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 H.B. No. 1426, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to finance the development of affordable housing.

UniDev, LLC, testified in support of this measure. The Department of Budget and Finance presented comments.

This measure authorizes the issuance of special purpose revenue bonds by the Department of Budget and Finance to assist private nonprofit organizations and public instrumentalities to develop affordable housing for low income and moderate income households, the elderly, and employees of public or nonprofit entities.

Your Committee finds that high housing prices have negatively affected employers' abilities to recruit workers, particularly in professional, technical, and management sectors. This measure would allow nonprofit or public entities to obtain lower cost tax-exempt financing to develop affordable housing for Hawaii's workforce, the elderly, and low income and moderate income households.

Your Committee has amended this measure:

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 H.B. No. 1426, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1426, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.