STAND. COM. REP. NO. 3209

Honolulu, Hawaii

RE:    H.B. No. 2251

       H.D. 1

       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 Ways and Means, to which was referred H.B. No. 2251, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to ensure that the Housing Loan and Mortgage Program, commonly known as the Hula Mae Multifamily Revenue Bond Program, can continue to finance the development and preservation of affordable rental housing in future years by increasing the Hula Mae Multifamily Revenue Bond Program authorization limit from $750,000,000 to $1,000,000,000.

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism and the Hawaii Housing Finance and Development Corporation.

     Your Committee finds that the lack of affordable housing continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents.  Your Committee further finds that the Housing Loan and Mortgage Program, commonly known as the Hula Mae Multifamily Revenue Bond Program, is an effective and widely used financing tool for the development and preservation of affordable rental housing.  Your Committee believes that increasing the Housing Loan and Mortgage Program revenue bond authority limit will further promote the development and rehabilitation of affordable rental housing projects and offer many Hawaii homebuyers the opportunity to own their own home.

     Your Committee has amended this measure by changing the proposed Hula Mae Multifamily Program revenue bond authorization limit from $1,000,000,000 to an unspecified amount to facilitate further discussion on the measure.

     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 H.B. No. 2251, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2251, H.D. 1, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair