Hawaii-2024-HB1763-Amended

SECTION 1. Section 201H-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation is designated as a state housing credit agency to carry out section 42(h) (with respect to limitation on aggregate credit allowable with respect to a project located in a state) of the Internal Revenue Code of 1986, as amended. As a state housing credit agency, the corporation shall [~~determine~~]:

(1) Determine the eligibility basis for a qualified low-income building[~~, make~~];

(2) Make the allocation of housing credit dollar amounts within the State[~~, and determine~~]; provided that priority shall be given to the following:

(A) Projects on state- or county-owned land;

(B) Projects that are required to be conveyed to the State or a county at a definite time;

(C) Projects owned by an organization obliged to use all financial surplus generated by the project to construct, manage, or rehabilitate owner- or renter-occupied housing;

(D) Projects with a perpetual affordability commitment; and

(E) Projects of applicant developers who:

(i) Demonstrate a record of early loan repayment; or

(ii) Request a shorter repayment term; and

(3) Determine the portion of the State's housing credit ceiling set aside for projects involving qualified nonprofit organizations. The corporation shall file any certifications and annual reports required by section 42 (with respect to low-income housing credit) of the Internal Revenue Code of 1986, as amended."

SECTION 2. Section 201H-202, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Moneys available in the fund shall be used for the purpose of providing, in whole or in part, loans or grants for rental housing projects [~~in the following order of priority:~~]; provided that priority shall be given to the following:

(1) Projects or units in projects that are allocated low-income housing credits pursuant to the state housing credit ceiling under section 42(h) of the Internal Revenue Code of 1986, as amended, or projects or units in projects that are funded by programs of the United States Department of Housing and Urban Development and United States Department of Agriculture Rural Development wherein:

(A) At least fifty per cent of the available units are for persons and families with incomes at or below eighty per cent of the median family income of which at least five per cent of the available units are for persons and families with incomes at or below thirty per cent of the median family income; and

(B) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income;

provided that the corporation may establish rules to ensure full occupancy of fund projects; [~~and~~]

(2) For projects that were awarded low-income housing credits pursuant to paragraph (1), priority shall be given in the following order:

(A) Projects on state- or county-owned land;

(B) Projects that are required to be conveyed to the State or a county at a definite time;

(C) Projects owned by an organization obliged to use all financial surplus generated by the project to construct, manage, or rehabilitate renter-occupied housing;

(D) Projects with a perpetual affordability commitment; and

(E) Projects of developers who:

(i) Demonstrate a record of early loan repayment; or

(ii) Request a shorter repayment term; and

[~~(2)~~] (3) Mixed-income rental projects or units in a mixed-income rental project wherein all of the available units are for persons and families with incomes at or below one hundred forty per cent of the median family income."

SECTION 3. With respect to the qualified allocation plan and the criteria point system developed by the Hawaii housing and finance development corporation in accordance with section 42 of the Internal Revenue Code of 1986, as amended, the corporation shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to:

(1) Add a new criteria category that allows for up to:

(A) Twenty per cent of the maximum one hundred twenty points on the application criteria point system to be allocated to applications for projects offering to convey ownership of the finished project to the State, county, or an organization obliged to use all financial surpluses generated by the project to construct, manage, or rehabilitate owner- or renter-occupied housing; and

(B) Ten per cent of the maximum one hundred twenty points on the application criteria point system to be allocated to applicants that:

(i) Demonstrate a record of project readiness and early loan repayment into the rental housing revolving fund of past rental housing revolving fund loans; or

(ii) Request a shorter repayment term; and

(2) Allocate up to an additional:

(A) Seven points to projects with a perpetual affordability commitment; and

(B) Seven points for the ratio of the developer fees as a percentage of total project costs.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1763
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII