HI SR45

Senate Resolution expressing support for expanding use of the Dwelling Unit Revolving Fund to provide interim loans for predevelopment costs on any government affordable housing project, not just those owned by the Hawaii Housing Finance and Development Corporation (HHFDC)

Predevelopment financing is considered higher risk than construction financing due to variables that could make projects impracticable, resulting in potential loan losses for lenders

Predevelopment costs include site analysis, technical studies, conceptual designs, construction drawings, environmental assessments, and permit/approval documentation

Not all Hawaii counties have flexible funding available for affordable housing predevelopment costs, creating a gap the Dwelling Unit Revolving Fund could address

Interim predevelopment loans would be repaid to HHFDC through the project's permanent financing source once construction funding is secured