CONFERENCE COMMITTEE REP. NO. 123

Honolulu, Hawaii

                 , 2011

RE:    H.B. No. 960

       H.D. 1

       S.D. 2

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 960, H.D. 1, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this bill is to authorize:

(1)  The Hawaii Housing Finance and Development Corporation (HHFDC) to grant no-interest low-income housing tax credit loans to certain owners of qualified low-income buildings; and

(2)  The issuance of general obligation bonds for Fiscal Year (FY) 2011-2012 to fund the low-income housing tax credit loans.

It is your Committee on Conference's understanding that the authorization to issue $7 million in general obligation bonds for FY 2011-2012 for low-income housing tax credit loans will be included in the General Appropriations Act of 2011.

Your Committee on Conference has amended this bill by:

(1)  Including a purpose section that sets forth the purpose of this bill, which is to encourage the development and preservation of rental housing for lower income household by creating a cost-effective financing mechanism for projects that are awarded state low-income housing tax credits;

(2)  Authorizing, rather than requiring, HHFDC to forgive, if the owner is not in default, the amount remaining under the no-interest loan to the owner of the qualified low-income building after 30 years;

(3)  Repealing provisions authorizing the issuance of general obligation bonds for FY 2011-2012 for low-income housing tax credit loans;

(4)  Changing its effective date to July 1, 2011; and

(5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 960, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 960, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DONOVAN M. DELA CRUZ, Chair	____________________________ PONO CHONG, Co-Chair
____________________________ MALAMA SOLOMON, Co-Chair	____________________________ JO JORDAN, Co-Chair
____________________________ DAVID Y. IGE, Co-Chair