Tuesday, April 24, 2018


Units will be developed for struggling working families

Honolulu, Hawaiʻi –Today, Senate and House conferees agreed and voted on a comprehensive housing measure that takes a momentous step forward in addressing Hawai‘i's affordable rental housing crisis on all islands.  House Bill 2748 HD2 SD2 CD1 provides a total of $570 million which will generate more than 25,000 affordable units by the year 2030.  This will fulfill the goal of 22,500 affordable rental housing units set by the Legislature in 2016 via Act 127, Session Laws of Hawaiʻi 2016.
"This is the largest appropriation made by the Legislature and demonstrates our relentless commitment to providing innovative solutions to meet the State's long-term housing demands" said House Housing Chair Representative Tom Brower (Waikīkī, Ala Moana).
This measure supports development of affordable rental housing for a wide range of households spanning low income families to those making up to 140 percent of the area median income (AMI).
"In addition to low income households, this measure targets Hawaiʻi's middle-class families," said Senate Housing Committee Chair Senator Will Espero (‘Ewa Beach, Ocean Pointe, ‘Ewa by Gentry, Iroquois Point, portion of ‘Ewa Villages). "These are working families who are not wealthy enough to afford a home in our expensive housing market, but do not qualify for public housing assistance. We must support them by providing an affordable option for housing while they save for a home of their own."
House Bill 2748 HD2 SD2 CD1 contains four parts:
1.         Appropriates $200 million into the Rental Housing Trust Fund to generate approximately 1,600 affordable rental housing units for families at or below 80 percent AMI. 
The Rental Housing Revolving Fund (RHRF) provides equity gap low-interest loans or grants to qualified owners and developers for the development, pre-development, construction, acquisition or preservation of affordable rental housing.  Preference is given to projects that meet certain statutory criteria.  Included is a preference for projects that provide at least 5 percent of the total number of units for persons and families with incomes at or below 30 percent of the median family income.  Another preference is for projects that provide the maximum number of units for persons or families with incomes at or below 80 percent of the median family income.
At the end of Fiscal Year 2017, the RHRF had a balance of $156 million. This appropriation will more than double its corpus to assist low income families and individuals, including the homeless and special needs groups, in obtaining affordable rental housing.
2.         Expands the general excise tax exemption for construction of approximately 24,000 affordable rental units for families at or below 140 percent AMI.
The measure increases the general excise tax exemption for the construction of affordable rental units for households at or below 140 percent AMI, with at least 20 percent of those units available for households at or below 80 percent of the AMI. The exemption will increase from $7 million (the exemption amount enacted in 2017) to $30 million per year and will be extended from the year 2022 to 2030.  The total value of this expanded general excise tax exemption amounts to $360 million over 12 years.
This exemption is expected to result in the construction of approximately 24,000 affordable rental units. 
3.         Appropriates $10 million into the Dwelling Unit Revolving Fund (DURF)
DURF was established pursuant to Act 105, Session Laws of Hawaii 1970, which authorized the issuance of $125 million in general obligation bonds to carry out the purposes of the Housing Development Program. Funds may be used for the acquisition of real property; development and construction of residential, commercial and industrial properties; interim and permanent loans to developers; and any and all things necessary to carry out the purposes of the Housing Development Program, including administrative expenses.
DURF provides interim construction financing of affordable housing projects.  This appropriation will increase its corpus by 10 percent.
4.         Appropriates $50,000 to prepare an assessment of housing needs for persons with low or no income, such as the disabled and functionally challenged populations.
This appropriation commissions the Hawaii Housing Finance and Development Corporation to determine the number of persons with special needs in Hawaii, identify the supportive services they may require and inventory the providers of supportive services statewide.
"Former State Senator the Rev. Bob Nakata deserves the credit for today's bill," said House Finance Chair Rep. Sylvia Luke, (Makiki, Punchbowl, Nu‘uanu, Dowset Highlands, Pacific Heights, Pauoa). "He has said that the Legislature needs to provide funding to create 22,000 units. This bill goes beyond that."
“Our affordable housing crisis demands we take tangible, meaningful action. With this measure, we are responding to the needs of our community – our families, children and low-income individuals – and providing long-term solutions that are feasible within the context of our state financial plan,” said Senate Ways and Means Chair Senator Donovan Dela Cruz (Mililani Mauka, Waipi‘o Acres, Wheeler, Wahiawa, Whitmore Village, portion of Poamoho).

