Report Title:

Affordable Housing; Taxation; Bonds; Appropriations

Description:

Increases the amount of conveyance tax revenues deposited into the rental housing trust fund. Establishes a new state affordable housing tax credit decoupled from the federal tax credit. Allows rent supplement funds to be used for operating expenses of state low-income housing. Provides income tax deductions for contribution of land for affordable housing and for keeping private rental units affordable. Increases the low-income renters' tax credit and eligibility therefor. Authorizes issuance of revenue bonds to finance maintenance and repair of public housing units, infrastructure development for affordable housing, housing loan programs, and mortgage security and guarantee programs. Authorizes issuance of general obligation bonds to finance downpayment loans for eligible homebuyers and interim construction loans. Appropriates funds for operating subsidies of state low-income housing units and homeless and transitional housing and services.

THE SENATE

S.B. NO.

2999

TWENTY-THIRD LEGISLATURE, 2006

  

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

RELATING TO HOUSING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The senate and house of representatives of the twenty-third legislature of the State of Hawaii, regular session of 2005, enacted Act 196, Relating to Housing, and section 35 of that act established the joint legislative housing and homeless task force to further identify near-term solutions to Hawaii's affordable housing and homeless problem. The task force issued its report with findings and recommendations in January 2006. The task force recommended in general that the State: (1) leverage more sources of financing for affordable housing; (2) make available more public land for the development of affordable housing; (3) streamline government approvals and permitting of affordable housing projects; (4) build more offsite infrastructure to serve affordable housing; (5) appropriate additional funds for transitional housing, shelters, and services for the homeless population; and (6) preserve and maintain the existing public housing stock.

The specific recommendations of the task force for financing affordable housing include: (1) increasing the amount of conveyance tax revenues deposited into the rental housing trust fund; (2) establishing a new state affordable housing tax credit decoupled from the federal tax credit; (3) allowing state rent supplement funds to be used for operating expenses of state low-income housing; (4) providing a state income tax deduction for contributions of land for affordable housing and for keeping private rental units affordable; (5) increasing the low-income renters' tax credit and eligibility therefor; (6) authorizing issuance of revenue bonds to finance maintenance and repair of public housing units, infrastructure development for affordable housing, housing loan programs, and mortgage security and guarantee programs; (7) authorizing issuance of general obligation bonds to finance downpayment loans for eligible homebuyers and interim construction loans; and (8) appropriating funds for operating subsidies of state low-income housing units and homeless and transitional housing and services.

The purpose of this Act is to implement the recommendations of the task force with regard to financing affordable housing.

SECTION 2. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to subpart F of part II to be appropriately designated and to read as follows:

"§201G-A Credit against income taxes. (a) In accordance with section 235-A, the administration may approve and certify for credit against state income taxes the qualified basis of any newly constructed or moderately or substantially rehabilitated project:

(1) Developed under this subpart;

(2) Developed under a government assistance program approved by the administration, including but not limited to, the United States Department of Agriculture 502 program and Federal Housing Administration 235 program;

(3) Developed under the sponsorship of a private nonprofit corporation that provides home rehabilitation or new homes for qualified families in need of decent, low-cost housing; or

(4) Developed by a person or firm qualified under section 201G-116 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, of which at least twenty per cent of the available units are for households with incomes at or below sixty per cent of the area median family income as determined by the United States Department of Housing and Urban Development.

(b) All claims for tax credit under this section shall be filed with and certified by the administration and forwarded to the department of taxation. Any claim for tax credit that is filed and approved shall not be considered a subsidy for the purpose of this subpart.

(c) For the purposes of this section, "moderate rehabilitation" and "substantial rehabilitation" shall have the same meanings as in section 201G-116.

(d) The administration 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 dwelling unit revolving fund."

