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.C.R. No. 17 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Auditor to conduct a financial and management audit of the Housing and Community Development Corporation of Hawaii (HCDCH).

Testimony in support of the measure was submitted by the Housing and Community Development Corporation of Hawaii (requesting amendments), and the Hawaii Disability Rights Center.

Your Committee finds that the findings and recommendations of a management audit can be useful building blocks to strengthen the operation and management of public housing programs, particularly in view of the large number of vacant units juxtaposed against the many homeless persons in Hawaii. However, in view of the pending reorganization of the HCDCH on July 1, 2006, your Committee finds that an audit at this time would exacerbate the already challenging tasks at hand.

Your Committee has amended this measure to delay the starting date of the management audit until after January 31, 2007,

with a report to the Legislature prior to the convening of the Regular Session of 2008.

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 concurs with the intent and purpose of S.C.R. No. 17, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 17, S.D. 1.