HB 940 Summary

• Changes affordable housing restrictions from a 10-year period to perpetual restrictions on properties developed with government funds or assistance, requiring they remain affordable to the original area median income level indefinitely.

• Modifies the first right to purchase option for the Hawaii Housing Finance and Development Corporation to ensure repurchase prices maintain affordability at the same area median income level as the initial purchase.

• Requires qualified nonprofit housing trusts that purchase properties to establish new buyback restrictions maintaining affordability in perpetuity rather than for a limited timeframe.

• Removes provisions allowing purchasers to sell properties free of price restrictions after 10 years and eliminates the corporation's share of appreciation gains that previously applied after the restriction period.

• Takes effect July 1, 2023.