WHEREAS, the Legislature finds that the State of Hawaii is suffering from a gross shortage in the supply of affordable housing for its residents; and

WHEREAS, the Legislature finds that increasing the supply of affordable housing for residents of the State of Hawaii will contribute to the long-term economic welfare and social stability of Hawaii; and

WHEREAS, the Legislature finds that, historically, government participation is necessary in helping to marshall the resources required to expand affordable housing opportunities; and

WHEREAS, the Legislature finds that, currently and for the foreseeable future, the government is not and will not be in the position to appropriately contribute to the marshalling of the resources required to adequately expand affordable housing opportunities, unless new and innovative approaches are considered; and

WHEREAS, the Legislature finds that the financial burden of helping to assure that Hawaii's affordable housing opportunities are expanded should be broadly shared among all entities that benefit from the general expanding economic conditions in the State; and

WHEREAS, the Legislature finds that significant questions continue to be raised regarding the possibility that negative impacts are being visited upon the State's ability to properly participate in the marshalling of the resources required to help expand affordable housing opportunities as a result of the State's failure to adequately share in the windfall profits garnered by commercial and industrial lessors through the lessors' exercise of expiratory reversion clauses in ground lease contracts; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the University of Hawaii at Manoa is requested to conduct a study to determine whether a state-mandated special assessment should be levied and collected against some portion of commercial and industrial lessors' windfall profits resulting from the reversion of improvements on their properties at the conclusion of ground leases, which assessment would be dedicated to the creation of state-sponsored affordable housing opportunities for residents of Hawaii; and

BE IT FURTHER RESOLVED that the President of the University of Hawaii is requested to assign any and as many faculty and staff of the University of Hawaii to work on this study as the President deems appropriate; and

BE IT FURTHER RESOLVED that the Legislature respectfully requests that the University of Hawaii report its findings and recommendations, including proposed legislation, if any, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Regents and President of the University of Hawaii.

Report Title:

University of Hawaii; Affordable Housing