Haw. Code R. § 15-306-12 - Application for certification of newly constructed or rehabilitated housing projects
When an exemption from general excise taxes is requested by a claimant involved with a newly constructed or rehabilitated housing project, the following shall apply.
(1) The
developer or general contractor of an eligible housing project shall submit to
the corporation completed general excise tax exemption claims (department of
taxation form G-37) on behalf of any subcontractors, material houses, real
estate sales agencies, or other firms involved with the planning, design,
financing, construction, or sale of the housing project;
(2) Along with the claim forms, the developer
or general contractor shall submit to the corporation the following information
on the eligible housing project:
(A) A
description of the eligible housing project, including the number of housing
units affordable to households earning up to fifty per cent, sixty per cent,
eighty per cent, ninety-five per cent, and one hundred forty per cent,
respectively, of the area median income, as determined by HUD;
(B) Authorization for the corporation to
conduct on-site inspections of the affordable housing project if the project is
not being developed or rehabilitated under the sponsorship of the
corporation;
(C) A written
statement indicating how any cost savings realized from the exemption from
general excise taxes will be used;
(D) A cover letter requesting the tax
exemption, which includes the following:
(i) A
list of qualified persons or firms previously granted or currently claiming an
exemption; and
(ii) Contract
amounts for each of the qualified persons or firms; and
(E) Any additional information necessary for
the corporation to make a determination; and
(3) Upon receipt, staff of the corporation
shall time stamp the claim form.
(A) If the
person or firm is found to be eligible under these rules, staff shall within
ten working days of receipt, so notify the claimant in writing.
(B) If a person or entity is found to be
ineligible under these rules, staff shall, within ten working days of receipt,
so notify the claimant and the developer or general contractor, along with the
reason or reasons that the claim is ineligible for an exemption.
(4) All projects not yet placed in
service shall submit to the corporation annual reports containing the following
information:
(A) Project status, including,
but not limited to, status of construction of affordable units;
(B) Total amount of allowable construction
costs, allowable development costs, and allowance financing costs accrued to
date; and
(C) A written statement
indicating how any cost savings realized from the exemption from general excise
taxes were used;
(5) If
the claimant is found to be an eligible rental project under these rules, the
claimant shall enter into a regulatory agreement with the corporation to ensure
the project's continued compliance with the applicable eligibility requirements
set forth in section
201H-36,
HRS, as follows:
(A) For moderate
rehabilitation projects, a minimum term of five years following the completion
of construction;
(B) For
substantial rehabilitation projects, a minimum term of ten years following the
completion of construction; or
(C)
For new construction projects, a minimum term of thirty years from the date of
issuance of the certificate of occupancy.
(6) A project shall be exempt from the
requirement set forth in subsection (5) if:
(A) The project is a participant in a
government assistance program that requires the execution of a deed restriction
or other written agreement that restricts the use and operation of the project,
and is recorded on the project for a term that meets or exceeds the lengths of
the minimum terms set forth in subsection (5); or
(B) The project is a for-sale
project.
(7) Within ten
working days after recordation of the regulatory agreement in the bureau of
conveyances, staff shall issue a certification for exemption (department of
taxation form G-37) and shall forward the original of the certified claim form
to the department of taxation.
In no event shall the corporation accept a claim for certification more than one year following the close of the claimant's taxable year for which the exemption is claimed.
Notes
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