STAND. COM. REP. NO. 119

Honolulu, Hawaii

RE:    S.B. No. 1268

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Education and Housing, to which was referred S.B. No. 1268 entitled:

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

beg leave to report as follows:

     The purpose of this measure is to permit the Department of Hawaiian Home Lands to receive and subsequently assign, transfer, or exchange county affordable housing credits.

     Testimony in support of this measure was submitted by one state agency, eleven organizations, and one public citizen.  One state agency supported the intent of the measure, and comments were submitted by two organizations.  Copies of written testimony are available for review on the Legislature's website.

     Your Committees find that private-sector development of affordable homes for the Department of Hawaiian Home Lands beneficiaries is a key element in helping to solve Hawaii's affordable housing shortfall.  By increasing the supply of homes on the Department of Hawaiian Home Lands properties, the overall supply of homes in the State is increased thus making more homes available for the people of Hawaii.  Allowing affordable housing credits to be applied to other projects located in the same county in which the credits are earned is a great incentive for the private sector to get involved with the Department of Hawaiian Home Lands affordable housing program.

     Your Committees have amended this measure by adopting the recommendations of the Department of Hawaiian Home Lands and:

     (1)  Deleting section 1 of the measure, authorizing the Department of Hawaiian Home Lands to receive county affordable housing credits, because the Department of Hawaiian Home Lands already has such authority;

     (2)  Authorizing the counties to issue affordable housing credits to the Department of Hawaiian Home Lands and allowing the Department to transfer and assign the credits; and

     (3)  Specifying how the affordable housing credits may be issued and applied.

     As affirmed by the records of votes of the members of your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Education and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1268, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1268, S.D. 1, and be referred to the Committee on Transportation, International and Intergovernmental Affairs.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Agriculture, and Hawaiian Affairs and Education and Housing,

____________________________ NORMAN SAKAMOTO, Chair

____________________________ CLAYTON HEE, Chair