SECTION 3. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to subpart H of part III to be appropriately designated and to read as follows:

"§201G-B Downpayment loan program revolving fund. There is created within the state treasury a revolving fund to be administered by the administration and to be known as the downpayment loan revolving fund. The revolving fund shall be funded from the proceeds of general obligation bonds or other appropriations from the state legislature, and shall be used to carry out the purposes of this subpart."

SECTION 4. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part VI to be appropriately designated and to read as follows:

"§235-A Affordable housing tax credit. (a) Each taxpayer subject to the tax imposed by this chapter, who has filed a net income tax return for a taxable year, may claim an affordable housing tax credit against the taxpayer's net income tax liability. The amount of the credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed on a timely basis. A credit under this section shall not be claimed if the taxpayer claims a low-income housing tax credit pursuant to section 235-110.8.

(b) The affordable housing tax credit shall be fifteen per cent of the qualified basis of each project calculated pursuant to section 201G-A.

(c) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. For the purpose of deducting this tax credit, net income tax liability means net income tax liability reduced by all other credits allowed the taxpayer under this chapter. A tax credit under this section which exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

(d) All claims for a tax credit under this section must be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to properly and timely claim the credit shall constitute a waiver of the right to claim the credit. A taxpayer may claim a credit under this section only if the project is a qualified project under section 201G-A.

(e) The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section."

SECTION 5. Section 201G-44, Hawaii Revised Statutes, is amended to read as follows:

"§201G-44 Administration of state low-income public housing projects and programs. (a) The administration [may] shall construct, develop, and administer property or housing for the purpose of state low-income public housing projects and programs.

(b) The administration [may] shall offer any decommissioned low-income public housing project, except for federal housing projects, to nonprofit or for-profit organizations or government agencies for rehabilitation into emergency or transitional shelter facilities for the homeless or rehabilitation into rental units that set aside at least fifty per cent of the units to persons or families with incomes at or below fifty per cent of the area median family income; provided that:

(1) The housing project is wholly owned by the State on either state-owned or ceded lands;

(2) The administration has determined that the housing project is no longer suitable for its original use and intends to demolish the housing project;

(3) The administration has determined that the housing project is not eligible for rehabilitation using the administration's current resources; and

(4) The nonprofit or for-profit organization or government agency demonstrates expertise in rehabilitation of housing projects and has community, public, and private resources to substantially pay for the rehabilitation.

The land and improvements may be leased to the nonprofit or for-profit organization or government agency for a period not to exceed ninety-nine years for a sum of $1 per year.

(c) The administration shall adopt necessary rules in accordance with chapter 91, including the establishment and collection of reasonable fees for administering the public housing projects or programs and to carry out any state program under subsection (a)."

SECTION 6. Section 201G-45, Hawaii Revised Statutes, is amended to read as follows:

"§201G-45 State low-income housing revolving fund. The director of finance shall establish a revolving fund to be known as "the state low-income housing revolving fund". Notwithstanding any law to the contrary, moneys received by the administration under or pursuant to this subpart, including appropriations, refunds, reimbursements, rentals, fees, and charges received from tenants, shall be deposited in the state low-income housing revolving fund. Except as otherwise provided in this chapter, the state low-income housing revolving fund may be expended by the administration for any and all of the purposes of this subpart, including, without prejudice to the generality of the foregoing, the expenses of management, operation, and maintenance of state low-income housing, including but not limited to the cost of insurance, a proportionate share of the administrative expenses of the administration, and the cost of repairs, equipment, and improvement; the acquisition, clearance, and improvement of property; the construction and reconstruction of building sites; the construction, reconstruction, repair, remodeling, extension, equipment, and furnishing of any public housing project; the development and administration of any public housing project; the payment of rentals; and administration and other expenses."

SECTION 7. Section 201G-161, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) Any pledge made by the administration shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the administration from and after the time that a financing statement with respect to the revenues, moneys, or property so pledged and thereafter received shall be filed with the bureau of conveyances. Upon the filing, the revenues, moneys, or property so pledged and thereafter received by the administration shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be [prior to the lien of all parties having claims by any kind in tort, contract, or otherwise against the administration, irrespective of whether such parties have notice thereof] subject to section 39-63 and part VIII of chapter 39 relating to security interests. This section shall apply to any financing statement heretofore or hereafter filed with the bureau of conveyances with respect to any pledge made to secure revenue bonds issued under this part."

