SB1864

SECTION 1. Chapter 201H, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§201H- Downpayment loan program revolving fund. (a) There is created within the state treasury a revolving fund to be administered by the corporation and to be known as the downpayment loan revolving fund.

(b) The downpayment loan revolving fund shall be funded from the proceeds of general obligation bonds or other appropriations, and shall be used to carry out the purposes of subpart F, part III, of chapter 201H.

§201H- State rent supplement; subsidies. The corporation may use state rent supplement program funds for project-based operating subsidies for state low-income housing units that are transferred by the administration to private organizations for the purpose of managing and operating the units; provided that fifty per cent of the units shall be rented to persons or families whose income shall not exceed fifty per cent of the median family income as determined by the United States Department of Housing and Urban Development; and provided further that the remainder of the units shall be rented to persons or families whose income shall not exceed eighty per cent of the median family income as determined by the United States Department of Housing and Urban Development."

SECTION 2. 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‑ 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 original project cost of each project calculated pursuant to section 201H-40.

(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 approved and certified 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 3. Section 201H-9, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201H-9[]] Acquisition, use, and disposition of property[.]; transfer of public lands. (a) The corporation may acquire any real or personal property or interest therein by purchase, exchange, gift, grant, lease, or other means from any person or government to provide housing. Exchange of real property shall be in accordance with section 171-50.

(b) The corporation may own or hold real property. All real property owned or held by the corporation shall be exempt from mechanic's or materialman's liens and also from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall any judgment against the corporation be a charge or lien upon its real property; provided that this subsection shall not apply to or limit the right of obligees to foreclose or otherwise enforce any mortgage of the corporation or the right of obligees to pursue any remedies for the enforcement of any pledge or lien given by the corporation on its rents, fees, or revenues. The corporation and its property shall be exempt from all taxes and assessments.

(c) The corporation may lease or rent all or a portion of any housing project and establish and revise the rents or charges therefor. The corporation may sell, exchange, transfer, assign, or pledge any property, real or personal, or any interest therein to any person or government.

(d) Any public land, as defined in section 171-2, deemed suitable for affordable residential development, shall be transferred to the jurisdiction of the corporation for leases for development of affordable housing, as defined in section 201H-57, subject to legislative authorization under section 171‑60.

[~~(d)~~] (e) The corporation may insure or provide for the insurance of its property or operations against risks as it deems advisable."

SECTION 4. 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 5. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected each fiscal year 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) [~~Fifty~~] Sixty-five 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

SECTION 6. Section 356D-44, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority may decommission without giving notice of intent to demolish, and 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:

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

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

(3) 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."

SECTION 7. Act 100, Session Laws of Hawaii 2006, is amended by amending section 4 to read as follows:

"SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year [~~2006-2007~~] 2007-2008 to repair [~~and modernize existing federal and state buildings for transitional shelters and emergency shelters, as defined under section 201G-451, Hawaii Revised Statues.~~] to repair vacant public housing; provided that any unexpended funds from the 2006-2007 fiscal year under Act 100, Session Laws of Hawaii 2006, shall be carried over for the 2007-2008 fiscal year for purposes of this Act.

The sum appropriated shall be expended by the Hawaii public housing administration for the purposes of this section."

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $400,000 or so much thereof as may be necessary for fiscal year 2007-2008, for interim construction loans for up to ten homes to be developed as self-help ownership homes by private organizations or community trusts on land leased from the State and administered in accordance with subpart B of part III of chapter 201H, Hawaii Revised Statutes.

The sum appropriated shall be expended by the Hawaii housing finance and development corporation for the purposes of this Act.

SECTION 9. 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 2007-2008, 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 corporation.

SECTION 10. 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 201H, 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 F of part III of chapter 201H, 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 201H- , Hawaii Revised Statutes, of section 1 of this Act.

SECTION 11. No later than September 1, 2006, the Hawaii housing finance and development administration shall identify public lands under the control of any state agency that are suitable for affordable residential development. No later than December 1, 2006, the department of land and natural resources and any other state agency having control of any of the lands identified by the Hawaii housing finance and development administration shall initiate the transfer of the land to the Hawaii housing finance and development administration.

SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 13. This Act shall take effect upon its approval; provided that section 5 shall take effect on June 29, 2007; provided that the amendments made to section 247-7, Hawaii Revised Statutes, shall not be repealed when that section is reenacted on June 30, 2007, by Act 100, Session Laws of Hawaii 2006; and provided further that sections 8, 9, and 10 shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1864
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII