STAND. COM. REP. NO. 3389

Honolulu, Hawaii

RE: S.B. No. 2695

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2695, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to promote the development of affordable housing in the State.

More specifically, this measure:

(1) Creates a housing incentive fund to be administered by the Hawaii Public Housing Authority for multifamily housing for essential workers and low- to moderate-income households;

(2) Creates a tax credit for individuals or taxpaying entities who make contributions to the housing incentive fund; and

(3) Authorizes the issuance of general obligation bonds to fund the housing incentive fund.

Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority, Catholic Charities Hawaii, Maui Chamber of Commerce, and one individual.

Your Committee received written comments on this measure from the Department of Budget and Finance, Department of Taxation, and Tax Foundation of Hawaii.

Your Committee finds that this measure will provide a catalyst for the Hawaii Public Housing Authority to move more quickly in rehabilitating its aging inventory of public housing units and investing in future redevelopment projects.

Your Committee has amended this measure by:

(1) Changing the appropriation to an unspecified amount;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2695, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2695, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair