HB 2385HawaiiProcess complete

State housing corporation may approve tax breaks for county-supported rentals

Starting July 1, 2026, the state housing corporation may approve tax exemptions for some county-supported rental homes that meet income limits.

What it does

The state housing corporation may approve tax exemptions for rental homes developed under county programs it approves, if at least half of the homes meet the stated income limit.

New county-supported homes seeking tax-exemption certification must meet the program's affordability rules for at least 15 years.

Argument forCounty programs may help affordable rental projects qualify for tax relief, which could help them secure financing.

Argument againstRenters in county-supported new homes may have affordability protections for 15 years, while other new construction projects have a 30-year minimum.

More detail

The Hawaii Housing Finance and Development Corporation may approve tax exemptions for qualifying rental housing projects developed under county assistance programs. The project must provide affordable rental housing under a county assistance program. The corporation must approve the county assistance program. At least half of the available homes must be for households with incomes at or below the area's median family income. The act states an effective date of July 1, 2026; whether these provisions took effect is unclear from the available status information.

New construction under a county assistance program seeking tax-exemption certification must meet the applicable affordability rules for at least 15 years. This term applies to new construction projects developed under a county assistance program that seek tax-exemption certification. The project must enter a regulatory agreement with the corporation unless the corporation exempts it. The agreement must ensure continued compliance with applicable eligibility requirements. The 15-year period begins when the project receives its certificate of occupancy.

Where do you stand?

Tell your reps

Take a position to see your representatives and ways to contact them.

More on this bill

Where it stands

IntroducedJan 27
Passed HouseMar 10
Passed SenateApr 14
To Governor
Became LawJul 9

Looking ahead

No hearings or votes scheduled.

History

2026
1. Jul 9Act 215, 07/08/2026 (Gov. Msg. No. 1317).Latest
2. Jul 9Act 215, on 07/08/2026 (Gov. Msg. No. 1317).Became Law
3. May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
4. May 7Transmitted to Governor.
5. May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
  - Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
6. May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Ratcliffe voting no (1) and none excused (0).Major
7. May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
8. Apr 29The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 2 Ayes: Representative(s) Evslin, Miyake; Ayes with reservations: none; 1 Noes: Representative(s) Cochran; and 1 Excused: Representative(s) Ilagan.Minor
  - Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
  - Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
9. Apr 29The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Elefante; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
10. Apr 29Reported from Conference Committee (Conf Com. Rep. No. 51-26) as amended in (CD 1).
11. Apr 29Forty-eight (48) hours notice Wednesday, 05-06-26.
12. Apr 29Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 51-26).
13. Apr 2948 Hrs. Notice (as amended CD 1) 05-06-26
14. Apr 28Conference Committee Meeting will reconvene on Wednesday 04-29-26 10:00AM in conference room 224.
15. Apr 27Received notice of Senate conferees (Sen. Com. No. 760).Minor
16. Apr 27Bill scheduled for Conference Committee Meeting on Tuesday, 04-28-26 10:03AM in conference room 224.
17. Apr 24Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Elefante.
18. Apr 21House Conferees Appointed: Evslin, Ilagan, Miyake Co-Chairs; Cochran.
19. Apr 21Received notice of appointment of House conferees (Hse. Com. No. 799).Minor
20. Apr 17Received notice of disagreement (Hse. Com. No. 780).Minor
21. Apr 16House disagrees with Senate amendment (s).Minor
22. Apr 14Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.Passed Senate
  - Vote recorded Report adopted; Passed Third Reading. Result: pass.Upper
23. Apr 14Returned from Senate (Sen. Com. No. 685) in amended form (SD 1).
24. Apr 10Reported from WAM (Stand. Com. Rep. No. 3701) with recommendation of passage on Third Reading.
25. Apr 10One Day Notice 04-14-26.
26. Apr 9The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
  - Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
27. Apr 7The committee(s) on WAM will hold a public decision making on 04-09-26 10:55AM; Conference Room 211 & Videoconference.
28. Mar 30Reported from HOU (Stand. Com. Rep. No. 3275) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
29. Mar 30Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.Minor
30. Mar 17The 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, Hashimoto, Elefante, Rhoads; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.Minor
  - Vote recorded The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
31. Mar 12Received from House (Hse. Com. No. 406).Minor
32. Mar 12Passed First Reading.Minor
33. Mar 12Referred to HOU, WAM.Minor
34. Mar 12The committee(s) on HOU has scheduled a public hearing on 03-17-26 1:05PM; Conference Room 225 & Videoconference.
35. Mar 10Passed Third Reading as amended in HD 3 with none voting aye with reservations; none voting no (0) and Representative(s) Kong, Pierick excused (2). Transmitted to Senate.Passed House
  - Vote recorded Passed Third Reading as amended in HD 3. Result: pass.Lower
36. Mar 6Reported from FIN (Stand. Com. Rep. No. 1090-26) as amended in HD 3, recommending passage on Third Reading.
37. Mar 6Forty-eight (48) hours notice Tuesday, 03-10-26.
38. Mar 2The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.Minor
  - Vote recorded The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
39. Feb 27The committee(s) on FIN recommend(s) that the measure be deferred until 03-02-26.Minor
40. Feb 27Bill scheduled for decision making on Monday, 03-02-26 10:00AM in conference room 308 VIA VIDEOCONFERENCE.
41. Feb 24Bill scheduled to be heard by FIN on Friday, 02-27-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
42. Feb 20Reported from ECD (Stand. Com. Rep. No. 619-26) as amended in HD 2, recommending referral to FIN.
  - Vote recorded Report adopted; referred to the committee(s) on FIN as amended in HD 2. Result: pass.Lower
43. Feb 20Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1).Minor
44. Feb 18The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
  - Vote recorded The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
45. Feb 12Bill scheduled to be heard by ECD on Wednesday, 02-18-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE.
46. Feb 11Reported from HSG (Stand. Com. Rep. No. 139-26) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
  - Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD. Result: pass.Lower
47. Feb 11Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with none voting aye with reservations; none voting no (0) and Representative(s) Holt excused (1).Minor
48. Feb 6The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Cochran, Grandinetti, Kila, Kitagawa, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) La Chica.Minor
  - Vote recorded The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
49. Feb 3Bill scheduled to be heard by HSG on Friday, 02-06-26 9:30AM in House conference room 430 VIA VIDEOCONFERENCE.
50. Feb 2Referred to HSG, ECD, FIN, referral sheet 6Minor
51. Jan 28Introduced and Pass First Reading.Minor
52. Jan 27Pending introduction.Introduced

