CONFERENCE COMMITTEE REP. NO. 43-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2069

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. 2069, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT 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) 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 Housing Revolving Fund from appropriation and allotment requirements.

Your Committee on Conference finds that the Dwelling Unit Revolving Fund Equity Pilot Program was established under Act 92, Session Laws of Hawaii 2023 (Act 92), to enable the Hawaii Housing Finance and Development Corporation (HHFDC) to purchase equity in for-sale developments to help lower costs and increase homeownership opportunities for certain Hawaii residents, particularly for buyers with certain income levels. Act 92 is currently scheduled to be repealed on June 30, 2028.

Your Committee on Conference has amended this measure by:

(1) Deleting its contents and inserting the contents of the S.D. 2 version of this measure, which:

(A) Extends the sunset date of the Dwelling Unit Revolving Fund Equity Pilot Program pursuant to Act 92, Session Laws of Hawaii 2023; and

(B) Requires any equity purchased by the Hawaii Housing Finance and Development Corporation under the Dwelling Unit Revolving Fund Equity Pilot Program to be in a for-sale housing development project within a transit-oriented development zone;

(2) Amending the definition of "transit-oriented development zone" to mean:

(A) For a county with a population of five hundred thousand or more, a transit-oriented development infrastructure improvement program area pursuant to section 206E-243, Hawaii Revised Statutes; or

(B) For a county with a population of less than five hundred thousand, a county-designated transit area, an area situated along major bus routes, or an area within a one-half-mile radius of a bus stop, as defined by the respective county;

(3) Extending the sunset date of the Dwelling Unit Revolving Fund Equity Pilot Program to June 30, 2031; and

(4) Making it effective upon its approval.

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. 2069, 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. 2069, 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