S.B. 39 Summary

• Clarifies that affordable rental housing projects must not receive other direct or indirect financing from the Hawaii Housing Finance and Development Corporation to qualify for general excise tax exemption under section 201H-36(a)(5)

• Allows counties to waive real property taxes, permitting fees, water and sewer development fees, and other development fees for projects meeting section 201H-36(a)(5) prevailing wage requirements

• Removes restrictions limiting general excise tax exemption costs to contracting only, allowing up to $30,000,000 per year in aggregate exemptions for all approved affordable rental housing projects

• Requires projects to maintain affordability for households at or below 140% of area median family income, with at least 20% of units for households at or below 80% of area median family income

• Takes effect July 1, 2050