HB 567 Summary

• Exempts planning, design, financing, and construction activities for Department of Hawaiian Home Lands (DHHL) homestead lots and housing projects from general excise taxes, including projects under government assistance programs, nonprofit sponsorships, or affordable rental housing where 50% of units serve households at or below 80% of area median family income.

• Makes permanent the exemption of DHHL housing from school impact fee requirements and clarifies that the exemption applies to new housing unit creation by DHHL for Hawaiian Homes Commission Act beneficiaries.

• Extends the lapse date for the $600 million appropriation in Act 279 (Session Laws of Hawaii 2022) from June 30, 2023 to June 30, 2025 and appropriates additional funds for fiscal year 2023-2024 to the DHHL.

• Makes permanent the issuance of county affordable housing credits to DHHL for developed housing units and allows the department to enter into memoranda of agreement with counties of Kauai, Hawaii, and Honolulu regarding credit conditions.

• Effective January 1, 2024.