Bill > SCR78

This Concurrent Resolution urges the Hawaii Housing Finance and Development Corporation (HHFDC) to take action against profit-driven investors and "aggregators," which are entities that buy ownership stakes in affordable housing projects, who are harming the state's Low-Income Housing Tax Credit (LIHTC) Program. The LIHTC Program is designed to fund the creation and renovation of affordable housing by allowing developers to sell tax credits to investors, who then receive tax benefits for a set period. Typically, after this period, nonprofit organizations have a "right of first refusal" to buy the property at a low cost to ensure it remains affordable permanently. However, the resolution highlights that some investors and aggregators are exploiting this system by blocking nonprofits' right of first refusal, often through lengthy legal battles, to sell the properties at market rate for personal profit, undermining the program's original intent. To combat this, the HHFDC is urged to amend its Qualified Application Plan and regulatory agreements to protect nonprofits' right of first refusal and prevent these predatory practices, and Hawaii's congressional delegation is asked to pursue federal legislation to strengthen these protections.