SECTION 8. Section 201G-162, Hawaii Revised Statutes, is amended to read as follows:

"§201G-162 Issuance of bonds for the development of infrastructure. Without limiting section 201G-161, the administration, pursuant to and in accordance with this subpart, is hereby authorized to issue bonds for the purpose of financing the development of infrastructure [on land owned by the administration] for projects under section 201G-118."

SECTION 9. Section 201G-231, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201G-231[]] Rent supplements. (a) The administration is authorized to make, and contract to make, annual payments to a "housing owner" on behalf of a "qualified tenant", as those terms are defined in this subpart, in such amounts and under such circumstances as are prescribed in or pursuant to this subpart. No payment on behalf of a qualified tenant shall exceed a segregated amount of $160 a month.

(b) The administration is authorized to pay, from funds available under this subpart, for expenses of maintenance and repair of state low-income housing under subpart B of part II of this chapter."

SECTION 10. Section 201G-232, Hawaii Revised Statutes, is amended to read as follows:

"§201G-232 Housing owner defined. As used in this subpart, the term "housing owner" means:

(1) A private nonprofit corporation or other private nonprofit legal entity, a limited dividend corporation or other limited dividend legal entity, or a cooperative housing corporation, that is a mortgagor under section 202, 207, 213, 221(d)(3), 221(d)(5), or 231 of the National Housing Act, as amended, or that conforms to the standards of those sections but that is not a mortgagor under those sections or any other private mortgagor under the National Housing Act, as amended, for very low income, low-income, or moderate-income family housing, regulated or supervised under federal or state laws or by political subdivisions of the State, or agencies thereof, as to rents, charges, capital structure, rate of return, and methods of operation, from the time of issuance of the building permit for the project[; and];

(2) The administration, for purposes of maintenance of any housing project under subpart B of part II of this chapter; and

[(2)] (3) Any other owner of a standard housing unit or units deemed qualified by the administration."

SECTION 11. Section 201G-436, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The administration shall establish an application process for fund allocation that gives preference to projects [meeting the criteria set forth below that are listed in descending order of priority:

(1) Serve the original target group;

(2) Provide at least five per cent of the total number of units for persons and families with incomes at or below thirty per cent of the median family income;

(3) Provide maximum number of units for persons or families with incomes at or below eighty per cent of the median family income;

(4) Are committed to serving the target population over a longer period of time;

(5) Increase the integration of income levels of the immediate community area;

(6) Meet the geographic needs of the target population of the proposed rental housing project, such as proximity to employment centers and services; and

(7) Have favorable past performance in developing, owning, managing, or maintaining affordable rental housing]

in accordance with the priorities set forth in subsection 201G-432(e).

The administration may include other criteria in the above process as it deems necessary to carry out the purposes of this part[.], including but not limited to:

(1) Commitment to serving the target population over a longer period of time;

(2) Increase in the integration of income levels of the immediate community area;

(3) Ability to meet the geographic needs of the target population of the proposed rental housing project, such as proximity to employment centers and services; and

(4) Favorable past performance in developing, owning, managing, or maintaining affordable rental housing.

If the administration, after applying the process described in this subsection, finds a nonprofit project equally ranked with a for-profit or government project, the administration shall give preference to the nonprofit project in allotting fund moneys."

SECTION 12. Section 235-7, Hawaii Revised Statutes, is amended to read as follows:

"§235-7 Other provisions as to gross income, adjusted gross income, and taxable income. (a) There shall be excluded from gross income, adjusted gross income, and taxable income:

(1) Income not subject to taxation by the State under the Constitution and laws of the United States;

(2) Rights, benefits, and other income exempted from taxation by section 88-91, having to do with the state retirement system, and the rights, benefits, and other income, comparable to the rights, benefits, and other income exempted by section 88-91, under any other public retirement system;

(3) Any compensation received in the form of a pension for past services;

(4) Compensation paid to a patient affected with Hansen's disease employed by the State or the United States in any hospital, settlement, or place for the treatment of Hansen's disease;

(5) Except as otherwise expressly provided, payments made by the United States or this State, under an act of Congress or a law of this State, which by express provision or administrative regulation or interpretation are exempt from both the normal and surtaxes of the United States, even though not so exempted by the Internal Revenue Code itself;

(6) Any income expressly exempted or excluded from the measure of the tax imposed by this chapter by any other law of the State, it being the intent of this chapter not to repeal or supersede any such express exemption or exclusion;

(7) Income received by each member of the reserve components of the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States of America, and the Hawaii national guard as compensation for performance of duty, equivalent to pay received for forty-eight drills (equivalent of twelve weekends) and fifteen days of annual duty, at an:

(A) E-1 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2004;

(B) E-2 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2005;

(C) E-3 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2006;

(D) E-4 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2007; and

(E) E-5 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2008;

(8) Income derived from the operation of ships or aircraft if the income is exempt under the Internal Revenue Code pursuant to the provisions of an income tax treaty or agreement entered into by and between the United States and a foreign country, provided that the tax laws of the local governments of that country reciprocally exempt from the application of all of their net income taxes, the income derived from the operation of ships or aircraft that are documented or registered under the laws of the United States;

(9) The value of legal services provided by a prepaid legal service plan to a taxpayer, the taxpayer's spouse, and the taxpayer's dependents;

(10) Amounts paid, directly or indirectly, by a prepaid legal service plan to a taxpayer as payment or reimbursement for the provision of legal services to the taxpayer, the taxpayer's spouse, and the taxpayer's dependents;

(11) Contributions by an employer to a prepaid legal service plan for compensation (through insurance or otherwise) to the employer's employees for the costs of legal services incurred by the employer's employees, their spouses, and their dependents; and

(12) Amounts received in the form of a monthly surcharge by a utility acting on behalf of an affected utility under section 269-16.3 shall not be gross income, adjusted gross income, or taxable income for the acting utility under this chapter. Any amounts retained by the acting utility for collection or other costs shall not be included in this exemption.

(b) There shall be included in gross income, adjusted gross income, and taxable income: (1) unless excluded by this chapter relating to the uniformed services of the United States, cost-of- living allowances and other payments exempted by section 912 of the Internal Revenue Code, but section 119 of the Internal Revenue Code nevertheless shall apply; (2) unless expressly exempted or excluded as provided by subsection (a)(6), interest on the obligations of a State or a political subdivision thereof.

(c) The deductions of or based on dividends paid or received, allowed to a corporation under chapter 1, subchapter B, Part VIII of the Internal Revenue Code, shall not be allowed. In lieu thereof there shall be allowed as a deduction the entire amount of dividends received by any corporation upon the shares of stock of a national banking association, qualifying dividends, as defined in section 243(b) of the Internal Revenue Code, received by members of an affiliated group, or dividends received by a small business investment company operating under the Small Business Investment Act of 1958 (Public Law 85-699) upon shares of stock qualifying under paragraph (3), seventy per cent of the amount received by any corporation as dividends:

(1) Upon the shares of stock of another corporation, if at the date of payment of the dividend at least ninety- five per cent of the other corporation's capital stock is owned by one or more corporations doing business in this State and if the other corporation is subjected to an income tax in another jurisdiction (but subjection to federal tax does not constitute subjection to income tax in another jurisdiction);

(2) Upon the shares of stock of a bank or insurance company organized and doing business under the laws of the State;

(3) Upon the shares of stock of another corporation, if at least fifteen per cent of the latter corporation's business, for the taxable year of the latter corporation preceding the payment of the dividend, has been attributed to this State.

