SB 768 Summary

• Establishes a low-income housing tax credit loan program administered by the Hawaii Housing Finance and Development Corporation allowing qualified low-income building owners to receive no-interest state loans instead of claiming federal low-income housing tax credits.

• Loan amount equals a percentage of the cash value of the low-income housing credit for each year in the ten-year credit period, discounted to present value and capitalized at the rate of interest on taxable general obligation bonds used to fund the loan.

• Buildings receiving loans must maintain qualified low-income status under federal Internal Revenue Code Section 42 requirements, including restrictions on rent, income, and building use for the compliance period.

• Corporation may collect reasonable fees from building owners for asset management functions and compliance monitoring, and shall forgive the loan after thirty years if the owner is not in default.

• Authorizes issuance of general obligation bonds and appropriates funds for fiscal year 2011-2012 to fund the low-income housing tax credit loans, with unencumbered moneys lapsing on June 30, 2014.