STAND. COM. REP. NO.  579-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2904

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Human Services & Housing, to which was referred H.B. No. 2904 entitled:

"A BILL FOR AN ACT RELATING TO INFRASTRUCTURE DEVELOPMENT REVOLVING FUND,"

begs leave to report as follows:

     The purpose of this bill is to support the development of affordable housing by establishing the Infrastructure Development Revolving Fund (Revolving Fund) to provide no-interest loans for costs associated with building affordable housing.

     The Land Use Research Foundation of Hawaii testified in support of this bill.  The City and County of Honolulu Department of Planning and Permitting, BIA-Hawaii, and The Chamber of Commerce of Hawaii supported this measure with amendments.  The Hawaii Housing Finance and Development Corporation (HHFDC) opposed this bill.  The Department of Budget and Finance and City and County of Honolulu Department of Community Services provided comments.

     Your Committee has amended this bill by:

     (1)  Removing provisions that required HHFDC to plan, develop, and construct infrastructure necessary to build affordable housing projects;

     (2)  Specifying that the use of the Revolving Fund not be limited to projects built under HHFDC's expedited process, as long as at least 30 percent of the units in the project are low-cost housing; and

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

     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. 2904, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2904, 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