STAND. COM. REP. NO. 1117-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.C.R. No. 67
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Human Services and Housing and Public
Safety and Military Affairs, to which was referred H.C.R. No. 67
entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE HOUSING AND
     COMMUNITY DEVELOPMENT CORPORATION OF HAWAII TO ADMINISTER
     THE LOW INCOME HOUSING TAX CREDIT PROGRAM IN A MANNER THAT
     IS NOT UNDULY RESTRICTIVE FOR BOND FINANCED PROJECTS AND TO
     CONSIDER THE HOUSING NEEDS OF MILITARY PERSONNEL AND THEIR
     DEPENDENTS,"

beg leave to report as follows:

     The purpose of this concurrent resolution is to request the
Housing and Community Development Corporation of Hawaii
(Corporation) to:

     (1)  Administer the Low Income Housing Tax Credit Program in
          a manner that is not unduly restrictive for bond
          financed projects;

     (2)  Consider the housing needs of military personnel and
          their dependents; and

     (3)  Submit a report to the Legislature on the actions taken
          pursuant to the request in this concurrent resolution.

     The Department of Community Services, City and County of
Honolulu, Marshall Affordable Business Development Corporation,
and a concerned individual submitted testimony in support of this
concurrent resolution.  Testimony in opposition to this measure
was submitted by the Department of Business, Economic
Development, and Tourism.  The Congressional Office of Neil
Abercrombie submitted comments on this concurrent resolution.

 
                                 STAND. COM. REP. NO. 1117-00
                                 Page 2

 
     Low-income housing for the civilian and military populations
of Hawaii is a matter that should be addressed by the State, the
military, and private developers.

     Your Committees have amended this measure by:

     (1)  Changing the title and focus of this concurrent
          resolution to request that the Corporation initiate a
          collaborative effort with the military and private
          developers to develop options to provide low-income
          housing to the civilian and military populations in
          Hawaii;

     (2)  Deleting the requests relating to directives regarding
          the tax credit for low-incoming housing projects of
          section 42 of the Internal Revenue Code, and
          substituting a request that the Corporation, when
          issuing tax exempt bonds, consider giving priority to
          the use of the bonds for financing low-income housing
          eligible for the section 42 tax credit; and 

     (3)  Requesting that the Corporation submit a report to the
          Legislature on the progress of the Corporation's
          collaborative efforts with private developers and the
          military. 

     As affirmed by the records of votes of the members of your
Committees on Human Services and Housing and Public Safety and
Military Affairs that are attached to this report, your
Committees concur with the intent and purpose of H.C.R. No. 67,
as amended herein, and recommend that it be referred to the
Committee on Finance in the form attached hereto as H.C.R. No.
67, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Human Services
                                   and Housing and Public Safety
                                   and Military Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
NESTOR GARCIA, Chair               DENNIS ARAKAKI, Chair