STAND. COM. REP. NO.  112

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 101

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Human Services & Housing, to which was referred H.B. No. 101 entitled:

"A BILL FOR AN ACT RELATING TO HOMEOWNERSHIP,"

begs leave to report as follows:

     The purpose of this bill is to assist low-income families with first-time home purchases by providing financial assistance to low-income first-time homebuyers of single-family housing under the Individual Development Accounts program or forgivable loans up to a certain percentage of the loan value. 

     The bill also repeals the five-year limitation on direct state funding to fiduciary organizations under the Individual Development Accounts program.

     3Point, Hawaii Alliance for Community-based Economic Development, and Hawaii Centers for Independent Living testified in support of this bill.  The Hawaii Association of REALTORS supported the intent of this measure.

     Upon further consideration, your Committee has amended this bill by replacing the provisions:

(1)  For financial assistance to low-income, first-time homebuyers of single-family housing under the Individual Development Accounts program or forgivable loans up to a certain percentage of the loan value; and 

(2)  Repealing the five-year limitation on direct state funding to fiduciary organizations,

with an appropriation for counties to provide forgivable loans at interest rates similar to the federal Housing and Urban Development's HOME Investment Partnership Program to cover the closing costs of a home purchase, up to a maximum amount of $10,000.

     Your Committee notes that it may be wise to keep statistics on the number of program participants who are persons with disabilities, as statistics show that a disproportionate number of persons who are poor are also disabled.

     As affirmed by the record of votes of the members of your Committee on Human Services & Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 101, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 101, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Human Services & Housing,

____________________________

MAILE SHIMABUKURO, Chair