HB 607 Summary

• Establishes the ALOHA homes program (Affordable, Locally Owned Homes for All) to develop and sell low-cost leasehold residential units on state-owned land within one mile of public transit stations in counties with populations exceeding 500,000.

• Sets lease terms at ninety-nine years and requires ALOHA homes to be sold only to Hawaii residents for owner-occupied residential use, with strict enforcement against rental or leasing to tenants.

• Requires median ALOHA homes prices to be affordable to individuals or families earning no more than 80% of area median income, or with down payments not exceeding $10,000 and monthly mortgage payments not exceeding $1,500.

• Mandates the Hawaii Housing Finance and Development Corporation transfer a percentage of ALOHA homes units to the Department of Hawaiian Home Lands or Office of Hawaiian Affairs as determined by rules.

• Requires a demonstration ALOHA homes project to be completed by July 1, 2026, and exempts sales of ALOHA home leasehold interests from the general excise tax.