CONFERENCE COMMITTEE REP. NO. 151-16

Honolulu, Hawaii

                 , 2016

RE:    S.B. No. 2833

       S.D. 2

       H.D. 2

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2833, S.D. 2, H.D. 2, entitled:

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

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 measure is to amend the calculation of the low-income housing tax credit, including the applicable period over which the credit may be claimed from ten to five years and the establishment of different credit amounts for buildings financed by tax-exempt bonds, for the purpose of increasing available funding for affordable rental housing development.

     Your Committee on Conference finds that the development of low‑income affordable housing is necessary to address the issue of homelessness and respond to the critical shortage of housing inventory in the community.  Increasing the investment attractiveness of state low-income housing tax credits would generate more equity to finance the development of affordable rental housing projects.

     Your Committee on Conference has amended this measure by:

     (1)  Deleting its contents and inserting the contents of S.B. No. 2833, as introduced, which makes the state low‑income housing tax credits more valuable by reducing the state tax credit period from ten to five years and specifying the amount of low-income housing tax credits that may be claimed by a taxpayer for any qualified low‑income building that receives an allocation prior to January 1, 2017, and after December 31, 2016; and

     (2)  Inserting a sunset date of December 31, 2021.

     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 S.B. No. 2833, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2833, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARK J. HASHEM, Co-Chair	____________________________ BRICKWOOD GALUTERIA, Chair
____________________________ JO JORDAN, Co-Chair	____________________________ BREENE HARIMOTO, Co-Chair
	____________________________ DONOVAN M. DELA CRUZ, Co-Chair