Bill > HCR108

This Concurrent Resolution urges the Hawaii Housing Finance and Development Corporation (HHFDC) to take action against profit-driven investors and entities called "aggregators" who are exploiting 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 fifteen years. During this time, nonprofit developers often have a "right of first refusal," meaning they can buy the property back at a low cost to ensure it remains affordable permanently. However, the resolution highlights that some investors and aggregators, who may buy ownership stakes from original investors, are using tactics to block this right of first refusal, leading to lengthy legal battles that drain nonprofit resources. These predatory actors then aim to sell the housing at market rates, undermining the program's original intent of creating and preserving long-term affordable housing, especially in light of Hawaii's significant housing shortage. The resolution calls for the HHFDC to amend its plans and agreements to protect nonprofits' right of first refusal and also requests Hawaii's congressional delegation to pursue federal legislation to strengthen these protections and address such predatory practices.