Honolulu, Hawaii



RE:    H.B. No. 488

       H.D. 2

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




     Your Committees on Housing and Human Services, to which was referred H.B. No. 488, H.D. 2, entitled:




beg leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Authorize the issuance of general obligation bonds and appropriate funds for rental housing, a mixed-use affordable rental housing and multi-use juvenile services and shelter center, and public housing; and


     (2)  Appropriate funds for public housing security improvements, renovation, and repairs.


     Your Committees received testimony in support of this measure from the Judiciary of the State of Hawaii; Hawaii Housing Finance and Development Corporation; Hawaii Public Housing Authority; EAH Housing; Land Use Research Foundation of Hawaii; Hawaii Alliance for Community-Based Economic Development; Hawaii Appleseed Center for Law and Economic Justice; Housing Now Coalition; Hawaii Association of REALTORS; Hawaii Construction Alliance; In-State Partners; Stanford Carr Development, LLC; Catholic Charities Hawaii; Chamber of Commerce Hawaii; Maui Chamber of Commerce; Hawaii Children's Action Network; Americans for Democratic Action; IMUAlliance; Protecting Hawaii's Ohana, Children, Underserved, Elderly and Disabled; Partners in Care; Hawaii Habitat for Humanity Association; Institute for Human Services; and four individuals.


     Your Committees find that Hawaii's housing market suffers from a persistent shortage of housing, particularly housing that is affordable for Hawaii's workforce and lower income groups.  Your Committees further find that a significant investment of resources in capital improvement projects by the State is necessary to meet the critical and longstanding need for housing and services.  Your Committees additionally find that expanding the pool of investors that may qualify for low-income housing tax credits will further incentivize development of affordable housing in the State.


     Accordingly, your Committees have amended this measure by:


     (1)  Inserting language to specify that certain provisions of the Internal Revenue Code related to at-risk rules and deductions and to passive activity losses do not apply with respect to claims from the state low-income housing tax credit;


     (2)  Specifying a general obligation bond issuance and appropriation amount of $75,000,000 for purposes of the rental housing revolving fund;


     (3)  Specifying a general obligation bond issuance and appropriation amount of $15,000,000 for construction of a mixed-use affordable rental housing and multi-use juvenile services and shelter center;


     (4)  Inserting a general fund appropriation of $75,000,000 for purposes of the dwelling unit revolving fund;


     (5)  Replacing specific appropriations and language for public housing security enhancements with a single general bond issuance and appropriation of $75,000,000 for development, improvements, security upgrades, repairs, and renovations of public housing, including security improvements and enhancements at Kalihi Valley Homes;


     (6)  Inserting an effective date of July 1, 2050, to encourage further discussion; and


     (7)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.


     As affirmed by the records of votes of the members of your Committees on Housing and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 488, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 488, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.


Respectfully submitted on behalf of the members of the Committees on Housing and Human Services,