STAND. COM. REP. NO. 220

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1070
                                        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. 1070 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HOUSING AND COMMUNITY
     DEVELOPMENT CORPORATION OF HAWAII,"

begs leave to report as follows:

     The purpose of this administration measure is to make
affordable housing available to more low-income residents of
Hawaii by:

     (1)  Conforming the definition of "qualified resident" in
          section 201G-128, Hawaii Revised Statutes (HRS) with
          the existing definition in section 201G-112, HRS;

     (2)  Amending the definition of "housing owner" by including
          "very low" income households as a group of persons to
          be served;

     (3)  Amending the existing definition of "qualified tenant"
          under the State Rent Supplement Program in section
          201G-233, HRS, to enable eligible single persons to
          participate in the program to conform to fair housing; 

     (4)  Lowering the income limits for participation in the
          State Rent Supplement Program, from moderate income to
          very low income;


 
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     (5)  Phasing in an increase of the tenant's annual payment
          from one-fifth to thirty per cent of the tenant's
          annual income; and

     (6)  Correcting a reference error in section 201G-235, HRS.

     Testimony in favor of this measure was received from the
Office of the Governor, Housing and Community Development
Corporation of Hawaii, and Legal Aid Society.

     Your Committee finds that the greatest group of housing need
is among those below 30% of median income, where nearly two
thirds of households cannot afford their housing payments every
month.

     Your Committee finds that by reducing the targeted income
population to 50% and below of the median income, persons who are
most in need of housing assistance will be served by the Rent
Supplement Program and will be more consistent with Housing and
Urban Development's Section 8 Rent Subsidy program.

     Your Committee amended this measure by making technical,
nonsubstantive amendments and ensuring that the appropriate
sections take effect on the appropriate date.

     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. 1070, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1070, 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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