STAND. COM. REP. NO. 2142

Honolulu, Hawaii

RE: S.B. No. 2043

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 2043 entitled:

"A BILL FOR AN ACT RELATING TO THE RENTAL HOUSING REVOLVING FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to prohibit the Hawaii Housing Finance and Development Corporation from forgiving loans made from the Rental Housing Revolving Fund.

Your Committee received testimony in support of this measure from one individual.

Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that the Rental Housing Revolving Fund provides gap-financing for developers who construct or rehabilitate affordable housing under the Low-Income Housing Tax Credit program. Typically, developers who receive financing from the Rental Housing Revolving Fund own the housing projects and are entitled to earn unlimited amounts of profits from tax-payer financed buildings. Your Committee therefore finds that it is against the public interest to allow these taxpayer-financed loans to be eligible for forgiveness.

Your Committee has amended this measure by:

(1) Making a conforming amendment to section 201H-86, Hawaii Revised Statutes, to align with the purpose of this measure; and

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

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. 2043, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2043, 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