STAND. COM. REP. NO. 2177

Honolulu, Hawaii

RE:    S.B. No. 2093

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 2093 entitled:

"A BILL FOR AN ACT RELATING TO THE DISPOSITION OF THE CONVEYANCE TAX COLLECTIONS TO THE RENTAL HOUSING REVOLVING FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to restore the allocation of conveyance tax collections to the rental housing revolving fund to fifty percent, without a $38,000,000 cap.

     Your Committee received testimony in support of this measure from the Coordinator on Homelessness under the Office of the Governor, Hawaii Housing Finance and Development Corporation, Catholic Charities Hawai‘i, Ali‘i Pauahi Hawaiian Civic Club, The CHOW Project, Hawai‘i Association of REALTORS, Partners in Care, Hawaii Appleseed Center for Law and Economic Justice, and one individual.  Your Committee received comments on this measure from FACE and Tax Foundation of Hawaii.

     Your Committee finds that there is a serious need to develop affordable rental housing in Hawaii to meet the needs of individuals and families who are homeless or at risk of becoming homeless.  In fiscal year 2015, the rental housing revolving fund received $39,500,000 in conveyance tax revenues to support projects that set aside rental units that are affordable to extremely and very low-income families.  This measure will help to expand the much needed affordable rental housing opportunities for Hawaii residents and address the unique challenges related to affordable rentals.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2093 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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BREENE HARIMOTO, Chair