S.B. 3138 Summary

• Removes the $30,000,000 annual aggregate limit on general excise tax and use tax exemptions for affordable rental housing projects certified by the Hawaii Housing Finance and Development Corporation under section 201H-36(a)(5).

• Establishes that prevailing wages under section 201H-36(a)(5) serve as the basis for prevailing wage compliance when projects receive tax exemption certification and contractors are subject to collective bargaining agreements or project labor agreements.

• Clarifies that qualified persons or firms receiving general excise tax exemptions cannot receive other direct or indirect financing from State governmental contracting agencies, excluding the Hawaii Housing Finance and Development Corporation.

• Applies to newly constructed or moderately to substantially rehabilitated affordable rental housing projects approved or certified between July 1, 2018, and June 30, 2030.

• Effective date: July 1, 2050.