THE SENATE	S.B. NO.	2077
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

Relating to The Dwelling Unit Revolving fund.

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

SECTION 1. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201H-   Interim construction subaccount. (a) The corporation shall establish and operate an interim construction subaccount within the dwelling unit revolving fund established pursuant to section 201H-191 to be used for the interim financing of new construction projects pursuant to section 201H‑43.

(b) Funds from the subaccount shall be prioritized for projects that are on state or county-owned lands located in counties with a population less than five hundred thousand; provided that for units in for-sale projects, the units shall be made available only to Hawaii residents who are owner-occupants and own no other real property.

(c) The corporation shall adopt rules in accordance with chapter 91 for the purpose of this section."

SECTION 2. Section 201H-43, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation may provide interim construction loans to eligible developers. In addition to the rate of interest charged on interim loans, the corporation may charge loan commitment fees to be determined by rules adopted by the corporation. Loans made from the interim construction subaccount shall be subject to the provisions of section 201H-  ."

SECTION 3. Section 201H-191, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Subject to the requirements of subsection (a), proceeds in the revolving fund may be used to establish and operate regional state infrastructure subaccounts pursuant to section 201H-191.5[.] and the interim construction subaccount pursuant to section 201H-  ."

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2024-2025 to be deposited into the interim construction subaccount of the dwelling unit revolving fund for the purpose of interim financing for new construction projects pursuant to section 201H-43.

SECTION 5. The appropriation made by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2024.

INTRODUCED BY:

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Report Title:

Housing; Dwelling Unit Revolving Fund; Interim Construction; GO Bonds; Appropriation

Description:

Establishes an Interim Construction Subaccount within the Dwelling Unit Revolving Fund to be used for the interim financing of new construction projects under section 201H-43, HRS, prioritizing projects located on state or county-owned lands in counties with a population of less than five hundred thousand; provided that, for units in for-sale projects, the units shall be made available only to Hawaii residents who are owner-occupants and own no other real property.

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