HI SB695

Establishes a no-interest loan program administered by the Hawaii Housing Finance and Development Corporation as an alternative to state low-income housing tax credits for qualified affordable rental housing projects.

Loan amount equals 70 percent of the present value of state low-income housing tax credits that would otherwise be claimed over the ten-year credit period, discounted at the general obligation bond interest rate.

Owners who elect to receive loans under this program become ineligible for the state income tax credit under Hawaii Revised Statutes section 235-110.8.

Loans are forgiven after 30 years if the owner remains in compliance, with the corporation imposing conditions including acceleration/repayment requirements, rent/income restrictions, and reasonable asset management fees.

Authorizes issuance of general obligation bonds to fund the loans and appropriates unspecified amount for fiscal year 2011-2012; appropriations do not lapse until June 30, 2014.