Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2991, H.D. 2, S.D. 2, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to promote the development of affordable housing through enabling legislation that establishes the manner and procedure for the issuance of special purpose revenue bonds (SPRBs) to public instrumentalities and their qualified affiliates to develop low- and moderate-income housing.

Your Committee on Conference recognizes that the reference to "qualified affiliate" in the definition of a "project party" may not be necessary because a qualified affiliate would generally fall within the definition of a "project party" as a not-for-profit private organization or a for-profit private organization. However, your Committee on Conference elected to retain the reference to "qualified affiliate" to make it clear that SPRBs would be available to assist not only low- and moderate-income housing projects developed by not-for-profit private organizations, for-profit private organizations, and public instrumentalities, but also to assist low- and moderate-income housing projects developed by the joint efforts of public instrumentalities and not-for-profit private organizations or for-profit private organizations.

Your Committee on Conference also notes that the Attorney General expressed in a letter dated April 7, 2006, that the provisions in this measure meet constitutional requirements and do not require an accompanying constitutional amendment.

Additionally, your Committee on Conference expresses its hope that in the event that competing requests for the authorization of SPRBs occur during the same legislative session, that the Legislature would give first consideration to authorizing bonds for the low- and moderate-income housing project that will provide housing to the lowest income families.

Accordingly, your Committee on Conference has amended this bill by:

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2991, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2991, H.D. 2, S.D. 2, C.D. 1.