Bill > HB432

This bill establishes a new Mixed-Income Subaccount within the existing Rental Housing Revolving Fund to address Hawaii's housing shortage and support workforce housing development. The bill recognizes that current housing funding primarily supports low-income housing projects (serving households up to 60% of area median income), leaving a gap for middle-income workers. The new subaccount will provide financing for rental and for-sale housing projects serving households earning up to 140% of the area median income, with a specific focus on supporting local workforce retention. The Hawaii Housing Finance and Development Corporation will manage this subaccount, with an application process that prioritizes projects benefiting government employees, workforce members, and other populations deemed to be in the public interest. Projects will be evaluated based on criteria such as location on state or county land, minimal state funding requirements, projected loan repayment timelines, and potential to support local residents. The bill also allows for funds to be transferred between the new subaccount and the main Rental Housing Revolving Fund, and directs that a portion of conveyance tax revenues can be allocated to this new subaccount. Ultimately, the legislation aims to create more affordable housing options for middle-income residents and help reduce domestic out-migration in Hawaii.

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=432&year=2025