SB 24 Hawaii Senate · 2025 Regular Session

RELATING TO LIMITED-PROFIT HOUSING ASSOCIATIONS.

Summary

Establishes an organizational, tax, and regulatory framework for limited-profit housing associations. Establishes the Limited-Profit Housing Council to oversee limited-profit housing associations. (SD1)

Issues: ✓ Housing

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 8, 2025 Last action Feb 7, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB24 → SB24_SD1 · 8 edits

MODERATE

This bill establishes a new Limited-Profit Housing Council to oversee and regulate limited-profit housing associations in Hawaii. It creates a legal framework for these associations to provide long-term housing exclusively for qualified residents, with specific rules on pricing, asset management, and director liability. The bill also adds exemptions from civil service rules and certain taxes for these associations.

Scope change

Newly created scope: establishes a new council and legal chapter for limited-profit housing associations that did not previously exist under this specific regulatory framework.

REQUIREMENT

Creates a new Limited-Profit Housing Council with 10 members representing various state agencies and counties to oversee housing associations.

Requires housing associations to charge fixed prices based on actual costs for construction, operation, and reserves, preventing profit maximization.

Prohibits financial relationships between association directors/officers and any contractors to prevent conflicts of interest.

Adds the administrator of the limited-profit housing council to the list of positions exempt from civil service requirements.

DEFINITION

Defines 'qualified resident' by referencing existing section 201H-32 and establishes strict criteria for who can live in association housing.

ENFORCEMENT

Makes directors and officers personally liable for damages if they don't follow conduct standards, but provides liability protection if they do comply.

EXEMPTIONS

Exempts income earned by limited-profit housing associations from certain state taxes if used for primary housing activities.

TIMELINE

Sets effective date for most provisions as January 1, 2026, with tax provisions applying to taxable years beginning after December 31, 2025.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 7, 2025

Committee

Reported from HOU/CPN (Stand. Com. Rep. No. 92) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/JDC.

upper

Jan 29, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Richards, Awa.

upper

Jan 29, 2025

Upper · Passed

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 4 Aye(s): Senator(s) Chang, Hashimoto, Aquino, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Kanuha.

upper

Jan 24, 2025

Upper · Passed

The committee(s) on HOU/CPN has scheduled a public hearing on 01-29-25 9:40AM; Conference Room 229 & Videoconference.

upper

Jan 16, 2025

Committee

Referred to HOU/CPN, WAM/JDC.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 8, 2025

Introduced

Pending Introduction.

upper

3 primary · 0 co-sponsors