HB 1920 Summary

• Changes affordable housing deed restrictions from 10 years to perpetuity for properties developed with government funds or assistance, requiring units remain affordable to the same area median income level as initially offered

• Eliminates the corporation's share of appreciation requirement and instead caps resale prices to maintain affordability linked to original area median income levels, with adjustments only for improvements and prior payments

• Grants qualified nonprofit housing trusts the option to purchase restricted properties at the same area median income level pricing, with requirement to maintain affordability in perpetuity

• Requires the Hawaii Housing Finance Development Corporation to retain price restrictions on properties when nonprofit housing trusts become owners, preventing deed restrictions from being extinguished upon transfer

• Effective July 1, 2022, this establishes a permanent local housing market tied to Hawaii residents' incomes rather than global market values