STAND. COM. REP. NO.  1184

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1118

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 1118, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LOW-INCOME HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to shorten the period over which low-income housing tax credit may be taken from ten years to five years.

     The Department of Taxation, Hawaii Housing Finance and Development Corporation (HHFDC), Hawaii Association of Realtors, EAH Housing, Office of Hawaiian Affairs, and Land Use Research Foundation of Hawaii supported this bill.  The Tax Foundation of Hawaii offered comments.

     Your Committee has amended this bill by:

     (1)  Restoring the time period over which the low-income tax credit may be taken to ten years;

     (2)  Establishing a low-income housing tax credit loan program administered by HHFDC whereby owners of qualified low-income buildings, including those eligible for subawards under the American Recovery and Reinvestment Act of 2009, may receive no interest loans in lieu of the state low-income housing tax credit;

     (3)  Authorizing the issuance of general obligation bonds to fund the loans; and

     (4)  Making technical, nonsubstantive changes for style, clarity, and conformity.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1118, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1118, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

RIDA CABANILLA, Chair