SR60

THE SENATE	S.R. NO.	60
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

SENATE RESOLUTION

declaring the intent that projects with housing units that qualify for housing credits under act 31, SESSION laws of hawaii 2024, are still eligible to receive housing credits after the repeal of that act if the housing projects were approved by the hawaii housing finance and development corporation before july 1, 2031, and requesting the Corporation and each county to include certain information when approving housing projects for housing credits.

WHEREAS, the State of Hawaii is currently facing a severe housing crisis, with a 2019 study commissioned by the Department of Business, Economic Development, and Tourism finding that the State will require an additional 50,156 homes by 2025; and

WHEREAS, the study identified the following housing shortages by county: the City and County of Honolulu required 22,168 new units, Hawaii County required 13,303 new units, Maui County required 10,404 new units, and Kauai County required 4,281 new units; and

WHEREAS, the affordability of housing has been further exacerbated by a sharp rise in mortgage and construction financing costs, including an increase in the average thirty-year fixed residential mortgage interest rate from 3.11 percent in December 2021 to 6.42 percent in December 2022 and an increase in the one-month term of the secured overnight financing rate from 0.05 percent to 4.30 percent over the same period; and

WHEREAS, to address this issue, the Legislature enacted Act 31, Session Laws of Hawaii 2024 (Act 31), which requires the counties to issue housing credits for housing units that are constructed under the various programs of the Hawaii Housing Finance and Development Corporation; and

WHEREAS, Act 31 is set to be repealed on July 1, 2031, which is causing uncertainty regarding whether housing projects that were approved before July 1, 2031, would still be eligible for housing credits after that date; and

WHEREAS, there is a need to clarify the intentions of the Legislature regarding the application of Act 31 to housing projects approved before July 1, 2031; now, therefore,

BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that it is the intent of this body that projects with housing units that qualify for housing credits under Act 31 are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031; and

BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is requested to include the following in its approving action when approving a housing project that utilizes section 201H-38, Hawaii Revised Statutes, and qualifies for housing credits under Act 31:

(1) A statement regarding an eligible developer's rights to receive housing credits;

(2) The number of housing units that qualify to earn housing credits; and

(3) The number of housing credits available to be earned; and

BE IT FURTHER RESOLVED that each county is requested to include the following in its approving action when approving a housing project that utilizes section 201H-38, Hawaii Revised Statutes and qualifies for housing credits under Act 31:

(1) A statement regarding an eligible developer's rights to receive housing credits;

(2) The number of housing units that qualify to earn housing credits; and

(3) The number of housing credits available to be earned; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation; Mayors of the Counties of Hawaii, Maui, and Kauai; Mayor of the City and County of Honolulu; Chairpersons of the Hawaii Maui, and Kauai County Councils; and Chairperson of the Honolulu City Council.

	OFFERED BY:	_____________________________