HI HB906

Amends Hawaii's general excise tax exemption requirements for affordable housing projects by requiring developers to enter into regulatory agreements with the Hawaii Housing Finance and Development Corporation to maintain affordability compliance.

Establishes minimum compliance periods: 5 years for moderate rehabilitation projects, 10 years for substantial rehabilitation projects, and 30 years from certificate of occupancy for new construction projects.

Applies to rental housing projects meeting affordability thresholds: at least 50% of units for households at or below 80% of area median family income, with at least 20% at or below 60% of area median family income.

Maintains existing exemption categories for projects developed under the Hawaii Housing Finance and Development Corporation program, government-assisted programs, and nonprofit organization sponsorships.

Effective date: July 1, 2050.