HI HB565

Authorizes the Department of Land and Natural Resources and other state agencies to lease state lands to qualified community development entities participating in the federal New Markets Tax Credit Program.

Requires lease rental rates to be no more than 10 percent below the prevailing market rate for similar lands.

Limits leases to projects valued at no less than $20,000,000 that have received a New Markets Tax Credit allocation and qualify as equity investments under section 45D of the Internal Revenue Code.

Mandates that at least 80 percent of the construction workforce employed on projects must be Hawaii residents.

Effective July 1, 2011, with a sunset date of December 31, 2012; existing lease agreements entered before January 1, 2013 may continue at their agreed rates.