Hawaii 2023 Regular Session

Hawaii Senate Bill SR179

Introduced
3/10/23  
Refer
3/15/23  
Refer
3/22/23  
Report Pass
4/4/23  

Caption

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 addresses key issues in the state’s housing finance strategy, particularly the role of special purpose revenue bonds, which allow non-governmental entities to use the state's name to sell tax-exempt bonds. Historically, these bonds have been beneficial for various sectors, including utilities and hospitals, but conflicts arise when they detract from private activity bonds, which are critical for funding affordable housing. There are significant implications for how housing projects are financed, as limited access to private activity bonds under current regulations has hindered the development of much needed affordable housing in Hawaii.

Summary

SR179 is a Senate Resolution reaffirming the commitment of the State of Hawaii to increase its affordable housing stock by discouraging the allocation of special purpose revenue bonds. This resolution reflects growing concerns about the limitations and impact of special purpose revenue bonds on housing development, particularly as the state faces a significant housing crisis. The aim is to redirect focus towards using private activity bonds that can facilitate the construction of affordable rental units for low-income households.

Contention

One notable point of contention surrounding SR179 is the moratorium established by Act 182, which limits the issuance of special purpose revenue bonds unless requested by the Governor. The resolution emphasizes the importance of maximizing the availability of private activity bonds to support the construction of affordable housing, yet this poses challenges for mixed-use developments and other projects that rely on the broader financial benefits that special purpose revenue bonds can provide. This ongoing debate reflects differing priorities around housing finance and state regulation among legislators and stakeholders.

Companion Bills

HI HR184

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.

HI SCR151

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.

Previously Filed As

HI SB1476

Relating To Special Purpose Revenue Bonds.

HI SB1456

Relating To The Issuance Of Special Purpose Revenue Bonds To Honokaa Land Company, Llc.

HI HB943

Relating To The Issuance Of Special Purpose Revenue Bonds To Honokaa Land Company, Llc.

HI SB1223

Relating To The Issuance Of Special Purpose Revenue Bonds To Assist Mauigrown Coffee, Inc.

HI HB1455

Relating To The Issuance Of Special Purpose Revenue Bonds To Assist Mauigrown Coffee, Inc.

HI SB3015

Relating To Special Purpose Revenue Bonds For Electric Public Utilities.

HI HB1690

Relating To Special Purpose Revenue Bonds For Electric Public Utilities.

HI SB1457

Relating To The Issuance Of Special Purpose Revenue Bonds To Assist Kohala Mountain Fish Company, Llc.

HI HB691

Relating To The Issuance Of Special Purpose Revenue Bonds To Assist Kohala Mountain Fish Company, Llc.

HI SB601

Relating To The Issuance Of Special Purpose Revenue Bonds For Not-for-profit Corporations That Provide Health Care Facilities To The General Public.

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Housing Fund & Changes