Bill > SB1218

This bill addresses Hawaii's housing challenges by establishing a new Homeless Services Special Fund, modifying conveyance tax rates, and creating new exemptions for property transfers. The legislation increases conveyance tax rates for properties at various value levels, with higher rates for more expensive properties, particularly for multifamily residential properties. It creates a new fund to support homeless services by allocating 10% of conveyance tax collections, allows counties to apply for matching funds for affordable housing projects, and establishes new tax exemptions for property transfers to organizations with affordability requirements, certain nonprofit organizations, and individual owner or renter occupants. The bill aims to generate sustainable revenue to address Hawaii's high housing costs, homelessness crisis, and help preserve the state's natural resources by creating a more progressive taxation system for real estate transactions. The conveyance tax changes are justified by comparing Hawaii's rates to other high-cost areas like San Francisco and Los Angeles, which have implemented similar tax structures to fund affordable housing initiatives. The legislation also requires detailed reporting on the use of funds and sets specific criteria for how the new revenues can be spent to support housing affordability and homeless services.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1218&year=2026