However, except for national bank dividends, the deductions under this subsection are not allowed when they would not have been allowed under section 243 of the Internal Revenue Code, as amended by Public Law 85-866, by reason of subsections (b) and (c) of section 246 of the Internal Revenue Code. For the purposes of this subsection fifteen per cent of a corporation's business shall be deemed to have been attributed to this State if fifteen per cent or more of the entire gross income of the corporation as defined in this chapter (which for the purposes of this subsection shall be computed without regard to source in the State and shall include income not taxable by reason of the fact that it is from property not owned in the State or from a trade or business not carried on in the State in whole or in part), under section 235-5 and the other provisions of this chapter, shall have been attributed to the State and subjected to assessment of the taxable income therefrom (including the determination of the resulting net loss, if any).

(d) (1) For taxable years ending before January 1, 1967, the net operating loss deductions allowed as carrybacks and carryovers by the Internal Revenue Code shall not be allowed. In lieu thereof the net operating loss deduction shall consist of the excess of the deductions allowed by this chapter over the gross income, computed with the modifications specified in paragraphs (1) to (4) of section 172(d) of the Internal Revenue Code, and with the further modification stated in paragraph (3) hereof; and shall be allowed as a deduction in computing the taxable income of the taxpayer for the succeeding taxable year;

(2) (A) With respect to net operating loss deductions resulting from net operating losses for taxable years ending after December 31, 1966, the net operating loss deduction provisions of the Internal Revenue Code shall apply; provided that there shall be no net operating loss deduction carried back to any taxable year ending prior to January 1, 1967;

(B) In the case of a taxable year beginning in 1966 and ending in 1967, the entire amount of all net operating loss deductions carried back to the taxable year shall be limited to that portion of taxable income for such taxable year which the number of days in 1967 bears to the total days in the taxable year ending in 1967; and

(C) The computation of any net operating loss deduction for a taxable year covered by this subsection shall require the further modifications stated in paragraphs (3), (4), and (5) of this subsection;

(3) In computing the net operating loss deduction allowed by this subsection, there shall be included in gross income the amount of interest which is excluded from gross income by subsection (a), decreased by the amount of interest paid or accrued which is disallowed as a deduction by subsection (e). In determining the amount of the net operating loss deduction under this subsection of any corporation, there shall be disregarded the net operating loss of such corporation for any taxable year for which the corporation is an electing small business corporation;

(4) No net operating loss carryback or carryover shall be allowed by this chapter if not allowed under section 172 of the Internal Revenue Code;

(5) The election to relinquish the entire carryback period with respect to a net operating loss allowed under section 172(b)(3)(C) of the Internal Revenue Code shall be operative for the purposes of this chapter; provided that no taxpayer shall make such an election as to a net operating loss of a business where such net operating loss occurred in the taxpayer's business prior to the taxpayer entering business in this State; and

(6) The five-year carryback period for net operating losses for any taxable year ending during 2001 and 2002 in section 172(b)(1)(H) of the Internal Revenue Code shall not be operative for purposes of this chapter.

(e) There shall be disallowed as a deduction the amount of interest paid or accrued within the taxable year on indebtedness incurred or continued, (1) to purchase or carry bonds the interest upon which is excluded from gross income by subsection (a); or (2) to purchase or carry property owned without the State, or to carry on trade or business without the State, if the taxpayer is a person taxable only upon income from sources in the State.

(f) Losses of property as the result of tidal wave, hurricane, earthquake, or volcanic eruption, or as a result of flood waters overflowing the banks or walls of a river or stream, or from any other natural disaster, to the extent of the amount deductible, under this chapter, not compensated for by insurance or otherwise, may be deducted in the taxable year in which sustained, or at the option of the taxpayer may be deducted in equal installments over a period of five years, the first such year to be the calendar year or fiscal year of the taxpayer in which such loss occurred.

