STAND. COM. REP. NO. 219

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1069
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 1069 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to authorize the Housing and
Community Development Corporation of Hawaii (HCDCH) to issue an
additional $500,000,000 in tax exempt revenue bonds for the Hula
Mae Single Family Mortgage Purchase Program.

     Testimony in favor of this measure was received from the
Housing and Community Development Corporation of Hawaii.

     Your Committee finds that under the Hula Mae Single Family
Mortgage Purchase Program, the HCDCH is authorized to issue tax
exempt mortgage revenue bonds, and to make funds available
through mortgage lenders at affordable interest rates to
households with low to moderate incomes.  As of June 30, 1998,
over 8,000 first time home buyers have been provided mortgages
through the Hula Mae program.

     In 1997 and 1998, lenders and private developers requested
over $1 billion of Hula Mae funds, yet only approximately $283
million was actually available for lending.

     Currently, the HCDCH is authorized to issue revenue bonds in
the principal amount of $1,775,000,000.  To date, HCDCH has

 
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                                   STAND. COM. REP. NO. 219
                                   Page 2


issued $1,551,045,000, leaving only $223,955,000 of bond
authority available to HCDCH.

     Your Committee finds that in order to meet the demand for
affordable interest rate mortgage loans, additional funds are
needed for the Hula Mae Program.

     Your Committee amended this measure by making technical,
nonsubstantive changes to accurately reflect the Session Law
being amended.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 1069, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1069, S.D. 1, and be referred to the Committee on Ways and
Means.
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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