STAND. COM. REP. NO. 364-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1763

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 1763 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the allocation of Low-Income Housing Tax Credits be issued pursuant to a priority system;

(2) Amend the priority criteria for which funds in the Rental Housing Revolving Fund are to be used; and

(3) Require the Hawaii Housing Finance and Development Corporation to add new criteria and point allocations to the Qualified Allocation Plan.

Your Committee received testimony in support of this measure from the Hawaii Public Housing Authority and AARP Hawai‘i. Your Committee received testimony in opposition to this measure from Affordable Housing Connections LLC. Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation and Catholic Charities Hawai‘i.

Your Committee finds that the limited supply of affordable housing continues to be a major issue for the State. Your Committee believes that it is important for the State to incentivize developers to help address and increase the affordable housing inventory. Your Committee further finds that the State must preserve and increase Low-Income Housing Tax Credit properties, as many of these properties' terms are approaching expiration. This measure will expand financing options to increase affordable housing in the State.

Your Committee has amended this measure by:

(1) Clarifying that priority be given to projects that are state- or county-owned land for Low-Income Housing Tax Credits and Rental Housing Revolving Fund loans or grants;

(2) Deleting projects in which the State or a county is an equity partner from the priority list for Low-Income Housing Tax Credits and Rental Housing Revolving Fund funding;

(3) Specifying that certain projects must have been awarded Low-Income Housing Tax Credits in order to receive funding from the Rental Housing Revolving Fund and establishing an order of priority for these projects;

(4) Allowing projects conveying ownership of a finished project to the counties to receive points for the Qualified Allocation Plan;

(5) Expanding the qualifications to receive a certain amount of points for the Qualified Allocation Plan to include an applicant demonstrating a record of project readiness;

(6) Clarifying additional points the Hawaii Housing Finance and Development Corporation may allocate to applicants;

(7) Changing the effective date to July 1, 3000, to encourage further discussion; and

(8) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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 H.B. No. 1763, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1763, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

LUKE A. EVSLIN, Chair