HousingTaxes & Budget

Issue with this bill?

HB 2385HawaiiProcess complete

State housing corporation may approve tax breaks for county-supported rentals

Starting July 1, 2026, the state housing corporation may approve tax exemptions for some county-supported rental homes that meet income limits.

What it does

The state housing corporation may approve tax exemptions for rental homes developed under county programs it approves, if at least half of the homes meet the stated income limit.

New county-supported homes seeking tax-exemption certification must meet the program's affordability rules for at least 15 years.

Argument forCounty programs may help affordable rental projects qualify for tax relief, which could help them secure financing.

Argument againstRenters in county-supported new homes may have affordability protections for 15 years, while other new construction projects have a 30-year minimum.

More detail

Where do you stand?

Tell your reps

Take a position to see your representatives and ways to contact them.

More on this bill

Where it stands

IntroducedJan 27
Passed HouseMar 10
Passed SenateApr 14
To Governor
Became LawJul 9

Looking ahead

No hearings or votes scheduled.

History

2026
1. Jul 9Act 215, 07/08/2026 (Gov. Msg. No. 1317).Latest
2. Jul 9Act 215, on 07/08/2026 (Gov. Msg. No. 1317).Became Law
3. May 8Received notice of passage on Final Reading in House (Hse. Com. No. 888).Minor
4. May 7Transmitted to Governor.
5. May 6Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.Major
  - Vote recorded Passed Final Reading as amended in CD 1. Result: pass.Lower
6. May 6Passed Final Reading as amended in CD 1 with none voting aye with reservations; Representative(s) Ratcliffe voting no (1) and none excused (0).Major
7. May 6Received notice of Final Reading (Sen. Com. No. 816).Minor
8. Apr 29The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 2 Ayes: Representative(s) Evslin, Miyake; Ayes with reservations: none; 1 Noes: Representative(s) Cochran; and 1 Excused: Representative(s) Ilagan.Minor
  - Vote recorded The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
  - Vote recorded The Conference Committee recommends that the measure be Passed, with Amendments. Result: pass.Lower
9. Apr 29The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Elefante; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
10. Apr 29Reported from Conference Committee (Conf Com. Rep. No. 51-26) as amended in (CD 1).
11. Apr 29Forty-eight (48) hours notice Wednesday, 05-06-26.
12. Apr 29Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 51-26).
13. Apr 2948 Hrs. Notice (as amended CD 1) 05-06-26
14. Apr 28Conference Committee Meeting will reconvene on Wednesday 04-29-26 10:00AM in conference room 224.
15. Apr 27Received notice of Senate conferees (Sen. Com. No. 760).Minor
16. Apr 27Bill scheduled for Conference Committee Meeting on Tuesday, 04-28-26 10:03AM in conference room 224.
17. Apr 24Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Elefante.
18. Apr 21House Conferees Appointed: Evslin, Ilagan, Miyake Co-Chairs; Cochran.
19. Apr 21Received notice of appointment of House conferees (Hse. Com. No. 799).Minor
20. Apr 17Received notice of disagreement (Hse. Com. No. 780).Minor
21. Apr 16House disagrees with Senate amendment (s).Minor
22. Apr 14Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.Passed Senate
  - Vote recorded Report adopted; Passed Third Reading. Result: pass.Upper
23. Apr 14Returned from Senate (Sen. Com. No. 685) in amended form (SD 1).
24. Apr 10Reported from WAM (Stand. Com. Rep. No. 3701) with recommendation of passage on Third Reading.
25. Apr 10One Day Notice 04-14-26.
