THE SENATE	S.B. NO.	2926
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

Relating to the rental housing revolving fund.

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

SECTION 1. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The fund shall be used to provide loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units[.]; provided that the units shall remain affordable in perpetuity; provided further that if a rental housing project is redeveloped or reconstructed, the original number of affordable units shall remain the same. The fund may also be used to finance and guarantee loans for the development of rental units that are not subject to any income restrictions; provided that the units are made available exclusively to Hawaii residents who are renter-occupants and who own no other real property. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

RHRF; Affordable Housing; Affordable in Perpetuity

Description:

Requires that housing projects financed by funds from the Rental Housing Revolving Fund remain affordable in perpetuity, regardless of redevelopment. Allows the RHRF to be used to finance and guarantee loans for the development of rental projects that are income blind; provided that they are made available exclusively to Hawaii residents who are renter-occupants who own no other real property.

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