STAND. COM. REP. NO.  1162-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3174

      S.D. 2

      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 Committees on Human Services & Housing and Water, Land, Ocean Resources & Hawaiian Affairs, to which was referred S.B. No. 3174, S.D. 2, entitled:

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

beg leave to report as follows:

     The purpose of this bill is to comprehensively address Hawaii's affordable housing shortage by:

     (1)  Extending the sunset date of the 50 percent conveyance tax allocation to the Rental Housing Trust Fund (RHTF) from June 30, 2008, to June 30, 2013;

     (2)  Appropriating funds for third party review and certification of building permits for affordable housing projects;

     (3)  Establishing and appropriating funds to the Self-help Housing Technical Assistance Trust Fund (Trust Fund) to assist with technical assistance expenditures up to $20,000 per self-help housing unit; and

     (4)  Changing the Hawaii Housing Finance and Development Corporation's (HHFDC) revenue bond ceiling from $400,000,000 to an unspecified amount.

     HHFDC, the Office of Hawaiian Affairs, Catholic Charities Hawaii, Hawaii Family Forum, Hawaii Catholic Conference, EAH Housing, Hawaii Island Community Development Corporation, and a concerned individual testified in support of this bill.  The Department of Budget and Finance, Department of Taxation (DOTAX), City and County of Honolulu Department of Community Services, Hawaii Association of REALTORS, and Tax Foundation of Hawaii provided comments.

     DOTAX testimony states that the extension of the conveyance tax allocation proposed in this measure will result in an estimated $9,400,000 in additional funds to the RHTF.

     Your Committees have amended this bill by:

     (1)  Changing the name of the Trust Fund to the "Self-help Housing Fund"; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Human Services & Housing and Water, Land, Ocean Resources & Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3174, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3174, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Human Services & Housing and Water, Land, Ocean Resources & Hawaiian Affairs,

____________________________ KEN ITO, Chair

____________________________ MAILE SHIMABUKURO, Chair