STAND. COM. REP. NO.  624-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 3427

      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. 3427 entitled:

"A BILL FOR AN ACT RELATING TO 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 Trust Fund (Trust Fund) to assist with technical assistance costs and to provide loans and grants for other costs associated with the development of self-help housing.

     Hawaii Habitat for Humanity Association and the 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) and Tax Foundation of Hawaii provided comments.

     Your Committee respectfully requests the Committee on Finance to examine the concerns about funding raised by HHFDC, B&F, and the Tax Foundation of Hawaii in their written testimony.  This measure could result in the development of many more much-needed affordable housing units in the state.

     Your Committee has amended this bill by:

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

     (2)  Specifying that 15 percent of the conveyance tax proceeds be allocated to the Trust Fund; 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. 3427, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3427, 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