Bill > HB2385

This bill, effective January 1, 2027, and expiring on July 1, 2031, shifts the authority for approving and certifying general excise tax exemptions for certain housing development projects from the counties to the Hawaii Housing Finance and Development Corporation (HHFDC). This change applies to projects developed under county housing incentive programs, aiming to address Hawaii's housing crisis by providing additional incentives beyond existing county programs. The bill amends existing laws to allow the HHFDC to approve these exemptions for projects developed under county programs, provided at least 50% of the units are for households earning up to 100% of the area median income. It also modifies the regulatory agreement terms for new construction projects developed under county programs, reducing the minimum term from 30 to 15 years. The general excise tax is a tax on the gross income of businesses operating in Hawaii, and these exemptions are intended to reduce development costs for affordable housing.