HB 644 Summary

• Adds definition of "qualified community development entity" to Hawaii Revised Statutes Chapter 210D to facilitate use of federal new markets tax credits for economic development financing.

• Expands department powers to provide loans, guarantees, and credit enhancements (in addition to existing direct loans and grants) to support community-based economic development activities.

• Authorizes department to provide loans to entities that capitalize qualified community development entities, which then make loans to borrowers for new markets tax credit financing.

• Increases maximum loan amounts and adds provisions for setting interest rates, fees, and charges for guarantees and credit enhancements (specific dollar amounts left blank in bill text).

• Effective date: July 1, 2038.