Bill Text: HI SB936 | 2024 | Regular Session | Introduced
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [SB936 Detail]
Download: Hawaii-2024-SB936-Introduced.html
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THE SENATE |
S.B. NO. |
936 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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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:
(1) Rehabilitate functionally obsolete units;
(2) Eliminate the expensive repair and maintenance expenses required to maintain these units;
(3) Contribute to the legislature's priority to grow a sustainable economy by engendering improvements on public lands;
(4) Foster an improved living environment, particularly for elderly and disabled populations;
(5) Provide access to permanent housing for the homeless population; and
(6) Expand the existing supply of affordable and low-income housing in the State to urgently address the affordable housing crisis.
According
to the Hawaii public housing authority, these proposed housing units will be
integrated into mixed-income, mixed-use communities. Not only does this integration provide
greater housing stability to local families struggling to get by, but it also
benefits the overall social fabric of neighborhoods. By reducing poverty-concentration statewide,
low-income households are empowered through easier access to better schools,
healthcare, and job opportunities.
The
legislature further finds that the United States Department of Housing and
Urban Development encourages the development of affordable housing through
multiple programs, making state-owned development projects more user-friendly
to the private sector. Because state-owned
development projects are located on parcels already owned by the state, it
excludes the cost of land from the development cost equation, creating an
attractive incentive for private developers to partner with the state to
develop and redevelop state-owned projects.
This incentive better positions public housing agencies to access the
private capital and financing necessary to revitalize state-owned development projects,
deliver more affordable housing to satisfy current demand, and benefit the most
disadvantaged residents of the state. More
importantly, this also allows the state to ensure that every new affordable
housing unit that is built will remain affordable in perpetuity.
The
legislature additionally finds that there is a nationwide precedence for states
to prioritize the allocation of federal housing incentives to government
agencies. Many housing finance agencies give
priority, provide set-asides, and award nine and four per cent low-income
housing tax credits to state-owned development projects. For example, the Alaska housing finance
agency has allocated all the state's nine per cent low-income housing tax
credits to its public housing agency for a prioritized redevelopment project in
Anchorage.
Leveraging
capital resources through public-private partnerships, transit-oriented
development incentives, and underutilized state assets creates an exceptional
opportunity to deliver desperately needed affordable housing to the State and
to create more livable, vibrant, and integrated communities for the health and
well-being of residents and taxpayers that can be enjoyed for generations to
come.
Accordingly, the purpose of this Act is to require the Hawaii housing finance and development corporation to prioritize the allocation of low-income housing tax credits to state-owned development projects.
SECTION 2. Section 201H-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a)
The corporation is designated as a state housing credit agency to carry
out section 42(h) (with respect to limitation on aggregate credit allowable
with respect to a project located in a state) of the Internal Revenue Code of
1986, as amended. As a state housing
credit agency, the corporation shall [determine]:
(1) Determine
the eligibility basis for a qualified low-income building[, make];
(2) Make
the allocation of housing credit dollar amounts within the State[, and
determine]; provided that priority be given to development projects that
will be owned by the State, whether outright or through a right of first
refusal and purchase option; and
(3) Determine the portion of the State's housing credit ceiling set aside for projects involving qualified nonprofit organizations. The corporation shall file any certifications and annual reports required by section 42 (with respect to low-income housing credit) of the Internal Revenue Code of 1986, as amended."
SECTION 3. Statutory material to be repealed is bracketed and stricken. 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:
Low-income Housing Tax Credits; Hawaii Housing Finance and Development Corporation; Priority; State-Owned Development Projects
Description:
Requires the Hawaii Housing Finance and Development Corporation to prioritize the allocation of low-income housing tax credits to state-owned development projects.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
