Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2928 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the Rental Housing Trust Fund Advisory Commission (Commission).

The Housing and Community Development Corporation of Hawaii (HCDCH) testified in support of the measure.

The Rental Housing Trust Fund Commission was established in 1992 to administer the Rental Housing Trust Fund. Five years later, the Commission changed from a decision-making body into an advisory body when it was consolidated with the Hawaii Housing Authority and the Housing Finance and Development Corporation into a single entity, the HCDCH. Consequently, responsibility for the adoption of administrative rules, evaluation of the trust fund program, approving trust fund awards, and other duties now rests with the HCDCH and not the Commission.

The Commission still retains an advisory role with respect to approving loan applications submitted by developers of affordable rental housing projects, which means that developers must present their applications to both the Commission and the HCDCH Board. This duplication of efforts is unnecessary and prolongs the loan approval process. Therefore, this measure proposes the repeal of the Commission. Additionally, this measure converts the Commission seat on the HCDCH Board to an at-large position.

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 S.B. No. 2928 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.