Bill Text: HI SB1277 | 2010 | Regular Session | Amended
Bill Title: Housing; Affordable Housing; Omnibus
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Engrossed - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB1277 Detail]
Download: Hawaii-2010-SB1277-Amended.html
Report Title:
Housing; Affordable Housing; Omnibus
Description:
Increases incentives for the development of affordable housing in Hawaii. (SD1)
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THE SENATE |
S.B. NO. |
1277 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
S.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. The purpose of this Act is to increase incentives for the development of affordable housing in Hawaii.
PART I
SECTION 2. The legislature finds that self-help housing programs offer low- and moderate-income families an opportunity to own their own homes by using "sweat equity" to build their homes. Families who have built their own homes show greatly improved financial stability, the children do better in school, and the families rarely move, which often provides increased employment opportunities. Self-help housing is a hand up from circumstances that frequently lead to homelessness, and a number of self-help housing homeowners in Hawaii have been homeless prior to building their homes.
The purpose of this part is to establish a dedicated source of funding for self-help housing by:
(1) Establishing a self-help housing trust fund with income from the conveyance tax; and
(2) Increasing the amount of conveyance tax paid per $100 of value for properties with a value greater than $1,000,000.
SECTION 3. Chapter 201H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§201H- Self-help housing trust fund. (a) There is established the self-help housing trust fund to be administered by the corporation.
(b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the fund; provided that fund moneys may not be used to finance day-to-day administrative expenses of projects allotted fund moneys.
(c) The following may be deposited into the fund: appropriations made by the legislature, private contributions, repayment of loans, interest, other returns, and moneys from other sources.
(d) The fund shall be used to provide loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of self-help housing units. Permitted uses of moneys from the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, and other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a self-help housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible.
(e) The corporation may provide loans and grants under this section; provided that the corporation shall establish loan-to-value ratios to protect the fund from inordinate risk and under no circumstances shall the rules permit the loan‑to-value ratio to exceed one hundred per cent; and provided further that the underwriting guidelines include a debt-coverage ratio of not less than 1 to 1.
(f) The corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded and its efforts to develop self-help housing projects, including any assistance or other partnership efforts with private or other governmental self-help housing organizations.
(g) For the purposes of this section "self-help housing" means housing in which prospective homeowners have contributed labor, materials, or real property."
SECTION 4. Section 247-2, Hawaii Revised Statutes, is amended to read as follows:
"§247-2 Basis and rate of tax. The tax imposed by section 247-1 shall be based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit), paid or to be paid for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates:
(1) Except as provided in paragraph (2):
(A) Ten cents per $100 for properties with a value of less than $600,000;
(B) Twenty cents per $100 for properties with
a value of at least $600,000, but less than $1,000,000; [and]
(C) [Thirty] Fifty cents per
$100 for properties with a value of at least $1,000,000 [or greater;
and] but less than $2,000,000;
(D) $1 per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;
(E) $2 per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;
(F) $3 per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and
(G) $4 per $100 for properties with a value of $10,000,000 or greater; and
(2) For the sale of a condominium or single family residence for which the purchaser is ineligible for a county homeowner's exemption on property tax:
(A) Fifteen cents per $100 for properties with a value of less than $600,000;
(B) Twenty-five cents per $100 for properties
with a value of at least $600,000, but less than $1,000,000; [and]
(C) [Thirty-five cents] $1 per
$100 for properties with a value of at least $1,000,000 [or greater,]
but less than $2,000,000;
(D) $2 per $100 for properties with a value of at least $2,000,000, but less than $4,000,000;
(E) $4 per $100 for properties with a value of at least $4,000,000, but less than $6,000,000;
(F) $6 per $100 for properties with a value of at least $6,000,000, but less than $10,000,000; and
(G) $8 per $100 for properties with a value of $10,000,000 or greater; and
of such actual and full consideration; provided that in the case of a lease or sublease, this chapter shall apply only to a lease or sublease whose full unexpired term is for a period of five years or more, and in those cases, including (where appropriate) those cases where the lease has been extended or amended, the tax in this chapter shall be based on the cash value of the lease rentals discounted to present day value and capitalized at the rate of six per cent, plus the actual and full consideration paid or to be paid for any and all improvements, if any, that shall include on-site as well as off-site improvements, applicable to the leased premises; and provided further that the tax imposed for each transaction shall be not less than $1."
