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.R. No. 37 entitled:

begs leave to report as follows:

The purpose of this measure is to urge the owners of Kukui Gardens to sell the project to a qualified affordable housing non-profit organization that will make a reasonable offer to purchase the property.

Testimony in support of the measure was submitted by the Housing and Community Development Corporation of Hawaii, two members of the Honolulu City Council, the Affordable Housing and Homeless Alliance, the League of Women Voters of Honolulu, the Hawaii Association of Realtors, Faith Action for Community Equity (FACE), Solidarity with the Homeless, and thirty-five individuals.

Your Committee finds that a reasonable offer to purchase Kukui Gardens by a nonprofit housing organization will preserve the complex for future affordable housing, allow the existing tenants to remain in their housing, and preserve the character of the historic Chinatown neighborhood. The residents of Kukui Gardens deserve to be a party to the transaction because they are the ones most at risk if the sale is not handled equitably. All will benefit from the active intervention of the State to ensure that there is no negative impact on current and future residents.

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.R. No. 37 and recommends its adoption.