HB 940 Summary

• Changes affordable housing price restrictions from 10 years to perpetuity for properties developed with government funds or assistance, keeping units affordable to the original area median income level indefinitely.

• Removes the appreciation-sharing formula and simplifies pricing to allow buyers to purchase units at the same area median income level as predecessors, with adjustments only for improvements they made.

• Grants the Hawaii Housing Finance and Development Corporation first option to repurchase properties at perpetually affordable prices, followed by qualified nonprofit housing trusts.

• Requires all subsequent sales to qualified residents who meet the same area median income level requirements, maintaining affordability for the designated income bracket in perpetuity.

• Takes effect July 1, 2023, and applies to sections 201H-47, 201H-49, and 201H-23 of Hawaii Revised Statutes governing affordable housing developments.