STAND. COM. REP. NO.  516

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1044

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred H.B. No. 1044 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to facilitate the collection of the shared appreciation equity lien, deferred sales price lien, and excess proceeds in lieu of any buyback, imposed by the State on the sale of affordable housing properties that received assistance from the Hawaii Housing Finance and Development Corporation (HHFDC) that are undergoing foreclosure, by, among other things:

(1)  Requiring 45-day notice to HHFDC before mortgage foreclosure proceedings are commenced;

(2)  Requiring purchasers to obtain HHFDC's written consent before refinancing real property during the time restrictions on transfers are applicable; and

(3)  Clarifying that shared appreciation equity liens run with the land, are priority liens, and may be paid at any time after recordation of the sale.

     HHFDC, the Department of Community Services of the City and County of Honolulu, and many concerned individuals testified in support of this bill. 

     Your Committee has amended this bill by making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1044, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1044, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

RIDA CABANILLA, Chair