(g) In computing taxable income there shall be allowed as a deduction of twice the fair market value of contributions of land, not in excess of       in any year, by any taxpayer to the State for the purposes of projects under section 201G-118. Any amount in excess of the allowable contribution under this subsection in the year made may be used as a deduction in subsequent years until exhausted.

(h) In computing taxable income there shall be allowed as a deduction the amount equal to the difference between the fair market rental of a dwelling unit and the rental received by a housing owner from a qualified tenant pursuant to subpart D of part III of chapter 201G.

[(g)] (i) In computing taxable income there shall be allowed as a deduction:

(1) Political contributions by any taxpayer not in excess of $250 in any year; provided that such contributions are made to a central or county committee of a political party whose candidates shall have qualified by law to be voted for at the immediately previous general election; or

(2) Political contributions by any individual taxpayer in an aggregate amount not to exceed $1,000 in any year; provided that such contributions are made to candidates as defined in section 11-191, who have agreed to abide by the campaign expenditure limits as set forth in section 11-209; and provided further that not more than $250 of an individual's total contribution to any single candidate shall be deductible for purposes of this section."

SECTION 13. Section 235-55.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Each taxpayer with an adjusted gross income of less than [$30,000] $50,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of [$50] $75 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided that each taxpayer with an adjusted gross income less than $30,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of $100 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided further, that each taxpayer sixty-five years of age or over may claim double the tax credit; and provided that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section."

SECTION 14. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent shall be paid into the land conservation fund established pursuant to section 173A-5;

(2) [Thirty] Fifty per cent shall be paid into the rental housing trust fund established by section 201G-432; and

(3) Twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources in the following priority:

(A) To natural area partnership and forest stewardship programs after joint consultation with the forest stewardship committee and the natural area reserves system commission;

(B) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners, and management of the natural area reserves system pursuant to section 195-3; and

(C) The youth conservation corps established under chapter 193."

SECTION 15. Act 291, Session Laws of Hawaii 1980, section 11, as amended by Act 304, Session Laws of Hawaii 1996, section 1, and by Act 185, Session Laws of Hawaii 2004, is amended to read as follows:

"SECTION 11. Issuance of revenue bond; amount authorized. Revenue bonds may be issued by the [housing and community development corporation of Hawaii] Hawaii housing finance and development administration pursuant to part III, chapter 39 and part III of chapter 201G, Hawaii Revised Statutes, in an aggregate principal amount not to exceed [$300,000,000,]          , at such times and in such amounts as the [housing and community development corporation of Hawaii] Hawaii housing finance and development administration deems advisable for the purpose of undertaking and maintaining any of the housing loan programs under subpart B of part III of chapter 201G, Hawaii Revised Statutes, relating to the funding or purchasing of eligible project loans."

SECTION 16. Act 291, Session Laws of Hawaii 2001, section 1, is amended to read as follows:

"SECTION 1. The [housing and community development corporation of Hawaii,] Hawaii housing finance and development administration, with the approval of the director of finance and the governor, is authorized pursuant to part III, chapter 39, Hawaii Revised Statutes, and part III, chapter 201G, Hawaii Revised Statutes, to issue revenue bonds in an aggregate principal amount not to exceed [$30,000,000,]           , at such times and in such amounts as it deems advisable for the purpose of carrying out the provisions of subpart Q of part III of chapter 201G, Hawaii Revised Statutes[.], relating to the rental housing trust fund.

The proceeds of such revenue bonds shall be deposited into the rental housing trust fund created in section 201G-432, Hawaii Revised Statutes."

SECTION 17. There is appropriated out of the rental housing trust fund the sum of $10,000,000, or so much thereof as may be necessary, for fiscal year 2006-2007, to carry out the purposes of the rental housing trust fund relating to the preservation and substantial rehabilitation of rental housing units; provided that $50,000 of the sum appropriated shall be used for a study of the feasibility of decommissioning public housing units and an action plan for placing them under private ownership and management.

The sum appropriated shall be expended by the Hawaii housing finance and development administration to repair and modernize vacant public housing units; provided that the administration shall report to the legislature its determination of dilapidated units not feasible to repair, and its action plan for decommissioning these units, no later than twenty days prior to the convening of the regular session of 2007.

SECTION 18. The Hawaii housing finance and development administration, with the approval of the director of finance and the governor, is authorized pursuant to part III, chapter 39, Hawaii Revised Statutes, and part III, chapter 201G, Hawaii Revised Statutes, to issue revenue bonds in an aggregate principal amount not to exceed           , at such times and in such amounts as it deems advisable for the purpose of carrying out the provisions of subpart A of part III of chapter 201G, Hawaii Revised Statutes, relating to the development of infrastructure and the purchase of low-income housing projects.

The proceeds of such revenue bonds shall be deposited into the housing finance revolving fund created in section 201G-170, Hawaii Revised Statutes.

SECTION 19. There is appropriated out of the housing finance revolving fund the sum of           , or so much thereof as may be necessary, for fiscal year 2006-2007, to carry out the purposes of section 201G-162, Hawaii Revised Statutes, relating to the development of infrastructure for affordable housing.

The sum appropriated shall be expended by the Hawaii housing finance and development administration.

SECTION 20. There is appropriated out of the housing finance revolving fund the sum of           , or so much thereof as may be necessary, for fiscal year 2006-2007, to carry out the purposes of section 201G-163, Hawaii Revised Statutes, relating to the purchase of low-income housing projects.

The sum appropriated shall be expended by the Hawaii housing finance and development administration.

SECTION 21. The Hawaii housing finance and development administration, with the approval of the director of finance and the governor, is authorized pursuant to part III, chapter 39, Hawaii Revised Statutes, and part III, chapter 201G, Hawaii Revised Statutes, to issue general obligation bonds in an aggregate principal amount not to exceed           , at such times and in such amounts as it deems advisable for the purpose of carrying out the provisions of subpart H of part III of chapter 201G, Hawaii Revised Statutes, relating to the downpayment loan program.

The proceeds of such general obligation bonds shall be deposited into the downpayment loan program revolving fund created in section 201G-B, Hawaii Revised Statutes.

SECTION 22. There is appropriated out of the downpayment loan program revolving fund the sum of           , or so much thereof as may be necessary, for fiscal year 2006-2007, to carry out the purposes of the downpayment loan program revolving fund relating to direct downpayment loans to eligible borrowers.

The sum appropriated shall be expended by the Hawaii housing finance and development administration.

SECTION 23. The Hawaii housing finance and development administration, with the approval of the director of finance and the governor, is authorized pursuant to part III, chapter 39, Hawaii Revised Statutes, and part III, chapter 201G, Hawaii Revised Statutes, to issue general obligation bonds in an aggregate principal amount not to exceed           , at such times and in such amounts as it deems advisable for the purpose of carrying out the provisions of subpart N of part III of chapter 201G, Hawaii Revised Statutes, relating to the homes revolving fund.

The proceeds of such general obligation bonds shall be deposited into the homes revolving fund created in section 201G-401, Hawaii Revised Statutes.

SECTION 24. There is appropriated out of the homes revolving fund the sum of $2,000,000, or so much thereof as may be necessary, for fiscal year 2006-2007, to carry out the purposes of the homes revolving fund relating to interim construction loans for self-help housing.

The sum appropriated shall be expended by the Hawaii housing finance and development administration.

SECTION 25. There is appropriated out of the general revenues of the State of Hawaii the sum of $20,000,000, or so much thereof as may be necessary for fiscal year 2006-2007, for the purpose of homeless assistance.

The sum appropriated shall be expended by the Hawaii housing finance and development administration for homeless and transitional housing and services.

SECTION 26. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 27. This Act shall take effect on July 1, 2006.

INTRODUCED BY:

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