| 47 | | - | SECTION 1. The legislature finds that the Internal Revenue Code of 1986, as amended, provides for a formula for the allocation of the State's annual ceiling among governmental units authorized to issue private activity bonds. The legislature further finds that title 26 United States Code section 146(e) also allows a state to establish a different formula for allocating the state ceiling among its governmental units by state law. The legislature further finds that the State is committed to the production and maintenance of available affordable housing for its residents, and housing-related projects could benefit from greater access to private activity bond financing. Increasing coordination between the State and counties on the timing of private activity bond issuances would allow the State to more efficiently allocate private activity bonds for housing-related projects. Therefore, the purpose of this Act is to: (1) Require counties or issuers that retain their allocation of the annual state ceiling to submit quarterly reports to the department of budget and finance on the status or use of any allocation; (2) Prohibit the authorization of any special purpose revenue bonds that require an allocation of the annual state ceiling after June 30, 2022, and before December 31, 2028, unless requested by the governor and approved by the legislature; and (3) Require any allocation of the annual state ceiling to a county with a population of over five hundred thousand during this same time frame to be used only for rental housing projects that are eligible for the low-income housing tax credit. SECTION 2. Chapter 39B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§39B- Quarterly report status or use of allocation. A county or any issuer shall submit a quarterly report to the department on the status or use of the county's or issuer's portion of the allocation of the annual state ceiling, including any carryforward allocation, that has not been applied to an insurance of a qualified private bond, as evidenced by a certificate of the issuer or director of finance of a county, as applicable." SECTION 3. Unless requested by the governor and approved by the legislature, no special purpose revenue bonds requiring an allocation of annual state ceiling under section 39B-2, Hawaii Revised Statutes, shall be authorized after June 30, 2022, and before December 31, 2028. SECTION 4. Any allocation of the annual state ceiling under section 39B-2, Hawaii Revised Statutes, to a county with a population of over five hundred thousand after June 30, 2022, but before December 31, 2028, shall be used only for rental housing projects eligible for the low-income housing tax credit under section 235-110.8, Hawaii Revised Statutes. SECTION 5. New statutory material is underscored. SECTION 6. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. The legislature finds that the Internal Revenue Code of 1986, as amended, provides for a formula for the allocation of the State's annual ceiling among governmental units authorized to issue private activity bonds. The legislature further finds that title 26 United States Code section 146(e) also allows a state to establish a different formula for allocating the state ceiling among its governmental units by state law. That authority was exercised in the enactment of Act 62, Session Laws of Hawaii 1987, which established a different ceiling allocation for the counties to provide more flexibility and to better serve the needs of the counties and other issuers of private activity bonds within the State. The legislature further finds that the State is committed to the production and maintenance of available affordable housing for its residents and that housing-related projects could benefit from greater access to private activity bond financing. Therefore, the purpose of this Act is to amend provisions that govern the allocation of the State's private activity bond ceiling by: (1) Making it easier for counties or issuers to assign their allocation back to the State by removing the requirement for a resolution or written certificate; (2) Removing the authorization for counties or issuers to request additional allocations of the state bond ceiling; (3) Prioritizing projects of counties that assign their allocation back to the State over projects of counties that have their own bond issuance program; (4) Requiring counties or issuers that retain their allocation to submit quarterly reports on the status or use of any allocation; (5) Requiring a project to first apply to the county in which the project is located, if the county has a private activity bond issuance program, before applying to the State; and (6) Changing the dates for reverted or remaining allocations and requiring certain reverted or remaining allocations to be allocated to the Hawaii housing finance and development corporation. SECTION 2. Section 39B-2, Hawaii Revised Statutes, is amended to read as follows: "§39B-2 Allocation of annual state ceiling. (a) The annual state ceiling shall be allocated for each calendar year in the following proportions: (1) An amount equal to fifty per cent of the annual state ceiling to the State; (2) An amount equal to 37.55 per cent of the annual state ceiling to the city and county of Honolulu; (3) An amount equal to 5.03 per cent of the annual state ceiling to the county of Hawaii; (4) An amount equal to 2.41 per cent of the annual state ceiling to the county of Kauai; and (5) An amount equal to 5.01 per cent of the annual state ceiling to the county of Maui. (b) The department, with the approval of the governor, may assign all or any part of the allocation of the State to any issuer or any county for a specific calendar year or years. At the request of the department, any issuer or county to which any part of the State's allocation has been assigned shall return all or part of the assignment, in which case the department may provide for its reassignment. (c) The department may request return of