Bill > SB70

This bill addresses the issue of preserving affordable housing in Hawaii by modifying the eligibility requirements for the Rental Housing Revolving Fund (RHRF). The legislature identified a problem where taxpayer-funded housing developments can lose their affordability restrictions over time, as exemplified by the Kukui Gardens project, which was sold for $132.5 million after its federal subsidies expired. To prevent such scenarios, the bill restricts RHRF funding to two types of applicants: (1) organizations that are legally required to reinvest all financial surplus (excluding organizational fees) back into developing additional housing in Hawaii, and (2) government agencies. This change aims to ensure that the value generated by taxpayer-financed housing developments is recycled into creating more affordable housing, rather than being used for other purposes. The bill specifically amends Section 201H-203 of the Hawaii Revised Statutes to codify these new eligibility requirements, with the goal of maintaining and expanding affordable housing options in the state. The legislation will take effect immediately upon approval.

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=70&year=2025