HB960 Summary

• Creates a no-interest loan program administered by the Hawaii Housing Finance and Development Corporation for owners of qualified low-income buildings awarded federal tax credits, allowing exchange of tax credits for direct loans equal to 70 percent of the cash value of credits discounted to present day value.

• Loan recipients are ineligible for state low-income housing tax credits under section 235-110.8 and must comply with conditions including acceleration/repayment requirements, rent and income restrictions, and reasonable asset management fees.

• Allows the corporation to forgive remaining loan balances after 30 years if the owner is not in default, providing long-term financing incentive for affordable housing development.

• Requires the corporation to perform asset management functions to ensure compliance with federal low-income housing tax credit requirements and building long-term viability.

• Effective July 1, 2011, applying to qualified low-income buildings placed in service after December 31, 2011.