STAND. COM. REP. NO. 574-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1727

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Housing, to which was referred H.B. No. 1727 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Specify the conditions under which the Hawaii Housing Finance and Development Corporation may transfer monies within the Rental Housing Revolving Fund and its subaccounts;

(2) Clarify what constitutes a mixed‑income rental project for the purposes of the Mixed‑Income Subaccount;

(3) Repeal the sunset date for the Mixed‑Income Subaccount;

(4) Authorize the Director of Finance to transfer monies into the Mixed‑Income Subaccount; and

(5) Appropriate funds into and out of the Mixed-Income Subaccount.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Housing Hawaiʻi's Future; Hawaiʻi YIMBY; and CARES. Your Committee received comments on this measure from Catholic Charities Hawaiʻi.

Your Committee finds that the ability to move resources efficiently between the Rental Housing Revolving Fund and its subaccounts is essential to supporting the State's evolving rental housing needs, especially as mixed-income projects become a larger share of the housing pipeline. Your Committee further finds that clarifying the income range that qualifies a project as mixed-income and permanently repealing the Mixed-Income Subaccount's sunset date will provide needed stability, predictability, and alignment across state financing tools. This measure will also help the State better direct resources toward low-income and mixed-income rental housing production.

Your Committee has amended this measure by:

(1) Clarifying that the authority to transfer monies is only within the Rental Housing Revolving Fund;

(2) Changing the appropriation into and out of the Mixed-Income Subaccount to an unspecified amount;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

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. 1727, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1727, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

LUKE A. EVSLIN, Chair