STAND. COM. REP. NO. 28

Honolulu, Hawaii

RE:    S.B. No. 581

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 581 entitled:

"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Remove the cap on the amount of conveyance taxes collected that may be paid into the rental housing revolving fund; and

     (2)  Increase the percentage of conveyance taxes collected that shall be paid into the rental housing revolving fund.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, EAH Housing, Hawai‘i Association of REALTORS, IMUAlliance, Housing Now, and three individuals.  Your Committee received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, Chamber of Commerce Hawaii, and Building Industry Association of Hawaii.

     Your Committee finds that a great need exists in the State for affordable housing, including affordable rental housing.  The rental housing revolving fund provides loans to projects that set aside rental units affordable to extremely low- and very low-income families, which can fill financial gaps to develop affordable rental housing projects.  Removing the cap on the amount of conveyance taxes collected that may be paid into the rental housing revolving fund and increasing the percentage of conveyance taxes collected that are paid into the revolving fund will increase the monies available for loans to qualifying projects and help alleviate the need for rental housing in the State.

     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. 581 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,

________________________________

WILL ESPERO, Chair