HI HB1236

Amends Hawaii Revised Statutes Section 412:5-305(h) to allow banks to invest in limited partnerships, limited liability partnerships, limited liability companies, and corporations that develop affordable housing properties qualifying for federal low-income housing tax credits.

Changes the investment cap from a tiered structure (2% per single entity, 5% aggregate, 10% maximum) to a simpler limit of 2% of the bank's total assets in aggregate without commissioner approval.

Requires prior approval from the commissioner of financial institutions for banks to exceed the 2% aggregate investment threshold.

Takes effect June 30, 3000, with an automatic sunset and repeal on June 30, 2025, returning the statute to its original form.