Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 78, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Housing and Development Corporation of Hawaii (HCDCH) to manage federal funds it receives to administer various federal housing programs outside of the state treasury.

HCDCH testified in support of this measure.

Prior to the establishment of HCDCH, the State's public housing program was administered by the Hawaii Housing Authority (HHA), which had statutory authority to manage federal funds outside of the state treasury. When HHA was merged with other agencies in 1998 to create HCDCH, that authority was inadvertently omitted from the law. This measure corrects that omission and codifies existing practice.

HCDCH receives federal funds to administer various federal housing programs, including low rent public housing, Section 8 housing choice vouchers, public housing drug elimination, housing for persons with AIDS, and emergency shelters. The authority to maintain and utilize these funds outside of the state treasury will facilitate the effective administration of the federal programs by enabling the disbursement of the funds in a timely manner.

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. 78, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.