STAND. COM. REP. NO. 1483

Honolulu, Hawaii

RE:    H.C.R. No. 63

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Education and Housing, to which was referred H.C.R. No. 63 entitled:

"HOUSE CONCURRENT RESOLUTION URGING THE GOVERNOR TO INCLUDE THE KUKUI GARDENS AFFORDABLE HOUSING PROJECT IN THE STATE'S LIST OF SHOVEL-READY PROJECTS FOR THE PRESIDENT'S PROPOSED ECONOMIC STIMULUS PLAN,"

begs leave to report as follows:

     The purpose of this measure is to urge the Governor to include Kukui Gardens in the State's list of shovel-ready projects submitted for inclusion in the President of the United States' proposed economic stimulus plan.

     Testimony in support of this measure was submitted by one private organization and two individuals.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that a number of concerned organizations have been working for three years to preserve the eight hundred fifty-seven affordable rental housing units in Kukui Gardens as affordable rental units, which would save an estimated 2,500 people from potential homelessness.  Your Committee understands that a compromise was reached whereby the State of Hawaii purchased the land under forty-five per cent of the property and sold the improvements to the EAH, Devine & Gong Partnership, preserving three hundred eighty-nine of the units, referred to as Kukui Gardens Makai.  The sale of the Makai improvements included a requirement to rehabilitate the property at an estimated cost of $17,000,000, which was to be financed in part by the sale of state and federal low income housing tax credits.  This work was to have commenced in the summer of 2008, but has been delayed due to the evaporation of the low income housing tax credit market.

Your Committee further finds that the building permits are in place and that work can begin as soon as funding is provided, meeting the "shovel-ready" definition for qualification of stimulus package funds.

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 63, and recommends its adoption.

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

____________________________

NORMAN SAKAMOTO, Chair