STAND. COM. REP. NO. 2209

Honolulu, Hawaii

RE:    S.B. No. 3173

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 3173 entitled:

"A BILL FOR AN ACT RELATING TO KUKUI GARDENS,"

begs leave to report as follows:

     The purpose of this measure is to appropriate $26,000,000 in general obligation bonds to finalize the sale of the Kukui Gardens Housing Project.

     Testimony in support of this measure was submitted by the Department of Business, Economic Development and Tourism, Hawaii Housing Finance and Development Corporation; Hawaii Family Forum; the Roman Catholic Church in the State of Hawaii; and Faith in Action for Community Equity.

     Your Committee finds that this measure is necessary in order to complete the structured transaction that will preserve a portion of Kukui Gardens as affordable rental housing.

     Your Committee further finds that this measure will promote social justice by preserving affordable housing for people in need.  This funding is required to reduce the debt service arising from Hula Mae Multi-Family revenue bonds that were issued to finance the purchase and rehabilitation of the state-owned portion of Kukui Gardens.  Reduction in the debt service ensures affordable rents for low-income households over the long term.

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3173 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 Human Services and Public Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair