STAND. COM. REP. NO. 687

Honolulu, Hawaii

RE:    S.B. No. 773

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 773, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds for various housing and homeless projects in recognition of the possible federal funding under the American Recovery and Reinvestment Act of 2009.

The measure also expedites the processing and issuance of building permits for affordable housing projects to assist developers contracting for third party review and certification.

     Your Committee received three written comments on this measure.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that the American Recovery and Reinvestment Act of 2009, Pub.L. 111-5, combines tax relief and government spending totaling $787,000,000,000 to jump start the nation's economy.  Hawaii will be eligible to receive a portion of the federal funding through formula grants and competitive applications.  Your Committee further finds that the federal funds could supplement the State's continued efforts to assist the homeless, rehabilitate aging public housing stock, and build and maintain affordable housing.  Your Committee believes this measure will address critical housing and homeless issues that affect the State and, to the extent possible, permit the use of federal funds to accomplish these goals.

     Your Committee has amended the measure by:

     (1)  Deleting the provisions Part II and Part III of the measure relating to the rental housing trust fund and the dwelling unit revolving fund;

     (2)  Retaining in the law the thirty per cent earmarked for the rental housing trust fund from conveyance tax proceeds;

     (3)  Deleting all authorizations for general obligation bonds; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 773, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 773, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair