Hawaii 2024 Regular Session

Hawaii Senate Bill SCR56 Compare Versions

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Version 2 (New)

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1		-	THE SENATE S.C.R. NO. 56 THIRTY-SECOND LEGISLATURE, 2024 ~~S.D. 1~~ STATE OF HAWAII SENATE CONCURRENT RESOLUTION URGING THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION TO ADOPT ADMINISTRATIVE RULES TO PROHIBIT RENTAL HOUSING REVOLVING FUND LOAN FORGIVENESS ~~UNLESS THE CORPORATION REPOSSESSES THE PROJECT~~.
	1	+	THE SENATE S.C.R. NO. 56 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII SENATE CONCURRENT RESOLUTION Urging the hawaii housing finance and development corporation to adopt administrative rules to prohibit rental housing revolving fund loan forgiveness.
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3	3		THE SENATE S.C.R. NO. 56
4		-	THIRTY-SECOND LEGISLATURE, 2024 ~~S.D. 1~~
	4	+	THIRTY-SECOND LEGISLATURE, 2024
5	5		STATE OF HAWAII
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7	7		THE SENATE
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9	9		S.C.R. NO.
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11	11		56
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13	13		THIRTY-SECOND LEGISLATURE, 2024
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15		-	~~S.D. 1~~
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17	17		STATE OF HAWAII
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29	29		SENATE CONCURRENT
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31	31		RESOLUTION
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37		-	URGING THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION TO ADOPT ADMINISTRATIVE RULES TO PROHIBIT RENTAL HOUSING REVOLVING FUND LOAN FORGIVENESS ~~UNLESS THE CORPORATION REPOSSESSES THE PROJECT~~.
	37	+	Urging the hawaii housing finance and development corporation to adopt administrative rules to prohibit rental housing revolving fund loan forgiveness.
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43		-	WHEREAS, the State's Rental Housing Revolving Fund (RHRF) provides equity gap low-interest loans to qualified developers constructing affordable housing units; and WHEREAS, the RHRF is funded by state taxpayers, namely revenues from the conveyance tax and from general appropriations made by the Legislature; and WHEREAS, these loans are very long-term (fifty-five years) and low-interest (0.25 percent); and WHEREAS, repayment does not begin until after senior debt has been ~~fully~~ repaid, often in year thirty-one; and WHEREAS, developers may refinance RHRF debt from private sector banks, repaying the RHRF early, but rarely do so because they have no incentive to; and WHEREAS, the Hawaii Housing Finance and Development Corporation (HHFDC) may reduce the developer's RHRF debt service payments if justified by the project's low cashflow; and WHEREAS, HHFDC is permitted to forgive any remaining RHRF debt; and WHEREAS, affordable housing developers have no incentive to repay RHRF loans in full; and WHEREAS, most RHRF housing is only temporarily affordable, and their owners are free to evict low-income tenants and rent or sell their projects to the highest bidder after affordability restrictions expire; and WHEREAS, over fourteen thousand units of affordable housing will expire by the year 2100, many of which were subsidized by RHRF loans; and WHEREAS, RHRF loan terms are commercially unreasonable, and state taxpayers deserve a better deal; and WHEREAS, forgiving RHRF loans to private developers amounts to a free gift of taxpayer funds to private entities; and WHEREAS, full repayment of these loans will enable the RHRF to create more housing in the future; now, therefore, BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the ~~Hawaii Housing Finance and Development Corporation~~ is urged to adopt administrative rules that prohibit Rental Housing Revolving Fund loan forgiveness unless the Corporation repossesses the project; and BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is urged to prohibit the issuance of grants from the Rental Housing Revolving Fund; and BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation~~, who is requested to transmit a copy to each member of the Board of Directors of the Hawaii Housing Finance and Development Corporation.~~ Report Title: Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Loan Forgiveness; Prohibition; QAP; Amendments
	43	+	WHEREAS, the State's Rental Housing Revolving Fund (RHRF) provides equity gap low-interest loans to qualified developers constructing affordable housing units; and WHEREAS, the RHRF is funded by state taxpayers, namely revenues from the conveyance tax and from general appropriations made by the Legislature; and WHEREAS, these loans are very long-term (fifty-five years) and low-interest (0.25 percent); and WHEREAS, repayment does not begin until after senior debt has been full repaid, often in year thirty-one; and WHEREAS, developers may refinance RHRF debt from private sector banks, repaying the RHRF early, but rarely do so because they have no incentive to; and WHEREAS, the Hawaii Housing Finance and Development Corporation (HHFDC) may reduce the developer's RHRF debt service payments if justified by the project's low cashflow; and WHEREAS, HHFDC is