STAND. COM. REP. NO. 3205

Honolulu, Hawaii

RE: H.B. No. 1724

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 1724, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Make the Dwelling Unit Revolving Fund Equity Pilot Program permanent, with modifications that include changing the method for computation of interest for purchasers of certain real property;

(2) Expand the use of proceeds in the Dwelling Unit Revolving Fund to include purchasing equity in for-sale housing development projects and interim primary or secondary financing; and

(3) Exempt disbursements from the Affordable Homeownership Revolving Fund from appropriation and allotment requirements.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Holomua Collaborative; Housing Hawaiʻi's Future; Hawaiʻi Community Foundation; and Land Use Research Foundation of Hawaii.

Your Committee finds that many local families, especially those earning between eighty precent and one hundred forty percent of the area median income, struggle to purchase homes despite being mortgage-ready. The Dwelling Unit Revolving Fund Equity Pilot Program (Pilot Program) directly addresses the challenges those families face by allowing the Hawaii Housing Finance and Development Corporation to invest equity in for-sale units, which reduces out-of-pocket costs for buyers. Crucially, the Pilot Program has been remarkably successful, with over eighty-three units participating as of 2026. By making the Pilot Program permanent, this measure will complement existing Hawaii Housing Finance and Development Corporation programs and further aid project feasibility.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) 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. 1724, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1724, H.D. 2, 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,

________________________________

STANLEY CHANG, Chair