STAND. COM. REP. NO. 1956
RE: H.C.R. No. 179
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Your Committee on Housing, to which was referred H.C.R. No. 179 entitled:
"HOUSE CONCURRENT RESOLUTION REAFFIRMING THE COMMITMENT TO INCREASE THE STATE'S AFFORDABLE HOUSING STOCK BY NOT ALLOCATING SPECIAL PURPOSE REVENUE BONDS AND DISCOURAGING THE USE OF SPECIAL PURPOSE REVENUE BONDS,"
begs leave to report as follows:
The purpose and intent of this measure is to reaffirm the Legislature's commitment to increase the State's affordable housing stock by not allocating special purpose revenue bonds and discouraging the use of special purpose revenue bonds.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Affordable Housing Connections, LLC.
Your Committee finds that the State is facing a housing shortage and it must support and facilitate the production and maintenance of available affordable housing. Your Committee recognizes that, while Low-Income Housing Tax Credits are not subject to a volume cap, they must be used in conjunction with private activity bond financing. Your Committee further recognizes that the combination of federal and state Low-Income Housing Tax Credits and private activity bonds allows developers to feasibly build rental housing projects for households at or below sixty percent of the area median income. Additionally, private activity bonds, which are capped by the federal government each year, have been the primary financing source of affordable housing. While special purpose revenue bonds (SPRBs) have no cap, some are subject to the private activity bond volume cap, which can divert much needed private activity bond financing and hinder the ability of developers to build affordable housing projects in the State. In recognition of this situation, the Legislature enacted Act 182, Session Laws of Hawaii 2022, which establishes a moratorium on the issuance of SPRBs, unless requested by the Governor. This measure seeks to reaffirm the Legislature's commitment to allow the maximum amount of private activity bonds to be used to address the State's ongoing housing crisis.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 179, and recommends its adoption.
Respectfully submitted on behalf of the members of the Committee on Housing,
STANLEY CHANG, Chair