms of financing, including but not limited to loans, equity investments, and credit enhancement, and collateral, for mixed-income rentals for qualified residents as defined in section 201H-32, Hawaii Revised Statutes;

(6) Requiring HHFDC to give preference to projects proposed by applicants with a demonstrated history of early repayment to the RHRF;

(7) Requiring that moneys allocated to the Mixed-Income Subaccount but not expended or encumbered for specific purposes within three years of their allocation shall be returned to the RHRF;

(8) Inserting language:

(A) Authorizing HHFDC to use moneys in the RHRF that have been reserved or awarded by HHFDC for specific projects but have not yet been encumbered to fund other rental housing projects or for other authorized purposes subject to certain conditions; and

(B) Authorizing HHFDC, with the approval of the Legislature, to secure a line of credit or other instrument of indebtedness not more than $25,000,000 to be used to manage timing differences between the deployment of reserved funds and the funding obligations of reserved projects;

(9) Clarifying that activities eligible for assistance from the RHRF include new construction, rehabilitation, or preservation of low-income rental housing units or mixed-income housing projects;

    (10) Deleting language that would have appropriated funds into and out of the Mixed-Income Subaccount of the RHRF;

    (11) Making it effective upon its approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2060, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2060, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ LUKE A. EVSLIN Co-Chair	____________________________ STANLEY CHANG Chair
____________________________ TYSON K. MIYAKE Co-Chair	____________________________ TROY N. HASHIMOTO Co-Chair