STAND. COM. REP. NO. 832

Honolulu, Hawaii

RE:    S.B. No. 785

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 785, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING ON HAWAIIAN HOME LANDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to encourage and support the development of affordable housing by the Department of Hawaiian Home Lands (Department).

     Specifically, this measure:

     (1)  Makes permanent Act 141, Session Laws of Hawaii 2009, which requires the counties to issue affordable housing credits to the Department;

     (2)  Makes permanent Act 98, Session Laws of Hawaii 2012, which requires the counties to issue affordable housing credits for each residential unit developed by the Department; and

     (3)  Requires that twenty-five percent of revenues from any transfer of credits by the Department be used by the Department to develop rental units.

     Your Committee received written comments in support of this measure from the Department of Hawaiian Home Lands and the Sovereign Councils of the Hawaiian Homelands Assembly.  Your Committee received written comments in opposition to the measure from the Department of Planning and Permitting of the City and County of Honolulu and the Center for Hawaiian Sovereignty Studies.

     Your Committee finds that affordable housing credits provide the Department of Hawaiian Home Lands greater opportunities to develop lands under its control.  Your Committee believes that by permanently allowing the Department to use affordable housing credits, this measure will help the Department to provide homes to its beneficiaries and will increase the number of affordable housing units in the State.

     Your Committee has amended this measure by:

     (1)  Deleting language requiring that twenty-five percent of revenues from any transfer of credits by the Department of Hawaiian Home Lands be used by the Department to develop rental units; and

     (2)  Requiring the issuance of affordable housing credits to the Department, the transfer of credits by the Department, and the county-wide application of credits to be in accordance with county ordinances, resolutions, rules, or memoranda of agreement.

     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. 785, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 785, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair