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. 2952 entitled:

begs leave to report as follows:

The purpose of this measure is to effectuate the implementation plan prepared by the Housing and Community Development Corporation of Hawaii to create two separate state housing agencies, the Hawaii Housing Finance and Development Corporation, and the Hawaii Public Housing Authority, and to make necessary technical and conforming amendments to relevant statutory provisions.

Testimony in support of this measure was submitted by the Housing and Community Development Corporation of Hawaii.

Your Committee finds that the burden of administering the public housing projects in the State has overshadowed the ability of the Housing and Community Development Corporation of Hawaii to pay sufficient attention to the financing and development of affordable housing. Accordingly, as required by Act 196, Session Laws of Hawaii 2005, the Corporation will be split into two organizations to more effectively concentrate on the development of affordable housing. This measure is a result of the implementation plan prepared by the Corporation for the reorganization of the State's housing functions, in compliance with Act 196.

Your Committee has amended this measure in accordance with the intent of the Housing and Community Development Corporation of Hawaii to clarify that the federal eviction process is applicable only to federal public housing projects. Your Committee has also made technical, nonsubstantive amendments for clarity and style.

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. 2952, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2952, S.D. 1, and be referred to the Committee on Ways and Means.