Bill Text: HI HB1306 | 2011 | Regular Session | Amended
Bill Title: Taxation; Public Housing Projects
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2011-03-22 - (S) The committee on WLH deferred the measure. [HB1306 Detail]
Download: Hawaii-2011-HB1306-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1306 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 46-15.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any law to the contrary
notwithstanding, any county shall have and may exercise the same powers,
subject to applicable limitations, as those granted the Hawaii housing finance
and development corporation pursuant to chapter 201H insofar as those powers
may be reasonably construed to be exercisable by a county for the purpose of
developing, constructing, and providing low- and moderate-income housing;
provided that no county shall be empowered to cause the State to issue general
obligation bonds to finance a project pursuant to this section; [provided
further that county projects shall be granted an exemption from general excise
or receipts taxes in the same manner as projects of the Hawaii housing finance
and development corporation pursuant to section 201H-36; and] and provided
further that section 201H-16 shall not apply to this section unless federal
guidelines specifically provide local governments with that authorization and
the authorization does not conflict with any state laws. The powers shall
include the power, subject to applicable limitations, to:
(1) Develop and construct dwelling units, alone or in partnership with developers;
(2) Acquire necessary land by lease, purchase, exchange, or eminent domain;
(3) Provide assistance and aid to a public agency or other person in developing and constructing new housing and rehabilitating existing housing for elders of low- and moderate-income, other persons of low- and moderate-income, and persons displaced by any governmental action, by making long-term mortgage or interim construction loans available;
(4) Contract with any eligible bidders to provide for construction of urgently needed housing for persons of low- and moderate-income;
(5) Guarantee the top twenty-five per cent of the principal balance of real property mortgage loans, plus interest thereon, made to qualified borrowers by qualified lenders;
(6) Enter into mortgage guarantee agreements with appropriate officials of any agency or instrumentality of the United States to induce those officials to commit to insure or to insure mortgages under the National Housing Act, as amended;
(7) Make a direct loan to any qualified buyer for the downpayment required by a private lender to be made by the borrower as a condition of obtaining a loan from the private lender in the purchase of residential property;
(8) Provide funds for a share, not to exceed fifty per cent, of the principal amount of a loan made to a qualified borrower by a private lender who is unable otherwise to lend the borrower sufficient funds at reasonable rates in the purchase of residential property; and
(9) Sell or lease completed dwelling units.
For purposes of this section, a limitation is applicable to the extent that it may reasonably be construed to apply to a county."
SECTION 2. Section 201H-36, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201H-36[]]
Exemption from general excise taxes. (a) In accordance with section
237-29, the corporation may approve and certify for exemption from general
excise taxes any qualified person or firm involved with a newly constructed, or
moderately or substantially rehabilitated project:
(1) Developed under this part;
(2) Developed under a government assistance program approved by the corporation, including but not limited to the United States Department of Agriculture 502 program and Federal Housing Administration 235 program;
(3) Developed under the sponsorship of a private nonprofit organization providing home rehabilitation or new homes for qualified families in need of decent, low-cost housing; or
(4) Developed by a qualified person or firm 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, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development.
(b) All claims for an exemption under
this section shall be filed with [and certified by] the corporation and
[forwarded to] reviewed by the corporation and the department of
taxation[.] prior to any initial or renewal certification; provided
that renewal certification shall be obtained every four years and each
certification may be audited by the auditor as directed by the legislature.
Any claim for exemption that is filed and approved, shall not be considered a
subsidy for the purpose of this part. All funds collected from claims that
do not meet the requirements for an exemption, as determined by a review by the
corporation and the department of taxation, shall be deposited into the rental
housing trust fund.
(c) The department of taxation shall maintain an annual and cumulative record of all tax exemptions claimed under this section. The corporation shall submit its annual record to the legislature no later than twenty days prior to the convening of every regular session, beginning with the 2012 regular session.
Notwithstanding any other law to the contrary, including chapter 92F, all records maintained by the corporation under this section shall be public records and shall be made available upon request, except for proprietary information which shall not be made available; provided that the corporation may charge a reasonable reproduction fee for the requested records.
[(c)]
(d) For the purposes of this section:
"Moderate rehabilitation" 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.
"Substantial rehabilitation":
(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.
[(d)] (e) The corporation may
establish, revise, charge, and collect a reasonable service fee, as necessary,
in connection with its approvals and certifications under this section. The
fees shall be deposited into the [dwelling unit revolving fund.] rental
housing trust fund."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2010; provided that the amendments made to section 46-15.1, Hawaii Revised Statutes, under section 1 of this Act, shall not be repealed when that section is reenacted on June 30, 2015, pursuant to section 3 of Act 141, Session Laws of Hawaii 2009.
Report Title:
Taxation; Public Housing Projects
Description:
Deletes language allowing county affordable housing projects to have the same general excise tax and receipt tax exemptions as the Hawaii Housing Finance and Development Corporation (HHFDC); requires all general excise tax exemption claims to be filed with HHFDC and reviewed by HHFDC and the Department of Taxation prior to certification; requires renewal certification every four years and an audit of each certification, and annual report to legislature. (HB1306 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
