HOUSE OF REPRESENTATIVES

H.B. NO.

1922

THIRTY-FIRST LEGISLATURE, 2022

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO A lOCAL HOUSING MARKET.

 

 

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

 


     SECTION 1.  This legislature acknowledges that our housing market is distorted by non-resident real estate investment. In response to this market distortion, it recognizes the need for housing that is affordable to Hawaii residents which is tied to local incomes.

     The purpose of this Act is to create a task force that will make recommendations on policies, strategies, legislation, and actions to promote the development of a local housing market tied to the income of Hawaii residents at various area median income levels. 

     SECTION 2.  Definitions.  For the purpose of this Act:

     "Area median income" means the most current median family income for an area as estimated and adjusted for family size by the United States Department of Housing and Urban Development.

     SECTION 3.  (a)  There is established for administrative purposes within the department of business, economic development, and tourism a task force on creating a local housing market.

     (b)  The task force is established for the purpose of providing guidance to the legislature regarding the bifurcation of the housing market in the State of Hawaii. It shall craft policy and legislation relevant to both the state and counties with the objective of creating a local housing market that is not subject to global impacts as it is currently. The policies will build a new housing market that is restricted to owner residents who pay State income tax and is tied to local income levels.

     (c)  The task force shall serve until January 2, 2023; provided that the members of the task force may represent themselves as task force members after January 2, 2023, when testifying or commenting on actions or recommendations of the task force.

     (d)  The task force shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2023.  The report shall contain the task force's recommendations on policies, strategies, and actions to be taken by the state and county to support the development of a local housing market that is tied to area median income.  The report shall also include draft legislation for the development of a local housing market.

     (e) The task force report shall include the following topics and issues with recommended solutions:

     (1) The effect of restricting all housing developed for sale at a specific percentage of area median income level to remain at that percentage in perpetuity.  With the deed restrictions reflecting the area median income it was initially offered at.

     (2) Ways to implement transaction fees, property taxes, impact fees, or other methods on the county level to generate housing development funds.  With provisions that would give income tax credits to offset these fees/taxes for filers of State tax returns, thereby shifting the financial burden off residents.

     (3) Identify areas, or housing projects, in each county to begin the development of a local housing market by implementing the findings of this task force.  

     (4) The type and method of homeowner education in financial stewardship and budgeting that will give homeowners in the local housing market the knowledge to grow in financial strength.

     SECTION 4.  Task force membership.  (a) The task force shall be composed of the following members:

     (1)  One member of the house of representatives, to be appointed by the speaker of the house of representatives;

     (2)  One members of the senate, to be appointed by the president of the senate;

     (3)  A representative from each county, to be appointed by the mayor of the respective county;

     (4)  The executive director of the Hawaii housing finance and development corporation, or their designee;

     (5)  The executive director of the Hawaii community development authority, or their designee;

     (6)  The executive director of the Hawaii public housing authority or their designee;

     (7)  One member of the public to represent non-profit developers with experience in affordable housing development, to be appointed by the speaker of the house of representatives;

     (8)  One member of the public to represent for-profit developers with experience in affordable housing development, to be appointed by the president of the senate; and

     (9)  One of the co-chairs of the Hawaii interagency council for transit-oriented development or their designee;

     (b)  The task force shall be co-chaired by the member of the senate and the member of the house of representatives appointed pursuant to subsection (a)(1) and (2).

(c)  The task force co-chairs shall invite a representative of the United States Department of Housing and Urban Development to serve as a member of the task force.

     (d)  Members of the task force who are public officers or employees shall receive no additional compensation for service on the task force beyond their normal compensation but shall be reimbursed for expenses necessarily incurred for service on the task force.  No member of the task force shall be made subject to chapter 84, Hawaii Revised Statutes, solely because of that member's participation on the task force.

     SECTION 5.  Appropriation.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2022-2023 for administration and operation of the task force on creating a local housing market.

     The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 6.  This Act shall take effect upon its approval; provided that section 5 shall take effect on July 1, 2022.

 

INTRODUCED BY:

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Report Title:

Task Force; Creation of Local Housing Market; Appropriation

 

 

Description:

Establishes a temporary task force focused on providing mechanisms for creating a local housing market.  Makes an appropriation.

 

 

 

 

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