Bill > SB42

This bill amends the Rental Housing Revolving Fund (RHRF) by removing requirements for housing projects to set aside units for very low-income families and eliminating grant programs targeting those families. Specifically, the bill eliminates the previous mandate that housing projects must have at least five percent of units dedicated to families with incomes at or below 30 percent of the median family income to be eligible for loans from the fund. The legislature found that developers were largely unwilling to create such units, with most projects not meeting the previous requirements. The bill changes the fund's priority criteria, removing the specific requirement for very low-income unit allocations and instead focusing on broader affordability goals, such as projects with units for families with incomes at or below 80 percent of the median family income. The changes also remove a previously established grant program that was intended to incentivize developers to create more affordable housing units for the lowest-income families. The bill maintains the fund's overall purpose of providing loans for rental housing development, but with more flexible allocation criteria. This change takes effect on July 1, 2025, potentially allowing the Hawaii Housing Finance and Development Corporation more flexibility in approving housing projects and allocating funds.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=42&year=2026