STAND. COM. REP. NO. 2189

Honolulu, Hawaii

RE:    S.B. No. 2575

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committees on Education and Housing and Transportation, International and Intergovernmental Affairs, to which was referred S.B. No. 2575 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

     The purpose of this measure is to create an anti-speculation capital gains tax on real property, require public housing provided by county or state financing to remain affordable in perpetuity, and require the restriction on the resale of affordable housing to qualified residents to apply in perpetuity.

     Testimony in opposition to this measure was submitted by two state agencies, one county agency, and three private organizations.  Comments were submitted by one private organization.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees have heard the concerns expressed in testimony over the provisions relating to public housing and permanent resale restrictions.  Your Committees have responded to these concerns by deleting the provisions relating to public housing and retaining only those provisions relating to the anti-speculation capital gains tax.  As amended, this measure provides an infusion into the rental housing trust fund from profit gained through the sale of residential real property sold within two years of acquisition, excluding real property sold to provide affordable rental housing and other exceptions.

     As affirmed by the records of votes of the members of your Committees on Education and Housing and Transportation, International and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2575, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2575, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Housing and Transportation, International and Intergovernmental Affairs,

____________________________ J. KALANI ENGLISH, Chair

____________________________ NORMAN SAKAMOTO, Chair