Bill > SB3312

This bill establishes a program and an income tax credit to encourage the conversion of commercial properties, such as office buildings and retail centers, into residential housing, aiming to address Hawaii's severe housing shortage. The program, administered by the Department of Business, Economic Development, and Tourism (DBEDT), will certify "qualified conversion projects" that meet specific criteria, including containing at least two residential units, with at least fifty percent of those units being "affordable housing units" – meaning they are rented to households earning no more than 80% of the area median income or sold to households earning no more than 120% of the area median income. Developers must meet certain qualifications and submit detailed project proposals, and DBEDT will evaluate these proposals to determine certification. Upon completion, certified projects may receive a tax credit of up to ten percent of the "development cost," which refers to expenditures directly related to construction or substantial rehabilitation but not property purchase. The bill also includes provisions for revoking certification if project requirements are not met, requiring annual reporting to the legislature on the program's progress, and appropriates $10,000,000 to establish and administer the program.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3312&year=2026