permitted to forgive any remaining RHRF debt; and WHEREAS, affordable housing developers have no incentive to repay RHRF loans in full; and WHEREAS, most RHRF housing is only temporarily affordable, and their owners are free to evict low-income tenants and rent or sell their projects to the highest bidder after affordability restrictions expire; and WHEREAS, over fourteen thousand units of affordable housing will expire by the year 2100, many of which were subsidized by RHRF loans; and WHEREAS, RHRF loan terms are commercially unreasonable, and state taxpayers deserve a better deal; and WHEREAS, forgiving RHRF loans to private developers amounts to a free gift of taxpayer funds to private entities; and WHEREAS, full repayment of these loans will enable the RHRF to create more housing in the future; now, therefore, BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the HHFDC is urged to adopt administrative rules that prohibit Rental Housing Revolving Fund loan forgiveness; and BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation. OFFERED BY: _____________________________ Report Title: Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Loan Forgiveness; Prohibition; QAP; Amendments
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45	45		WHEREAS, the State's Rental Housing Revolving Fund (RHRF) provides equity gap low-interest loans to qualified developers constructing affordable housing units; and
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49	49		WHEREAS, the RHRF is funded by state taxpayers, namely revenues from the conveyance tax and from general appropriations made by the Legislature; and
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53	53		WHEREAS, these loans are very long-term (fifty-five years) and low-interest (0.25 percent); and
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57		-	WHEREAS, repayment does not begin until after senior debt has been ~~fully~~ repaid, often in year thirty-one; and
	57	+	WHEREAS, repayment does not begin until after senior debt has been full repaid, often in year thirty-one; and
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61	61		WHEREAS, developers may refinance RHRF debt from private sector banks, repaying the RHRF early, but rarely do so because they have no incentive to; and
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65	65		WHEREAS, the Hawaii Housing Finance and Development Corporation (HHFDC) may reduce the developer's RHRF debt service payments if justified by the project's low cashflow; and
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69	69		WHEREAS, HHFDC is permitted to forgive any remaining RHRF debt; and
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73	73		WHEREAS, affordable housing developers have no incentive to repay RHRF loans in full; and
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77	77		WHEREAS, most RHRF housing is only temporarily affordable, and their owners are free to evict low-income tenants and rent or sell their projects to the highest bidder after affordability restrictions expire; and
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81	81		WHEREAS, over fourteen thousand units of affordable housing will expire by the year 2100, many of which were subsidized by RHRF loans; and
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85	85		WHEREAS, RHRF loan terms are commercially unreasonable, and state taxpayers deserve a better deal; and
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89	89		WHEREAS, forgiving RHRF loans to private developers amounts to a free gift of taxpayer funds to private entities; and
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93	93		WHEREAS, full repayment of these loans will enable the RHRF to create more housing in the future; now, therefore,
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97		-	BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the ~~Hawaii Housing Finance and Development Corporation~~ is urged to adopt administrative rules that prohibit Rental Housing Revolving Fund loan forgiveness ~~unless the Corporation repossesses the project~~; and
	97	+	BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the HHFDC is urged to adopt administrative rules that prohibit Rental Housing Revolving Fund loan forgiveness; and
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101		-	BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation ~~is urged to prohibit the issuance of grants from the Rental Housing Revolving Fund; and~~
	101	+	BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation.
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105		-	BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation, who is requested to transmit a copy to each member of the Board of Directors of the Hawaii Housing Finance and Development Corporation.
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	109	+	OFFERED BY: _____________________________
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	113	+	OFFERED BY:
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	115	+	_____________________________
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107	171		Report Title:
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109	173		Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Loan Forgiveness; Prohibition; QAP; Amendments