Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 544, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to reinstate the three-year buyback provision for housing units developed by the Housing and Community Development Corporation of Hawaii.

Your Committee received supporting testimony from the Housing and Community Development Corporation of Hawaii.

Your Committee finds that housing units developed by the Housing and Community Development Corporation of Hawaii were originally sold with a ten-year buyback provision. The provision prevented speculation and preserved the affordability of housing units sold by the Corporation. A changing economic climate and housing market, however, have dictated the reassessment of those objectives -- especially since real estate speculation ceases to be a problem.

Your Committee concurs with the Housing and Community Development Corporation of Hawaii that a better method of providing affordable housing is to stimulate housing construction and encourage the sale of affordable housing. This bill is one means to that end by reinstating the three-year buyback period (that sunsetted at the end of 2000) for housing units developed by the Corporation for an additional period of three years. Your Committee finds that the reduced buyback period will encourage housing activity and further stabilize the housing market.

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 H.B. No. 544, H.D. 1, and recommends that it pass Third Reading.