SECTION 5. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:
"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:
(1) Ten per cent shall be paid into the land conservation fund established pursuant to section 173A-5;
(2) [Thirty] Forty-five per cent shall
be paid into the rental housing trust fund established by section 201H‑202;
[and]
(3) [Twenty-five] Twenty per cent shall
be paid into the natural area reserve fund established by section 195-9;
provided that the funds paid into the natural area reserve fund shall be
annually disbursed by the department of land and natural resources in the
following priority:
(A) To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;
(B) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and
(C) The youth conservation corps established
under chapter 193[.]; and
(4) Five per cent shall be paid into the self-help housing trust fund established by section 201H- ."
PART II
SECTION 6. The purpose of this part is to increase the value of state low-income housing tax credits by shortening the period over which the credits can be taken from ten years to five years.
SECTION 7. Section 235-110.8, Hawaii Revised Statutes, is amended to read as follows:
"§235-110.8 Low-income housing tax
credit. (a) [Section] Except for section 42(b) of the Internal
Revenue Code, which shall not be operative for purposes of this chapter,
section 42 (with respect to the low-income housing credit) of the
Internal Revenue Code shall be operative for the purposes of this chapter as
provided in this section.
(b) Each taxpayer subject to the tax imposed
by this chapter, who has filed [[]a[]] net income tax return for
a taxable year may claim a low-income housing tax credit against the taxpayer's
net income tax liability. The amount of the credit shall be deductible from
the taxpayer's net income tax liability, if any, imposed by this chapter for
the taxable year in which the credit is properly claimed on a timely basis. A
credit under this section may be claimed whether or not the taxpayer claims a federal
low-income housing tax credit pursuant to section 42 of the Internal Revenue
Code.
(c) The amount of the low-income
housing tax credit that may be claimed by a taxpayer as provided in
subsection (b) shall be [fifty per cent of the applicable percentage of
the qualified basis of each building located in Hawaii. The applicable
percentage shall be calculated as provided in section 42(b) of the Internal
Revenue Code.] equal to the amount of the federal low-income housing tax
credit that the taxpayer claimed or could have claimed pursuant to section 42
of the Internal Revenue Code for the same taxable year with respect to each
qualified low-income building located in Hawaii; provided that, for purposes of
subsection (b), the taxpayer may claim a low-income housing tax credit only
with respect to the amount of federal low-income housing tax credit claimed for
the first five years of the credit period for each respective qualified
low-income building, as defined in section 42(f)(1) of the Internal Revenue Code
that is located in Hawaii; provided further that the amount of the low-income
housing tax credit claimed by a taxpayer shall be computed without regard to
any federal low-income housing tax credit that is carried forward from a prior
taxable year.
(d) For the purposes of this section, the determination of:
(1) Qualified basis and qualified low-income building shall be made under section 42(c);
(2) Eligible basis shall be made under section 42(d);
(3) Qualified low-income housing project shall be made under section 42(g);
(4) Recapture of credit shall be made under section 42(j), except that the tax for the taxable year shall be increased under section 42(j)(1) only with respect to credits that were used to reduce state income taxes;
(5) Application of at-risk rules shall be made under section 42(k);
of the Internal Revenue Code.
(e) As provided in section 42(e),
rehabilitation expenditures shall be treated as separate new building and their
treatment under this section shall be the same as in section 42(e). The [definitions
and special rules relating to credit period in section 42(f) and the]
definitions and special rules in section 42(i) shall be operative for the
purposes of this section.
