STAND. COM. REP. NO. 2912

Honolulu, Hawaii

RE:    H.B. No. 2059

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred H.B. No. 2059, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to restore the allocation of conveyance tax collections to the rental housing trust fund to fifty percent.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Catholic Charities Hawaii, Community Alliance for Mental Health, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Association of REALTORS, Hawaii Catholic Conference, Kauai Community Alliance, Partners in Care, PHOCUSED, and one individual.  Your Committee received testimony in opposition to this measure from the Building Industry Association of Hawaii.  Your Committee received comments on this measure from the Department of Budget and Finance, Department of Land and Natural Resources, Tax Foundation of Hawaii, and Chamber of Commerce Hawaii.

Your Committee finds that the rental housing trust fund is an essential funding source for the development of critically needed affordable rental housing in the State.  Testimony on this measure indicates that restoring the allocation of conveyance tax collections to the rental housing trust fund to fifty percent would yield an additional $10,800,000 per year.  In light of Hawaii's steep cost of living, increased rent rates, and increased homelessness rates, your Committee finds that it is necessary to increase the amount of funds available to be leveraged to build more affordable housing.

     Your Committee has amended this measure by inserting appropriation amounts of $1.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2059, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2059, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair