RESOLUTION

WHEREAS, part VI of chapter 46, Hawaii Revised Statutes, relating to tax increment financing, was enacted by Act 267, Session Laws of Hawaii 1985; and

WHEREAS, the purpose of creating tax increment financing is to enable the counties to establish tax increment districts and to authorize counties to issue tax increment bonds to finance the costs of infrastructure and public improvements in each district (Senate Standing Committee Report No. 238 of the Housing and Community Development Committee, on S.B. No. 155, 1985); and

WHEREAS, tax increment financing requires a county council to approve a tax increment financing plan and adopt an ordinance establishing the tax incremental district; and

WHEREAS, a tax increment district is taxed by levy of real property taxes by the county, which are applied to paying off tax increment bonds issued by the county and other costs of a tax increment district project; and

WHEREAS, a tax increment district does not require the assessment of more real property taxes, rather the term "tax increment" refers to the difference between the amount of property tax revenue generated before a tax increment district designation and the increased amount of property tax revenue generated after designation based upon the increased value of the property taxed; and

WHEREAS, tax increment financing has been used in forty-seven states as a catalyst for needed redevelopment projects, resulting in more private investment and development, more jobs, more job retention, more job training programs, and a stronger and broader tax base and economic base; and

WHEREAS, the counties should apply tax increment financing to finance the development of infrastructure to create more affordable housing projects; and

WHEREAS, more affordable housing projects would go a long way to relieving the housing crisis by making more affordable rental units available; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the Senate concurring, that each county is requested to apply tax increment financing to finance the development of infrastructure for affordable housing projects; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Mayor and Council Chair of each county, and the Executive Director of the Housing and Community Development Corporation of Hawaii.

Report Title:

Tax Increment Financing; Affordable Housing