REPORT TITLE:
Low Income Housing


DESCRIPTION:
Encourages construction of low-income housing by requiring the
housing and community development corporation of Hawaii (HCDCH)
to adopt a qualified allocation plan meeting Internal Revenue
Code (IRC) requirements.  Requires HCDCH to cooperate with the
military to address the housing needs of military personnel and
their dependents.  Requires HCDCH to give priority to the use of
bonds for financing of low-income housing eligible for the
federal tax credit under section 42 of the IRC.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2848
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
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      SECTION 1.  Section 201G-14, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§201G-14[]]  Administration of low-income housing credit
 
 4 allowed under section 235-110.8.(a)  The corporation is
 
 5 designated as the state housing credit agency to carry out
 
 6 section 42(h) (with respect to limitation on aggregate credit
 
 7 allowable with respect to a project located in a state) of the
 
 8 Internal Revenue Code of 1986, as amended.  As the state housing
 
 9 credit agency, the corporation shall determine the eligibility
 
10 basis for a qualified low-income building, make the allocation of
 
11 housing credit dollar amounts within the State, and determine the
 
12 portion of the State's housing credit ceiling set aside for
 
13 projects involving qualified nonprofit organizations.  The
 
14 corporation shall file any certifications and annual reports
 
15 required by section 42 (with respect to low-income housing
 
16 credit) of the Internal Revenue Code of 1986, as amended.
 
17      (b)  The state aggregate housing credit dollar amount shall
 
18 be allocated annually as required by section 42 of the Internal
 
19 Revenue Code of 1986, as amended by the corporation in an amount
 
20 equal to $1.25 multiplied by the state population in the calendar
 

 
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 1 year or such greater or lesser amount as provided by section
 
 2 42(h) of the Internal Revenue Code of 1986, as amended.
 
 3      (c)  The corporation shall adopt rules under chapter 91
 
 4 necessary to comply with federal and state requirements for
 
 5 determining the amount of the tax credit allowed under section 42
 
 6 of the Internal Revenue Code of 1986, as amended and section
 
 7 235-110.8.  In implementing section 42(m)(1)(D) of the Internal
 
 8 Revenue Code of 1986, as amended, the corporation shall adopt a
 
 9 qualified allocation plan that considers the criteria described
 
10 in section 42(m)(1)(C) but may not impose restrictions other than
 
11 those set forth in section 42 or sections 141 through 147 of the
 
12 Internal Revenue Code of 1986, as amended.  The corporation may
 
13 establish and collect reasonable fees for administrative expenses
 
14 incurred in providing the services required by this section,
 
15 including fees for processing developer applications for the
 
16 credit.  All fees collected for administering these provisions,
 
17 including developer application fees, shall be deposited into the
 
18 corporation's housing finance revolving fund to be used to cover
 
19 the administrative expenses of the corporation.
 
20      (d)  All claims for allocation of the low-income housing
 
21 credit under section 235-110.8 shall be filed with the
 
22 corporation.  The corporation shall determine the amount of the
 
23 credit allocation, if necessary, and return the claim to the
 

 
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 1 taxpayer.  The taxpayer shall file the credit allocation with the
 
 2 taxpayer's tax return with the department of taxation.
 
 3      (e)  The corporation shall cooperate with the military to
 
 4 address the housing needs of military personnel and their
 
 5 dependents.  The corporation shall support federal legislation
 
 6 that provides that section 42 of the Internal Revenue Code of
 
 7 1986, as amended, applies to certain military housing."
 
 8      SECTION 2.  Section 201G-161, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§201G-161  Bonds; authorization.(a)  The corporation,
 
11 with the approval of the governor, may issue from time to time
 
12 bonds (including refunding bonds to pay, retire, or provide for
 
13 the retirement of bonds previously issued by the corporation) in
 
14 amounts not exceeding the total amount of bonds authorized to be
 
15 issued by the legislature for any of its corporate purposes.
 
16      (b)  All bonds shall be issued pursuant to part III of
 
17 chapter 39, except as provided in this part.
 
18      (c)  The bonds shall be issued in the name of the
 
19 corporation, and not in the name of the State.  The final
 
20 maturity date of the revenue bonds may be any date not exceeding
 
21 sixty years from the date of issuance.
 
