Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2964, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Hawaii Housing Finance and Development Administration to lease land to qualified nonprofit organizations to build affordable housing.

Your Committee finds that the recent housing boom has displaced many families living in rental housing, priced many prospective homebuyers out of the housing market, and increased the homeless population in Hawaii.

This measure represents a creative approach to the lack of affordable housing by authorizing the Administration to extend long-term leases at a nominal lease rent rate of $1 per year to qualified nonprofit organizations to provide affordable housing. These incentives will provide the impetus for nonprofit organizations to build affordable housing in the State.

Your Committee has amended the measure by making technical nonsubstantive amendments for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2964, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2964, H.D. 1, S.D. 2.