STAND. COM. REP. NO. 646

Honolulu, Hawaii

RE:    S.B. No. 903

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 903 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to preserve affordable rental housing units by establishing an affordable rental housing development program and authorizing nonprofit organizations to acquire United States Department of Housing and Urban Development or United States Department of Agriculture housing subsidy contracts.

     Your Committee received written comments in support of this measure from Max Gray, Chair, Partners in Care Advocacy Committee; and Betty Lou Larson, Legislative Liaison, Catholic Charities Hawaii.  Your Committee received comments on this measure from Karen Seddon, Hawaii Housing Finance and Development Corporation, Department of Business, Economic Development, and Tourism.

     Your Committee finds that the affordability of housing units that receive federal subsidies is not permanently assured and that the intent of this measure is to maintain existing affordable housing in perpetuity.

     Your Committee has amended this measure by:

     (1)  Clarifying that the information in the required reports relates to rental housing projects with federal rental subsidy contracts;

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the issue; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, 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. 903, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 903, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair