STAND. COM. REP. NO. 1254

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 876
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred S.B. No. 876, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO RESIDENTIAL LEASE-TO-FEE
     CONVERSION,"

begs leave to report as follows:

     The purpose of this bill is to establish a standard method
of valuation for the appraisal of a leased-fee interest for
condominiums and cooperative housing corporations.

     An individual testified in support of this measure.  The
Housing and Community Development Corporation of Hawaii, Small
Landowners of Oahu, the Small Landowners Association, and
Kamehameha Schools Bernice Pauahi Bishop Estate opposed this
measure.

     Your Committee notes the concerns raised by the opponents to
this bill about the constitutionality of limiting the calculation
of value to one appraisal method and ambiguities in the valuation
method.  Your Committee finds, however, that interests of equity
and fairness outweigh these concerns and that this measure
warrants further discussion.

     Your Committee has made technical, nonsubstantive amendments
to the bill for purposes of style and clarity.


 
 
 
                                 STAND. COM. REP. NO. 1254
                                 Page 2

 
     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. 876, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
876, S.D. 2, H.D. 1, and be referred to the Committee on Consumer
Protection and Commerce.

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



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair