HOUSE OF REPRESENTATIVES	H.R. NO.	36
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

HOUSE RESOLUTION

 

 

DECLARING THE INTENT THAT AFFORDABLE HOUSING CREDITS are PERPETUAL AND REMAIN VALID UNTIL REDEEMED, AND REQUESTING THE COUNTIES TO RECOGNIZE these CREDITS WITHOUT EXPIRATION DATES.

 

 

 

     WHEREAS, the 2024 Hawaii Housing Planning Study, commissioned by the Hawaii Housing Finance and Development Corporation, identified a critical and deepening housing shortage, projecting that the State will require an additional 64,490 housing units by 2027 to meet demand, which significantly exceeds previous estimates and underscores the urgency of the State's housing crisis; and

 

     WHEREAS, to address this crisis, the Legislature enacted Act 31, Session Laws of Hawaii 2024 (Act 31), to require the counties to issue affordable housing credits for housing units constructed under certain programs of the Hawaii Housing Finance and Development Corporation; and

 

     WHEREAS, this body recognizes that the development of affordable housing is a complex and capital‑intensive process that often spans many years and requires long‑term financial planning and stability; and

 

     WHEREAS, affordable housing credits function as a critical incentive for developers who invest private capital to build affordable units that serve the public interest; and

 

     WHEREAS, these credits are transferable assets that allow developers to satisfy future affordable housing obligations, thereby facilitating a continuous pipeline of housing development; and

 

     WHEREAS, existing law mandates the issuance of affordable housing credits on a "one‑credit for one‑unit" basis and explicitly provides for their transferability to satisfy county requirements, but does not authorize the imposition of expiration dates or other time limits on the validity of these credits; and

 

     WHEREAS, memoranda of agreement and other administrative mechanisms utilized by the counties to manage affordable housing credits are intended to facilitate their issuance and tracking in alignment with state law, and are not intended to impose restrictions such as expiration dates that are not authorized or required under existing law; and

 

     WHEREAS, by ensuring that administrative agreements and policies do not limit the life, value, transferability, or utility of affordable housing credits it protects the incentive established by the Legislature, reduces financial risk, and encourages continued participation by developers in affordable housing programs, consistent with the purpose and intent of Act 31; and

 

     WHEREAS, this body intends that an affordable housing credit, once earned and issued in compliance with state law, constitutes a vested right and a perpetual asset that remains valid until it is redeemed to satisfy an affordable housing obligation; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that it is the intent of this body that affordable housing credits issued pursuant to section 46‑15.1, Hawaii Revised Statutes, including those governed by Act 31, are perpetual in nature and remain valid and transferable until such time as they are redeemed by a holder to satisfy an affordable housing obligation; and

 

     BE IT FURTHER RESOLVED that it is the intent of this body that the memoranda of agreement authorized under section 46-15.1, Hawaii Revised Statutes, between any county and the Hawaii Housing Finance and Development Corporation or Department of Hawaiian Home Lands, are administrative instruments intended to facilitate the efficient issuance, tracking, transfer, and redemption of affordable housing credits, and are not intended to diminish, restrict, or condition the life, value, transferability, or utility of such credits beyond the terms established by statute; and

 

     BE IT FURTHER RESOLVED that the counties are requested to align their administrative rules, policies, and practices with the statutory framework of section 46‑15.1, Hawaii Revised Statutes, to ensure that the value and utility of affordable housing credits are not diminished by administrative time limitations or other restrictions not specified in the statute; and

 

     BE IT FURTHER RESOLVED that any memoranda of agreement entered into between a county and the Hawaii Housing Finance and Development Corporation or Department of Hawaiian Home Lands regarding affordable housing credits is requested to be crafted to facilitate the efficient administration of the credits while avoiding provisions that would restrict the life, value, transferability, or utility of the credits; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Hawaiian Homes Commission; Executive Director of the Hawaii Housing Finance and Development Corporation; Mayors of the Counties of Hawaii, Kauai, and Maui; Mayor of the City and County of Honolulu; Chairpersons of the County Councils of Hawaii, Kauai, and Maui; and Chairperson of the Honolulu City Council.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Counties; Affordable Housing Programs; Affordable Housing Credits; Perpetual Duration