STAND. COM. REP. NO. 2221

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2598
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 2598 entitled: 

     "A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of
general obligation bonds and to appropriate funds to the rental
housing trust fund to encourage the development and availability
of low income rental housing throughout the State.

     Testimony in support of this measure was received from the
Governor's Office, the Housing and Community Development
Corporation of Hawaii, the Affordable Housing and Homeless
Alliance, Hawaii Housing Development Corporation, American
Friends Service Committee, Catholic Charities, and AARP.

     Your Committee has amended this measure to:

     (1)  Provide that the funds appropriated shall be used to
          fund projects which receive not more than fifty per
          cent of the total investment in the project from
          government funding, including rental housing trust
          funds and low-income housing tax credits;

     (2)  Add restrictions on consulting fees for architectural
          and engineering services as well as provide
          requirements for each project proposal; and


 
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     (3)  Require the Housing and Development Corporation of
          Hawaii as a mortgage lender under the Hula Mae lending
          program to provide refinancing for state homeowners.

     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. 2598, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2598, 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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