Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Hawaiian Affairs and Water, Land, Energy and Environment, to which was referred S.B. No. 586 entitled:

beg leave to report as follows:

The purpose of this measure is to appropriate funds for the purpose of establishing a housing loan program to assist the residents of the Kikala-Keokea subdivision on the island of Hawaii.

Specifically, the measure appropriates $2,684,000 for a housing loan revolving program and other expenses related to home construction for the Kikala-Keokea leaseholders who have been denied loans from traditional financial institutions. The revolving fund and loan program is to be administered by the Housing and Community Development Corporation of Hawaii and the Hawaii County Economic Opportunity Council.

Testimony in support of the measure was received from the Housing and Community Development Corporation of Hawaii, the Office of Hawaiian Affairs, the Hawaii County Economic Opportunity Council, and Na Ohana O Kalapana.

Your Committees find that volcanic eruptions claimed the town of Kalapana and destroyed one of the last Hawaiian settlements on the island of Hawaii. The Legislature recognized the need to find a place for the displaced residents of this community to allow them to maintain their common heritage and implemented legislation to award them long-term leases in the Kikala-Keokea homestead area.

This measure would create a loan program and hire personnel to expedite home reconstruction activities in the Kikala-Keokea area for those displaced or dispossessed former Kalapana residents who are unable to obtain financing from any other sources.

Your Committees believe that the displaced and dispossessed former residents of Kalapana have waited long enough to be permanently situated in a community they can call their own.

As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Water, Land, Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 586 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.