If enacted, SB2813 would modify existing state laws regarding the disposal of conveyance tax funds. Specifically, the amendment to Section 247-7 of the Hawaii Revised Statutes will ensure that a greater portion of the conveyance tax revenue is funneled into the Rental Housing Revolving Fund. By eliminating arbitrary funding caps, the bill seeks to provide the necessary financial support to increase the number of affordable housing units, aligning with previous legislative goals set by Act 127, which aimed to develop 22,500 rental units by 2026.
Summary
SB2813 aims to address the urgent need for affordable housing in Hawaii by increasing the cap on the funds allocated from the conveyance tax to the Rental Housing Revolving Fund. The bill proposes to raise this cap from $38,000,000 to $43,000,000. This increase is intended to facilitate the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units, as the current cap has limited the effectiveness of the fund in meeting housing needs. The bill highlights the legislature's recognition of the housing crisis and aims to ensure that funding can adjust according to economic conditions and conveyance tax revenues.
Contention
While the bill's intentions are positive, there may be concerns regarding the effectiveness of increasing the cap in solving the affordable housing crisis. Critics may argue that simply increasing funding does not address underlying issues such as zoning laws, land availability, and construction costs that also affect housing development. Furthermore, the actual impact of increased funding on the speed and efficiency of housing projects can be debated, which could lead to differing opinions among lawmakers and stakeholders regarding the best approach to tackle the housing shortage.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.