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 reflects ongoing concerns regarding the limitations imposed by the state's bond cap constraints on developing affordable housing. During the 2021 financing cycle, the demand for private activity bonds significantly exceeded the available cap, resulting in a drastic shortfall in financing affordable units. By not allocating special purpose revenue bonds, the bill intends to ensure that more private activity bonds are made available for developers to finance affordable housing projects aimed at low-income households. This targeted approach hopes to alleviate some of the barriers to creating sufficient affordable rental units.
Summary
House Resolution 184 reaffirms the commitment of the State of Hawaii to increase the stock of affordable housing. The bill particularly emphasizes the importance of not allocating special purpose revenue bonds and discouraging their use. Special purpose revenue bonds are typically utilized by non-governmental entities for public purposes and can lead to tax-exempt financing, but their overuse could divert resources away from more critical housing projects funded through private activity bonds. By restricting the issuance of these bonds, the resolution aims to prioritize funding to effectively tackle the state's housing crisis.
Contention
Notably, the strategy of discouraging the use of special purpose revenue bonds has sparked debate among stakeholders. Critics may argue that while the resolution aims to increase affordable housing units, it could also limit financial flexibility for various projects that utilize these bonds effectively. There is a broader concern that cutting off potential financing routes could complicate the efforts of stakeholders in the housing arena, particularly in light of recent demographic pressures and rising rental demands. Balancing this necessity against potential financial constraints remains a contentious point within the legislative discourse surrounding the bill.
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.