STAND. COM. REP. NO.  937

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1025

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 1025 entitled:

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

begs leave to report as follows:

The purpose of this measure is to update the Hula Mae Single Family Mortgage Loan Program by, among other things:

(1)  Eliminating statutory program eligibility criteria that are not mandated by the Internal Revenue Code for borrowers, thereby allowing more households to qualify for the loan program;

(2)  Providing downpayment and closing cost assistance as an optional feature of the program loans;

(3)  Deleting statutory provisions related to two inactive programs, the Loans to Lenders and Purchase of Existing Loans Programs, which did not provide loans directly to homebuyers; and

(4)  Making housekeeping and conforming amendments.

The Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Hawai‘i Association of REALTORS; and an individual supported this measure.

     Your Committee has amended this bill by:

(1)  Changing its effective date to July 1, 2030, to facilitate further discussion; and

(2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1025, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1025, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

RIDA T.R. CABANILLA, Chair