STAND. COM. REP. NO. 175

Honolulu, Hawaii

RE:    S.B. No. 614

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Education and Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 614 entitled:

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

beg leave to report as follows:

     The purpose of this measure is to provide affordable housing to public school teachers through the establishment of an affordable housing program and a Second Mortgage Revolving Trust Fund and to appropriate funds for that purpose.

     Testimony in support of this measure was submitted by the Department of Education, the Hawaii State Teachers Association, and one individual.  Testimony in opposition to this measure was submitted by the Department of Budget and Finance.

     Your Committees find that the ability to recruit and retain qualified teachers for our public school system is a challenging endeavor, particular during times of teacher shortages.  The high cost of living in Hawaii, including the high cost of housing and the lack of available housing especially in geographically isolated areas, all conspire to exacerbate the teacher shortage problem.  Your Committees are committed to growing and investing in a qualified teacher workforce and believe that innovative ideas must be entertained to recruit and retain qualified teachers.  The provision of assistance to public school teachers to obtain affordable housing provides a highly desirable incentive that would demonstrate the State's commitment to providing qualified teachers for our schools.

     This measure provides deferred-interest second mortgages to qualified teachers for the purchase of a home in an amount not to exceed $125,000.  Eligible teachers are required to be actively employed as full-time teachers in the public school system, who purchase property as their primary permanent residence, and who do not own any other real property.  A revolving trust fund is also established to provide for these mortgages. 

     Your Committees understand that the responsibility for existing teacher housing will be transferred to the Department of Education on July 1, 2008, and that repair and maintenance for such housing must also be executed thereon.  This measure also provides funding for the assessment on and repair and renovation of existing teacher housing.  Additionally, in light of the impending transfer of existing teacher housing in 2008, your Committees believe that delayed commencement of the program established under this Act may be appropriate to allow the Department of Education to be prepared to fully assume all responsibilities associated with its teacher housing programs.   

     Accordingly, your Committees have amended this measure by:

     (1)  Changing the effective date of the Act to July 1, 2008; and

     (2)  Making technical, nonsubstantive changes for purposes of clarity and style.

     As affirmed by the records of votes of the members of your Committees on Education and Commerce, Consumer Protection, and Affordable Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 614, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 614, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ BRIAN T. TANIGUCHI, Chair

____________________________ NORMAN SAKAMOTO, Chair