Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Housing and Judiciary and Hawaiian Affairs, to which was referred S.B. No. 2571 entitled:

beg leave to report as follows:

The purpose of this measure is to propose an amendment to the Hawaii State Constitution to issue special purpose revenue bonds to assist not-for-profit private organizations in the development of low and moderate income housing.

Your Committees received testimony in support of this measure from the Land Use Research Foundation of Hawaii and UniDev LLC. Comments were received from the Department of Budget and Finance.

Your Committees find that the development of low and moderate income housing is a top priority of the Legislature. Affordable rental housing is the missing link between homelessness and having a place to live. The severity of Hawaii's housing crisis cannot be understated.

This measure would assist not-for-profit organizations in developing low and moderate income housing. Non-profits are the only entities which would be willing to undertake a not-so-lucrative financial investment. At the same time, non-profits are most attuned to helping the less fortunate and those in downright need.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Housing and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2571 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.