STAND. COM. REP. NO.  743

 

Honolulu, Hawaii

                , 2023

 

RE:   H.B. No. 1236

      H.D. 2

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1236, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

 

begs leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Allow a bank to invest, in aggregate, up to two percent of the bank's total assets in limited partnerships, limited liability partnerships, limited liability companies, and corporations formed to invest in affordable housing properties; and

 

     (2)  Require prior approval from the Commissioner of Financial Institutions to exceed that amount.

 

     Your Committee received testimony in support of this measure from the Chamber of Commerce Hawaii, HPM Building Supply, EAH Housing, Highridge Costa Development Company, Central Pacific Bank, NAIOP Hawaii, Housing Hawaii's Future, General Contractors Association of Hawaii, Ahe Group, and Maui Chamber of Commerce.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

 

     Your Committee finds that a housing crisis exists in the State.  Your Committee further finds that existing law limits the amount a bank may invest in entities formed to invest in residential properties that qualify for the federal Low Income Housing Tax Credit.  This measure increases the existing statutory limit, which will encourage banks to invest more into affordable housing projects.

 

     Your Committee has amended this measure by inserting a sunset date of June 30, 2025.

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1236, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1236, H.D. 2.

 

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

 

 

____________________________

MARK M. NAKASHIMA, Chair