STAND. COM. REP. NO.  211-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 3060

      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 Water, Land, Ocean Resources & Hawaiian Affairs, to which was referred H.B. No. 3060 entitled:

"A BILL FOR AN ACT AUTHORIZING THE RESALE OF RESERVED HOUSING UNITS BY THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY,"

begs leave to report as follows:

     The purpose of this bill is to authorize the Hawaii Community Development Authority (HCDA) to resell reserved housing units.

     HCDA and the Office of Hawaiian Affairs testified in support of this bill.

     Your Committee finds that Act 317, Session Laws of Hawaii 2006, which sought to prevent HCDA from alienating public lands within the Kakaako Community District, which it holds title to in its corporate capacity, also resulted in HCDA's inability to resell the reserved housing units that are bought back by HCDA.  Under the HCDA program, reserved housing units are sold to Hawaii residents who:

     (1)  Earn 140 percent or less of the median income;

     (2)  Have not owned real property for the prior three years;

          and

     (3)  Are owner-occupants, and not investors.

The buyback provisions allow homeownership opportunities to these low- to moderate-income residents while preventing "windfall" profits, by requiring that these residents first offer the unit to HCDA if they seek to sell the home.  Once HCDA buys back the property, HCDA can resell the property to another qualified buyer.  The passage of this bill will allow HCDA to offer these units to eligible residents.

     Your Committee has amended this bill by:

(1)  Changing the effective date to July 1, 2020, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Water, Land, Ocean Resources & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3060, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3060, H.D. 1, and be referred to the Committee on Human Services & Housing.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Ocean Resources & Hawaiian Affairs,

____________________________

KEN ITO, Chair