Bill > SB1328

This bill establishes a permanent Dwelling Unit Revolving Fund Equity Program that allows the Hawaii Housing Finance and Development Corporation to purchase equity in for-sale housing development projects through second mortgage loans. Under this program, eligible buyers must be bona fide Hawaii residents who do not own a majority interest in residential real property, and the corporation may establish additional qualifications such as working in professions facing labor shortages. The program enables the corporation to reduce the purchase price of specific units by contributing equity, and requires buyers to repay the corporation's equity and its percentage share of appreciated unit value if they sell or refinance the unit within 30 years. The bill also allows eligible developers to repay interim financing through equity in project units, with the corporation's prior approval. Additionally, the bill modifies the Dwelling Unit Revolving Fund to explicitly include purchasing equity in housing projects among its permitted uses. The legislation repeals the previous temporary five-year pilot program and makes the equity program a permanent part of Hawaii's housing development strategies, aimed at addressing the high demand for affordable housing for local residents.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1328&year=2026