STAND. COM. REP. NO. 3951

Honolulu, Hawaii

RE: H.B. No. 1829

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1829, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BONDS,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the development of affordable housing projects.

Specifically, this measure:

(1) Requires each county or issuer of private activity bonds to submit quarterly reports to the Department of Budget and Finance on the status or use of its allocation of private activity bonds; and

(2) Prohibits the authorization of special purpose revenue bonds requiring an allocation of the annual state ceiling during the period after June 30, 2022, and before December 31, 2028, unless the allocation is requested by the Governor and approved by the Legislature; and

(3) During the period after June 30, 2022, and before December 31, 2028, requires a county with a population of more than five hundred thousand to use its allocation of the annual state ceiling only for rental housing projects that are eligible for the low-income housing tax credit.

Your Committee received written comments in support of this measure from Highridge Costa and Catholic Charities Hawaii.

Your Committee received written comments in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu and one individual.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that increasing coordination between the State and the counties on the timing of private activity bond issuances will allow the State to more efficiently allocate private activity bonds for housing-related projects.

Your Committee has amended this measure by:

(1) Requiring the submission of semi-annual, rather than quarterly, reports on the status or use of any allocation;

(2) Amending the date by which each county's annual report of its unused or unassigned allocation must be submitted to the Department of Budget and Finance;

(3) Requiring the semi-annual and annual reports to be submitted to the Department of Budget and Finance and Hawaii Housing Finance and Development Corporation; and

(4) Changing the effective date to July 2, 2022.

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 H.B. No. 1829, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1829, H.D. 2, 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