Extends the sunset date of the Dwelling Unit Revolving Fund Equity Pilot Program pursuant to Act 92, SLH 2023, from June 30, 2028, to June 30, 2031. Requires any equity purchased by the Hawaii Housing Finance and Develop, the official text

THE SENATE

S.B. NO.

2069

THIRTY-THIRD LEGISLATURE, 2026

S.D. 2

STATE OF HAWAII

H.D. 1

C.D. 2

A BILL FOR AN ACT

RELATING TO THE
DWELLING UNIT REVOLVING FUND.

BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1.  The
legislature finds that the dwelling unit revolving fund equity pilot program
was established to create more homeownership opportunities for qualified
purchasers, especially those who work in professions with critical shortages in
the State, such as health care workers, educators, law enforcement and
correctional officers, and agricultural field workers.  Under the dwelling unit
revolving fund equity pilot program, the Hawaii housing finance and development
corporation uses funds in the dwelling unit revolving fund to work with
developers of for-sale projects to purchase a specified amount of equity in
designated units that are being sold to qualified residents, thus lowering the
price of the qualifying home for the qualifying resident.

The legislature further finds that extending
the sunset date of the dwelling unit revolving fund equity pilot program
demonstrates a viable, sustainable approach to increasing access to
homeownership for residents of the State.

Accordingly, the purpose of this Act is to:

(1)  Extend the sunset date of the dwelling unit
revolving fund equity pilot program pursuant to Act 92, Session Laws of Hawaii
2023, from June 30, 2028, to June 30, 2031; and

(2)  Require that any equity purchased by the Hawaii
housing finance and development corporation under the dwelling unit revolving
fund equity pilot program be in a for-sale housing development project within a
transit-oriented development zone.

SECTION 2.  Act 92, Session Laws of Hawaii 2023, is amended
by amending section 2 as follows:

1.  By amending subsection (b) to read:

"(b)  The Hawaii housing finance and
development corporation may purchase equity in for-sale housing development
projects[;] within a transit-oriented development zone; provided
that this equity shall be allocated to specific units within the housing
development projects and the price to be paid by each eligible buyer of a unit
shall be reduced by the Hawaii housing finance and development corporation's
equity amount for that unit."

2.  By amending subsection (g) to read:

"(g)  As used in this section:

"Housing development project" means a
plan, design, or undertaking by the Hawaii housing finance and development
corporation or an eligible developer for the development of units.
"Housing development project" includes all real and personal
property, buildings and improvements, commercial space, lands for farming and
gardening, community facilities acquired or constructed or to be acquired or
constructed, and all tangible or intangible assets held or used in connection
with the housing development project.

"Transit-oriented development
zone" means:

(1)  For a county with a population of five
hundred thousand or more, a transit‑oriented development infrastructure
improvement program area pursuant to section 206E-243, Hawaii Revised Statutes;
or

(2)  For a county with a population of less
than five hundred thousand, a county-designated transit area, an area situated
along major bus routes, or an area within a one-half-mile radius of a bus stop,
as defined by the respective county.

"Unit" means:

(1)  The structure and land upon which the structure
is constructed, whether on fee simple or leasehold property, developed for
residential purposes pursuant to chapter 201H, Hawaii Revised Statutes; or

(2)  Improved or unimproved real property that is
developed for residential purposes pursuant to chapter 201H, Hawaii Revised
Statutes.

"Unit" includes dwelling units."

SECTION 3.  Act 92, Session Laws of Hawaii 2023, is amended
by amending section 5 to read as follows:

"SECTION 5.  This Act shall take effect on
July 1, 2023, and section 2 shall be repealed on June 30, [2028;]
2031; provided that[:

(1)  Section 201H-47, Hawaii Revised
Statutes, shall be reenacted in the form in which it read on the day prior to
the effective date of this Act; and

(2)  The] the requirements
imposed pursuant to section 2(c) of this Act shall remain in effect and run
with the deed after June 30, [2028.] 2031."

SECTION 4.  The Hawaii housing finance and
development corporation may spend up to $20,000,000 or so much thereof as may
be necessary for fiscal year 2026-2027 from the dwelling unit revolving fund
for the equity pilot program established pursuant to Act 92, Session Laws of
Hawaii 2023.

SECTION 5.  Statutory material to be repealed
is bracketed and stricken.  New statutory material is underscored.

SECTION 6.  This Act shall take effect upon its
approval.