(f) The definitions and special rules relating to credit periods in section 42(f) shall be operative for the purposes of this section; except that section 42(f)(1) of the Internal Revenue Code shall be modified as follows: the term "credit period" means, with respect to any building, the period of five taxable years beginning with:
(1) The taxable year in which the building is placed in service; or
(2) At the election of the taxpayer, the succeeding taxable year;
provided that the building is a qualified low-income building as of the close of the first year of such period. The election under paragraph (2), once made, shall be irrevocable.
[(f)] (g) The state housing
credit ceiling under section 42(h) shall be zero for the calendar year
immediately following the expiration of the federal low-income housing tax
credit program and for any calendar year thereafter, except for the carryover
of any credit ceiling amount for certain projects in progress which, at the
time of the federal expiration, meet the requirements of section 42.
[(g)] (h) The credit allowed
under this section shall be claimed against net income tax liability for the
taxable year. For the purpose of deducting this tax credit, net income tax
liability means net income tax liability reduced by all other credits allowed
the taxpayer under this chapter.
A tax credit under this section which exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for a tax credit under this section must be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to properly and timely claim the credit shall constitute a waiver of the right to claim the credit. A taxpayer may claim a credit under this section only if the building or project is a qualified low-income housing building or a qualified low-income housing project under section 42 of the Internal Revenue Code.
Section 469 (with respect to passive activity losses and credits limited) of the Internal Revenue Code shall be applied in claiming the credit under this section.
[(h)] (i) The director of
taxation may adopt any rules under chapter 91 and forms necessary to carry out
this section."
PART III
SECTION 8. The purpose of this part is to facilitate the collection of the shared appreciation equity lien, deferred sales price lien, and excess proceeds in lieu of any buyback, imposed by the State on the sale of affordable housing properties that received assistance from the Hawaii housing finance and development corporation which are undergoing foreclosure.
SECTION 9. Section 201H-47, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) The following restrictions shall apply to the transfer of real property developed and sold under this chapter, whether in fee simple or leasehold:
(1) For a period of ten years after the purchase, whether by lease, assignment of lease, deed, or agreement of sale, if the purchaser wishes to transfer title to the real property, the corporation shall have the first option to purchase the real property at a price that shall not exceed the sum of:
(A) The original cost to the purchaser, as defined in rules adopted by the corporation;
(B) The cost of any improvements added by the purchaser, as defined in rules adopted by the corporation; and
(C) Simple interest on the original cost and capital improvements to the purchaser at the rate of one per cent a year;
(2) The corporation may purchase the real property either:
(A) By conveyance free and clear of all mortgages and liens; or
(B) By conveyance subject to existing mortgages and liens.
If the real property is conveyed in the manner provided in subparagraph (A), it shall be conveyed to the corporation only after all mortgages and liens are released. If the real property is conveyed in the manner provided in subparagraph (B), the corporation shall acquire the property subject to any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller; and any mortgage or lien created for any other purpose provided that the corporation has previously consented to it in writing.
The corporation's interest created by this
[paragraph] section shall constitute a statutory lien on the real
property and shall be superior to any other mortgage or lien except for:
(i) Any first mortgage created for the purpose of securing the payment of a loan of funds expended solely for the purchase of the real property by the seller;
(ii) Any mortgage insured or held by a federal housing agency; and
(iii) Any mortgage or lien created for any other purpose; provided that the corporation has previously consented to it in writing.
