STAND. COM. REP. NO. 3197

Honolulu, Hawaii

RE:    S.C.R. No. 118

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.C.R. No. 118 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE DEPARTMENT OF HAWAIIAN HOME LANDS TO SUBMIT A REPORT TO THE LEGISLATURE REGARDING ITS POLICY TO DEVELOP RENTAL PROPERTIES FOR OCCUPANCY BY ITS BENEFICIARIES AND ENSURE THAT BENEFICIARIES MAINTAIN THEIR PLACEMENT ON THE WAITLIST FOR HOMESTEAD LEASES WHILE RESIDING IN A DEPARTMENT RENTAL,"

begs leave to report as follows:

     The purpose and intent of this measure is to request information on the Department of Hawaiian Home Lands' residential rental property development policies.

Specifically, the measure urges the Department of Hawaiian Home Lands to:

     (1)  Submit a report to the Legislature regarding its policy to develop rental properties for occupancy by its beneficiaries; and

     (2)  Ensure that its beneficiaries will not lose their place on the homestead waitlist while residing in a Department of Hawaiian Home Lands' rental.

     Your Committee received written comments in support of this measure from the Sovereign Councils of the Hawaiian Homelands Assembly and one individual.  Written comments in opposition were received from one individual.  The Department of Hawaiian Home Lands submitted written comments on the measure.

     Your Committee finds that, as of September 11, 2012, there were 26,550 individual applicants on the Department of Hawaiian Home Lands' waitlist for homestead leases.  Many beneficiaries of the Department of Hawaiian Home Lands must first establish credit before they are able to qualify for a mortgage on a homestead lease.  Your Committee also finds that, in its audit of the Department of Hawaiian Home Lands' Homestead Services Division, the Auditor reported that the Department of Hawaiian Home Lands had a significant amount of defaulted mortgage loans, with a delinquency rate of almost thirty-two percent, at the end of fiscal year 2012.  Your Committee believes that the Department of Hawaiian Home Lands could increase its potential for returns by developing a rental property program for occupancy by its beneficiaries.

     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 concurs with the intent and purpose of S.C.R. No. 118 and recommends its adoption.

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

____________________________

DAVID Y. IGE, Chair