Haw. Rev. Stat. § 201H § 201H-95
Eligible project loans.
Operative Text
(a) The corporation shall establish requirements for rental housing projects to be financed by an eligible project loan, and may consider the location, age, condition, and other characteristics of the project. (b) The corporation shall establish restrictions on the terms, maturities, interest rates, and other requirements for eligible project loans. (c) The corporation shall establish restrictions on the prepayment of eligible project loans and on the transfer of ownership of the projects securing eligible project loans. (d) The corporation shall require that any sums deferred on land leased at nominal rates by the corporation to the owner of a rental housing project shall be recovered by the corporation at the time an eligible project loan is prepaid, whether as a result of refinancing of the eligible project loan or otherwise, to the extent that funds are available from the refinancing or other method by which the eligible project loan is paid in full prior to its due date. (e) The corporation shall enter into an agreement with the owner of a rental housing project to be financed with an eligible project loan which shall provide that in the event that the eligible project loan is at any time prepaid for the purpose of converting the rental units of such project to ownership units, all tenants at the time of the proposed conversion shall have the first option to purchase their units. (f) All eligible project loans shall comply with applicable state and federal laws. (g) The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the multifamily revenue bond activity under this section. The following information shall be reported: (1) The amount of multifamily revenue bond authority utilized and remaining balance; (2) A description of multifamily project activity including dates, project names and descriptions, and bond amounts for the following activities: (A) Application; (B) Approval of inducement resolution; (C) Approval to issue bonds; and (D) Issuance of bonds; and (3) A summary of the activity of the fund by quarter. [L 2006, c 180, pt of §4; am L 2017, c 175, §3]
Hawaii Revised Statutes § 201H-95 governs how the Hawaii Housing Finance and Development Corporation (the "corporation") structures loans for eligible rental housing projects. The corporation is required to set standards covering loan terms, interest rates, prepayment restrictions, and ownership-transfer rules, and must ensure that any deferred land-lease sums are recovered if a loan is paid off early. If a project's loan is prepaid specifically to convert rental units into ownership units, existing tenants must be given the first option to purchase their own units. The corporation must also report annually to the legislature on multifamily revenue bond activity under this section.
Plain English — not legal advice.
Owners and managers of rental housing projects financed under Haw. Rev. Stat. § 201H-95 generally operate under a formal agreement with the corporation that spells out loan terms, prepayment conditions, and ownership-transfer restrictions. Compliant operators keep track of any deferred land-lease obligations, understanding that those sums become due upon early payoff or refinancing to the extent funds are available. When a project financed under § 201H-95 is being considered for conversion from rental to ownership units, operators are expected to honor the contractual requirement that current tenants receive the first option to purchase their units before any conversion proceeds.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in rental housing projects financed under Haw. Rev. Stat. § 201H-95 have a statutory right of first option to purchase their unit if the project's loan is prepaid for the purpose of converting rental units to ownership units. This right is secured through the agreement the corporation enters into with the project owner, giving tenants a meaningful opportunity to become homeowners before outside buyers are considered. Tenants who believe this right is not being honored may wish to contact the Hawaii Housing Finance and Development Corporation, consult a tenant-rights organization, or seek independent legal guidance about how § 201H-95 applies to their situation.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 23, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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