RELATING TO HOUSING.

2024 Regular Session Introduced by Henry Aquino and 3 co-sponsors

Bill SB 866 boosts affordable housing in Hawaiʻi by offering tax exemptions to developers and enforcing fair wages, aiming to increase rental unit availability for residents.

Carried over to 2024 Regular Session.

#affordablehousing #generalexcisetaxexemption #hawaiʻihousingandfinancedevelopmentcorporation #prevailingwages #rentalhousingprojects

Purpose and Intent

Bill SB 866 aims to address the pressing issue of affordable housing in Hawaiʻi. The legislation seeks to enhance the state's capacity to develop and finance rental housing projects by providing specific tax exemptions and establishing guidelines for prevailing wages. The overarching goal is to facilitate the construction and availability of affordable housing options for residents.

Key Provisions

General Excise Tax Exemption: The bill proposes a general excise tax exemption for certain rental housing projects. This exemption is intended to reduce the financial burden on developers, thereby incentivizing the construction of affordable housing units.

Hawaiʻi Housing and Finance Development Corporation: The bill outlines the role of the Hawaiʻi Housing and Finance Development Corporation in overseeing the implementation of the proposed housing projects and ensuring compliance with the new regulations.

Prevailing Wages: The legislation includes provisions that establish prevailing wage requirements for workers involved in the construction of rental housing projects. This aims to ensure fair compensation for labor while promoting quality standards in housing development.

Affected Parties

Developers and Contractors: The bill primarily impacts developers and contractors involved in the construction of rental housing projects, as they will benefit from the tax exemptions and will be required to adhere to prevailing wage standards.

Residents: The ultimate beneficiaries of this bill are the residents of Hawaiʻi, particularly those in need of affordable housing options. By facilitating the construction of more rental units, the bill aims to alleviate housing shortages.

State Agencies: The Hawaiʻi Housing and Finance Development Corporation and other related state agencies will be responsible for implementing the provisions of the bill and monitoring compliance.

Procedural Timeline

Introduced: January 17, 2025

First Reading: January 21, 2025

Referred to Committees: January 23, 2025 (HHS, WAM)

Carried Over: The bill was carried over to the 2024 Regular Session on December 11, 2023, indicating ongoing discussions and potential amendments.

Previous Legislative Actions: The bill has undergone several readings and committee reviews in the 2023 session, with amendments made to enhance its effectiveness.

Conclusion

SB 866 represents a significant legislative effort to tackle the affordable housing crisis in Hawaiʻi by providing financial incentives for developers and establishing fair labor standards. As the bill progresses through the legislative process, it will be crucial to monitor its developments and potential impacts on housing availability in the state.

Bill