HOUSE OF REPRESENTATIVES

H.B. NO.

2330

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 201H-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In accordance with section 237-29, the corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or moderately or substantially rehabilitated project:

     (1)  Developed under this part;

     (2)  Developed under a government assistance program approved by the corporation, including but not limited to the United States Department of Agriculture 502 program and Federal Housing Administration 235 program;

     (3)  Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low-cost housing;

     (4)  Developed by a qualified person or firm to provide affordable rental housing where at least fifty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development; or

     (5)  Effective for projects approved or certified from July 1, 2018, to June 30, [2022,] 2026, developed under a contract described in section 1042(i)(2) by a qualified person or firm to provide newly constructed affordable rental housing; provided that[:

          (A)  The allowable general excise tax and use tax costs shall apply to contracting only and shall not exceed $7,000,000 per year in the aggregate for all projects approved and certified by the corporation; and

          (B)  All] all available units are for households with incomes at or below one hundred forty per cent of the area median family income as determined by the United States Department of Housing and Urban Development, of which at least twenty per cent of the available units are for households with incomes at or below eighty per cent of the area median family income as determined by the United States Department of Housing and Urban Development[.]; provided further, that an owner cannot refuse to lease a unit in the project to a qualified applicant because the applicant holds a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937."

     SECTION 2.  Act 54, Session Laws of Hawaii 2017, is amended by amending section 5 to read as follows:

     "SECTION 5.  This Act shall take effect on July 1, 2017, and shall [be repealed on June 30, 2022; provided that:]

     (1)  Section ] not apply to projects certified or approved after June 30, 2026; provided that section 3 of this Act shall apply to taxable years beginning after December 31, 2017[; and

     (2)  Section 104-2, Hawaii Revised Statutes, and section 201H-36, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act]."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Rental Housing Projects; General Excise Tax Exemption; Section 8 Housing Choice Vouchers

 

Description:

Expands and extends to June 30, 2026, the certification for exemption from general excise tax and use tax costs for certain rental housing projects pursuant to section 201H-36(a)(5), Hawaii Revised Statutes, to include affordable rents.  Requires said project owners to accept Section 8 Housing Choice Vouchers as a condition of certification.

 

 

 

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