SB 71 Hawaii Senate · 2025 Regular Session

RELATING TO THE RENTAL HOUSING REVOLVING FUND.

Summary

Establishes the Mixed-Income Subaccount within the Rental Housing Revolving Fund that targets workforce rental housing projects for persons and families with incomes at or below one hundred forty per cent of the area median income. Authorizes the Director of Finance to transfer funds from the Rental Housing Revolving Fund into the Mixed-Income Subaccount. Appropriates funds into and out of the Mixed-Income Subaccount of the Rental Housing Revolving Fund. Effective 7/1/3000. (HD1)

Issues: ✓ Housing

Sub-Topics: Affordable Housing Housing Finance Renters

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Mar 2025

House Passage

Apr 2025

Governor

Introduced Jan 8, 2025 Last action Apr 16, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

SB71_SD1 → SB71_SD2 · 6 edits

MODERATE

This bill renames the Rental Housing Revolving Fund to the State Housing Revolving Fund and establishes a tiered priority system for allocating funds based on income levels and project types. It requires the Hawaii Housing Finance and Development Corporation to create a formal application process and prioritize projects that serve the lowest-income households first, while also favoring nonprofit developers and projects with perpetual affordability commitments. The changes aim to address market inefficiencies and ensure housing production meets actual demand across different income levels.

Scope change

The bill expands the scope from exclusively rental housing to include a broader range of housing types and income levels, with specific provisions for mixed-income and ownership housing.

DEFINITION

Renamed the fund from 'Rental Housing Revolving Fund' to 'State Housing Revolving Fund' to reflect broader housing goals.

ELIGIBILITY

Established a tiered priority system that prioritizes projects serving households at 30% of median income first, followed by 80%, 120-140%, and higher income levels.

REQUIREMENT

Mandated creation of a formal application process for fund allocation with specific preference criteria including nonprofit preference and perpetual affordability commitments.

Added requirement for annual reporting to the legislature on funded projects and efforts to develop housing for the lowest-income target group.

FISCAL

Removed specific funding thresholds for rental-only projects and added provisions for mixed-income and ownership housing projects.

TIMELINE

Set the effective date of the Act to July 1, 2050.

SB71_HD1 → SB71_SD1 · 6 edits

MODERATE

This bill fundamentally restructures Hawaii's rental housing financing system by renaming the fund to the State Housing Revolving Fund (SHRF) and replacing its current prioritization model with a tiered system that prioritizes projects serving households earning 50-60% of area median income, followed by mixed-income projects serving 120-140% of area median income. The changes address concerns that the current system overbuilds low-income units while failing to meet demand for workforce housing, and they introduce new application requirements and preference criteria to increase housing production efficiency.

Scope change

The bill expands the fund's scope from exclusively rental housing to a broader State Housing Revolving Fund that can finance various housing types, while narrowing the primary funding priority to specific income brackets that better match market demand.

DEFINITION

Renamed the 'Rental Housing Revolving Fund' to 'State Housing Revolving Fund' to reflect broader housing financing capabilities beyond just rental units.

Removed definitions of 'efficiency', 'feasibility', and 'project readiness' that were previously used to evaluate funding applications.

ELIGIBILITY

Changed priority funding order to first serve households earning 50-60% of area median income (addressing severe shortage), then mixed-income projects for 120-140% of area median income, rather than the previous focus on 60% AMI projects.

Added new preference criteria including projects near mass transit stations, state/county-owned projects, projects with perpetual affordability commitments, and projects requiring the least state funding per unit per year.

REQUIREMENT

Requires the Hawaii Housing Finance and Development Corporation to establish an annual application process with at least two application periods per year for all housing programs.

ENFORCEMENT

Requires annual reporting to the legislature on funded projects and efforts to develop housing for households earning 30% of median family income, including barriers faced in serving this group.

Floor votes · Senate Feb 27, 2025

How they voted

14–0

Passed

Total votes 14

Feb 27, 2025

D Democratic13

13 Yea

100% Yea

R Republican1

1 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 8, 2025

Amended

Senate disagrees with House amendments.

upper

Apr 8, 2025

Introduced

Received from House (Hse. Com. No. 566).

upper

Apr 4, 2025

Lower · Passed

Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kapela excused (2). Transmitted to Senate.

lower

Apr 1, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.

lower

Mar 18, 2025

Committee

Reported from HSG (Stand. Com. Rep. No. 1351) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Mar 14, 2025

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Cochran, Pierick.

lower

Mar 6, 2025

Committee

Referred to HSG, FIN, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 76) in amended form (SD 2).

lower

Mar 4, 2025

Upper · Passed

Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: Senator(s) McKelvey, Moriwaki, San Buenaventura. Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 27, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 27, 2025

Senate · Passed

Senate Vote: pass (14-0)

senate

Feb 21, 2025

Upper · Passed

The committee(s) on WAM will hold a public decision making on 02-27-25 10:30AM; Conference Room 211 & Videoconference.

upper

Feb 5, 2025

Committee

Reported from HOU (Stand. Com. Rep. No. 29) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Jan 28, 2025

Upper · Passed

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Aquino, Kanuha; Aye(s) with reservations: Senator(s) Hashimoto ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.

upper

Jan 22, 2025

Upper · Passed

The committee(s) on HOU has scheduled a public hearing on 01-28-25 1:00PM; Conference Room 225 & Videoconference.

upper

Jan 16, 2025

Committee

Referred to HOU, WAM.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 8, 2025

Introduced

Pending Introduction.

upper

4 primary · 2 co-sponsors