H.B. 607 Summary

• Establishes the ALOHA (Affordable, Locally Owned Homes for All) homes program 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.

• Authorizes the Hawaii Housing Finance and Development Corporation (HHFDC) to sell 99-year leasehold interests in ALOHA homes to Hawaii residents, with median prices affordable to households earning up to 80 percent of area median income or requiring down payments of no more than $10,000 and monthly payments of no more than $1,500.

• Restricts ALOHA homes to owner-occupied residential use only; prohibits renting or leasing to tenants and enforces strict owner-occupancy requirements including facial recognition, fingerprint authorization, or retina scan technologies for verification.

• Requires ALHOA home sellers to share 75 percent of profits with the HHFDC (after five years of ownership), grants the corporation right of first refusal on resales, and mandates that unsold units be transferred to the Department of Hawaiian Home Lands or Office of Hawaiian Affairs per corporation rules.

• Requires HHFDC to develop an ALOHA homes demonstration project by July 1, 2026, and appropriates funds to the ALOHA homes revolving fund for fiscal years 2021-2022 and 2022-2023.