Hawaii 2024 Regular Session

Hawaii Senate Bill SR45 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	THE SENATE S.R. NO. 45 THIRTY-SECOND LEGISLATURE, 2024 ~~S.D. 1~~ STATE OF HAWAII SENATE 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.R. NO. 45 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII SENATE 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.R. NO. 45
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.R. NO.
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11	11		45
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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 RESOLUTION
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35		-	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~~.
	35	+	Urging the hawaii housing finance and development corporation to adopt administrative rules to prohibit rental housing revolving fund loan forgiveness.
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41		-	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, 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 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
	41	+	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, 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 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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43	43		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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47	47		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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51	51		WHEREAS, these loans are very long-term (fifty-five years) and low-interest (0.25 percent); and
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55		-	WHEREAS, repayment does not begin until after senior debt has been ~~fully~~ repaid, often in year thirty-one; and
	55	+	WHEREAS, repayment does not begin until after senior debt has been full repaid, often in year thirty-one; and
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59	59		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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63	63		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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67	67		WHEREAS, HHFDC is permitted to forgive any remaining RHRF debt; and
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71	71		WHEREAS, affordable housing developers have no incentive to repay RHRF loans in full; and
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75	75		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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79	79		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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83	83		WHEREAS, RHRF loan terms are commercially unreasonable, and state taxpayers deserve a better deal; and
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87	87		WHEREAS, forgiving RHRF loans to private developers amounts to a free gift of taxpayer funds to private entities; and
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91	91		WHEREAS, full repayment of these loans will enable the RHRF to create more housing in the future; now, therefore,
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95		-	BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, 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
	95	+	BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, that the HHFDC is urged to adopt administrative rules that prohibit Rental Housing Revolving Fund loan forgiveness; and
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99		-	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~~
	99	+	BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation.
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103		-	BE IT FURTHER RESOLVED that a certified copy of this 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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	107	+	OFFERED BY: _____________________________
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	111	+	OFFERED BY:
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	113	+	_____________________________
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105	169		Report Title:
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107	171		Hawaii Housing Finance and Development Corporation; Rental Housing Revolving Fund; Loan Forgiveness; Prohibition; QAP; Amendments