State housing corporation may approve tax exemptions for county rental projects

The Hawaii Housing Finance and Development Corporation may approve and certify general excise tax exemptions for eligible rental projects. The project must provide rental housing and be developed under a county assistance program approved by the corporation. The corporation must approve the county assistance program. At least half of the available homes must be for households earning at or below the median family income set by the U.S. Department of Housing and Urban Development. Unless the corporation grants an exception, the project must have a written agreement to keep meeting the income rules. For new construction, the agreement must last at least 15 years from the occupancy certificate. Sections 2 and 3 take effect January 1, 2027. The Act is set to end July 1, 2031, when the affected laws return to their earlier form.

Counties may not use the housing corporation's power under section 201H-36(a)(6). This rule applies to counties using housing development powers under section 46-15.1. County housing projects must prioritize walkability when practicable. Section 2 takes effect January 1, 2027; the Act is set to end July 1, 2031.