STAND. COM. REP. NO. 2918

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2505
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Water, Land, and Hawaiian Affairs and
Government Operations and Housing, to which was referred H.B.
No. 2505 entitled: 

     "A BILL FOR AN ACT RELATING TO HOUSING LOAN AND MORTGAGE
     PROGRAMS,"

beg leave to report as follows:

     The purpose of this measure is to clarify that the Housing
and Community Development Corporation of Hawaii and mortgage
lenders contracted to provide mortgage financing are authorized
to provide project-based Hula Mae funds for developments on
Hawaiian home lands.

     Testimony in support of the measure was received from the
Department of Hawaiian Home Lands and the Housing and Community
Development Corporation of Hawaii.

     Your Committees find that the existing statutes relating to
housing loans and mortgage programs are unclear as to whether
mortgage funds can be set aside for projects on Hawaiian home
lands.  According to the Department of Hawaiian Home Lands, the
U.S. Department of Housing and Urban Development's Office of
Litigation and Fair Housing, has opined that the restrictions
contained in the Hawaiian Homes Commission Act of 1920, as
amended, do not conflict with the Fair Housing Act, hence making
the availability of Hula Mae financing for Hawaiian home lands
projects accessible and less susceptible to legal challenges on
the basis of discrimination.

 
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                                   STAND. COM. REP. NO. 2918
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     Your Committees believe that the measure will eliminate the
uncertainty as to whether Hula Mae mortgage funds can be set
aside for housing projects on Hawaiian home lands.

     In supporting the passage of this measure, it is your
Committees desire that the Department of Hawaiian Home Lands and
the Housing and Community Development Corporation of Hawaii
deliberate and establish a ceiling for Hula Mae financing that
will be set aside for Hawaiian home lands housing projects.

     As affirmed by the records of votes of the members of your
Committees on Water, Land, and Hawaiian Affairs and Government
Operations and Housing that are attached to this report, your
Committees are in accord with the intent and purpose of H.B.
No. 2505 and recommend that it pass Second Reading and be
referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Water, Land, and
                                   Hawaiian Affairs and
                                   Government Operations and
                                   Housing,



____________________________       ______________________________
ROD TAM, Chair                     COLLEEN HANABUSA, Chair

 
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