HOUSE OF REPRESENTATIVES

H.B. NO.

741

THIRTY-THIRD LEGISLATURE, 2025

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

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

 

     SECTION 1.  The legislature finds that Act 227, Session Laws of Hawaii 2021, established the affordable homeownership revolving fund, designed to provide financial support for the development of affordable for-sale housing projects by nonprofit community development financial institutions and nonprofit housing development organizations.  By expanding homeownership opportunities for Hawaii residents, the affordable homeownership revolving fund seeks to address the housing shortage and promote economic and social stability for low- and moderate-income households.

     The legislature further finds that prevailing wage laws are essential to ensuring construction workers receive fair wages, enabling Hawaii's working-class residents to afford to live in the communities they help build.  The legislature recognizes that community development financial institutions, such as Habitat for Humanity and other nonprofit housing organizations, play a crucial role in developing affordable housing for low-income families.  These organizations often rely on volunteer labor, donated materials, and limited funding to build homes for those in need.

     However, while the affordable homeownership revolving fund was created to provide low-cost financing for community development financial institutions and nonprofits building affordable housing, the prevailing wage laws make it financially unfeasible for these projects to use the fund as intended.

     The legislature also finds that the urgent need for affordable housing requires targeted policies that support small-scale construction of affordable homes, which may otherwise be financially impractical under existing prevailing wage requirements.

     Therefore, the purpose of this Act is to narrowly exempt those affordable housing projects that are financed by a certified nonprofit community development financial institution utilizing less than $1,500,000 of moneys from the affordable homeownership revolving fund from prevailing wage requirements, which will increase the number of homes available to families in need while preserving the integrity of the State's prevailing wage law.

     SECTION 2.  Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to subpart K, part III, to be appropriately designated and to read as follows:

     "§201H-     Prevailing wages; exemption.  Notwithstanding any other law to the contrary, any affordable housing project financed by a certified nonprofit community development financial institution utilizing less than $1,500,000 of moneys from the affordable homeownership revolving fund shall be exempt from chapter 104."

     SECTION 3.  Section 104-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  This chapter shall apply to every contract in excess of $2,000 for construction of a public work project to which a governmental contracting agency is a party; provided that this chapter shall not apply to experimental and demonstration housing developed pursuant to section 46-15 [or]; housing developed pursuant to chapter 201H if the cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation[.]; or affordable housing financed by a certified nonprofit community development financial institution that utilizes less than $1,500,000 of moneys from the affordable homeownership revolving fund pursuant to section 201H-   .

     For the purposes of this subsection:

     "Contract" includes but is not limited to any agreement, purchase order, or voucher in excess of $2,000 for construction of a public work project.

     "Governmental contracting agency" includes:

     (1)  Any person or entity that causes either directly or indirectly the building or development of a public work; and

     (2)  Any public-private partnership.

     "Party" includes eligible bidders for and eligible developers of any public work and any housing under chapter 201H; provided that this subsection shall not apply to any housing developed under section 46-15 or chapter 201H if the entire cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

 


 

Report Title:

Community Development Financial Institutions; Affordable Homeownership Revolving Fund; Prevailing Wages; Exemption

 

Description:

Exempts affordable housing projects that are financed by a certified nonprofit community development financial institution utilizing less than $1,500,000 from the Affordable Homeownership Revolving Fund from prevailing wages provisions.  Effective 7/1/3000.  (HD1)

 

 

 

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