STAND. COM. REP. NO. 1421-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2069

S.D. 2

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 S.B. No. 2069, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT REVOLVING FUND,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Extend the sunset date of the Dwelling Unit Revolving Fund Equity Pilot Program from June 30, 2028, to June 30, 2030;

(2) Requiring any equity purchased under the Dwelling Unit Revolving Fund Equity Pilot Program to be in a for-sale housing development project within a transit-oriented development zone; and

(3) Makes permanent the Hawaii Housing Finance and Development Corporation's authority to establish the computation of interest that a purchaser of certain real property is required to pay the Development Corporation upon the sale or assignment of the real property.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaiʻi Community Foundation; and Holomua Collaborative.

Your Committee finds that Act 92, Session Laws of Hawaii 2023, established a five-year Dwelling Unit Revolving Fund Equity Pilot Program (Pilot Program) to purchase equity in for-sale housing development projects for certain residents who work in a profession that is facing a shortage. Since its inception, various developers of for-sale projects have requested and been approved to have a specified number of units participate in the Pilot Program, such as Kuilei Place and The Park on Keeaumoku. Your Committee acknowledges the success of the Pilot Program and believes the State would greatly benefit if it were made permanent rather than only temporarily extended.

Your Committee further finds that H.B. No. 1724, H.D. 2 (Regular Session of 2026), was previously passed by the House and is a measure that, among other things, makes the Pilot Program permanent.

Your Committee has amended this measure by deleting its contents and inserting the contents of H.B. No 1724, H.D. 2, a measure that:

(1) Makes 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) Expands 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;

(3) Exempts disbursements from the Affordable Housing Revolving Fund from appropriation and allotment requirements; and

(4) Has an effective date of July 1, 3000, to encourage further discussion.

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 S.B. No. 2069, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2069, S.D. 2, 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