STAND. COM. REP. NO. 888-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2598
                                     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. 2598, 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 encourage the development and
increase the availability of affordable rental housing throughout
the State by:

     (1)  Authorizing the issuance of general obligation bonds
          and appropriating an unspecified amount to the Rental
          Housing Trust Fund (Trust Fund);

     (2)  Limiting eligible projects to those receiving not more
          than 50 percent of the total investment in the project
          from government funding; and

     (3)  Establishing the Housing and Community Development
          Corporation of Hawaii (Corporation) as a mortgage
          lender under the Hula Mae Program.

     The Governor's Office, EAH, Inc., Hawaii Catholic
Conference, Catholic Charities of the Diocese of Honolulu, Hawaii
Investors for Affordable Housing, Inc., the Affordable Housing
and Homeless Alliance, the Legal Aid Society of Hawaii, and the
Hawaii Intergenerational Community Development Association
testified in support of issuing general obligation bonds for the

 
 
                                 STAND. COM. REP. NO. 888-00
                                 Page 2

 
Trust Fund, but opposed the restricted uses of the funds.  The
Corporation testified in support of issuing general obligation
bonds for the Trust Fund, but opposed all other provisions.  The
Department of Budget and Finance submitted comments.

     It is the intent of your Committee to appropriate
$10,000,000 in general obligation bonds to the Trust Fund.

     Your Committee notes that a similar bill, H.B. No. 2104,
H.D. 1, passed the House earlier this session after public
hearings before your Committees on Human Services and Housing and
Finance.

     After careful consideration, your Committee has amended this
measure by:

     (1)  Appropriating $1 in general obligation bonds for
          purposes of further discussion;

     (2)  Deleting the restrictions to the use of the funds;

     (3)  Deleting the provisions that establish the Corporation
          as a mortgage lender under the Hula Mae Program to
          finance existing mortgages; and

     (4)  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. 2598, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
2598, 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