Bill > SB24

This bill establishes a comprehensive framework for creating Limited-Profit Housing Associations (establishing L) Hawaii, designed to provide long-term housing exclusively for qualified residents. The bill creates a Limited-Profit Housing Council within the Department of Business, Economic Development, and Tourism, composed of representatives from various state and county housing agencies, legislative committees, and government departments. The council will oversee and administer the establishment and governance of these housing associations. Limited-Profit Housing Associations will be domestic corporations with a primary purpose of generating housing qualified residents strict regulations around asset management, business activities, and financial operations. The associations will be required to charge fixed prices for housing that only cover construction, operating,, and management expenses, and will be restricted from distributing profits beyond a permissible shareholder equity interest rate. The bill also provides significant tax benefits, including including excluding income earned by these associations from taxation taxation if used for primary business activities, and exempting certain real property transfer transfer taxes for property transfers related to, these housing associations. Additionally, the bill creates an administrative position for the Limited-Profit Housing Council that is exempt from standard civil service requirements. establishes effective dates for various provisions of the legislation, with most provisions taking effect on January 1, 2026.

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=24&year=2026