HB 605 Summary

• Establishes a qualified returning resident down payment program to provide matching funds up to 10% of property value or $50,000 (whichever is less) to help qualified residents purchase single-family homes or condominiums in Hawaii.

• Defines "qualified returning residents" as individuals who graduated from a Hawaii high school and left the state to attend an accredited four-year college or university, now seeking to return and purchase primary residence property.

• Requires applicants to occupy the purchased property as their primary residence for at least two years from the date of closing to receive program assistance.

• Creates a special fund for the down payment program to be financed by all taxes collected from real estate investment trusts under Hawaii chapter 235.

• Imposes mandatory tax reporting requirements on real estate investment trusts and eliminates the dividends paid deduction for REITs (except for affordable housing) beginning in taxable years after December 31, 2019, to generate revenue for the program.