HB 605 Summary

• Establishes a "qualified returning resident down payment program" administered by the Hawaii Housing Finance and Development Corporation to provide matching funds up to 10% of property value or $50,000 (whichever is less) to help qualified residents purchase single-family homes.

• Defines "qualified returning residents" as individuals who graduated from a Hawaii high school and left the state to pursue a four-year baccalaureate degree at an accredited college or university.

• Requires recipients to occupy purchased property as their primary residence for a minimum of two years from closing date.

• Creates a special fund for the program to be financed by taxes collected from real estate investment trusts (REITs) beginning in taxable years after December 31, 2019.

• Eliminates the dividends paid deduction for REITs and requires them to file annual returns reporting income attributable to Hawaii, with shareholders paying taxes on their pro rata share of Hawaii-sourced REIT income.