HI SB971

Amends Section 201H-36 of Hawaii Revised Statutes to require rental housing projects to enter into regulatory agreements with the Hawaii Housing Finance and Development Corporation to maintain eligibility for general excise tax exemptions.

Establishes minimum regulatory agreement terms based on project type: five years for moderate rehabilitation, ten years for substantial rehabilitation, and thirty years from certificate of occupancy for new construction projects.

Applies to housing projects certified for exemption that are newly constructed, moderately rehabilitated, substantially rehabilitated, or provide affordable rental housing with at least fifty percent of units for households at or below eighty percent of area median income.

Requires the Hawaii Housing Finance and Development Corporation to certify exemption claims and forward them to the Department of Taxation, with fees deposited into the dwelling unit revolving fund.

Takes effect on July 1, 2015, and applies to projects with initial certification dates after June 30, 2015.