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Committee backs 5-year community land trust pilot; committee notes $25 million example appropriation for 50 units
Summary
The Senate Committee on Housing passed HB 833 with amendments to authorize a five-year community land trust equity pilot administered by HHFDC, and the committee record will note an example $25 million appropriation for 50 units at $500,000 each.
The Senate Committee on Housing voted to pass HB 833 with amendments, authorizing the Hawaii Housing Finance and Development Corporation to establish a five-year community land trust equity pilot program and enabling a line of credit to community land trusts for acquisition, rehabilitation, renovation or construction of housing for qualified residents.
Under the committee’s amended language, income restrictions in section 2A will be replaced with the term “qualified residents” as defined in HRS 201H-32. The committee also directed priority to applications that require the lowest amount of state funds per unit per year. The committee record will note an illustrative appropriation request of $25,000,000 for a pilot serving 50 homes at an average loan amount of $500,000 per unit.
HHFDC testified that actual funding needs would depend on the size of the pilot; using the example of 50 homes at $500,000 each yields a $25 million figure. HHFDC said the expected structure would provide construction or interim financing that would be repaid upon permanent conversion when a qualified buyer closes and repays the loan through their mortgage. The agency estimated funds would revolve back to the agency in roughly three to five years depending on each project’s financing structure.
Supporters filing testimony included the County of Hawai‘i Office of Housing and Community Development, Kohala Community Land Trust, the Council for Native Hawaiian Advancement (panel), Maui Chamber of Commerce and individual testifiers. In committee discussion, the chair observed that $500,000 per unit in taxpayer subsidy is a high level of subsidy and said rapid revolving of funds would be necessary to sustain a continuous pipeline of construction.
The chair’s recommendation to pass HB 833 with amendments was adopted. Chair Chang, Vice Chair Hashimoto, Sen. Aquino and Sen. Kanuha voted aye; Sen. Fevella was excused. The committee report will note the prioritized criteria and the example appropriation calculation.
The bill moves the state toward a pilot that would provide line-of-credit and interim financing to community land trusts, with project selection prioritized to maximize units per dollar of state support.
