STAND

STAND. COM. REP. NO. 79-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2452

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 2452 entitled:

"A BILL FOR AN ACT RELATING TO FORECLOSURES OF GOVERNMENT-ASSISTED PROPERTIES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Provide the Housing and Community Development Corporation of Hawaii (HCDCH) with 30 days prior notice of the commencement of foreclosure proceedings on government-assisted properties;

(2) Recognize a government entity lien as a priority lien, to allow a state or county agency to fully collect the value of its shared appreciation equity, excess proceeds in lieu of buyback, or deferred sales price lien on an affordable housing property that is publicly sold through nonjudicial foreclosure; and

(3) In the event HCDCH's lien is second in priority to the mortgagee who files a nonjudicial foreclosure, recognize the short 30 day foreclosure notice period by allowing HCDCH to participate at the public sale and purchase the real property by offset or credit bid.

HCDCH, Department of Budget and Fiscal Services of the City & County of Honolulu, Department of Housing and Human Concerns of the County of Maui, and the Offices of Community Assistance, Kauai County Housing Agency testified in support of this measure. The Mortgage Bankers Association of Hawaii submitted comments.

Your Committee has amended this bill by:

(1) Inserting statutory language that was inadvertently omitted; and

(2) Making other technical, nonsubstantive amendments for purposes of clarity and to correct drafting style.

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. 2452, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2452, H.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Human Services and Housing,

		____________________________ MICHAEL PUAMAMO KAHIKINA, Chair