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HOUSE OF REPRESENTATIVES |
H.R. NO. |
129 |
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THIRTIETH LEGISLATURE, 2020 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
Requesting the auditor to conduct an audit of cash payments made in lieu of providing reserved housing at proposed development projects.
WHEREAS, pursuant to various administrative rules, developers are required to set aside a certain percentage of units, known as reserved housing, for residents making less than a specified income; and
WHEREAS, "reserved housing" is specifically defined in sections 206E-2 and 206E-101, Hawaii Revised Statutes, as "housing designated for residents in the low-income or moderate-income ranges who meet such eligibility requirements as the authority may adopt by rule"; and
WHEREAS, section 206E-4(18), Hawaii Revised Statutes, and section 15-218-46, Hawaii Administrative Rules, authorize the Hawaii Community Development Authority to allow developers to make a cash payment in lieu of providing reserved housing at a proposed development project, commonly known as a cash in lieu payment; and
WHEREAS, section 15-218-46, Hawaii Administrative Rules, sets forth the formula for determining the amount of a developer's cash in lieu payment; and
WHEREAS, while no law or administrative rule, including section 15-218-46, Hawaii Administrative Rules, specifically prescribes how revenue from cash in lieu payments shall be expended, section 15-218-1, Hawaii Administrative Rules, states, in part, that "the purpose of this chapter is to establish an increased supply of housing for low- or moderate-income households within the Kakaako community development district"; and
WHEREAS, the law is unclear as to which fund the cash in lieu payments shall be deposited and no reports regarding those moneys are transmitted to the Legislature; and
WHEREAS, testimony elicited during the Regular Session of 2020 did not provide any accounting or record of past cash in lieu payments or guarantee that all of that revenue was directly used to increase the supply of housing for low- or moderate-income households; now, therefore,
BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, the Auditor is requested to conduct an audit of the cash payments made in lieu of providing reserved housing authorized by the Hawaii Community Development Authority pursuant to section 206E-4(18), Hawaii Revised Statutes; and
BE IT FURTHER RESOLVED that the audit cover the period of 2010 to the present and include:
(1) The amount of moneys that have been collected for cash in lieu payments;
(2) The fund into which the cash in lieu payment revenues have been deposited and the amount of moneys in that fund;
(3) A record detailing the expenditures of the cash in lieu payment revenues and other moneys in the fund into which the cash in lieu payment revenues have been deposited;
(4) The amount, if any, of the cash in lieu payment revenues that have funded the construction of reserved housing; and
(5) The number of reserved housing units that the Hawaii Community Development Authority has delivered using cash in lieu payment revenues and the location of those units; and
BE IT FURTHER RESOLVED that the Auditor is requested to submit the Auditor's findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2021; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor and Chairperson of the Hawaii Community Development Authority.
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OFFERED BY: |
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Auditor; Audit; Reserved Housing; Affordable Housing; Hawaii Community Development Authority; Hawaii Housing Finance and Development Corporation; In Lieu Payments