22      (d)  The corporation may issue such types of bonds as it may
 
23 determine, including, without limitation, bonds payable from and
 

 
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 1 secured, in whole or in part, by:
 
 2      (1)  Income and revenues derived from the housing project or
 
 3           projects financed from the proceeds of bonds;
 
 4      (2)  Receipts derived from any grant from the federal
 
 5           government made in aid of a housing project or projects
 
 6           financed from the proceeds of bonds;
 
 7      (3)  Income and revenues derived from a particular
 
 8           designated housing project or projects whether or not
 
 9           financed, in whole or in part, from the proceeds of
 
10           bonds;
 
11      (4)  Receipts derived from any payment for "eligible
 
12           loans","eligible improvement loans", or "eligible
 
13           project loans", as such terms are defined in subpart B,
 
14           or any other agreement or agreements entered into for a
 
15           "housing loan program", as such term is defined in
 
16           subpart B or E, or any other loan program administered
 
17           by the corporation and financed from the proceeds of
 
18           bonds;
 
19      (5)  Receipts derived from loans to mortgage lenders or from
 
20           the payment on account of principal of or interest on
 
21           loans purchased from mortgage lenders, as such terms
 
22           are defined in subpart B which loans to mortgage
 
23           lenders or loans purchased are financed from the
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           proceeds of bonds;
 
 2      (6)  Moneys in any funds or accounts established in
 
 3           connection with the issuance of bonds, and any earnings
 
 4           thereon;
 
 5      (7)  Proceeds derived from any insurance;
 
 6      (8)  Income and revenues of the corporation generally; or
 
 7      (9)  Any combination of the above.
 
 8 The terms "income and revenues" shall be deemed to include income
 
 9 and revenues derived from the sale of land or from both land and
 
10 improvements thereon serviced from infrastructure financed from
 
11 the proceeds of bonds as permitted by this subpart.  The
 
12 provisions of this subsection are in addition and supplemental to
 
13 part III of chapter 39.
 
14      (e)  Any of the bonds may be additionally secured by a
 
15 pledge of any revenues or a mortgage of any housing project,
 
16 other property of the corporation, the pledge or assignment of
 
17 any loans or other agreements, or any note or other undertaking,
 
18 obligation, or property held by or on behalf of the corporation
 
19 to secure loans made from the proceeds of bonds for any housing
 
20 loan program, as such term is defined in subpart B or E of part
 
21 III, or any other loan program administered by the corporation
 
22 and financed from the proceeds of bonds.
 
23      (f)  Any pledge made by the corporation shall create a
 

 
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 1 perfected security interest in the revenues, moneys, or property
 
 2 so pledged and thereafter received by the corporation from and
 
 3 after the time that a financing statement with respect to the
 
 4 revenues, moneys, or property so pledged and thereafter received
 
 5 shall be filed with the bureau of conveyances.  Upon the filing,
 
 6 the revenues, moneys, or property so pledged and thereafter
 
 7 received by the corporation shall immediately be subject to the
 
 8 lien of such pledge without any physical delivery thereof or
 
 9 further act, and the lien of any such pledge shall be prior to
 
10 the lien of all parties having claims by any kind in tort,
 
11 contract, or otherwise against the corporation, irrespective of
 
12 whether such parties have notice thereof.  This section shall
 
13 apply to any financing statement heretofore or hereafter filed
 
14 with the bureau of conveyances with respect to any pledge made to
 
15 secure revenue bonds issued under this part.
 
16      (g)  Any housing project or projects authorized by, and
 
17 undertaken pursuant to, this chapter shall constitute an
 
18 "undertaking" within the meaning of that term as defined and used
 
19 in part III, chapter 39; any loan program authorized by, and
 
20 undertaken pursuant to, this chapter, including without
 
21 limitation housing loan programs defined in and authorized by
 
22 subparts B and E of this part, shall constitute a "loan program"
 
23 within the meaning of that term as defined and used in part III,
 

 
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 1 chapter 39; and the corporation shall constitute a "department"
 
 2 and the board shall constitute a "governing body" within the
 
 3 meaning of those terms as defined and used in part III, chapter
 
 4 39.
 
 5      (h)  Neither the members of the corporation nor any person
 
 6 executing the bonds shall be liable personally on the bonds by
 
 7 reason of the issuance thereof.
 
 8      (i)  When issuing bonds, the corporation shall give priority
 
 9 to the use of bonds for financing of low-income housing eligible
 
10 for the federal tax credit under section 42 of the Internal
 
11 Revenue Code of 1986, as amended."
 
12      SECTION 3.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 4.  This Act shall take effect upon its approval.
 
15 
 
16                       INTRODUCED BY:  ___________________________