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. 797 entitled:

begs leave to report as follows:

The purpose of this measure is to make housekeeping amendments to the laws governing the operations of the State's housing agency.

The Housing and Community Development Corporation of Hawaii (HCDCH) and a member of the Maui County Council testified in support of this measure.

Your Committee finds that when the Hawaii Housing Authority and the Housing Finance Development Corporation were consolidated into HCDCH, the carryover of common terminology used in different contexts created ambiguity in the law. For instance, the term "housing project" used in the context of public housing has a different meaning when used in the context of affordable housing.

This measure clarifies the law by redefining the term "housing project" as "public housing project" to distinguish between low-income housing projects and affordable housing developments, and by making conforming amendments throughout chapter 201G, Hawaii Revised Statutes. Additionally, this measure corrects inconsistencies in the requirements governing the sale of housing units, including public housing units.

Your Committee made technical amendments to this measure to reflect preferred drafting style and to correctly reflect the language in the Hawaii Revised Statutes.

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. 797, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 797, S.D. 1, and be placed on the calendar for Third Reading.