Hawaii-2018-SB2421-Introduced

SECTION 1. The legislature finds that the cost of housing and the lack of affordable rentals and properties for sale are two of the most pressing issues facing the State, and that the lack of housing inventory has driven up the cost of rental properties and homes for sale. In November 2016, the median price of a home in Hawaii was $584,400. On Oahu, where the shortage of affordable housing is most acute, the median sale price for single-family houses, as reported by the Honolulu Board of REALTORS, was $730,000.

The legislature further finds that a shortage of affordable housing is one of the primary causes of homelessness in Hawaii. Rates of homelessness have been increasing in the State in recent years, and events such as the development of the homeless encampment in Kakaako in 2015 and 2016 highlight the need to provide more housing for middle class and low income residents.

The legislature additionally finds that a consensus exists among many individuals, working groups, and task forces focused on addressing the issue of homelessness that more units must be constructed to meet the growing demand for affordable housing. The legislature also finds that government land is available for housing, but infrastructure is insufficient in many areas, including for transit-oriented development. It is projected that meeting long-term housing goals will require sixty-four thousand new housing units by 2025, and of that total, twenty-two thousand two hundred households of all income levels will require rental units. Act 127, Session Laws of Hawaii 2016, was enacted to address the need for sixty-four thousand seven hundred new housing units with a goal to build 22,247 residential rental units by 2026. The legislature further finds that funding is a key component of meeting these construction goals.

The purpose of this Act is to:

(1) Authorize the director of finance to issue general obligation bonds to construct affordable rental units and homes; and

(2) Allow moneys from the conveyance tax and the county surcharge on state tax to be used to repay the bonds.

SECTION 2. 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 or $6,800,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; [~~and~~]

(2) Fifty per cent or $38,000,000, whichever is less, shall be paid into the rental housing revolving fund established by section 201H-202[.]; and

(3) Funds may be used to repay bonds issued pursuant to Act , Session Laws of Hawaii 2018."

SECTION 3. Section 248-2.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) If adopted by county ordinance, all county surcharges on state tax collected by the director of taxation shall be paid into the state treasury quarterly, within ten working days after collection, and shall be placed by the director of finance in special accounts; provided that county surcharge revenues levied, assessed, and collected in a county with a population greater than five hundred thousand shall be deposited into the mass transit special fund established under section 248-2.7. Out of the revenues generated by county surcharges on state tax paid into each respective state treasury special account or the mass transit special fund, the director of finance shall deduct one per cent of the gross proceeds of a respective county's surcharge on state tax to [~~reimburse~~]:

(1) Reimburse the State for the costs of assessment, collection, disposition, and oversight of the county surcharge on state tax incurred by the State[.]; and

(2) Repay bonds issued pursuant to Act , Session Laws of Hawaii 2018.

Amounts retained shall be general fund realizations of the State."

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $500,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2018-2019 for the purpose of developing affordable housing and to be distributed as follows:

(1) Dwelling unit revolving fund $ ;

(2) Rental housing revolving fund $ ; and

(3) Rental assistance housing fund $ .

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $400,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2018-2019 for the completion of:

(1) Kuhio park terrace improvements;

(2) The Mayor Wright housing development project; and

(3) The Hawaii public housing authority School street project;

provided that the housing units shall be used by residents earning between thirty per cent and sixty per cent of the area median income.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 6. The director of finance is authorized to issue general obligation bonds in the sum of $200,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2018-2019 for the purpose of constructing temporary transitional housing or homeless shelters on Kauai, Maui, Oahu, and the island of Hawaii; provided that the temporary transitional housing or homeless shelters shall be converted to low-income rental units when the need for temporary transitional housing or homeless shelters ends; provided further that the temporary transitional housing or homeless shelters shall be used by residents earning between zero per cent and sixty per cent of the area median income.

The sum appropriated shall be expended by the Hawaii public housing authority for the purposes of this Act.

SECTION 7. The director of finance is authorized to issue general obligation bonds in the sum of $450,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2018-2019 for the purpose of constructing affordable rental units; provided that the Hawaii housing finance and development corporation may enter into partnerships with private entities for the purpose of constructing the units; provided further that the units shall be used by residents earning between thirty per cent and one hundred forty per cent of the area median income.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 8. The director of finance is authorized to issue general obligation bonds in the sum of $400,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2018-2019 for the purpose of constructing infrastructure on or near state lands for transit-oriented development; provided that priority shall be given to development near the Aloha stadium site, Leeward community college, University of Hawaii West Oahu, and Iwilei.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 9. The director of finance is authorized to issue general obligation bonds in the sum of $50,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2018-2019 for the purpose of constructing a multiple-unit high rise condominium on land administered by the department of Hawaiian home lands; provided that the units shall be used by eligible homesteaders; provided further that the moneys may be expended for infrastructure or actual building costs.

The sums appropriated shall be expended by the department of Hawaiian home lands for the purposes of this Act.

SECTION 10. The appropriations made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriations unencumbered as of June 30, 2020, shall lapse as of that date.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect on July 1, 2018; provided that the amendments made to section 248-2.6(a), Hawaii Revised Statutes, by section 3 of this Act shall not be repealed when that section is repealed on December 31, 2030, pursuant to Act 247, Session Laws of Hawaii 2005, as amended by Act 240, Session Laws of Hawaii 2015, as amended by Act 1, Special Session Laws of Hawaii 2017.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2421
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII