Bill Text: HI HB2085 | 2014 | Regular Session | Amended
Bill Title: HHFDC; Affordable Housing and Mixed-Use Projects Incentive
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2014-02-13 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Hanohano, Thielen voting aye with reservations; none voting no (0) and Representative(s) Awana, Cachola, Carroll, Takumi excused (4). [HB2085 Detail]
Download: Hawaii-2014-HB2085-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2085 |
TWENTY-SEVENTH LEGISLATURE, 2014 |
H.D. 1 |
|
STATE OF HAWAII |
|
|
|
|
|
|
||
|
A BILL FOR AN ACT
RELATING TO ECONOMIC SUSTAINABILITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the lack of new affordable housing and affordable rentals in the State persists. Existing incentives to build affordable units are used infrequently because incentives do not offset the actual cost of building affordable housing. It remains a priority for the State to continue creating additional incentives that will ensure an available inventory of affordable housing that is so critical to our local residents. Market forces have historically failed to generate affordable housing in close proximity to existing transit hubs in accordance with the core principles of transit-oriented development, making it incumbent upon government to intervene where market forces fail to create the desired solution.
The core principles of transit-oriented development expressly require that affordable housing units be located in close proximity to transit stations and consist of high-density vertical housing to ensure that the greatest number of potential riders can be served by the transit system.
The purpose of this Act is to incentivize an increase in the inventory of affordable housing units while ensuring the viability and success of public rail transit systems by creating incentives to build affordable units and mixed-use projects on state land along a rail system.
SECTION 2. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§201H- Location-efficient mixed-use projects. (a) The corporation may develop, on behalf of the State or with any qualified person or firm, a mixed-use project within a location-efficient area.
(b) The corporation may approve and certify any qualified person or firm who is involved in the development of affordable housing in a newly constructed, or moderately or substantially rehabilitated, mixed-use project within a location-efficient area for purposes of receiving the general excise tax exemption authorized pursuant to sections 201H-36 and 237-29 in taxable years beginning after December 31, 2015.
(c) All claims under this section shall be filed with, and certified by, the corporation and forwarded to the department of taxation. Any claim that is filed with and approved by the department of taxation shall not be considered a subsidy for the purposes of this part.
(d) For the purposes of this section:
"Location-efficient area" means one or more contiguous parcels of land aggregating five or more acres that are owned by the State, one parcel of which is located within two thousand feet of a rail transit station.
"Mixed-use project" means a project that:
(1) Is located in a location-efficient area;
(2) Contains affordable mutifamily residential dwelling units that may be combined with commercial, cultural, institutional, or industrial uses;
(3) Is approved by the county in which the project is located; and
(4) Is subject to chapter 104; 40 United States Code sections 3141, 3142, 3143, 3144, 3146, and 3147; or a project labor agreement by law or contract in the construction of the project.
(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. Any fees collected shall be deposited into the dwelling unit revolving fund.
(f) The corporation, in consultation with the department of taxation, shall adopt rules, pursuant to chapter 91, for the purposes of this section requiring that:
(1) Any certification or approval of a general excise tax exemption for a qualified person or firm involved in the development of a mixed-use project pursuant to this section shall apply to the development of the entire mixed-use project;
(2) Cost savings from a general excise tax exemption granted to a qualified person or firm for the development of a mixed-use project pursuant to this section shall be used exclusively to provide affordable rental housing units, including student and faculty housing units, within the project; and
(3) Affordable rental housing units developed pursuant to this section shall serve as many low income households as feasible."
SECTION 3. 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; provided that no county shall develop a mixed-use project under section 201H- ; 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 4. Section 237-8.6, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) No county surcharge on state tax shall be established on any:
(1) Gross income or gross proceeds taxable under this chapter at the one-half per cent tax rate;
(2) Gross income or gross proceeds taxable under this chapter at the 0.15 per cent tax rate; or
(3) Transactions, amounts, persons, gross income, or
gross proceeds exempt from tax under this chapter[.], except those that
are exempt under section 237-29 pursuant to section 201H- ."
SECTION 5. Section 238-2.6, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) No county surcharge on state tax
shall be established upon any use taxable under this chapter at the one-half
per cent tax rate or upon any use that is not subject to taxation or that is
exempt from taxation under this chapter[.], except for the use of
property, services, or contracting not subject to taxation under section
238-3(j) as a result of an approval under section 237-29 pursuant to section
201H- ."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2014; provided that general excise tax exemptions established pursuant to this Act shall apply to taxable years beginning after December 31, 2015.
Report Title:
HHFDC; Affordable Housing and Mixed-Use Projects Incentive
Description:
Authorizes a General Excise Tax exemption for development of mixed-use affordable housing projects located near rail transit stations. Applies to taxable years beginning after December 31, 2015. Effective July 1, 2014. (HB2085 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.