STAND. COM. REP. NO. 109

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1118

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Education and Housing, to which was referred S.B. No. 1118 entitled:

 

"A BILL FOR AN ACT RELATING TO LOW-INCOME HOUSING,"

 

begs leave to report as follows:

 

     The purpose of this measure is to provides additional incentives for the development of affordable housing by increasing the low-income housing tax credit from a one-time credit of fifty per cent to a one hundred per cent credit taken over five years.

 

     Testimony in support of this measure was submitted by three private organizations.  Testimony in opposition was submitted by two state agencies.  One private organization submitted comments.  Copies of written testimony are available for review on the Legislature's website.

 

     Your Committee finds that this measure is one of many under consideration by the Legislature in response to severe shortages of affordable housing in Hawaii.  Your Committee is concerned that a long-term economic crisis will further worsen what is already a challenging housing market for Hawaii residents.

 

     Your Committee further finds that while the federal economic stimulus legislation will provide some relief, much more needs to be done at the state level.  Your Committee has heard and approved a wide range of proposed affordable housing initiatives and encourages further legislative discussions on the proposal in this measure.

 

     Your Committee has amended this measure by deleting its content and replacing it with the language in S.B. No. 861.  As amended this measure shortens the period over which the state low‑income housing tax credit can be taken from ten years to five years, thus allowing taxpayers to claim larger tax credit amounts over a shorter period of time.

 

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1118, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1118, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

NORMAN SAKAMOTO, Chair