Bill > SB1653

This bill seeks to increase the state of Hawaii's liability limit for the Department of Hawaiian Home Lands (DHHL) from $100 million to $500 million, addressing challenges in Hawaiian home lands housing. The legislation responds to recent market conditions, including rising mortgage interest rates and increasing construction costs exacerbated by global inflation and the 2023 Maui wildfires, which have made it difficult for Hawaiian home lands lessees to qualify for mortgages or afford home construction. The bill allows the DHHL to guarantee a larger amount of loans for lessees, enabling more housing development through expanded loan guarantee programs. Specifically, the bill amends the Hawaiian Homes Commission Act to modify the state's liability cap, allowing the department to secure, pledge, or guarantee loan repayments up to $500 million. This change will support the department's efforts to address the significant waitlist of over 28,000 applicants for Hawaiian home lands, building upon a previous $600 million investment in 2022. The bill will take effect upon receiving approval from the Secretary of the Interior or the United States Congress, demonstrating the careful legal consideration required for changes to Hawaiian home lands legislation.

Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1653&year=2025