REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO CONDUCT A STUDY ON THE FEASIBILITY OF UTILIZING MEZZANINE LOANS TO INCREASE THE RATE OF HOUSING PRODUCTION IN THE STATE.

This Senate Resolution asks the Hawaii Department of Business, Economic Development, and Tourism to study whether mezzanine loans could help increase housing production in the state. Mezzanine loans are a type of financing that combines debt and equity features, allowing developers to borrow against a project's value without needing to provide as much upfront cash or ownership stake. The study would examine if this financing method could help developers build more homes while making better use of state housing funds. The department must complete the study and submit a report with findings and recommendations to the Legislature by early 2027. This resolution does not create new laws but requests research to inform future housing policy decisions.