STAND. COM. REP. NO. 1920

Honolulu, Hawaii

RE: H.C.R. No. 78

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.C.R. No. 78 entitled:

"HOUSE CONCURRENT RESOLUTION DECLARING THE INTENT THAT PROJECTS WITH HOUSING UNITS THAT QUALIFY FOR HOUSING CREDITS UNDER ACT 31, SESSION LAWS OF HAWAII 2024, ARE STILL ELIGIBLE TO RECEIVE HOUSING CREDITS AFTER THE REPEAL OF THAT ACT IF THE HOUSING PROJECTS WERE APPROVED BY THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION BEFORE JULY 1, 2031, AND REQUESTING THE CORPORATION AND EACH COUNTY TO INCLUDE CERTAIN INFORMATION WHEN APPROVING HOUSING PROJECTS FOR HOUSING CREDITS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Declare the intent that projects with housing units that qualify for housing credits under Act 31, Session Laws of Hawaii 2024 (Act 31), are still eligible to receive housing credits after the repeal of Act 31 if the housing projects were approved by the Hawaii Housing Finance and Development Corporation before July 1, 2031; and

(2) Request the Hawaii Housing Finance and Development Corporation and each county to include certain information when approving housing projects for housing credits.

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

Your Committee finds that financing mechanisms such as affordable housing credits offer developers an incentive to expeditiously build housing units across the State. Your Committee further finds that Act 31, Session Laws of Hawaii 2024 (Act 31), requires the counties to issue affordable housing credits for affordable housing units that are constructed under the various programs administered by the Hawaii Housing Finance and Development Corporation. However, the provisions of Act 31 will sunset on July 1, 2031, creating uncertainty for developers who intend to commence, or are in the process of completing, a housing development project by that date. Clarifying the intent of Act 31 will therefore help the State address the existing housing shortage while ensuring more developers can qualify for credits and commence projects that create more housing units for working individuals and families.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 78, and recommends its adoption.

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

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STANLEY CHANG, Chair