STAND. COM. REP. NO. 1560

Honolulu, Hawaii

RE:    H.B. No. 667

       H.D. 1

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 667, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to provide funding for the purchase of a real property interest in the Kukui Gardens affordable rental project. 

Specifically the measure provides for a general fund appropriation and authorizes the issuance of general obligation bonds and appropriates the proceeds from the sale of the bonds for such purchase.

     Your Committee received comments in support of this measure from the Hawaii Housing Finance and Development Corporation, the Hawaii Family Forum, the Kukui Gardens Association, Faith Action for Community Equity, a member of the Honolulu City Council, and one individual.  Housing Hawaii offered comments.

     Your Committee shares the concern regarding the possible loss of the Kukui Gardens affordable rental housing complex to a private developer who could develop market-priced units on the property to the extreme detriment of the present tenants of the complex.  There is a great need to maintain affordable rental housing opportunities wherever they may exist, particularly in urban Honolulu.

     Your Committee has amended this measure by:

     (1)  Increasing the bonding capacity of the Hawaii Housing Finance and Development Corporation from $300,000,000 to $400,000,000;

     (2)  Allowing the Hawaii Housing Finance and Development Corporation to contract with a private nonprofit management and development entity to manage the Kukui Gardens facilities and to develop additional rental units on the site; and

     (3)  Making technical nonsubstantive changes for purposes of clarity and consistency.

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

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair