HI SB1266

Directs the Hawaii Housing Finance and Development Corporation to negotiate with the owners of Front Street Apartments on Maui to either extend affordable rent requirements through at least 2032 or acquire the property.

Requires 70 units to remain affordable for households earning up to 50% of area median family income and 71 units for households earning up to 60% of area median family income, as determined by the U.S. Department of Housing and Urban Development.

Authorizes the State to exercise eminent domain to acquire the Front Street Apartments property if negotiations do not reach agreement within a reasonable timeframe, with such condemnation not subject to legislative disapproval.

Requires the Hawaii Housing Finance and Development Corporation to submit a report to the legislature no later than twenty days before the 2018 regular session regarding acquisition efforts and financing recommendations.

Appropriates general revenues for fiscal year 2017-2018 to fund negotiations and potential acquisition, contingent on the County of Maui providing matching funds.