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SB 2191

RELATING TO LIMITED-PROFIT HOUSING ASSOCIATIONS.

2026 Regular Session Introduced by Stanley Chang and 4 co-sponsors

SB 2191 amends Hawaii's limited-profit housing association regulations to address affordable housing development, with committees recommending passage pending specified amendments.

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.
#housing #limited-profithousingassociations #limited-profithousingcouncil #qualifiedresidents
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Bill Summary · SB 2191

Legislative bill overview

SB 2191 modifies Hawaii's legal framework governing limited-profit housing associations, which are organizations designed to develop and maintain affordable housing with restricted profit margins. The bill has passed both the Housing and Consumer Protection committees with amendments, indicating adjustments were made during the legislative review process.

Why is this important

Hawaii faces a severe affordable housing shortage, with some of the nation's highest housing costs relative to median income. Limited-profit housing associations represent one policy tool for expanding affordable housing stock, making regulatory changes to this sector directly relevant to housing accessibility for lower and middle-income residents across the islands.

Potential points of contention

  • Profit limitation details: The specific amendments to allowable profit margins or distribution structures could affect investor participation and the financial viability of housing associations, potentially making projects less attractive or more sustainable depending on the changes.
  • Tax implications: Changes to limited-profit status may have consequences for tax-exempt benefits, property tax assessments, or investor incentives that could increase or decrease development costs passed to residents.
  • Operational flexibility vs. accountability: Modifications to operational requirements or oversight mechanisms could either streamline development processes or strengthen protections for residents and public interests, depending on amendment specifics.

Compiled from official sources — confirm details with the bill’s official record.

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