From the Honolulu Star-Advertiser

Mayor Kirk Caldwell on May 9 detailed a Housing First pilot project to provide shelter for up to 100 chronically homeless people across Oahu. He said it will work where others failed because it will seek community buy-in and try to place the homeless in dwellings in the areas where they are now rather than far from their usual stomping grounds.

The difference from past efforts “is we’re taking a scattered approach to Housing First,” Caldwell said at a news conference. “They need to be housed in places where they reside right now, on our sidewalks, in our parks and on our beaches. And that’s the big difference: Where they’re located.”

The goal is to help up to 100 people find housing — ostensibly apartment units — by the end of 2015. The “demonstration project” is the centerpiece for the Housing First initiative Caldwell submitted to the City Council on Thursday.

The project is expected to cost between $3 million and $4.9 million over two years, or $30,000 to $48,000 per person helped. The plan would target homeless populations in Waikiki, Chinatown and along the Wai­anae Coast, the three areas identified as having the greatest number of homeless people, city Housing Coordinator Jun Yang said.

From the National Council of Nonprofits

Hawaii Gov. Neil Abercrombie is expected to sign legislation that removes the cap on charitable deductions the state enacted in 2011 as part of limitations on how much upper-income taxpayers could claim for itemized deductions. After seeing how the cap on deductions adversely affected communities, the Governor himself championed the bill to restore the full incentive for giving to the work of charities in Hawaii.

The effects of the cap, and the need for corrective legislation, were clear: “After having taken a close look at the impact this particular section of the law is having on charitable donations made to Hawaii's nonprofit organizations, we support carving out this portion of the law,” the Office of the Governor testified to a Senate hearing.

Hawaii is not alone in reversing course after seeing the harmful impact of trying to trim back on tax incentives for charitable donations. Missouri, which allowed a series of charitable tax credits to lapse, recently restored them for food pantries, pregnancy resource centers, and the Children in Crisis program.

Also this spring, Montana renewed its charitable endowment tax credit that only a few years ago was on the chopping block. Last month, the Oregon House passed reform legislation that limits itemized deductions, but expressly exempts charitable giving from the caps.

On the other hand, Michigan has not yet restored tax credits repealed in 2011 that promoted donations to the work of food banks, homeless shelters, state colleges, and community foundations. As in Hawaii, reports from Michigan suggest another failed experiment resulting in reduced giving to communities far in excess of the revenue gains.

2013 Legislative Session Ends with Good News

By Nikki Love
Public Policy Director

The Hawaii State Legislature adjourns Thursday, May 2, and we have great news to report on HANO’s priority issue of charitable deductions. Here is a brief update on that important bill and others, as of May 1:

Restoring tax incentives for charitable donations -- PASSED. House Bill 430 Conference Draft 1 was passed by the Senate and House yesterday. This bill restores the incentive for charitable donations by exempting the charitable deduction from the caps on itemized deductions for state income tax. The bill now goes to the Governor’s desk. HANO, along with Hawaii Community Foundation, was at the forefront of advocating for this important bill, and we extend a big mahalo to everyone who voiced their support throughout the session.

Ensuring board access to records -- PASSED. House Bill 791 Senate Draft 1 ensures board members’ access to records of nonprofits. This bill was passed by the legislature yesterday and now goes to the Governor’s desk.