STAND. COM. REP. NO. 2225

Honolulu, Hawaii

RE:    S.B. No. 2595

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Education and Housing, to which was referred S.B. No. 2595 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to require that the gross annual income of households in a housing project developed by a qualified person or firm be calculated according to the United States Department of Housing and Urban Development's method of calculation for determining eligibility for the Federal Housing Choice Voucher (section 8) program, in order for the person or firm to be considered to receive a general excise tax exemption.

     Comments on this measure were submitted by one state agency.  Testimony in opposition of this measure was submitted by one state agency and two private organizations.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that establishing a connection between gross annual income, as calculated by the United States Department of Housing and Urban Development for purposes of determining eligibility for Section 8 housing, and qualification for a general excise tax exemption for affordable housing projects is fair and just.  Your Committee also finds that basing qualification for a general excise tax exemption on gross annual income and occupancy percentages of an affordable housing project will provide objective criteria to determining tax exemption status.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on this measure.

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2595, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2595, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

NORMAN SAKAMOTO, Chair