STAND. COM. REP. NO.
Honolulu, Hawaii
MAR 2 8 2024
RE: S.R. No. 31
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.R. No. 31
entitled:
"SENATE RESOLUTION URGING THE HAWAII HOUSING FINANCE AND
DEVELOPMENT CORPORATION TO AMEND THE PRIORITY FOR WHICH LOW-
INCOME HOUSING TAX CREDITS ARE ALLOCATED AND MONEYS IN THE
RENTAL HOUSING REVOLVING FUND ARE USED AND TO ADOPT CERTAIN
ADMINISTRATIVE RULES THAT INCENTIVIZE THE DEVELOPMENT OF
AFFORDABLE HOUSING IN THE STATE,"
begs leave to report as follows:
The purpose and intent of this measure is to urge the Hawaii
Housing Finance and Development Corporation to amend the priority
for which low-income housing tax credits are allocated and moneys
in the Rental Housing Revolving Fund are used and to adopt certain
administrative rules that incentivize the development of
affordable housing in the state.
Your Committee received testimony in support of this measure
from the Department of Hawaiian Home Lands.
Your Committee received comments on this measure from the
Hawaii Housing Finance and Development Corporation.
Your Committee finds that the federal Low-Income Housing Tax
Credit (LIHTC) Program is intended to encourage the construction
or rehabilitation of low-income rental units. The State also
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created its own LIHTC, which is equal to fifty percent of the
federal LIHTC allocated to a project, and the Hawaii Housing
Finance and Development Corporation (HHFDC) is the designated
agency responsible for the administration of both the federal and
state LIHTC programs. Your Committee also finds that HHFDC's
Qualified Allocation Plan (QAP) sets forth the criteria to
evaluate and allocate LIHTC to projects and the procedures to
monitor compliance with the provisions of the LIHTC Program. Your
Committee finds, however, that existing LIHTC incentives do not
reflect policies that will ensure the State can successfully
address its ongoing housing shortage or best utilize tax payer
funds. Therefore, this measure urges HHFDC to incentivize and
prioritize certain projects to maximize benefits of the LIHTC
program.
Your Committee has amended this measure by:
(1) Deleting duplicative language that would have urged
HHFDC to prioritize providing loans or grants for rental
housing projects that have been awarded LIHTC and that
meet certain criteria;
(2) Clarifying references to HHFDCs Qualified Allocation
Plan for consistency; and
(3) Requesting that certified copies of this measure be sent
to all members of the Board of Directors of HHFDC rather
than just its Chairperson.
As affirmed by the record of votes of the members of your
Committee on Housing that is attached to this report, your
Committee concurs with the intent and purpose of S.R. No. 31, as
amended herein, and recommends its adoption in the form attached
hereto as S.R. No. 31, S.D. 1.
Respectfully submitted on
behalf of the members of the
Committee on Housing,
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 The Senate
Thirty-Second Legislature
State of HawaiM
Record of Votes
Committee on Housing
HOU
Bill / Resolution No.:* Committee Referral: Date:
(4(9 C 5/2 'A*/
__ The Committee is reconsidering its previous decision on this measure.
If so, then the previous decision was to:______________________________________
The Recommendation is:
Pass, unamended ^-^Pass, with amendments __ Hold __ Recommit
2312 2311 2310 2313
Members Aye Aye (WR) Nay Excused
CHANG, Stanley (C)
HASHIMOTO, Troy N. (VC)
AQUINO, Henry J.C.
KANUHA, Dru Mamo v»**^
AWA, Brenton
TOTAL /
Recommendation: __ .
[e^j^dopted __ Not Adopted
Chair’s or Designee’s Signature: yj /
/ ci—-
Distribution: Original Yellow Pink Goldenrod
File with Committee Report Clerk's Office Drafting Agency Committee File Copy
*Only one measure per Record of Votes
Revised: 12/27/23