Dear Senator Kim and Members of the Committee:
The League of Women Voters of Hawaii supports any and all legislation that will enable us to retain and enlarge the stock of affordable shelter in Hawaii. This bill seriously impairs that mission by prohibiting recipients of federal grants from qualifying for state tax credits. Since tax credits are a major source of funding for affordable housing in Hawaii, we respectfully request that State Low-Income Housing Tax Credits be exempted from this bill.
We further note that under the American Recovery and Reinvestment Act of 2009, the HHFDC will receive Federal HOME funds to provide grants to owners of Low-Income Housing Tax Credit projects that stalled due to the downturn in the financial market. This bill will negatively impact the affordable rental projects that will be assisted by the American Recovery and Reinvestment Act of 2009.
Although the State may be in tough financial circumstances, our most vulnerable citizens should not be made to bear the heaviest burden.
Thank you for this opportunity to testify.