STAND. COM. REP. NO. 2462

Honolulu, Hawaii

RE:    S.B. No. 2337

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2337 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to provide funding for the low-income housing tax credit loan program through revenues derived from the issuance of general obligation bonds.

     Your Committee received written comments in support of the measure from the Hawaii Housing Finance and Development Corporation, Community Alliance for Mental Health, and General Contractors Association of Hawaii.  The Department of Budget and Finance submitted written comments on the measure.

     Your Committee finds that Act 158, Session Laws of Hawaii 2011, established a low-income housing tax credit loan program, which allows owners of qualified low-income buildings to receive an interest-free loan from the State in lieu of claiming the low-income housing tax credit under section 235-110.8, Hawaii Revised Statutes.  Your Committee believes that funding the loan program through revenues derived from an issuance of general obligation bonds is appropriate and will help address the need for low-income housing in the State.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

     (2)  Making technical nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2337, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2337, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair