STAND. COM. REP. NO. 1505
RE: H.B. No. 488
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2017
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 488, H.D. 2, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HOUSING,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the availability of and access to housing stock in the State.
Specifically, this measure:
(1) Specifies 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) Authorizes the issuance of general obligation bonds for rental housing, a mixed-use affordable rental housing and multi-use juvenile services and shelter center, and public housing improvements, renovations, and security upgrades; and
(3) Appropriates funds for deposit into the dwelling unit revolving fund to support housing development.
Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority; Hawaii Housing Finance and Development Corporation; Hawaii State Judiciary; Hawaii Operating Engineers Industry Stabilization Fund; EAH Housing; InState Partners; Hawaii Construction Alliance; Faith Action for Community Equity; Hawaii Habitat for Humanity Association, Inc.; FACE/Housing Now Coalition; DeBartolo Development; Hawaii Association of Realtors; FACE Maui; Partners in Care; Catholic Charities Hawaii; The Community Health Outreach Work to Prevent AIDS Project; Stanford Carr Development, LLC; Pacific Resource Partnership; IMUAlliance; Michaels Development Company; Chamber of Commerce Hawaii; PHOCUSED; Land Use Research Foundation of Hawaii; and four concerned individuals.
Your Committee received written comments on this measure from the Department of Taxation.
Your Committee finds that increasing access to affordable housing in Hawaii is a priority for the State. Your Committee further finds that current limitations on low-income housing tax credits exclude many individuals and small businesses from participation.
Your Committee is concerned about cash balances in the rental housing revolving fund, the dwelling unit revolving fund, and the Hula Mae fund. Quicker disbursement of funding will promote more housing development and a healthier economy for all Hawaii residents. Affordable housing advocates should be made aware of this issue, and your Committee encourages advocates to undertake efforts to support more expeditious expenditures by the Hawaii Housing Finance and Development Corporation.
Your Committee also believes it is more appropriate to address appropriations for housing projects through the executive budget.
Accordingly, your Committee has amended this measure by:
(1) Deleting language authorizing the issuance of general obligation bonds for rental housing, a mixed-use affordable rental housing and multi-use juvenile services and shelter center, and public housing improvements, renovations, and security upgrades;
(2) Deleting language appropriating funds for the dwelling unit revolving fund;
(3) Providing that the amendments made to the low-income housing tax credit in section 2 of the measure will apply to qualified low-income buildings awarded credits beginning after December 31, 2050, rather than December 31, 2017, to facilitate further discussion on the measure; and
(4) Making technical, nonsubstantive amendments for 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. 488, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 488, H.D. 2, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
JILL N. TOKUDA, Chair