The amount paid by the corporation to the seller shall be the difference, if any, between the purchase price determined by paragraph (1)(A) to (C), and the total of the outstanding principal balances of the mortgages and liens assumed by the corporation;
(3) A purchaser may refinance real property developed and sold under this chapter provided that the purchaser shall not refinance the real property within ten years from the date of purchase for an amount in excess of the purchase price as determined by paragraph (1)(A) to (C); provided further that the purchaser shall obtain the corporation's written consent while any restriction on transfer established in this chapter remains applicable;
(4) After the end of the tenth year from the date of initial purchase or execution of an agreement of sale, the purchaser may sell the real property and sell or assign the property free from any price restrictions; provided that the purchaser shall be required to pay to the corporation the sum of:
(A) The balance of any mortgage note, agreement of sale, or other amount owing to the corporation;
(B) Any subsidy or deferred sales price made by the corporation in the acquisition, development, construction, and sale of the real property, and any other amount expended by the corporation not counted as costs under section 201H-45 but charged to the real property by good accounting practice as determined by the corporation whose books shall be prima facie evidence of the correctness of the costs;
(C) Interest on the subsidy or deferred sales price, if applicable, and any other amount expended at the rate of seven per cent a year computed as to the subsidy or deferred sales price, if applicable, from the date of purchase or execution of the agreement of sale, and as to any amount expended, from the date of expenditure; provided that the computed interest shall not extend beyond thirty years from the date of purchase or execution of the agreement of sale of the real property. If any proposed sale or transfer will not generate an amount sufficient to pay the corporation the sum as computed under this paragraph, the corporation shall have the first option to purchase the real property at a price that shall not exceed the sum as computed under paragraphs (1) and (2); and
(D) The corporation's share of appreciation in
the real property as determined under rules adopted pursuant to chapter 91,
when applicable; [and]
(5) Notwithstanding any provision above to the
contrary, pursuant to rules adopted by the corporation, the subsidy or deferred
sales price described in paragraph (4)(B) and any interest accrued pursuant to
paragraph (4)(C) may be paid, in part or in full, at any time[.]; and
(6) Notwithstanding any provision above to the contrary, the corporation's share of appreciation in the real property described in paragraph (4)(D):
(A) Shall apply when the sale price of the real property that is developed and initially sold under this chapter is less than the then-current, unencumbered, fair market value of the real property as determined by a real property appraisal obtained prior to the closing of the sale;
(B) Is a restriction that runs with the land until it is paid in full and released by the corporation, or extinguished pursuant to subsection (e); and
(C) May be paid, in part or in full, at any time after recordation of the sale."
2. By amending subsection (c) to read:
"(c) The corporation may waive the restrictions prescribed in subsection (a) or (b) if:
(1) The purchaser wishes to transfer title to the real property by devise or through the laws of descent to a family member who would otherwise qualify under rules established by the corporation;
(2) The sale or transfer of the real property would
be at a price and upon terms that preserve the intent of this section without
the necessity of the State repurchasing the real property; provided that, in
this case, the purchaser shall sell the [unit or lot] real property
and sell or assign the real property to a person who is a
"qualified resident" as defined in section 201H-32; and provided
further that the purchaser shall pay to the corporation its share of
appreciation in the [unit] real property as determined in rules
adopted pursuant to chapter 91, when applicable; or
(3) The sale or transfer is of real property subject to a sustainable affordable lease as defined in section 516-1."
3. By amending subsections (e) and (f) to read:
"(e) The restrictions prescribed in this section and sections 201H-49 to 201H-51 shall be automatically extinguished and shall not attach in subsequent transfers of title when a mortgage holder or other party becomes the owner of the real property pursuant to a mortgage foreclosure, foreclosure under power of sale, or a conveyance in lieu of foreclosure after a foreclosure action is commenced; provided that the mortgage is the initial purchase money mortgage, or that the corporation consented to, and agreed to subordinate the restrictions on the mortgage when originated if the mortgage is not the initial purchase money mortgage; or when a mortgage is assigned to a federal housing agency. Any law to the contrary notwithstanding, a mortgagee under a mortgage covering real property or leasehold interest encumbered by the first option to purchase in favor of the corporation, prior to commencing mortgage foreclosure proceedings, shall notify the corporation in writing of:
(1) Any default of the mortgagor under the mortgage within ninety days after the occurrence of the default; and
(2) Any intention of the mortgagee to foreclose the mortgage under chapter 667; forty-five days prior to commencing mortgage foreclosure proceedings;
provided that the mortgagee's failure to provide
written notice to the corporation shall not affect the mortgage holder's rights
under the mortgage. The corporation shall be a party to any foreclosure
action, and shall be entitled to its share of appreciation in the real
property as determined under this chapter in lien priority when such payment is
applicable, and, if foreclosure occurs within the ten-year period after the
purchase, the corporation shall also be entitled to all proceeds remaining
in excess of all customary and actual costs and expenses of transfer pursuant
to default, including liens and encumbrances of record; provided that the
person in default shall be entitled to an amount [which] that
shall not exceed the sum of amounts determined pursuant to subsection (a)(1)(B)
and (C).
