STAND. COM. REP. NO.  590-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 3403

      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. 3403 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to promote the development of affordable housing through self-help housing programs by establishing a Self-Help Housing Technical Assistance Trust Fund for technical assistance costs, capped at $20,000 per unit, associated with self-help housing projects in the state.

     The Hawaii Island Community Development Corporation, Hawaii Habitat for Humanity Association, and Self-Help Housing Corporation of Hawaii testified in support of this bill.  The Hawaii Housing Finance and Development Corporation (HHFDC) opposed this measure.  The Department of Budget and Finance (B&F) provided comments.

     Your Committee respectfully requests the Committee on Finance to examine the concerns about funding raised by HHFDC and B&F in their written testimony.  The $5,000,000 appropriation contained in this measure could result in the development of an additional 50 units in one year.

     Your Committee has amended this bill by:

     (1)  Expanding its scope to include land acquisition and infrastructure costs;

     (2)  Changing the name of the fund to the "Self-Help Housing Trust Fund" (Trust Fund);

     (3)  Specifying that eligible organizations offer self-help housing services in the state and have an option on the land they intend to develop;

     (4)  Appropriating $5,000,000 to the Trust Fund; and

     (5)  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. 3403, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3403, 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