STAND. COM. REP. NO. 3232

                                   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 Committee on Ways and Means, to which was referred H.B.
No. 2505 entitled:

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

begs leave to report as follows:

     The purpose of this bill 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.

     Your Committee finds that the statutes need clarification
regarding whether mortgage funds can be set aside for projects on
Hawaiian home lands.  The Department of Hawaiian Home Lands has
indicated that in the opinion of the U.S. Department of Housing
and Urban Development's Office of Litigation and Fair Housing,
Hula Mae financing for projects on Hawaiian home lands does not
conflict with restrictions in the Hawaiian Homes Commission Act
of 1920.  With a clarification in the Hawaii Revised Statutes,
Hula Mae funds would become available to help the lessees who
need housing loans.  This could help to improve living conditions
for many families.


 
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                                   STAND. COM. REP. NO. 3232
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2505 and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB2505