STAND. COM. REP. NO. 1010-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2021
                                     S.D. 2
                                     H.D. 1




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

Sir:

     Your Committee on Human Services and Housing, to which was
referred S.B. No. 2021, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to ensure continued shelter to
tenants of assisted housing developments when the development's
owner decides to place the development on the market by requiring
the Housing and Community Development Corporation of Hawaii
(Corporation) to:

     (1)  Purchase projects from private owners of rental housing
          assisted under the U.S. Department of Housing and Urban
          Development (HUD) project-based Section 8 program; and

     (2)  Focus on preserving government subsidized rental
          housing projects instead of assisting in the
          development of new rental housing.

     Catholic Charities of the Diocese of Honolulu, Hawaii
Catholic Conference, the Affordable Housing and Homeless
Alliance, and the Legal Aid Society of Hawaii testified in
support of this measure.  The Corporation opposed this measure.

     Your Committee finds that preserving Section 8 buildings
instead of converting them to market rate could save more than
3,000 households, namely elderly and low-income residents, from
eviction and homelessness.

 
                                 STAND. COM. REP. NO. 1010-00
                                 Page 2

 

     Your Committee has amended this measure by:

     (1)  Deleting the requirement that the Corporation purchase
          projects from private owners of rental housing assisted
          under the HUD project-based Section 8 program;

     (2)  Deleting the requirement that the Corporation focus on
          preserving government subsidized rental housing
          projects;

     (3)  Requiring owners to provide to the Corporation:

          (A)  Copies of all HUD-related notification letters
               regarding its intention to opt out of the Section
               8 project-based contract; and

          (B)  Pertinent and available information, including the
               physical condition of the project and current
               market rates;

     (4)  Requiring the Corporation to collaborate with HUD in
          the effort to encourage the owner to preserve the long-
          term affordability of the owner's housing project; and

     (5)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2021, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
2021, S.D. 2, H.D. 1, and be referred to the Committee on
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair