STAND. COM. REP. NO. 53

Honolulu, Hawaii

RE:    S.B. No. 863

       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. 863 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:

     (1)  Authorize the Hawaii Housing Finance And Development Corporation to modify and amend development agreements with eligible developers;

     (2)  Authorize the imposition and collection of reasonable fees for administrative expenses; and

     (3)  Make housekeeping amendments to delete incorrect references to "public" housing.

     Testimony in support of this measure was submitted by one state agency.

     Your Committee finds that Act 198, Session Laws of Hawaii 2005, added a new section to chapter 201G, Hawaii Revised Statutes, to provide express authority for the Housing and Community Development Corporation of Hawaii to modify and amend development agreements with eligible developers that were entered into by its predecessor, the Housing Finance and Development Corporation.  However, this section was omitted in Act 180, Session Laws of Hawaii 2006, which recodified Hawaii's housing laws.

     Your Committee further finds that this measure also clarifies the Corporation's authority to establish and collect reasonable application or service fees for loans, grants, or other affordable housing financing and development assistance programs.

     Your Committee has amended this measure to correct a drafting error.

     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. 863, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 863, 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