STAND. COM. REP. NO.  706-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2744

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2744, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to amend certain statutes relating to the low-income housing tax credit provided by the State.  Among other things, this measure:

     (1)  Increases the aggregate state housing credit dollar amount available for award annually;

     (2)  Bases the amount of the tax credit on whether or not a building is financed by tax-exempt bonds;

     (3)  Increases funding for affordable rental housing development by making the state low-income housing tax credit more valuable; and

     (4)  Increases the value of the state low-income housing tax credits by shortening the term over which the credits are taken to five years.

The Chamber of Commerce Hawaii, Building Industry Association of Hawaii, and InState Partners provided testimony in support of this measure.  The Department of Taxation, Hawaii Housing Finance and Development Corporation, and Tax Foundation of Hawaii provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2744, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair