Section 39B-2 - Allocation of annual state ceiling(a) The annual state ceiling shall be allocated for each calendar year in the following proportions:(1) An amount equal to fifty per cent of the annual state ceiling to the State;(2) An amount equal to 37.55 per cent of the annual state ceiling to the city and county of Honolulu;(3) An amount equal to 5.03 per cent of the annual state ceiling to the county of Hawaii;(4) An amount equal to 2.41 per cent of the annual state ceiling to the county of Kauai; and(5) An amount equal to 5.01 per cent of the annual state ceiling to the county of Maui.(b) The department, with the approval of the governor, may assign all or any part of the allocation of the State to any issuer or any county for a specific calendar year or years. At the request of the department, any issuer or county to which any part of the State's allocation has been assigned shall return all or part of the assignment, in which case the department may provide for its reassignment.(c) The department may request return of all or any part of the allocations of one or more counties made pursuant to subsection (a), and may assign and reassign the allocation to any other county or issuer for a specified calendar year or years.(d) A county, by resolution of its governing body, or any issuer, by written certificate of the issuer, may request additional allocations of the annual state ceiling from, or assign all or any part of its portion of the allocation of the annual state ceiling to, the State for a specified calendar year or years. Before requesting an additional allocation of the annual state ceiling for a specific calendar year or years under this subsection, a county shall have applied all of its allocation of the annual state ceiling for the specified calendar year or years as evidenced by a certificate of the issuer or the director of finance of a county, as applicable, under section 39B-3. If a county assigns all or any part of its private activity bond allocation for a specific calendar year or years to the State under this subsection, the assigned portion shall be applied to a project or projects located in the assigning county; provided that pursuant to a cooperative agreement with the department and Hawaii housing finance and development corporation under subsection (e), the private activity bond allocation may be awarded to projects located in other counties.(e) In order to facilitate the construction of new rental housing projects, the department and Hawaii housing finance and development corporation may enter into a cooperative agreement with a county to coordinate the award of private activity bonds and low-income housing tax credits for new rental housing projects in the county. The agreement shall, except as provided under federal law, be exempt from all statutes, charter provisions, ordinances and rules of any government agency relating to the award of private activity bonds and low-income housing tax credits.(f) The Hawaii housing finance and development corporation or a county may establish a bond volume cap recycling program pursuant to section 146(i)(6) of the Internal Revenue Code of 1986, as amended. Under the program, if the repayment of a loan financed by an issue of which ninety-five per cent or more of the net proceeds are used to provide projects described in section 142(d) of the Internal Revenue Code of 1986, as amended, and the repayment is used to provide a new loan for any project so described, any bond that is issued to refinance the issue shall be treated as a refunding issue to the extent the principal amount of the refunding issue does not exceed the principal amount of the bonds refunded.(g) The department and Hawaii housing finance and development corporation may enter into a cooperative agreement with a county to facilitate and coordinate the establishment and implementation of a bond volume cap recycling program. The agreement shall be exempt from all statutes, charter provisions, ordinances, and rules of any government agency relating to the award of private activity bonds except federal law, subsection (f), this subsection, and section 39B-5(2).Amended by L 2024, c 35,§ 3, eff. 7/1/2024.Amended by L 2023, c 262,§ 1, eff. 7/1/2023.L 1985, c 12, pt of §2; am L 1987, c 62, §4