all or any part of the allocations of one or more counties made pursuant to subsection (a), and may assign and reassign the allocation to any other county or issuer for a specified calendar year or years. (d) A county[, by resolution of its governing body,] or any issuer[, by written certificate of such issuer,] may [request additional allocations of the annual state ceiling from, or] assign all or any part of its portion of the allocation of the annual state ceiling to[,] the State for a specified calendar year or years. Any county or issuer that assigns all or any part of its portion of the allocation of the annual state ceiling to the State shall be given priority over counties that have their own bond issuance program for projects in those counties that are subject to the annual state ceiling. (e) A county or any issuer shall submit a quarterly report to the department on the status or use of its portion of the allocation of the annual state ceiling, including any carryforward allocation, that has not been applied to an issuance of a qualified private bond, as evidenced by a certificate of the issuer or the director of finance of a county, as applicable. (f) Any project subject to the annual state ceiling shall first apply to the county in which the project is located, if the county has a private activity bond issuance program, before applying to the State for the state allocation. (g) After December 1 of each calendar year, any unused annual state ceiling allocation shall be allocated to the Hawaii housing finance and development corporation." SECTION 3. Section 39B-4, Hawaii Revised Statutes, is amended to read as follows: "[[]§39B-4[]] Report of unused allocation; reversion to State. The director of finance of each county shall report to the department in writing by [December 15] September 30 of each year as to the amount of allocation to [such] the county [which] that has not been applied to private activity bonds in [such] that year or assigned pursuant to this chapter. In preparing [such] the report, the director of finance of the county shall deduct any allocation [which] that is unused or unassigned as of [December 15] September 30 but will be applied to private activity bonds on or prior to [December 31] November 1 of [such] that year. Unless the director of finance of the county or any issuer, by written certificate, indicates to the department prior to [December 15] September 30 of each year that it intends to carry forward all or any portion of its allocation [which] that has not been applied to private activity bonds in [such] that year or assigned pursuant to this chapter, [such] the unused or unassigned allocation shall revert to the State on [December 31] November 1, and the State shall be entitled to carry forward [such] the unused or unassigned allocation as permitted by federal law[.]; provided that any reverted allocation shall be allocated to the Hawaii housing finance and development corporation, and the amount of reverted allocation carried forward and allocated to the Hawaii housing finance and development corporation in subsequent years shall be in addition to, and shall not supplant, any other portions of the annual state ceiling required by this chapter to be allocated to the Hawaii housing finance and development corporation." 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, 2050; provided that this Act shall be repealed on December 31, 2027, and sections 39B-2 and 39B-4, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act. |
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| 73 | | - | Report Title: State Bonds; Annual State Bond Ceiling; Private Activity Bonds; Department of Budget and Finance; HHFDC; Quarterly Reports; Rental Housing Projects Description: Requires counties or issuers that retain their allocation of the annual state bond ceiling to submit quarterly reports to the department of budget and finance on the status or use of any allocation. Specifies that unless requested by the governor and approved by the legislature, no special purpose revenue bonds requiring an allocation of annual state ceiling shall be authorized after 6/30/2022, and before 12/31/2028. Specifies that any allocation of the annual state ceiling to a county with a population of over 500,000 during this same time period shall be used only for rental housing projects that are eligible for the low-income housing tax credit. Effective 7/1/2050. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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| 73 | + | (2) An amount equal to 37.55 per cent of the annual state ceiling to the city and county of Honolulu; |
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| 74 | + | |
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| 75 | + | (3) An amount equal to 5.03 per cent of the annual state ceiling to the county of Hawaii; |
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| 76 | + | |
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| 77 | + | (4) An amount equal to 2.41 per cent of the annual state ceiling to the county of Kauai; and |
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| 78 | + | |
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| 79 | + | (5) An amount equal to 5.01 per cent of the annual state ceiling to the county of Maui. |
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| 80 | + | |
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| 81 | + | (b) The department, with the approval of the governor, may assign all or any part of the allocation of the State to any issuer or any county for a specific calendar year or years. At the request of the department, any issuer or county to which any part of the State's allocation has been assigned shall return all or part of the assignment, in which case the department may provide for its reassignment. |
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| 82 | + | |
