SB71 would create a new mixed-income subaccount within Hawaii’s Rental Housing Revolving Fund to support workforce rental housing projects serving households earning up to 140% of area median income. The bill’s findings state that existing rental housing financing is heavily committed to low-income housing tax credit projects, which leaves mixed-income developments without enough access to revolving fund dollars. To address that gap, the bill directs funding toward projects that serve a broader income range, with preference for projects that include a diverse mix of affordability levels, are located on state or county land, and are likely to be repaid within 40 years.
The bill also amends the statutes governing the Rental Housing Revolving Fund and eligible projects so that mixed-income projects can be financed through the new subaccount and so that certain tax revenues and appropriations may be deposited into it. It authorizes the director of finance to transfer money from the main revolving fund into the subaccount and appropriates funds into and out of the subaccount for fiscal years 2025-2026 and 2026-2027. The bill is framed as a workforce housing measure intended to help keep local residents in Hawaii by expanding rental options for working families.
Impact
SB71 would amend sections 201H-202, 201H-204, and 247-7 of the Hawaii Revised Statutes to create a dedicated financing stream inside the Rental Housing Revolving Fund for mixed-income rental housing. It would change fund administration by adding a mixed-income subaccount, establishing a separate application and priority system for those funds, and allowing conveyance tax revenues and legislative appropriations to be directed into that subaccount. The bill would also give the Hawaii Housing Finance and Development Corporation new authority to allocate and manage loans for mixed-income projects under the new criteria.
Sentiment
The available voting history shows strong support in committee, with the Senate Housing Committee passing the bill 4-0 and the Senate Ways and Means Committee passing it 13-0, both with amendments. That suggests broad agreement on the need to expand housing financing tools for mixed-income and workforce housing. No committee transcripts were provided, so the record reflects consensus in votes rather than detailed debate.
Contention
The main policy issue underlying the bill is how limited Rental Housing Revolving Fund dollars should be prioritized. The bill responds to a concern that the fund is effectively dominated by low-income housing tax credit projects serving lower-income households, leaving mixed-income projects without access to financing. The likely point of contention is whether public housing subsidies should be redirected toward households earning as much as 140% of area median income, rather than focusing exclusively on lower-income or very-low-income housing. The bill’s preference for nonprofit projects when equally ranked, and its emphasis on state or county land and repayment capacity, also indicate an effort to balance workforce housing goals with public accountability and affordability concerns.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.
Relating to nonsubstantive additions to, revisions of, and corrections in enacted codes, to the nonsubstantive codification or disposition of various laws omitted from enacted codes, and to conforming codifications enacted by the 88th Legislature to other Acts of that legislature.