26. Apr 9The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.Minor
  - Vote recorded The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. Result: pass.Upper
27. Apr 7The committee(s) on WAM will hold a public decision making on 04-09-26 10:55AM; Conference Room 211 & Videoconference.
28. Mar 30Reported from HOU (Stand. Com. Rep. No. 3275) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
29. Mar 30Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.Minor
30. Mar 17The 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, Hashimoto, Elefante, Rhoads; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.Minor
  - Vote recorded The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. Result: pass.Upper
31. Mar 12Received from House (Hse. Com. No. 406).Minor
32. Mar 12Passed First Reading.Minor
33. Mar 12Referred to HOU, WAM.Minor
34. Mar 12The committee(s) on HOU has scheduled a public hearing on 03-17-26 1:05PM; Conference Room 225 & Videoconference.
35. Mar 10Passed Third Reading as amended in HD 3 with none voting aye with reservations; none voting no (0) and Representative(s) Kong, Pierick excused (2). Transmitted to Senate.Passed House
  - Vote recorded Passed Third Reading as amended in HD 3. Result: pass.Lower
36. Mar 6Reported from FIN (Stand. Com. Rep. No. 1090-26) as amended in HD 3, recommending passage on Third Reading.
37. Mar 6Forty-eight (48) hours notice Tuesday, 03-10-26.
38. Mar 2The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.Minor
  - Vote recorded The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
39. Feb 27The committee(s) on FIN recommend(s) that the measure be deferred until 03-02-26.Minor
40. Feb 27Bill scheduled for decision making on Monday, 03-02-26 10:00AM in conference room 308 VIA VIDEOCONFERENCE.
41. Feb 24Bill scheduled to be heard by FIN on Friday, 02-27-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
42. Feb 20Reported from ECD (Stand. Com. Rep. No. 619-26) as amended in HD 2, recommending referral to FIN.
  - Vote recorded Report adopted; referred to the committee(s) on FIN as amended in HD 2. Result: pass.Lower
43. Feb 20Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Quinlan excused (1).Minor
44. Feb 18The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.Minor
  - Vote recorded The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
45. Feb 12Bill scheduled to be heard by ECD on Wednesday, 02-18-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE.
46. Feb 11Reported from HSG (Stand. Com. Rep. No. 139-26) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
  - Vote recorded Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD. Result: pass.Lower
47. Feb 11Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with none voting aye with reservations; none voting no (0) and Representative(s) Holt excused (1).Minor
48. Feb 6The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Cochran, Grandinetti, Kila, Kitagawa, Muraoka, Pierick; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) La Chica.Minor
  - Vote recorded The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. Result: pass.Lower
49. Feb 3Bill scheduled to be heard by HSG on Friday, 02-06-26 9:30AM in House conference room 430 VIA VIDEOCONFERENCE.
50. Feb 2Referred to HSG, ECD, FIN, referral sheet 6Minor
51. Jan 28Introduced and Pass First Reading.Minor
52. Jan 27Pending introduction.Introduced

HousingTaxes & Budget

Issue with this bill?

What it does

Where do you stand?

Choose your position

Tell your reps

More on this bill

Where it stands

Looking ahead

History

What it does

Where do you stand?

Choose your position

Tell your reps

More on this bill

Where it stands

Looking ahead

History