Bill > HB377

This bill addresses Hawaii's housing challenges by implementing several key changes to the state's conveyance tax system. It establishes a new Homeless Services Special Fund that will receive 10% of conveyance tax collections and be used to support homeless services and supportive housing programs. The bill significantly restructures conveyance tax rates, creating more graduated tax brackets for properties of different values, with substantially higher rates for properties valued over $5 million. It introduces a new tax category for multifamily residential properties with their own set of tax rates. The bill allows counties to apply for matching funds from the Affordable Homeownership Revolving Fund, provided they have a comprehensive affordable housing plan that includes perpetually affordable housing. Additionally, the legislation creates new exemptions from conveyance taxes for properties conveyed to organizations with affordability requirements, certain nonprofit organizations, and owner-occupants or renter-occupants who do not own other real property. The conveyance tax revenue will now be distributed across multiple funds, including the Land Conservation Fund, Rental Housing Revolving Fund, Affordable Homeownership Revolving Fund, Homeless Services Special Fund, and Dwelling Unit Revolving Fund. The bill aims to generate sustainable funding for affordable housing, homeless services, and land conservation while addressing Hawaii's housing affordability crisis.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=377&year=2026