STAND. COM. REP. NO. 1095

Honolulu, Hawaii

RE: H.B. No. 529

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 529, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE FINANCES,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Hawaii Housing Finance and Development Corporation to secure revenue bonds as a line of credit or other instrument of indebtedness for the Bond Volume Cap Recycling Program.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that the Hawaii Housing Finance and Development Corporation (HHFDC) has statutory authorization to establish a Bond Volume Cap Recycling program for the purpose of building eligible housing developments pursuant to section 142(d) of the Internal Revenue Code of 1986, as amended. As a condition for bond recycling, HHFDC is required to acquire a line of credit for private activity bond recycling to ensure funds are readily available to pay off existing bonds at maturity or redemption. Therefore, this measure ensures continuity of HHFDC's financing structure and compliance with section 145 of the Internal Revenue Code.

Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

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 H.B. No. 529, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 529, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

STANLEY CHANG, Chair