Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 2450 entitled:

begs leave to report as follows:

The purpose of this bill is to encourage the development of affordable housing by allowing the Housing and Community Development Corporation of Hawaii (HCDCH) to waive the statutory three-year buy-back provision until December 31, 2004.

Your Committee received testimony supporting this measure from HCDCH.

Your Committee finds that the three-year buy-back provision was originally implemented to prevent speculation and preserve housing affordability. Today, there is little opportunity for speculation in the current market.

Waiving the three-year buy-back provision until December 31, 2004, should help to stimulate the development of affordable housing by allowing developers to compete on a more level playing field in the real estate market. Your Committee hopes that this measure will help improve the economic climate by providing more construction jobs and affordable housing opportunities.

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. 2450 and recommends that it pass Second Reading and be referred to the Committee on Finance.