STAND. COM. REP. NO. 2167

Honolulu, Hawaii

RE:    S.B. No. 2533

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Human Services, Hawaiian Affairs, and Public Safety, Intergovernmental and Military Affairs, to which was referred S.B. No. 2533 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Appropriate funds to improve and increase existing public housing stock;

     (2)  Finance affordable rental housing and infrastructure development by authorizing the issuance of general obligation bonds and appropriating funds for deposit into the rental housing trust fund and the dwelling unit revolving fund;

     (3)  Appropriate funds for the construction of micro apartment housing units;

     (4)  Appropriate funds to build housing for beneficiaries on homestead land; and

     (5)  Appropriate funds to build affordable housing projects for veterans.

     Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands, Hawaii Housing Finance and Development Corporation, Hawaii Public Housing Authority, The Chamber of Commerce of Hawaii, Partners in Care, Catholic Charities Hawaii, Hawaii Catholic Conference, Institute for Human Services, Building Industry Association of Hawaii, Hawaii Substance Abuse Coalition, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Primary Care Association, PHOCUSED, Community Alliance for Mental Health, and five individuals.  Your Committees received testimony in opposition to this measure from one individual.  Your Committees received comments on this measure from the Department of Budget and Finance.

     Your Committees find that there is a severe shortage of affordable housing in Hawaii, and the shortage places an immense strain on lower-income households.  According to the 2011 Hawaii Housing Planning Study, 50,000 new housing units need to be built by 2016 to meet the demand generated by changing demographics and economic conditions.  In addition, many families are threatened with homelessness, as seventy-five percent of extremely low-income households spend more than half of their income on rent.  Your Committees further find that, in addition to increasing the supply and quality of public and affordable housing stock, this measure would create jobs, reduce homelessness, and allow low-income families to spend more of their income on essentials such as food and medical care.

     As affirmed by the records of votes of the members of your Committees on Human Services, Hawaiian Affairs, and Public Safety, Intergovernmental and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2533 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, Hawaiian Affairs, and Public Safety, Intergovernmental and Military Affairs,

____________________________ MAILE S.L. SHIMABUKURO, Chair	____________________________ SUZANNE CHUN OAKLAND, Chair
	____________________________ WILL ESPERO, Chair