Hawaii Senate Bill SB859

Hawaii 2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/27/23
• Report Pass: 2/13/23
• Refer: 2/13/23

Caption

Relating To The Hawaii Housing Finance And Development Corporation.

Impact

The passage of SB859 would encourage sustainable housing development by ensuring that profits from housing projects are utilized to fund additional construction, thereby reducing reliance on the State for continuous financial appropriations. Currently, limitations in the existing fund structure leave it vulnerable to unsustainability, as developers typically take long periods to repay loans. Moreover, the bill proposes to incorporate a scoring system within the fund allocation process that prioritizes applicants with demonstrated capability of timely loan repayment, thus potentially increasing accountability and efficiency within the funding mechanisms.

Summary

Senate Bill 859 seeks to amend the operations of the Hawaii Housing Finance and Development Corporation, specifically focusing on the management of the rental housing revolving fund. This bill aims to establish a framework whereby profits generated from housing projects can be reinvested into further housing developments. The proposed changes include altering the prioritization of funding allocation to favor projects owned by the State or organizations responsible for reinvesting financial surpluses into new housing projects. This strategy is inspired by Vienna's Limited-Profit Housing Act which has successfully utilized a cost-recovery model to produce a significant amount of public housing without heavily relying on taxpayer funds.

Contention

While proponents of SB859 argue that the bill will enhance the State's ability to finance additional affordable housing projects and streamline funding processes, there could be significant contention over its implementation. Critics may raise concerns regarding the balance between state control and local needs, particularly if the bill moves to centralize funding decisions that may overlook specific community requirements. Furthermore, there may be debates on how effectively the funds are being utilized and whether the proposed criteria adequately address the evolving challenges related to affordable housing availability in Hawaii.