STAND. COM. REP. NO. 2297

Honolulu, Hawaii

RE:    S.B. No. 2982

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. 2982 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 measure is to increase the availability of affordable housing in the State by allowing the Hawaii Community Development Authority (HCDA) to sell the fee simple interest in newly developed reserved housing units, and administer buyback provisions and resell reserved housing units located in the Kakaako Community Development District.

     Testimony in support of this measure was submitted by the Hawaii Community Development Authority and the Office of Hawaiian Affairs.

     Section 206E-31.5, Hawaii Revised Statutes, prohibits, with certain exceptions, HCDA from selling or otherwise assigning the fee simple interest in any lands in the Kakaako Community Development District to which HCDA holds title in its corporate capacity.  Your Committee finds that section 206E-31.5 prevents HCDA from selling newly developed reserved housing units developed within the Kakaako Community Development District, or exercising buyback provisions under its reserved housing rules and then reselling these units to qualified buyers.

     The HCDA reserved housing program, among other requirements under chapter 206E, part III, Hawaii Revised Statutes, targets Hawaii residents who earn one hundred forty per cent or less of the median income; have not owned real property as a principal residence for the prior three years; and desire to be owner-occupants.  Amending section 206E-31.5, Hawaii Revised Statutes, to allow HCDA to exercise its buyback provisions under its reserved housing rules will expand affordable housing opportunities for qualified Hawaii residents and enable these buyers to acquire a home.

     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. 2982 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

RUSSELL S. KOKUBUN, Chair