Reaffirming The Commitment To Increase The State's Affordable Housing Stock By Not Allocating Special Purpose Revenue Bonds And Discouraging The Use Of Special Purpose Revenue Bonds.
Impact
The resolution's implications for state laws are significant, as it seeks to prioritize the use of private activity bonds for housing development over special purpose revenue bonds. Historically, special purpose revenue bonds have allowed various non-governmental entities to finance projects without contributing to the state's debt ceiling. However, due to their broad application and the limitations of the bond cap, these bonds have inadvertently diverted resources from essential projects like affordable housing, creating challenges for developers seeking financing for low-income housing units.
Summary
House Concurrent Resolution 179 (HCR179) reaffirms the State of Hawaii's commitment to increasing the availability of affordable housing. The resolution is notable for discouraging the allocation and use of special purpose revenue bonds, which are typically utilized for financing various public and private projects. By halting new allocations of these bonds, HCR179 aims to redirect efforts and resources towards enhancing the state’s affordable housing stock, an area of critical concern given Hawaii's ongoing housing crisis.
Contention
Debates surrounding HCR179 highlight tensions between different financing mechanisms. Proponents argue that reallocating resources towards private activity bonds is necessary for meeting the substantial demand for affordable housing—it has been noted that requests for private activity bonds have far exceeded availability. Conversely, concerns have been raised that discouraging special purpose revenue bonds may hinder financing opportunities for projects outside of housing, potentially affecting a range of public services and developments that benefit communities across the state. A moratorium on these bonds, established under previous legislation, reflects growing legislative recognition of the pressing need for increased housing stock.
Summary_end
Finally, HCR179 underscores a legislative commitment to address housing shortages, suggesting that specific financial tools might be revisited to enhance the effectiveness of housing policy in Hawaii. The resolution, therefore, marks a strategic pivot in the state's approach to housing finance amid ongoing discussions of economic sustainability and equitable access to housing.
Same As
Reaffirming The Commitment To Increase The State's Affordable Housing Stock By Not Allocating Special Purpose Revenue Bonds And Discouraging The Use Of Special Purpose Revenue Bonds.