Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 2964 entitled:

begs leave to report as follows:

The purpose of this bill is to encourage the development of affordable housing by authorizing the Hawaii Housing Finance and Development Administration to lease land to qualified nonprofit organizations for $1 per year for up to 99 years.

The Self-Help Housing Corporation of Hawaii testified in support of this bill. The Housing and Community Development Corporation of Hawaii supported the intent of this measure.

Your Committee has been guided by the findings of the Joint Legislative Affordable Housing and Homeless Task Force (Task Force) to implement innovative solutions to reduce Hawaii's affordable housing and homeless crisis. The Task Force found that nonprofit organizations offered a number of innovative and cost-effective solutions to develop affordable housing, such as self-help housing.

The barrier to implementing these solutions is often the high cost and low availability of land. However, the Task Force identified parcels of state-owned land that may be suitable for development. This measure is intended to provide land to nonprofit organizations at very low cost for the development of affordable housing.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2964 and recommends that it pass Second Reading and be referred to the Committee on Finance.