Bill > HR104

This Resolution urges the Hawaii Housing Finance and Development Corporation (HHFDC) to take action against profit-driven investors and aggregators 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 nonprofit developers to sell tax credits to investors, who then receive tax benefits for a fifteen-year period. Typically, at the end of this period, nonprofit developers have a "right of first refusal" to purchase the property at a low cost to ensure it remains affordable permanently. However, the Resolution highlights that some investors and "aggregators" (entities that buy ownership stakes from original investors) are manipulating the program by blocking this right of first refusal, often through lengthy legal battles, to sell the properties at market rate for their own profit, thereby undermining the program's original intent. To combat these "hostile and harmful actions," the HHFDC is urged to amend its Qualified Application Plan and regulatory agreements to protect and confirm the ability of nonprofit developers to exercise their right of first refusal, and Hawaii's congressional delegation is asked to pursue federal legislation to strengthen these rights and address predatory practices.