STAND. COM. REP. NO. 2184

Honolulu, Hawaii

RE:    S.B. No. 2980

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 2980 entitled:

"A BILL FOR AN ACT RELATING TO THE HOUSING LOAN AND MORTGAGE PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to increase the availability of affordable housing in the State by increasing the aggregate principal amount of revenue bonds issued by the Hawaii Housing Finance and Development Corporation from $400,000,000 to $500,000,000 for the Corporation's Housing Loan and Mortgage ("Hula Mae Multi-Family") Program.

     Testimony in support of this measure was submitted by the Hawaii Housing Finance and Development Corporation, the Office of Hawaiian Affairs, and the Hawaii Association of Realtors.

     Your Committee finds that the Hula Mae Multi-Family Program promotes the development of new or the preservation and rehabilitation of existing affordable rental housing projects by the Hawaii Housing Finance and Development Corporation, issuing mortgage revenue bonds for interim or permanent financing at below-market interest rates.  Testimony indicates that since its inception, the Hula Mae Multi-Family Program has provided $125,878,000 in revenue bond proceeds for seven affordable housing projects, totaling 1,133 affordable units.  Five additional affordable housing projects comprising a total of eight hundred twenty-nine units have been approved by the Hawaii Housing Finance and Development Corporation and are pending bond issuance.  Increasing the Corporation's revenue bond authority from $400,000,000 to $500,000,000 will ensure that sufficient authority is in place to meet increased future demand for program assistance, and enable the Corporation to increase the availability of affordable housing in the State.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2980 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

RUSSELL S. KOKUBUN, Chair