AFFORDABLE RENTAL HOUSING BILL SIGNED INTO LAW
HONOLULU, Hawai‘i - Addressing Hawai‘i's affordable rental housing crisis took a momentous step forward today when Governor Ige signed House Bill 2748 into law. HB2748, now Act 39, is a comprehensive measure aimed at increasing the production of affordable rental units statewide.
The measure provides a grand total of $570,000,000, which will generate more than 25,000 affordable units by the year 2030. It appropriates $200 million to the Hawai‘i Housing Finance and Development Corporation’s (HHFCD) Rental Housing Revolving Fund, and $10 million to the HHFDC’s Dwelling Unit Revolving Fund (DURF).
The bill also extends the general excise tax exemption for certain affordable rental housing projects from June 30, 2022 to June 30, 2026, and increases the cap on GET exemptions to $30 million per year until 2030.
This will fulfill the goal of 22,500 affordable rental housing units set by the Legislature under Act 127, Session laws of Hawai‘i 2016. This measure is the largest appropriation made by the Legislature and demonstrates its commitment to providing innovative solutions to meet the State’s long-term housing demands.
Approximately 36 percent of Hawai‘i’s households are cost-burdened, meaning that these households pay more than 30 percent of their income on housing costs. About half of these households pay more than 50 percent of their income on housing. The 2016 Hawai‘i Housing Planning Study reports that approximately 24, 551 housing units are estimated to be needed statewide from 2016 to 2020. The study notes that of this total, approximately 13,500 units, or 55 percent, is needed for households earning 80 percent and below the area median income.