S.B. 1170 Summary

• Requires counties to issue affordable housing credits to the Hawaii Housing Finance and Development Corporation (HHFDC) for affordable housing units developed under HHFDC programs, with credits transferable on a one-credit-per-unit basis.

• Credits may be applied county-wide to satisfy affordable housing obligations imposed on market-priced residential and non-residential developments, with up to 50% of obligations satisfiable through credits unless county ordinances allow higher percentages.

• Establishes tracking and recording requirements including sequential identification numbers for credits and agreements recorded on originating property parcels, with amendments required when credits are transferred or utilized.

• Requires credits to be issued only after certificate of occupancy is obtained and prohibits issuance if low-income housing tax credits are used in conjunction with the affordable housing development.

• Sunsets July 1, 2031, with amendments to section 46-15.1, Hawaii Revised Statutes, surviving the statutory repeal and reenactment scheduled for that date.