Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 550 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Housing and Community Development Corporation of Hawaii (HCDCH) to establish affordable housing requirements for certain undeveloped parcels in coordination with the respective counties.

Your Committee received testimony in support of this measure from the HCDCH, Special Assistant to the Governor for Housing, and Land Use Research Foundation of Hawaii.

This measure applies to lands located at the villages of Kapolei on Oahu, villages of Leiali'i on Maui, and villages of La'i'opua on Hawaii (undeveloped parcels).

This measure is intended to foster the development by the HCDCH of undeveloped parcels. Act 15, Session Laws of Hawaii 1988, Section 6(b)(1), requires developers to provide at least 60 per cent of the units as affordable housing. However, sales of the remaining 40 per cent at market prices do not cover the costs to the developer. Therefore, affordable housing units cannot be developed. This measure waives that per cent requirement and relegates all affordable housing requirements to coordination between the HCDCH and the counties of Oahu, Maui, and Hawaii, respectively.

Your Committee has amended this measure on the recommendation of the HCDCH to clarify that the HCDCH shall establish affordable housing requirements by agreement with the respective counties and to make technical, nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 550, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 550, S.D. 1, and be placed on the calendar for Third Reading.