(f) The provisions of this section shall be incorporated in any deed, lease, agreement of sale, or any other instrument of conveyance issued by the corporation. In any sale by the corporation of real property for which a subsidy or deferred sales price was made by the corporation, the amount of the subsidy or deferred sales price described in subsection (a)(4)(B), a description of the cost items that constitute the subsidy or deferred sales price, and the conditions of the subsidy or deferred sales price shall be clearly stated at the beginning of the contract document issued by the corporation. In any sale in which the corporation's share of appreciation in real property shall be a restriction, the terms of the shared appreciation equity program shall be clearly stated and included as an exhibit in any deed, lease, agreement of sale, or any other instrument of conveyance."
SECTION 10. Section 201H-50, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Restrictions on the use, sale, and
transfer of real property shall be made as uniform as possible in application
to purchasers of all real property, and restrictions shall be conformed with
agreement of the purchaser to reflect change or repeal made by any subsequent
legislative act, ordinance, rule, or regulation. Purchasers shall be permitted
at their election to sell or transfer real property subject to restrictions in
effect at the time of their sale or transfer[.]; provided that the corporation
is paid its share of appreciation in the real property as determined by rules
adopted pursuant to chapter 91, as applicable."
PART IV
SECTION 11. The purpose of this part is to assist low and moderate income persons with purchasing a principal residence by providing qualified buyers with a state income tax credit up to or equal to twenty per cent of the annual mortgage interest payment.
SECTION 12. Chapter 235, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . MORTGAGE CREDIT CERTIFICATES
§235-A Definitions. As used in this part:
"Certificate credit rate" means the rate of the credit allowable by this part that is specified in the mortgage credit certificate.
"Certified indebtedness amount" means the amount of indebtedness that is incurred by the taxpayer to acquire the principal residence of the taxpayer and specified in the mortgage credit certificate.
"Mortgage credit certificate" means any certificate that is issued under a qualified mortgage credit certificate program to the taxpayer in connection with the acquisition of the taxpayer's principal residence, specifies the certificate credit rate and the certified indebtedness amount, and is in a form as the director may prescribe.
"Principal residence" has the same meaning as used in section 121 of the federal Internal Revenue Code of 1986, as amended.
"Qualified mortgage credit certificate program" means any program:
(1) Under which the indebtedness certified by mortgage credit certificates meets the following requirements:
(A) The residence financed by the indebtedness is a single-family residence in the State that can reasonably be expected to become the principal residence of the mortgagor within a reasonable time after the financing is provided;
(B) The mortgagor had no present ownership interest in the mortgagor's principal residence at any time during the three-year period ending on the date that the mortgage is executed;
(C) The purchase price of the residence financed by the indebtedness does not exceed , and
(D) The income of the mortgagor does not exceed $ ;
(2) Under which no mortgage credit certificate may be issued with respect to any residence for which any of the financing is provided from the proceeds of a qualified mortgage bond or a qualified veterans' mortgage bond;
(3) Except to the extent provided in rules, that is not limited to indebtedness incurred from particular lenders; and
(4) Except to the extent provided in rules, which provides that a mortgage credit certificate is not transferable.
§235-B Allowance of credit. (a) There shall be allowed as a credit against the tax imposed by this chapter, for the taxable year, an amount equal to the product of:
(1) The certificate credit rate; and
(2) The interest paid or accrued by the taxpayer during the taxable year on the remaining principal of the certified indebtedness amount.
(b) If the certificate credit rate exceeds twenty per cent, the amount of the credit allowed to the taxpayer under this section for any taxable year shall not exceed $2,000.
