Bill > HB377

This bill aims to address Hawaii's housing affordability crisis by modifying the state's conveyance tax (a tax paid when real estate is sold) through several key provisions. The bill establishes a new Homeless Services Special Fund, which will receive 10% of conveyance tax revenues, and allows counties to apply for matching funds from the Affordable Homeownership Revolving Fund for housing projects with perpetual affordability requirements. The legislation significantly increases conveyance tax rates for high-value properties, creating a more graduated tax structure with higher rates for properties valued over $5 million, including a new category of rates specifically for multifamily residential properties. The bill also creates new exemptions from the conveyance tax for properties conveyed to organizations with affordability requirements, certain nonprofit organizations, and owner-occupants or renter-occupants who do not own other real property. Additionally, the bill adjusts the allocation of conveyance tax revenues, reducing the percentage going to the Land Conservation Fund and Rental Housing Revolving Fund while directing new percentages to the Affordable Homeownership Revolving Fund, Homeless Services Special Fund, and Dwelling Unit Revolving Fund. The legislature justifies these changes by noting the significant rise in housing prices and the current homelessness crisis, arguing that the new tax structure will primarily impact out-of-state investors and help fund affordable housing and homeless services.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=377&year=2025