STAND. COM. REP. NO. 2881

Honolulu, Hawaii

RE: S.B. No. 3062

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3062 entitled:

"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

begs leave to report as follows:

The purpose and intent of this measure is to help alleviate the affordable housing crises in the State by increasing the cap on monies to be paid into the rental housing revolving fund from conveyance tax revenues.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Imua Alliance, EAH Housing, Faith Action for Community Equity, and two individuals. Your Committee received comments on this measure from Tax Foundation of Hawaii and Catholic Charities Hawaii.

Your Committee finds that the rental housing revolving fund, which provides low—interest loans or grants to qualified owners and developers constructing affordable housing units, can help to fulfill housing needs in Hawaii. The rental housing revolving fund is funded annually, in part, by the state conveyance tax; however, the funding from conveyance taxes is capped at $38,000,000 per year. Your Committee finds that if there were no cap, the rental housing revolving fund would have had $26,550,000 additional funds combined over the last three years. Therefore, this measure increases the statutory cap to increase the funding in the rental housing revolving fund.

Your Committee recognizes the testimony from the Hawaii Housing Finance and Development Corporation, who requested that the statutory cap be lifted entirely. The Hawaii Housing Finance and Development Corporation testified that it would be able to use all of the additional funds generated by lifting the cap.

Accordingly, your Committee has amended this measure by removing the statutory cap instead of merely raising it.

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 S.B. No. 3062, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3062, 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