HB 1764 - Housing Savings Account Summary

• Establishes a Housing Savings Account System administered by a board within the Department of Budget and Finance with eight members including three state directors, governor-appointed representatives of employers, investors, and employee associations, plus nonvoting legislative members.

• Requires all employers in Hawaii to offer employees the opportunity to contribute to housing savings accounts through payroll deduction, with an optional employer match provision.

• Implements automatic enrollment of all employees with a default contribution rate of five percent of compensation, allowing employees to opt out or select a different contribution amount at any time.

• Permits withdrawal of housing savings account funds at any time without penalty for purposes including down payments, mortgage payments, rent, or security deposits.

• Clarifies that contributions are not exempt from Hawaii income tax (Chapter 235) and receive no additional tax benefits.