Bill Text: HI SB881 | 2021 | Regular Session | Introduced
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2021-01-29 - Referred to HWN, WAM. [SB881 Detail]
Download: Hawaii-2021-SB881-Introduced.html
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THE SENATE |
S.B. NO. |
881 |
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THIRTY-FIRST LEGISLATURE, 2021 |
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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 legislature finds that lands utilized by the department of Hawaiian home lands to provide housing for native Hawaiians are offered at affordable rates when compared to similar housing available in Hawaii. The purpose of this Act is to exempt any housing development for the department of Hawaiian home lands from general excise taxes.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemptions for any housing development for
the department of Hawaiian home lands. (a) All gross income received by any qualified person
or firm for the planning, design, financing, or construction of any housing development
for the department of Hawaiian home lands shall be exempt from general excise taxes.
(b) The department of Hawaiian home lands may approve
and certify for exemption from general excise taxes any qualified person or firm
involved with a newly constructed, or a moderately or substantially rehabilitated,
project that is:
(1) Developed under a government assistance program
approved by the department of Hawaiian home lands;
(2) Developed under the sponsorship of a private
nonprofit organization providing home rehabilitation or new homes for qualified
families in need of decent, low-cost housing;
(3) Developed by a qualified person or firm to provide
affordable rental housing where at least fifty per cent of the available units are
for households with incomes at or below eighty per cent of the area median family
income as determined by the United States Department of Housing and Urban Development;
or
(4) Developed by contract or project developer agreement
to provide affordable housing through new construction or substantial rehabilitation;
provided that:
(A) The allowable general excise tax and use tax costs shall apply to contracting only and shall not exceed $30,000,000 per year in the aggregate for all projects approved and certified by the department of Hawaiian home lands; and
(B) At
least twenty per cent of the available units are for households with incomes at
or below eighty per cent of the area median family income as determined by the United
States Department of Housing and Urban Development.
(c) To obtain certification for exemption under this
section, housing projects shall, unless exempted by the department of Hawaiian home
lands, be covered by a regulatory agreement with the department of Hawaiian home
lands to ensure the project's continued compliance with the applicable eligibility
requirements set forth in subsection (b).
(d) All claims for exemption under this section shall be filed with and certified by the department of Hawaiian home lands and forwarded to the department of taxation. Any claim for exemption that is filed and approved, shall not be considered a subsidy.
(e) For purposes of this section:
"Moderate
rehabilitation" means rehabilitation to upgrade a dwelling unit to a decent,
safe, and sanitary condition, or to repair or replace major building systems or
components in danger of failure.
"Qualified
person" means any individual, partnership, joint venture, corporation, association,
limited liability partnership, limited liability company, business, trust, or any
organized group of persons or legal entities, or any combination thereof, which
possesses all professional or vocational licenses necessary to do business in the
State of Hawaii in conjunction with the planning, design, financing, construction
(including materials and supplies for new construction, moderate rehabilitation,
and substantial rehabilitation) sale, or rental of projects under the sponsorship
of the department of Hawaiian home lands.
"Substantial
rehabilitation" means the improvement of a property to a decent, safe, and
sanitary condition that requires more than routine or minor repairs or improvements.
It may include but is not limited to the
gutting and extensive reconstruction of a dwelling unit, or cosmetic improvements
coupled with the curing of a substantial accumulation of deferred maintenance and
includes renovation, alteration, or remodeling to convert or adapt structurally
sound property to the design and condition required for a specific use, such as
conversion of a hotel to housing for elders.
(f) The department of Hawaiian home lands may establish,
revise, charge, and collect a reasonable service fee, as necessary, in connection
with its approvals and certifications under this section. The fees shall be deposited into the Hawaiian home
administration account."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Housing; General Excise Tax Exemption
Description:
Exempts housing development for the Department of Hawaiian Home Lands from general excise taxes.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
