STAND. COM. REP. NO. 56

Honolulu, Hawaii

RE:    S.B. No. 1025

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committees on Human Services and Economic Development, Government Operations and Housing and Commerce and Consumer Protection, to which was referred S.B. No. 1025 entitled:

"A BILL FOR AN ACT RELATING TO THE HOUSING LOAN AND MORTGAGE PROGRAM,"

beg leave to report as follows:

     The purpose and intent of this measure is to update the Hula Mae Single Family mortgage loan program to allow for broader program participation by potential homeowners, add downpayment assistance as a program feature, and make housekeeping and conforming amendments.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; and Hawaii Association of REALTORS.  Your Committees received testimony in opposition to this measure from one individual.

     Your Committees find that the Hula Mae Single Family program is a mortgage loan program for families of low and moderate income that was initiated by the Legislature in 1979.  The program's intent is to deliver low interest rate mortgage loans to families and individuals who cannot qualify in the conventional market.  Your Committees further find that this measure will allow more households to qualify for the loan program, offer downpayment assistance as an optional feature of Hula Mae Single Family program loans, and delete obsolete statutory provisions relating to two inactive programs, the Loans to Lenders and Purchase of Existing Loans programs.

     As affirmed by the records of votes of the members of your Committees on Human Services and Economic Development, Government Operations and Housing and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1025 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Human Services and Economic Development, Government Operations and Housing and Commerce and Consumer Protection,

____________________________ DONOVAN M. DELA CRUZ, Chair	____________________________ SUZANNE CHUN OAKLAND, Chair
	____________________________ ROSALYN H. BAKER, Chair