| 47 | | - | SECTION 1. The legislature finds that community land trusts are effective at producing and preserving permanently affordable housing, increasing community control and neighborhood stability, and reducing barriers to homeownership for low- to moderate-income households. Community land trusts provide lasting assets and shared equity homeownership opportunities that foster generational wealth and community stability. The legislature also finds that the community land trust shared equity model enables many homeowners to transition to traditional homeownership, with six out of ten community land trust homeowners accumulating enough equity to purchase homes on the open market. Community land trusts also curb displacement by removing housing from the speculative market and preserving affordable housing in areas facing rising costs. Community land trusts have also proven effective in post-disaster recovery, preventing predatory investment and ensuring long-term housing affordability. The legislature notes that in Hawaii, six community land trusts are currently active, including the Kohala Community Land Trust, Lahaina Community Land Trust, Nā Hale O Maui, Hawaii HomeOwnership Center Housing and Land Trust, Hoʻomaluhia Community Land Trust, and HALE o Hawaiʻi. The legislature believes that expanding the community land trust ecosystem can further strengthen community ownership, prevent displacement, and help local families stay in Hawaii. The purpose of this Act is to support the expansion of community land trusts by authorizing, and appropriating funds for, the Hawaii housing finance and development corporation to establish a community land trust equity pilot program to provide community land trusts with a low-cost line of credit for housing purposes. SECTION 2. (a) The Hawaii housing finance and development corporation may establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing for qualified residents as defined in section 201H-32, Hawaii Revised Statutes. The corporation shall prioritize applications that require the least amount of state funding per unit, per year. (b) The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of the community land trust equity pilot program. (c) The Hawaii housing finance and development corporation shall submit interim reports on the status of the community land trust equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, 2028, and 2029. The Hawaii housing finance and development corporation shall submit a final report on the community land trust equity pilot program, including any findings, recommendations, and proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2030. (d) The community land trust equity pilot program shall cease to exist on June 30, 2030. (e) For purposes of this section, "community land trust" means a nonprofit organization that: (1) Acquires parcels of land primarily for conveyance under long-term ground leases; (2) Transfers ownership of any structural improvements located on leased parcels to the lessees; (3) Has its corporate membership open to any adult resident of a particular geographic area specified in the organization's bylaws; (4) Retains a first option to purchase any structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to households earning no more than one hundred forty per cent of the county area median income; and (5) Is governed by a board of directors that: (A) Includes a majority of members who are elected by the corporate membership; and (B) Is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization. SECTION 3. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to establish the community land trust equity pilot program pursuant to this Act. The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act. SECTION 4. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. The legislature finds that community land trusts are effective at producing and preserving permanently affordable housing, increasing community control and neighborhood stability, and reducing barriers to homeownership for low- to moderate-income households. Community land trusts provide lasting assets and shared equity homeownership opportunities that foster generational wealth and community stability. The legislature also finds that a community land trust's shared equity models enable many homeowners to transition to traditional homeownership, with six out of ten community land trust homeowners accumulating enough equity to purchase homes on the open market. Community land trusts also curb displacement by removing housing from the speculative market and preserving affordable housing in areas facing rising costs. Community land trusts have proven effective in post-disaster recovery, preventing predatory investment and ensuring long-term housing affordability. The legislature notes that in Hawaii, six community land trusts are currently active, including the Kohala Community Land Trust, Lahaina Community Land Trust, Nā Hale O Maui, Hawaii HomeOwnership Center Housing and Land Trust, Hoʻomaluhia Community Land Trust, and HALE o Hawaiʻi. The legislature believes that expanding the community land trust ecosystem can further strengthen community ownership, prevent displacement, and help local families stay in Hawaii. The purpose of this Act is to support the expansion of community land trusts by authorizing, and appropriating funds for, the Hawaii housing finance and development corporation to establish a community land trust equity pilot program to provide community land trusts with a low-cost line of credit for housing purposes. SECTION 2. (a) The Hawaii housing finance and development corporation may establish a five-year community land trust equity pilot program to provide community land trusts with a line of credit to fund the acquisition, rehabilitation, renovation, or construction of housing that is affordable to households earning no more than one hundred forty per cent of the county area median income. (b) The Hawaii housing finance and development corporation may establish rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of the community land trust equity pilot program. (c) The Hawaii housing finance and development corporation shall submit interim reports on the status of the community land trust equity pilot program to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, 2028, and 2029. The Hawaii housing finance and development corporation shall submit a final report on the community land trust equity pilot program, including any findings, recommendations, and proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2030. (d) The community land trust equity pilot program shall cease to exist on June 30, 2030. (e) For purposes of this section, "community land trust" means a nonprofit organization that: (1) Acquires parcels of land primarily for conveyance under long-term ground leases; (2) Transfers ownership of any structural improvements located on leased parcels to the lessees; (3) Has its corporate membership open to any adult resident of a particular geographic area specified in the organization's bylaws; (4) Retains a first option to purchase any structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to households earning no more than one hundred forty per cent of the county area median income; and (5) Is governed by a board of directors that: (A) Includes a majority of members who are elected by the corporate membership; and (B) Is composed of equal numbers of lessees, corporate members who are not lessees, and any other category of persons described in the bylaws of the organization. SECTION 3. There is appropriated out of the dwelling unit revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Hawaii housing finance and development corporation to establish the community land trust equity pilot program pursuant to this Act. The sums appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act. SECTION 4. This Act shall take effect on July 1, 3000. |
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