STAND. COM. REP. NO. 2594

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2109

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2109, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO LOW-INCOME HOUSING,"

 

begs leave to report as follows:

 

     The purpose of this measure is to jump start the development and construction of stalled affordable rental housing projects in the State.

 

     Specifically, this measure authorizes the Hawaii Housing Finance and Development Corporation to grant no-cost loans to replace state low-income housing tax credits that have devalued as a result of the economic crisis.  With the assistance of the loans provided under this measure, developers who acquired and depended on the tax credits to finance their projects can relinquish their tax credits for equivalent financing under this measure.  Also, since the loans are financed through the issuance of discounted general obligation bonds, the conversion is cost neutral to the State.

 

     Your Committee received written comments in support of this measure from the Hawaii Association of Realtors and Catholic Charities Hawaii.  The written comments may be reviewed on the Legislature's website.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

 

     (2)  Making technical, nonsubstantive amendments for the purpose of clarity and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2109, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2109, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DONNA MERCADO KIM, Chair