Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2572 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the issuance of special purpose revenue bonds to assist not-for-profit organizations in the development of low and moderate income housing.

Your Committee received testimony in support of this measure from the Governor, Department of Budget and Finance, Land Use Research Foundation of Hawaii, UniDev LLC, Pacific Housing Assistance Corporation, Hawaii Association of Realtors, and The Affordable Housing and Homeless Alliance.

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. These non-profit organizations are the only entities which would be willing to undertake a less than financial investment. At the same time, non-profits are most attuned to helping the less fortunate and those in downright need.

This measure is a recommendation of the Joint Legislative Housing and Homeless Task Force to address the dearth of affordable housing.

Your Committee has amended this measure to change the effective date to July 1, 2050, to continue discussions.

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. 2572, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2572, S.D. 1, and be referred to the Committee on Ways and Means.