The bill now moves to the full House and Senate for a final reading vote.

Photo Caption: The Rev. Bob Nakata, who has been a tirelessly advocate at the Legislature for construction and funding of affordable housing for the past two decades, said he was thankful for this bill to help the people of Hawaii. With him are Chairman of the House Housing Committee Representative Tom Brower (from left), Chairman of the Senate Housing Committee Will Espero, Chairwoman of the House Finance Committee Representative Sylvia J. Luke, and Chairman of the Senate Ways and Means Committee Donovan M. Dela Cruz.

Wednesday, April 18, 2018


Lawmakers also allocate an additional $25 million for other statewide emergency repairs

Honolulu, HawaiʻiTo provide disaster relief following devastating flooding on Kaua‘i and other affected areas statewide, House and Senate Legislators today allocated a total of $125 million to make road, bridge and other infrastructure repairs for the stricken communities.
"Kaua‘i residents need our help immediately," said House Speaker Scott K. Saiki (McCully, Kāheka, Kakaʻako, Downtown). "The rains and flooding have decimated roads, bridges, power lines and other infrastructure. With the ground soaked and more rain predicted, we cannot wait to act. We need to move quickly on funding repairs and give those in need some hope for the future."
“I am in complete agreement with Speaker Saiki and additionally, I would like to thank my legislative colleagues for their support in recognizing the dire needs of Kaua‘i residents,” said Senator Ronald D. Kouchi (Kaua‘i, Ni‘ihau).
The House Finance and Senate Ways and Means committees added wording to Senate Bill 192 during a conference committee hearing to appropriate $100 million in general funds to protect the health, safety and welfare of the people, and provide relief from disaster damages, losses and suffering caused by the flooding on Kaua‘i.
The committee also provided $25 million for flood-related repairs statewide.
"This tragedy is very personal for me because I have many friends and family in the flooded areas, and critical because I represent these communities in the Legislature," said Representative Nadine K. Nakamura (Hanalei, Princeville, Kīlauea, Anahola, Kapaʻa, Wailuā). "I want to thank Speaker Saiki, President Kouchi, Chairs Luke and Dela Cruz and all my colleagues in the Legislature for their compassion and quick action to make this relief funding happen."
“Many of us have spent the last few days witnessing the utter devastation that has once again struck our family and friends on the island of Kaua‘i,” said Senator Donovan M. Dela Cruz (Mililani Mauka, Waipi‘o Acres, Wheeler, Wahiawā, Whitmore Village, portion of Poamoho), Chair of the Senate Committee on Ways and Means. “Rather than sit and wait, it’s clear that the Legislature must commit our efforts to the rebuilding process for those impacted by the floods in these final days of session.  In this joint effort by both chambers, we wish to offer our kokua through the adoption of this conference draft for Senate Bill 192.”
Because of the desperate circumstances, this Senate bill was selected as the best way to quickly authorize this emergency funding.
"We all know when it is important to take action quickly, and clearly this is one of those times," said Finance Committee Chair Representative Sylvia Luke, (Makiki, Punchbowl, Nu‘uanu, Dowset Highlands, Pacific Heights, Pauoa). "While State and Counties officials work to get a complete assessment of the damages, we know it is important to supply this immediate infusion of cash support to the people of Kaua‘i in their time of need."
The funds will be allotted to the State Department of Defense for disaster relief this fiscal year for the repairs and will lapse at the end of the next fiscal year.

Photo caption

House Speaker Scott K. Saiki (from left), Senator J. Kalani English, Finance Committee Chair Representative Sylvia J. Luke, Finance Committee Vice Chair Representative Ty J.K. Cullen, Kauai Mayor Bernard P. Carvalho Jr., Ways and Means Chair Senator Donovan M. Dela Cruz, Representative Nadine K. Nakamura, Representative Dee Morikawa, Representative James Kunane Tokioka, and Senate President Ronald D. Kouchi.