Bill Text: HI SB302 | 2013 | Regular Session | Amended

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Bill Title: General Obligation Bonds; Appropriation; Rental Housing Trust Fund ($)

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2013-02-04 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB302 Detail]

Download: Hawaii-2013-SB302-Amended.html

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STAND. COM. REP. NO. 33

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 302

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Human Services, to which was referred S.B. No. 302 entitled:

 

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the issuance of general obligation bonds and appropriate funds for deposit into the rental housing trust fund to finance affordable rental housing development.

 

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, the Hawaii Public Housing Authority, Catholic Charities Hawaii, the Hawaii Association of REALTORS, the Hawaii Appleseed Center for Law and Economic Justice, the Pacific Housing Assistance Corporation, the International Longshore and Warehouse Union Local 142 Hawaii, and the Community Alliance for Mental Health.  Your Committee received comments on this measure from the Department of Budget and Finance.

 

Your Committee finds that as of June 30, 2012, 4,250 rental units had been created or were underway with the assistance of the rental housing trust fund and other leveraged funding.  The rental housing trust fund has many more applications than can be funded with the current funds.  In fiscal year 2012, the rental housing trust fund received $37,000,000 in project requests but was only able to commit $20,700,000 for four out of the nine projects due to limited resources.  Your Committee further finds that the Hawaii Housing Finance and Development Corporation has the ability to quickly and efficiently utilize appropriations through the rental housing trust fund.

 

     Your Committee has heard the testimony of the Department of Budget and Finance expressing concerns that federal tax law requires that tax-exempt general obligation bond proceeds be used to finance projects that serve public purposes.  As it appears that private entities will derive the benefit of the rental housing trust fund, tax-exempt general obligation bond proceeds cannot be used for this purpose.  The State would need to issue taxable general obligation bonds at a higher cost in order to allow the rental housing trust fund to provide financing to private entities.  Your Committee finds that this issue raises concerns that merit further consideration by your Committee on Ways and Means.

 

     Your Committee has amended this measure by inserting a general obligation bond authorization amount and appropriation amount of $30,000,000 for fiscal years 2013-2014 and 2014-2015.

 

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 302, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 302, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Human Services,

 

		____________________________ SUZANNE CHUN OAKLAND, Chair