STAND. COM. REP. NO.  1606-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2540

      S.D. 2

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2540, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to assist low-income and homeless individuals in obtaining affordable rental housing by establishing a Rental Deposit Loan Program within the Department of Human Services.  Specifically, this Program will allow low-income and homeless individuals to obtain loans for the payment of rental housing security deposits and amounts owed for the payment of first month's rent.

The Hawaii Substance Abuse Coalition, Housing Hawaii, Community Alliance for Mental Health, United Self Help, EAH Housing Hawaii, and an individual testified in support of this measure.  The Department of Human Services, PHOCUSED, Catholic Charities Hawaii, and Hawaii Association of REALTORS provided comments.

     Your Committee has amended this measure by:

     (1)  Clarifying that deductions taken from a security deposit shall only be taken to the extent permitted by the rental agreement;

     (2)  Clarifying that the tenant is responsible for providing notice to the appropriate legal agency or organization when a deduction occurs; and

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

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2540, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2540, S.D. 2, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair