HOUSE OF REPRESENTATIVES	H.B. NO.	2263
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII

A BILL FOR AN ACT

relating to affordable housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature recognizes that Hawaii is experiencing a severe affordable housing crisis, with a lack of affordable rental and affordable for-sale units. According to the report "Measuring Housing Demand in Hawai'i, 2015-2025", published by the department of business, economic development, and tourism, the State is projected to require 64,693 additional housing units to meet housing demand by 2025. Nearly seventy per cent, or 43,828, of those units will be needed for low-income households earning eighty per cent or less of the area median income.

In response to this critical problem, the legislature enacted Act 127, Session Laws of Hawaii 2016, which established a goal of creating 22,500 new affordable rental units by 2026. Achieving this goal will require a variety of approaches, including continuing financial programs to promote the construction of low-income housing.

Accordingly, the purpose of this Act is to authorize expenditures from the dwelling unit revolving fund for pre-development fees associated with affordable housing development.

SECTION 2. Section 201H-191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created a dwelling unit revolving fund. The funds appropriated for the purpose of the dwelling unit revolving fund and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited in the revolving fund. The proceeds in the revolving fund shall be used to [reimburse]:

(1) Reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund[, for];

(2) Fund the necessary expenses in administering housing development programs and regional state infrastructure programs[, and for carrying]; and

(3) Carry out the purposes of housing development programs and regional state infrastructure programs, including [but not limited to the expansion]:

(A) Expansion of community facilities and regional state infrastructure constructed in conjunction with housing and mixed-use transit-oriented development projects, permanent primary or secondary financing, and supplementing building costs, federal guarantees required for operational losses[, and all];

(B) Any pre-development fees associated with any affordable housing development; and

(C) All things required by any federal agency in the construction and receipt of federal funds or low‑income housing tax credits for housing projects."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2020.

INTRODUCED BY:

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Report Title:

Affordable Housing; Dwelling Unit Revolving Fund; Pre-Development Fees

Description:

Authorizes expenditures from the dwelling unit revolving fund for pre-development fees associated with affordable housing development.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.