THE SENATE

S.B. NO.

1121

THIRTY-FIRST LEGISLATURE, 2021

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

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

 


Section 1. The legislature finds that lands utilized by the department of Hawaiian home lands to provide housing for native Hawaiians are offered at affordable rates when compared to similar housing available in Hawaii. The purpose of this Act is to exempt any housing developed by the department of Hawaiian home lands from general excise taxes.

Section 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237-   Exemptions for any housing development for the department of Hawaiian home lands. (a) There shall be exempted from the measure of the taxes imposed by this chapter, all gross proceeds arising from the planning, design, financing, or construction of any housing development by the department of Hawaiian home lands.

(b) The exemption shall be approved by the department of Hawaiian home lands and shall apply to the gross income derived by any qualified person from a newly constructed or a moderately or substantially rehabilitated project that is developed:

(1) Under a government assistance program approved by the department of Hawaiian home lands;

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

(3) 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; or

(4) By contract or project developer agreement to provide affordable housing through new construction or substantial rehabilitation; provided that:

(A) The allowable general excise tax and use tax costs shall apply to contracting only and shall not exceed $30,000,000 per year in the aggregate for all projects approved and certified by the department of Hawaiian home lands; and

(B) 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.

(c) The exemption shall apply to housing projects that are covered by a regulatory agreement with the department of Hawaiian home lands to ensure the project's continued compliance with the applicable eligibility requirements in subsection (b), unless exempted by the department of Hawaiian home lands.

(d) All claims for exemption under this section shall be filed with and certified by the department of Hawaiian home lands and forwarded to the department of taxation by the claimant. Any claim for exemption that is filed and approved, shall not be considered a subsidy.

(e) For purposes of this section:

"Moderately rehabilitated" means rehabilitation to upgrade a dwelling unit to a decent, safe, and sanitary condition, or to repair or replace major building systems or components in danger of failure.

"Substantially rehabilitated":

(1) Means the improvement of a property to a decent, safe, and sanitary condition that requires more than routine or minor repairs or improvements. It may include but is not limited to the gutting and extensive reconstruction of a dwelling unit, or cosmetic improvements coupled with the curing of a substantial accumulation of deferred maintenance; and

(2) Includes renovation, alteration, or remodeling to convert or adapt structurally sound property to the design and condition required for a specific use, such as conversion of a hotel to housing for elders.

(f) The department of Hawaiian home lands may establish, revise, charge, and collect a reasonable service fee, as necessary, in connection with its approvals and certifications of the exemption under this section. The fees shall be deposited into the department of Hawaiian home lands administration account."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.


 


 

Report Title:

Housing; General Excise Tax Exemption

 

Description:

Exempts housing developed by the Department of Hawaiian Home Lands from general excise taxes. (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.