STAND. COM. REP. NO. 652

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1277

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1277, 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 increase incentives for the development of affordable housing in Hawaii.

 

     Specifically, this measure:

 

     (1)  Establishes a self-help housing trust fund;

 

     (2)  Increases the conveyance tax on transfers or conveyances of real property valued in excess of $1,000,000, dedicates five per cent of the conveyance tax to the self-help housing trust fund, and increases the conveyance tax contribution to the rental housing trust fund;

 

     (3)  Increases the value of the low-income housing tax credit provided in chapter 235, Hawaii Revised Statutes, by shortening the period over which the credits can be taken from ten years to five years;

 

     (4)  Facilitates the collection of any shared appreciation equity lien, deferred sale price lien, and any excess proceeds in lieu of any buyback provision in the event of a foreclosure of any property that received assistance from the Hawaii Housing Finance and Development Corporation; and

 

     (5)  Establishes a mortgage credit certificate program to assist qualified low and moderate-income persons purchasing a principal residence with a state income tax credit of up to, or equal to, twenty per cent of the annual mortgage interest payments.

 

     Your Committee received eight comments on this measure.  Copies of written comments submitted to the Committee are available for review on the Legislature's website.

 

     Your Committee finds that in spite of past efforts made by the State to ease the housing crisis, particularly for the homeless and low- and moderate-income residents, more assistance is needed.  Your Committee finds that the multi-pronged approach contained in this measure may make a significant difference in resolving this situation.

 

     Your Committee has made technical nonsubstantive changes to this measure for purposes of clarity and consistency.

 

     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 S.B. No. 1277, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1277, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DONNA MERCADO KIM, Chair