STAND. COM. REP. NO. 684

Honolulu, Hawaii

RE:    S.B. No. 863

       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. 863, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to authorize the Hawaii Housing and Finance Development Corporation to modify and amend development agreements with eligible developers.

     The measure also authorizes the collection of fees to cover administrative expenses and makes housekeeping amendments to delete incorrect references to "public" housing.

     Your Committee finds that the corresponding provision relating to the authority to modify and amend development agreements in chapter 201G, Hawaii Revised Statutes, under the Housing and Community Development Corporation of Hawaii, was not included in chapter 201H, Hawaii Revised Statutes, under the Hawaii Housing Finance and Development Corporation, when chapter 201G was replaced by chapter 201H in 2006.  This bill rectifies that omission.

     Your Committee further finds that this bill also clarifies the Hawaii Housing and Finance Development Corporation's authority to establish and collect reasonable application or service fees for loans, grants, or other affordable housing financing and development assistance programs, by amending the Corporation's general powers accordingly.  Your Committee believes that the service fees will allow the Corporation to recover its administrative costs of running its programs to preserve its financial assets for developing and preserving affordable housing statewide.

     Your Committee has amended the measure by making technical nonsubstantive amendments 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. 863, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 863, S.D. 2.

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

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DONNA MERCADO KIM, Chair