Honolulu, Hawaii



RE:    H.B. No. 2330

       H.D. 1

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 2330, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to clarify the Hawaii Housing Finance and Development Corporation's authority to approve and certify for exemption from general excise and use taxes any qualified person or firm involved in the new construction or substantial rehabilitation of certain housing projects.


     The measure also repeals certain application and monetary limitations on the tax exemptions and prohibits tax exemption recipients from discriminating against potential tenants because they utilize vouchers or certificates provided under Section 8 of the United States Housing Act of 1937.


     Your Committee received written comments in support of this measure from the Department of Business, Economic Development and Tourism; Department of Taxation; Hawaii Housing Finance and Development Corporation; Hawaii Public Housing Authority; Hawaii Construction Alliance; and Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii.


     Your Committee received written comments on this measure from the Office of Hawaiian Affairs and Tax Foundation of Hawaii.


     Your Committee finds that this measure will facilitate the availability of affordable housing by providing businesses a reasonable incentive to construct new housing or substantially rehabilitate existing housing.


     Your Committee has amended this measure by:


     (1)  Removing the requirement that the total weighted average of all units provided in an approved and certified project be no more than one hundred percent of the area median family income;


     (2)  Changing the effective date to July 1, 2018; and


     (3)  Making technical nonsubstantive changes for the purposes of clarity, consistency, 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 H.B. No. 2330, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2330, H.D. 1, S.D. 2.


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