HB1971.DOC

SECTION 1. Section 39A-281, Hawaii Revised Statutes, is amended by amending the definition of "low- and moderate-income housing project" to read as follows:

""Low- and moderate-income housing project" means any housing project where:

(1) All project units are offered for rent, of which at least:

(A) Twenty per cent of the units are rented to households with an income of up to fifty per cent of the area median income as determined by the United States Department of Housing and Urban Development;

(B) Forty per cent of the housing units in the project are rented to households with an income of up to eighty per cent of the area median income as determined by the United States Department of Housing and Urban Development; or

(C) Sixty per cent of the housing units in the project are rented to households with an income of up to one hundred [~~forty~~] per cent of the area median income as determined by the United States Department of Housing and Urban Development;

(2) All project units are offered for sale through the conveyance of individual units by deed or share, of which at least fifty per cent of the units are sold to households with an income of up to one hundred [~~forty~~] per cent of the area median income as determined by the United States Department of Housing and Urban Development; or

(3) The project qualifies for federal tax exempt status pursuant to 26 [~~U.S.C. §142(a)(7)~~] United States Code section 142(a)(7) and (d);

provided that if there is an insufficient number of persons or families who meet the income qualifying criteria, the developer of the housing project may make units available to households with higher incomes to ensure full occupancy of the housing project."

SECTION 2. Section 46-14.5, Hawaii Revised Statutes, is amended to read as follows:

"§46‑14.5 Land use density and infrastructure; low-income rental units. Notwithstanding any other law to the contrary, the counties are authorized to provide flexibility in land use density provisions and public facility requirements to encourage the development of any rental housing project where at least a portion of the rental units are set aside for persons and families with incomes at or below one hundred [~~forty~~] per cent of the area median family income, of which twenty per cent are set aside for persons and families with incomes at or below eighty per cent of the area median family income."

SECTION 3. Section 46-15.25, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) For the purposes of this section:

"Affordable housing" means housing that is affordable to households with incomes at or below one hundred [~~forty~~] per cent of the median family income as determined by the United States Department of Housing and Urban Development.

"Infrastructure" includes water, drainage, sewer, waste disposal and waste treatment systems, road, and street lighting that connect to the infrastructure of the county."

SECTION 4. Section 201H-57, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) For the purposes of this section:

"Qualified nonprofit organization" means any private entity that is organized and operated:

(1) In accordance with section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and

(2) For the purpose of providing affordable housing through long-term, renewable, and transferable leases."

SECTION 5. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans or grants for rental housing projects in the following order of priority:

(1) Projects or units in projects that are allocated low‑income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:

(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and

(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;

provided that the corporation may establish rules to ensure full occupancy of fund projects; and

(2) Mixed-income rental projects or units in a mixed‑income rental project wherein all of the available units are for persons and families with incomes at or below one hundred [~~forty~~] per cent of the median family income."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1971
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII