HB 1410 Hawaii House · 2025 Regular Session

RELATING TO HOUSING.

Summary

Establishes the Supportive Housing Special Fund. Restructures the conveyance tax to a marginal rate system and adjusts the tax for multifamily properties to reflect value on a per-unit basis. Allocates revenues from conveyance tax collections to the Supportive Housing Special Fund. Allocates a portion of conveyance tax collections to the Dwelling Unit Revolving Fund to fund infrastructure programs in county-designated transit-oriented development areas that meet minimum standards of transit-supportive density. Effective 7/1/3000. (HD2)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Governor

Introduced Jan 23, 2025 Last action Mar 6, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

HB1410_HD1 → HB1410_HD2 · 7 edits

MODERATE

This bill amends Hawaii's conveyance tax system to create a fairer, progressive tax structure that generates additional revenue for affordable housing and transit infrastructure. It establishes a new Supportive Housing Special Fund to support permanent housing for vulnerable populations and restructures tax rates to be based on per-unit values for multifamily properties rather than total property value. The changes aim to prevent tax burdens from being passed to renters while funding critical housing needs.

Scope change

The bill expands the scope of housing funding by creating a dedicated revenue stream from property transfers specifically for supportive housing and transit-oriented development infrastructure, while modifying how tax rates are calculated for different property types.

FISCAL

Restructures the conveyance tax from a flat rate system to a progressive marginal rate system with higher rates applied only to property values exceeding specific thresholds, generating an estimated $35 million annually in additional revenue.

Establishes a new Supportive Housing Special Fund to finance development, construction, and supportive services for individuals with special needs, including those with substance use disorders, veterans, survivors of domestic violence, and chronically homeless individuals.

DEFINITION

Adds new definitions for 'County-designated transit-oriented development area' and 'Transit-supportive density requirements' to specify minimum floor area ratios (4.0 to 7.0) for development near transit hubs.

ELIGIBILITY

Changes conveyance tax calculation for multifamily properties to use per-unit value instead of total property value, preventing high total values from triggering higher tax rates on affordable units.

REQUIREMENT

Requires the Corporation for Housing to submit annual reports to the legislature describing projects funded using moneys from the supportive housing special fund.

Mandates that 10% of conveyance tax collections be allocated to the dwelling unit revolving fund for infrastructure programs in transit-oriented development areas meeting minimum density requirements.

TIMELINE

Sets the effective date of the Act to July 1, 3000, which appears to be a placeholder or error in the legislative text.

HB1410 → HB1410_HD1 · 7 edits

MODERATE

This bill restructures Hawaii's property transfer tax into a tiered system that charges higher rates only on high-value properties, while protecting moderate-income homes from excessive taxation. It creates a new Supportive Housing Special Fund to finance affordable housing for vulnerable populations and directs a portion of tax revenue to infrastructure in transit-oriented development zones. The bill also establishes a cost-of-living adjustment mechanism to ensure tax rates remain equitable over time and clarifies how taxes apply to multifamily properties based on per-unit value rather than total property value.

Scope change

The bill expands the scope of tax revenue allocation to include specific funding streams for supportive housing and transit infrastructure, while narrowing the effective tax burden on moderate-income homeowners through a marginal rate structure.

FISCAL

Restructured the conveyance tax from a flat rate system to a marginal rate system with higher rates applied only to property values exceeding specific thresholds ($600,000, $1,000,000, $2,000,000, $4,000,000, $6,000,000, and $10,000,000).

Created a new Supportive Housing Special Fund to provide loans, rental assistance, and services for individuals with special needs, including those with substance use disorders, veterans, and survivors of domestic violence.

Allocated specific percentages of conveyance tax revenue to different funds: 8% to land conservation, 38% to rental housing, 8% to supportive housing, and 10% to the dwelling unit revolving fund for transit infrastructure.

DEFINITION

Defined 'transit-supportive density' with specific floor area ratio requirements (4.0, 6.0, or 7.0) based on proximity to transit hubs and local preferred alternatives.

REQUIREMENT

Established a cost-of-living adjustment mechanism that annually updates tax rates based on the Urban Hawaii Consumer Price Index to maintain equity over time.

ELIGIBILITY

Adjusted tax rates for multifamily properties to calculate value on a per-unit basis rather than total property value, preventing disproportionate tax burdens on affordable housing complexes.

TIMELINE

Set the effective date of the Act to July 1, 3000, likely a placeholder for future legislative action.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 6, 2025

Committee

Referred to HOU/WTL, WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 368).

upper

Mar 4, 2025

Lower · Passed

Passed Third Reading with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Alcos, Garcia, Kong, Matsumoto, Muraoka, Shimizu voting no (6) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.

lower

Feb 25, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo; Ayes with reservations: Representative(s) Reyes Oda; 1 Noes: Representative(s) Alcos; and 2 Excused: Representative(s) Kitagawa, Ward.

lower

Feb 14, 2025

Committee

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Alcos, Matsumoto, Reyes Oda voting aye with reservations; Representative(s) Garcia, Muraoka, Pierick voting no (3) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from WAL (Stand. Com. Rep. No. 711) as amended in HD 2, recommending referral to FIN.

lower

Feb 13, 2025

Lower · Passed

The committee on WAL recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Hashem, Lamosao, Belatti, Ichiyama, Morikawa, Shimizu, Souza; Ayes with reservations: Representative(s) Iwamoto; Noes: none; and 2 Excused: Representative(s) Poepoe, Woodson.

lower

Feb 6, 2025

Committee

Reported from HSG (Stand. Com. Rep. No. 221) as amended in HD 1, recommending passage on Second Reading and referral to WAL.

lower

Jan 29, 2025

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica; Ayes with reservations: none; 2 Noes: Representative(s) Muraoka, Pierick; and 1 Excused: Representative(s) Cochran.

lower

Jan 27, 2025

Committee

Referred to HSG, WAL, FIN, referral sheet 4

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

10 primary · 1 co-sponsor