SB 2191 Hawaii Senate · 2026 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 within the Department of Business, Economic Development, and Tourism to oversee limited-profit housing associations. Requires reports to the Legislature. Effective 7/1/2050. (SD1)

Issues: ✓ Housing

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 14, 2026 Last action Feb 20, 2026

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What changed between versions

SB2191 → SB2191_SD1 · 4 edits

MODERATE

This bill establishes a Limited-Profit Housing Council to oversee affordable housing associations and creates a new tax exemption for their income. The changes include updating the council's composition to reflect current department names, adding a requirement for the council to submit annual reports to the legislature, and clarifying the tax exemption rules. The effective date for the tax exemption was also adjusted to begin in 2026.

Scope change

The bill's scope expanded to include a mandatory reporting requirement for the newly established council and updated references to align with current state department structures.

REQUIREMENT

Added a new requirement for the Limited-Profit Housing Council to submit an annual report to the legislature detailing housing units built, qualified residents buying units, and administrative updates.

DEFINITION

Updated references to specific government departments (e.g., changing 'city and county of Honolulu's office of housing' to 'department of housing and land management') to reflect current organizational names.

TIMELINE

Adjusted the effective date for the tax exemption provisions to apply to taxable years beginning after December 31, 2025, and set the council's operational start date to January 1, 2027.

FISCAL

Clarified that the tax exemption is intended to incentivize associations to reinvest income into future housing developments.

Floor votes

How they voted

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

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/JDC.

upper

Feb 20, 2026

Committee

Reported from HOU/CPN (Stand. Com. Rep. No. 2640) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/JDC.

upper

Feb 3, 2026

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 3, 2026

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, Elefante, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Rhoads.

upper

Jan 30, 2026

Upper · Passed

The committee(s) on HOU/CPN has scheduled a public hearing on 02-03-26 9:31AM; Conference Room 229 & Videoconference.

upper

Jan 26, 2026

Committee

Referred to HOU/CPN, WAM/JDC.

upper

Jan 21, 2026

Introduced

Introduced and passed First Reading.

upper

Jan 14, 2026

Introduced

Pending Introduction.

upper

5 primary · 0 co-sponsors