HI SCR56

Urges the Hawaii Housing Finance and Development Corporation (HHFDC) to adopt administrative rules prohibiting Rental Housing Revolving Fund (RHRF) loan forgiveness unless the corporation repossesses the project.

Urges HHFDC to prohibit issuance of grants from the Rental Housing Revolving Fund.

Notes that RHRF loans are very long-term (55 years) at low interest (0.25 percent), funded by state taxpayers through conveyance tax revenues and legislative appropriations.

Expresses concern that developers have no incentive to fully repay RHRF loans and that loan forgiveness constitutes a free gift of taxpayer funds to private entities, especially since most RHRF-subsidized housing is only temporarily affordable.

Requires transmission of a certified copy of the resolution to the HHFDC Executive Director and Board of Directors.