Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 117 entitled:

begs leave to report as follows:

The purpose of this measure is to provide express statutory authority for the Housing and Community Development Corporation of Hawaii (HCDCH) to modify and amend contracts and agreements previously executed by the Housing Finance and Development Corporation (HFDC).

HCDCH and Kaanapali Development Corporation testified in support of this measure.

Act 350, Session Laws of Hawaii 1997 (Act 350) consolidated HFDC, the Hawaii Housing Authority, and the Rental Housing Trust Fund Commission into a single agency, the HCDCH. In consolidating the agencies, Act 350 also transferred their jurisdiction and authority, functions, powers, and duties to the newly created agency; all permits, deeds, leases, loans, contracts, and other agreements executed by the consolidated agencies remain in full force and effect.

This measure further clarifies that HCDCH succeeded to the rights and obligations of the subsumed agencies by expressly establishing HCDCH's authority to amend housing project agreements executed between HFDC and developers.

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. 117 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.