THE SENATE
S.B. NO.
2194
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating to housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there are approximately fifteen thousand affordable housing units in the State that have affordability restrictions that will expire by the year 2100.
The legislature further finds that the Kukui Gardens complex was constructed in 1970 as an affordable rental housing community supported by subsidized federal loans. When the affordability restrictions for Kukui Gardens units expired, the State was compelled to purchase the project from the owner for $132,500,000 in 2006 to preserve the affordability for tenants in place. The owner of Kukui Gardens then used the proceeds of the sale to fund other charitable donations that were unrelated to housing.
The legislature finds that action is needed to ensure that the value generated by taxpayer-financed housing developments is recycled to build more housing.
Accordingly, the purpose of this Act is to require eligible applicants for moneys from the rental housing revolving fund to be either:
(1) Organizations that are required to use all financial surplus, excluding fees received by the organizations, to develop additional housing in the State; or
(2) Governmental agencies.
SECTION 2. Section 201H-203, Hawaii Revised Statutes, is amended to read as follows:
"[[Struck through: []]§201H-203[[Struck through: ]]] Eligible applicants for funds. [[Struck through: Eligible applicants]] [Underlined: To be eligible] for funds[Underlined: , applicants] shall [[Struck through: include nonprofit and for-profit organizations, limited liability companies, partnerships, and government]] [Underlined: be:]
[Underlined: (1)] [Underlined: Either:]
[Underlined: (A)] [Underlined: Organizations that are required to use all financial surplus, excluding fees received by the organizations, to develop additional housing in the State; or]
[Underlined: (B)] [Underlined: Government] agencies[[Struck through: , who are qualified]][Underlined: ; and]
[Underlined: (2)] [Underlined: Qualified] in accordance with rules adopted by the corporation pursuant to chapter 91."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
INTRODUCED BY:
_____________________________
Report Title:
Hawaii Housing Finance and Development Corporation; RHRF; Eligible Applicants; Organizations; Profits; Government Agencies
Description:
Requires applicants for rental housing revolving fund moneys to be either organizations that are required to use all financial surplus, excluding fees, to develop additional housing in the State, or government agencies. Effective 7/1/2050.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.