STAND. COM. REP. NO. 2353

Honolulu, Hawaii

RE:    S.B. No. 3025

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Hawaiian Affairs and Water, Land, and Housing, to which was referred S.B. No. 3025 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING CREDITS,"

beg leave to report as follows:

     The purpose and intent of this measure is to require counties to apply affordable housing credits issued to the Department of Hawaiian Home Lands in full satisfaction of county affordable housing obligations.

     Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands, Sovereign Councils of the Hawaiian Homelands Assembly, Nanakuli Hawaiian Homestead Community Association, Waianae Kai Homestead Community Association, Kewalo Hawaiian Homestead Community Association, and two individuals.  Your Committees received testimony in opposition to this measure from the Kaua‘i County Housing Agency.  Your Committees received comments on this measure from the Department of the Attorney General.

     Your Committees acknowledge that affordable housing requirements vary from county to county and impact the Department of Hawaiian Home Lands in disparate ways.  However, whether the undervaluation of the affordable housing credits issued to the Department of Hawaiian Home Lands is occurring is unclear.  To the extent that undervaluation of assets is occurring, your Committees find that this measure proposes an acceptable method of resolving the problem of undervaluation. 

     Your Committees have amended this measure by inserting an effective date of July 1, 2050, to ensure further discussion.

     As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Water, Land, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3025, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3025, S.D. 1, and be referred to the Committee on Public Safety, Government Operations, and Military Affairs.

Respectfully submitted on behalf of the members of the Committees on Hawaiian Affairs and Water, Land, and Housing,

____________________________ DONOVAN M. DELA CRUZ, Chair

____________________________ BRICKWOOD GALUTERIA, Chair