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. 3126 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate general revenues to the Dwelling Unit Revolving Fund for the development of affordable housing.

The County of Kauai and the Land Use Research Foundation of Hawaii testified in support of the measure. The Housing and Community Development Corporation of Hawaii testified in opposition to the measure.

This measure appropriates $100,000,000 in general revenues to the Dwelling Unit Revolving Fund (DURF). Your Committee finds that infusing additional capital into the DURF will stimulate the production of much needed affordable housing for Hawaii's people by enabling developers to obtain financing at below-market rates.

Your Committee has amended this measure to reflect that the expending agency for the funds appropriated is the Department of Human Services, rather than the Department of Business, Economic Development, and Tourism, and to reflect preferred drafting style.

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. 3126, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3126, S.D. 1, and be referred to the Committee on Ways and Means.