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| 83 | + | (c) The department may request return of all or any part of the allocations of one or more counties made pursuant to subsection (a), and may assign and reassign the allocation to any other county or issuer for a specified calendar year or years. |
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| 84 | + | |
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| 85 | + | (d) A county[, by resolution of its governing body,] or any issuer[, by written certificate of such issuer,] may [request additional allocations of the annual state ceiling from, or] assign all or any part of its portion of the allocation of the annual state ceiling to[,] the State for a specified calendar year or years. Any county or issuer that assigns all or any part of its portion of the allocation of the annual state ceiling to the State shall be given priority over counties that have their own bond issuance program for projects in those counties that are subject to the annual state ceiling. |
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| 86 | + | |
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| 87 | + | (e) A county or any issuer shall submit a quarterly report to the department on the status or use of its portion of the allocation of the annual state ceiling, including any carryforward allocation, that has not been applied to an issuance of a qualified private bond, as evidenced by a certificate of the issuer or the director of finance of a county, as applicable. |
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| 88 | + | |
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| 89 | + | (f) Any project subject to the annual state ceiling shall first apply to the county in which the project is located, if the county has a private activity bond issuance program, before applying to the State for the state allocation. |
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| 90 | + | |
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| 91 | + | (g) After December 1 of each calendar year, any unused annual state ceiling allocation shall be allocated to the Hawaii housing finance and development corporation." |
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| 92 | + | |
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| 93 | + | SECTION 3. Section 39B-4, Hawaii Revised Statutes, is amended to read as follows: |
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| 94 | + | |
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| 95 | + | "[[]§39B-4[]] Report of unused allocation; reversion to State. The director of finance of each county shall report to the department in writing by [December 15] September 30 of each year as to the amount of allocation to [such] the county [which] that has not been applied to private activity bonds in [such] that year or assigned pursuant to this chapter. |
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| 96 | + | |
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| 97 | + | In preparing [such] the report, the director of finance of the county shall deduct any allocation [which] that is unused or unassigned as of [December 15] September 30 but will be applied to private activity bonds on or prior to [December 31] November 1 of [such] that year. |
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| 98 | + | |
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| 99 | + | Unless the director of finance of the county or any issuer, by written certificate, indicates to the department prior to [December 15] September 30 of each year that it intends to carry forward all or any portion of its allocation [which] that has not been applied to private activity bonds in [such] that year or assigned pursuant to this chapter, [such] the unused or unassigned allocation shall revert to the State on [December 31] November 1, and the State shall be entitled to carry forward [such] the unused or unassigned allocation as permitted by federal law[.]; provided that any reverted allocation shall be allocated to the Hawaii housing finance and development corporation, and the amount of reverted allocation carried forward and allocated to the Hawaii housing finance and development corporation in subsequent years shall be in addition to, and shall not supplant, any other portions of the annual state ceiling required by this chapter to be allocated to the Hawaii housing finance and development corporation." |
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| 100 | + | |
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| 101 | + | SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. |
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| 102 | + | |
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| 103 | + | SECTION 5. This Act shall take effect on July 1, 2050; provided that this Act shall be repealed on December 31, 2027, and sections 39B-2 and 39B-4, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act. |
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| 104 | + | |
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| 105 | + | Report Title: State Bonds; Annual Ceiling; Private Activity Bonds; HHFDC Description: Amends provisions governing the allocation of the State's private activity bond ceiling. Prioritizes projects of counties that assign their allocation back to the State over projects of counties with their own private activity bond issuance program. Requires counties or issuers that retain their allocation to submit quarterly reports on the status or use of any allocation. Requires a project to first apply to the county in which the project is located, if the county has a private activity bond issuance program, before applying to the State. Changes the dates for reverted or remaining allocations and requires certain reverted or remaining allocations to be allocated to the Hawaii Housing Finance and Development Corporation. Sunsets on 12/31/2027. Effective 7/1/2050. (SD2) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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