STAND. COM. REP. NO. 1414

Honolulu, Hawaii

, 2019

RE: S.B. No. 867

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 867, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to incentivize affordable rental housing development by:

(1) Removing certain restrictions on costs that may be exempt from general excise taxes in the development of newly constructed or moderately- or substantially-rehabilitated affordable rental housing projects; and

(2) Making permanent provisions that:

(A) Expand the types of rental housing projects that are exempted from general excise taxes; and

(B) Determine the prevailing wages for employees working on the construction of certain rental housing projects.

The Department of Taxation and Hawaii Housing Finance and Development Corporation submitted comments on this measure.

Your Committee has amended this measure by making technical, nonsubstantive amendments for clarity, consistency, and style.

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. 867, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 867, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

TOM BROWER, Chair