In February 2011, the Hawaii State Legislature passed S.B. No. 1240 which created a mechanism to provide alternative financing assistance to incentivize the use of the State’s low-income housing tax credit program. The bill established a program for granting no-interest loans in lieu of certain state low-income housing tax credits to developers of affordable rental housing who qualify and authorized the issuance of general obligation bonds to fund the no-interest loans.
The Hawaii Housing Finance & Development Corporation (HFDC) recently released application guidance, eligibility criteria and priorities for this LIHTC loan program to projects that have been awarded state low-income housing tax credits on or after January 1, 2011. Projects that were awarded state low-income housing tax credits prior to January 1, 2011 are not eligible to participate in this program. To read the application guidelines, click here