(c) If two or more persons hold interests in any residence, the limitation of subsection (b) shall be allocated among the persons in proportion to their respective interests in the residence.
§235-C Determination of certificate credit rate. For purposes of this part, the certificate credit rate specified in any mortgage credit certificate shall not be less than ten per cent or more than fifty per cent.
§235-D Aggregate limit on certificate credit rates. In the case of each qualified mortgage credit certificate program, the sum of the products determined by multiplying the certified indebtedness amount of each mortgage credit certificate issued under the program, by the certificate credit rate with respect to the certificate, shall not exceed the amount authorized by the legislature for that year by adoption of a concurrent resolution.
§235-E Carry forward of unused credit. (a) If the credit allowable under this part for any taxable year exceeds the applicable tax limit for the taxable year, the excess shall carryover to each of the three succeeding taxable years and, subject to the limitations of subsection (b), shall be added to the credit allowable by this part for the succeeding taxable year.
(b) The amount of the unused credit that may be taken into account under this section for any taxable year shall not exceed the amount, if any, by which the applicable tax limit for the taxable year exceeds the sum of:
(1) The credit allowable under this part for the taxable year determined without regard to this section; and
(2) The amounts that, by reason of this section, are carried to the taxable year and are attributable to taxable years before the unused credit year.
§235-F Indebtedness not treated as certified where certain requirements not, in fact, met. (a) This part shall not apply to any indebtedness if all the requirements of section 235- , were not, in fact, met with respect to the indebtedness.
(b) Except to the extent otherwise provided in rules adopted by the director, the requirements under this part shall be treated as met if there is a certification, under penalty of perjury, that the requirements are met.
§235-G Period for which certificate in effect. (a) Except as otherwise provided in this part, a mortgage credit certificate shall be treated as in effect with respect to interest attributable to the period:
(1) Beginning on the date the certificate is issued; and
(2) Ending on the earlier of:
(A) The date that is specified in the certificate; or
(B) The date on which the residence to which the certificate relates ceases to be the principal residence of the individual to whom the certificate relates.
(b) A certificate shall not apply to any indebtedness that is incurred after the close of the second calendar year following the calendar year in which the certificate is issued.
§235-H Interest paid or accrued to related persons. No credit shall be allowed under this part for any interest paid or accrued to a person who is a related person to the taxpayer, within the meaning of section 144(a)(3)(A) of the federal Internal Revenue Code of 1986, as amended.
§235-I Reporting requirements. (a) Each person who makes a loan that is a certified indebtedness amount under any mortgage credit certificate shall file a report with the director containing:
(1) The name, address, and social security account number of the individual to which the certificate was issued;
(2) The certificate's issuer, date of issue, certified indebtedness amount, and certificate credit rate; and
(3) Any other information as the director may require by rules.
(b) Each person who issues a mortgage credit certificate shall file a report showing the information as the director shall prescribe by rules. Any report shall be filed at a time and in a manner as the director may require by rules.
§235-J Rules. The director shall adopt rules pursuant to chapter 91 as may be necessary to carry out the purposes of this part, including rules that may require recipients of mortgage credit certificates to pay a reasonable processing fee to defray the expenses incurred in administering the program."
SECTION 13. 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 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for the mortgage credit certificate program established by this part.
The sums appropriated shall be expended by the department of taxation for the purposes of this part.
PART V
SECTION 14. The purpose of this part is to direct the Hawaii housing finance and development corporation to develop recommendations regarding the use of tax incremental financing.
SECTION 15. The Hawaii housing finance and development corporation shall report to the legislature no later than twenty days prior to the convening of the regular session of 2010 with recommendations regarding the use of tax incremental financing as an economic development tool to leverage private development investment, including the experiences of other jurisdictions, the establishment of tax incremental districts, and any legislation that may be required to implement tax incremental financing in Hawaii.
PART VI
SECTION 16. In codifying the new sections added by section 12 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 18. This Act shall take effect on July 1, 2035; provided that sections 7 and 12 shall apply to taxable years beginning after December 31, 2008.
