STAND. COM. REP. NO. 2617

Honolulu, Hawaii

RE:    S.B. No. 2442

       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 S.B. No. 2442 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to fund construction of affordable rental housing projects, including micro units, family units, and elder housing units, to meet the housing needs of the people of Hawaii.

     Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; the County of Hawaii Office of Housing and Community Development; the Institute for Human Services; Catholic Charities Hawaii; Hawaii Appleseed Center for Law and Economic Justice; Partners in Care; the Community Alliance for Mental Health; and the Living Life Source Foundation.

     Your Committee notes that seventy-five per cent of extremely low income households spend over half their income on rent and that eighty-one per cent of homeless households are single individuals.  Your Committee finds that the promotion of small and low cost micro-units for individuals and couples will help create additional affordable housing while freeing up larger units for households with more cohabitating individuals.  Your Committee further finds that an appropriation to the Rental Housing Trust Fund will help fulfill Hawaii's need for thirteen thousand affordable rental units by 2016.

     Your Committee has amended this measure by:

     (1)  Establishing a maximum floor area for a micro unit designation;

     (2)  Changing the appropriation to an unspecified amount;

     (3)  Changing the effective date to July 1, 2050, to encourage further discussion on the measure; and

     (4)  Making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

     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 S.B. No. 2442, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2442, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair