Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 544 entitled:

begs leave to report as follows:

The purpose of this bill is to continue the Housing and Community Development Corporation of Hawaii's three-year buyback provision until December 31, 2004, at which time the buyback returns to ten years.

The Housing and Community Development Corporation of Hawaii testified in support of this bill (HCDCH).

Your Committee finds that the original intent of the buyback restriction was to prevent homeowners from selling their units for speculation purposes and to preserve the affordability of HCDCH housing. With the changing economic climate, the ten-year buyback provision hinders the sale of "affordable" units in government-sponsored projects.

In 1998, Act 272, Session Laws of Hawaii 1998, reduced the buyback provision from ten to three years until December 31, 2000.

Your Committee finds that the three-year buyback provision should be continued to help stimulate the construction and sale of affordable housing units.

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 H.B. No. 544 and recommends that it pass Second Reading and be referred to the Committee on Finance.