Bill > HB460

This bill establishes a permanent Dwelling Unit Revolving Fund Equity Program to help address housing affordability in Hawaii by allowing the Hawaii Housing Finance and Development Corporation (HHFDC) to purchase equity in for-sale housing development projects. The program targets specific eligible buyers, including bona fide Hawaii residents who do not own other real property, receive no gift funds, and work in professions facing shortages (such as healthcare workers, educators, and law enforcement officers). Under the program, the HHFDC can invest in housing projects by purchasing equity in the form of a second mortgage loan, which will reduce the purchase price for eligible buyers. If a buyer sells their unit within 30 years, they must repay the corporation's equity and share of appreciated unit value. The bill repeals the previous temporary pilot program and amends the Dwelling Unit Revolving Fund to explicitly allow for purchasing equity and providing interim financing. The corporation is required to prioritize government projects and will establish criteria for buyer prioritization through administrative rules. The ultimate goal is to make homeownership more accessible to key workers in Hawaii by providing financial assistance and reducing upfront costs for eligible buyers.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=460&year=2026