CONFERENCE COMMITTEE REP. NO. 90

Honolulu, Hawaii

                 , 2007

RE:    H.B. No. 667

       H.D. 1

       S.D. 2

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 667, H.D. 1, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO KUKUI GARDENS RENTAL HOUSING COMPLEX,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this bill is to preserve affordable housing in Honolulu by:

     (1)  Increasing Hawaii Housing Finance and Development Corporation's (HHFDC) revenue bond authority from $300,000,000 to $400,000,000;

     (2)  Authorizing the issuance of general obligation bonds for fiscal year 2007-2008 to acquire an interest in the land and improvements of the Kukui Gardens property; and

     (3)  Appropriating funds for fiscal year 2007-2008 to acquire an interest in the land and improvements of the Kukui Gardens property and allowing HHFDC to contract with a private nonprofit management and development organization to operate the existing facility and to develop additional affordable rentals.

     Your Committee on Conference has amended this bill by:

     (1)  Removing the appropriation of funds;

     (2)  Specifying the amount of up to $25,000,000 in general obligation bonds;

     (3)  Making a correction to the tax map key identification;

     (4)  Clarifying that HHFDC may enter into a long-term, below market, ground lease of the land, and deed the improvements to a private nonprofit housing organization for the purposes of operating, managing, and maintaining the existing rental units and to potentially develop additional affordable rentals on the site;

     (5)  Changing the effective date to July 1, 2007; and

     (6)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     Your Committee on Conference notes that HHFDC intends to submit a request during the Regular Session of 2008 for the authorization of an additional $26,000,000 in general obligation bonds for fiscal year 2008-2009 to complete the structured transaction.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 667, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 667, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ BRIAN T. TANIGUCHI, Chair	____________________________ MAILE SHIMABUKURO, Co-Chair
____________________________ ROSALYN H. BAKER, Co-Chair	____________________________ MARCUS R. OSHIRO, Co-Chair