HI SB878

Establishes the Qualified Nonprofit Housing Trust Program to provide loans from the Hawaii housing finance and development corporation to qualified nonprofit housing trusts and nonprofit community development financial institutions for developing affordable housing units.

Creates a qualified nonprofit housing trust revolving fund to finance development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of affordable housing units.

Permits housing units to be sold to residents earning up to 140 percent of area median income with permanent affordability restrictions enforced through owner-occupancy and buyback requirements.

Allows the corporation to waive or modify certain affordability restrictions (including ten-year buyback restrictions, shared appreciation equity restrictions, and property use restrictions) provided the qualified nonprofit housing trust repays the loan upon sale or transfer of the housing units.

Appropriates unspecified amounts from general revenues to establish the revolving fund and provides additional appropriation from the fund for fiscal year 2019-2020 program implementation; effective July 1, 2050.