STAND. COM. REP. NO. 164

Honolulu, Hawaii

RE:    S.B. No. 1160

       S.D. 1

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 S.B. No. 1160 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC HOUSING AUTHORITY,"

begs leave to report as follows:

     The purpose of this measure is to authorize the Hawaii Public Housing Authority to assess all the units in a public housing project for common expenses.

     Testimony in support was submitted by one state agency.  Copies of the written testimony are available for review on the Legislature's website.

     Your Committee finds that assessing a fee for common expenses will have a twofold benefit.  It will:

     (1)  Provide a dedicated source of funds for the Hawaii Public Housing Authority to expend on projects, including repair and maintenance, which will benefit all residents of a public housing project; and

     (2)  Encourage "ownership" of the public housing project, and its common areas and services, by the residents.

     Your Committee understands that the Hawaii Public Housing Authority is reviewing whether federal rules allow assessing the fee on residents of federal public housing projects.

Your Committee has amended this measure accordingly, by:

     (1)  Limiting the assessment of a fee to state public housing projects;

     (2)  Clarifying that the assessed fee is for common area expenses; and

     (3)  Changing the unspecified percentage with respect to the fee to at least one per cent of common area expenses for the housing project.

     In addition, your Committee urges the Hawaii Public Housing Authority to define "common area expenses" through rules to ensure that both the Authority and public housing residents are clear regarding the basis of the fee assessment.

     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 is in accord with the intent and purpose of S.B. No. 1160, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1160, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

NORMAN SAKAMOTO, Chair