Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Water, Land, & Ocean Resources and Housing, to which was referred S.B. No. 1593, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to expand and enhance the use of rural districts through a one-time reclassification of lands that were classified as agricultural prior to June 4, 1976, based upon studies and recommendations from each county. Specifically, this measure:

C & H Farms testified in support of this bill, as received by your Committees.

After considering this measure and recognizing the importance of affordable housing, your Committees drafted a proposed Senate Bill 1593, S.D. 2, H.D. 1, and made copies available to the public prior to the hearing. As such, the proposed H.D. 1 was the subject of the public hearing.

As amended, the purpose of Senate Bill 1593, S.D. 2, H.D. 1, is to ensure the availability of affordable housing units in urban Honolulu by establishing the Liliha-Palama Community Development District (District) to be administered by the Hawaii Community Development Authority (HCDA).

The Hawaii Association of Realtors and several concerned citizens testified in support of the proposed HD1. The Department of Planning and Permitting of the City and County of Honolulu and a number of concerned individuals opposed the proposed HD1. HCDA submitted comments.

Your Committees discussed the potential benefits of establishing the District that could include condemnation of necessary properties and the development of affordable housing. Your Committees note that the concerns of the residents of Kukui Gardens affordable residential project could be addressed by the establishment of the District.

Your Committee on Water Land & Ocean Resources has rejected and continues to reject the establishment of the one-time reclassification of lands to rural districts as proposed by this bill.

Accordingly, your Committees have amended this bill by adopting the language of the proposed HD1.

As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1593, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1593, S.D. 2, H.D. 1, and be referred to the Committee on Finance.