HB 1760 Summary

• Authorizes the Hawaii Housing Finance and Development Corporation (HHFDC) and counties to establish a bond volume cap recycling program under federal tax law (IRC Section 146(i)(6)) to finance affordable rental housing projects.

• Allows HHFDC to secure a line of credit or other instrument of indebtedness up to $150,000,000 during the 2023-2025 fiscal biennium to support the bond volume cap recycling program, subject to legislative approval.

• Permits the Department of Budget and Finance and HHFDC to enter into cooperative agreements with counties to coordinate the award of private activity bonds and low-income housing tax credits for new rental housing projects.

• Establishes a bond volume cap recycling program subaccount within the rental housing revolving fund to serve as a reserve for the program.

• Requires counties and issuers to submit semi-annual reports on the status and use of bond volume cap allocations, including those previously used for qualified private bonds and recycled under the new program.