STAND. COM. REP. NO. 2599

                                   Honolulu, Hawaii
                                                     , 2000

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




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 S.B.
No. 2021, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to require the Housing and
Community Development Corporation of Hawaii to prepare to
purchase an assisted housing development when the owner of the
development intends to terminate a subsidy contract or prepay the
mortgage.

     Your Committee finds that this measure is necessary to
ensure continued shelter to tenants of assisted housing
developments when the development's owner decides to place the
development on the market.  Your Committee finds that these
development owners are placed under pressure to sell the
development when the federal Department of Housing and Urban
Development lowers its housing subsidies to the owner.  The
reduced subsidy amounts place the owner in the difficult position
of having to make up the balance by increasing the tenant's
portion of the rent.  As matters stand, these tenants represent
low-income households that are already paying thirty per cent of
their income for the unsubsidized portion of the rental amount.


 
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                                   STAND. COM. REP. NO. 2599
                                   Page 2


     Your Committee has amended this measure by making technical
nonsubstantive changes for the purposes of clarity and style.

     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 S.B. No.
2021, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2021, S.D.
2.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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