HB 576 Hawaii House · 2025 Regular Session

RELATING TO RESTRICTIONS ON THE TRANSFER OF REAL PROPERTY UNDER CHAPTER 201H, HAWAII REVISED STATUTES.

Summary

Exempts transfers of Hawaiian Home Lands from transfer restrictions for real property under housing development programs of the Hawaii Housing Finance and Development Corporation. Effective 7/1/3000. (SD1)

Issues: ✓ Housing

Sub-Topics: Housing Finance Property Development

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Governor

Introduced Jan 17, 2025 Last action Mar 21, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

HB576_HD2 → HB576_SD1 · 8 edits

MODERATE

This bill significantly restructures the restrictions on transferring affordable housing properties in Hawaii. It adds new provisions for nonprofit housing trusts to purchase properties when the original developer waives their buyback option, introduces new waiver conditions for family transfers and sustainable leases, and extends the maximum interest calculation period to 30 years. The bill also clarifies how appreciation shares are calculated and establishes requirements for reporting by nonprofit housing trusts.

Scope change

The bill expands the scope of who can purchase restricted properties (adding qualified nonprofit housing trusts) and creates new exceptions for family transfers and sustainable affordable leases.

ELIGIBILITY

Added a new provision allowing qualified nonprofit housing trusts to purchase properties if the developer waives their first option to repurchase.

Added new waiver conditions allowing transfers to family members who would qualify under corporation rules and transfers involving sustainable affordable leases.

REQUIREMENT

Extended the maximum interest calculation period from 10 years to 30 years for subsidies and deferred sales prices.

Added new requirements for nonprofit housing trusts to report unit status and usage to the corporation annually by November 30.

EXEMPTIONS

Added an exemption for market-priced units in economically integrated housing projects, with preference for qualified residents in initial sales.

Added an exemption for transfers of Hawaiian home lands under the Hawaiian Homes Commission Act, 1920.

ENFORCEMENT

Added requirements for mortgage holders to notify the corporation of defaults and foreclosure intentions, and clarified that the corporation must be a party to foreclosure actions.

FISCAL

Modified the calculation of the corporation's share of appreciation to include specific rules about when it applies and how it's determined under chapter 91.

HB576_HD1 → HB576_HD2 · 9 edits

MAJOR

This bill amends Hawaii's affordable housing transfer restrictions to exempt transfers of Hawaiian Home Lands, add new provisions for qualified nonprofit housing trusts to purchase properties when the corporation waives its repurchase option, and clarify how appreciation shares are calculated and enforced. It also extends the effective date to July 1, 3000, with a sunset provision for the amendments on June 30, 2028, to align with existing temporary legislation.

Scope change

The bill's scope is expanded to explicitly exempt transfers of Hawaiian Home Lands from transfer restrictions and adds new pathways for qualified nonprofit housing trusts to acquire properties when the corporation waives its repurchase option.

ELIGIBILITY

Added a new subsection (c) requiring purchasers to sell to qualified residents if neither the corporation nor the nonprofit housing trust exercises their repurchase option within ten years.

Added new subsection (b) giving qualified nonprofit housing trusts the option to purchase real property when the corporation waives its first option to repurchase.

EXEMPTIONS

Added new subsection (h) exempting market-priced units in economically integrated housing projects from restrictions.

Added new subsection (i) allowing the corporation to waive restrictions to comply with federal mortgage insurance or guarantee program requirements.

Added new subsection (j) exempting transfers of Hawaiian Home Lands under the Hawaiian Homes Commission Act from transfer restrictions.

FISCAL

Modified the calculation of appreciation shares to include new provisions for interest on subsidies and deferred sales prices, with a 30-year cap on interest computation.

REQUIREMENT

Modified foreclosure procedures to require the corporation to be notified of defaults and foreclosure intentions, with the corporation entitled to its share of appreciation in lien priority.

ENFORCEMENT

Added new subsection (k) requiring qualified nonprofit housing trusts to report the status and use of housing units to the corporation annually by November 30.

TIMELINE

Added new Section 3 setting the effective date to July 1, 3000, with amendments to section 201H-47 not repealed when reenacted on June 30, 2028.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 21, 2025

Committee

Reported from HWN/HOU (Stand. Com. Rep. No. 1282) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Mar 18, 2025

Upper · Passed

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Kanuha, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Mar 18, 2025

Upper · Passed

The committee(s) on HWN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HWN were as follows: 4 Aye(s): Senator(s) Richards, San Buenaventura, Ihara, Keohokalole; Aye(s) with reservations: none ; 1 No(es): Senator(s) DeCorte; and 0 Excused: none.

upper

Mar 12, 2025

Upper · Passed

The committee on HOU has deleted the measure from decision making scheduled on 03-13-25 1:00PM; CR 225 & Videoconference.

upper

Mar 7, 2025

Upper · Passed

The committee(s) on HWN/HOU has scheduled a public hearing on 03-11-25 1:05PM; Conference Room 225 & Videoconference.

upper

Mar 6, 2025

Committee

Referred to HWN/HOU, WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 258).

upper

Mar 4, 2025

Lower · Passed

Passed Third Reading as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.

lower

Feb 26, 2025

Lower · Passed

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Perruso, Takayama, Todd, Garcia, Shimizu; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Cochran, Kahaloa.

lower

Feb 13, 2025

Committee

Reported from HSG (Stand. Com. Rep. No. 584) as amended in HD 1, recommending passage on Second Reading and referral to JHA.

lower

Feb 12, 2025

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Cochran.

lower

Jan 21, 2025

Committee

Referred to HSG, JHA, referral sheet 2

lower

Jan 21, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 17, 2025

Introduced

Pending introduction.

lower

6 primary · 0 co-sponsors