HI SCR3

Requests the Department of Business, Economic Development, and Tourism (DBEDT) to study the feasibility of using mezzanine loans to increase housing production in Hawaii

Mezzanine loans are debt-equity instruments backed by project value that offer flexible repayment terms and could reduce the equity developers need to provide lenders for construction financing

Addresses Hawaii's housing shortage and highest-in-nation housing costs, noting that traditional construction mortgage availability is declining and forcing developers toward higher-cost equity financing

Hawaii Housing Finance and Development Corporation analysis found many state housing programs have significant revolving periods (time to recoup funding), which mezzanine financing could potentially accelerate

DBEDT must submit findings, recommendations, and any proposed legislation to the Legislature no later than 20 days before the 2027 Regular Session