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 S.B. No. 1852 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of general obligation bonds for the repair, renovation, and construction of low-income housing.

This measure also requires the Housing and Community Development Corporation of Hawaii (HCDCH) to repair all vacant low-income units by December 31, 2008.

Testimony in support of this measure was submitted by the Affordable Housing and Homeless Alliance and two individuals. Testimony in opposition to this measure was submitted by HCDCH.

Your Committee finds that currently, the supply of local low-income housing is far outweighed by the demand. A waiting period of two to five years currently exists for both state and federal low-income housing projects. Your Committee further finds that there are many vacant state and federal low-income housing units within the State; however, many of them are also uninhabitable. Your Committee believes that if these units were repaired and renovated, they could be made available to house those individuals who have been placed on waiting lists. This measure provides for the financing of necessary repairs and renovations through the authorization of the issuance of general obligation bonds and the application of federal capital fund program grants administered by the U.S. Department of Housing and Urban Development (HUD). Grant moneys from HUD are designated for improvements to federal low-income housing units, including the redesign, reconstruction, and reconfiguration of public housing projects, reduction of vacancies, and the demolition and replacement of existing low-income housing units.

Your Committee has amended this measure by making technical, nonsubstantive amendments for purposes of clarity and consistency.

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 S.B. No. 1852, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1852, S.D. 1, and be referred to the Committee on Ways and Means.