HI SR45

Urges the Hawaii Housing Finance and Development Corporation 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 provides long-term (55-year) low-interest (0.25 percent) equity gap loans funded by state taxpayers through conveyance tax revenues and legislative appropriations.

Contends that developers lack incentive to fully repay RHRF loans and that loan forgiveness amounts to free gifts of taxpayer funds to private entities.

Requests transmission of resolution to the Executive Director and Board of Directors of HHFDC.