STAND. COM. REP. NO.  1729

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 1146

      S.D. 2

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1146, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL IMPACT FEES,"

begs leave to report as follows:

The purpose of this measure is to increase the supply of affordable housing by exempting the following types of housing development from school impact fee requirements:

(1)  Housing units reserved for persons or families with incomes up to 80 percent of the area median income located in a county with a population greater than 500,000;

(2)  Housing projects certified or approved for a general excise tax exemption under section 201H-36, Hawaii Revised Statutes (HRS), and government housing projects and projects processed pursuant to sections 46-15.1 and 201H-38, HRS; and

(3)  State or federal public housing projects as defined in section 356D-1 or 356D-91, HRS, or a state low-income housing project as defined in section 356D-51, HRS.

The Hawaii Public Housing Authority, Hawaii Rental Housing Coalition, Hui for Excellence in Education, Hawaii Construction Alliance, and Pacific Resource Partnership testified in support of this measure.  The Department of Education, The Chamber of Commerce Hawaii, and Building Industry Association of Hawaii opposed this measure.  The Office of Planning, Hawaii Housing Finance and Development Corporation, Department of Planning and Permitting of the City and County of Honolulu, Tax Foundation of Hawaii, and Hawaii Community Development Authority provided comments on this measure.

     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 S.B. No. 1146, S.D. 2, H.D. 2, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair