STAND. COM. REP. NO.  935

Honolulu, Hawaii

                , 2015

RE:   S.B. No. 974

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred S.B. No. 974, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE RENTAL HOUSING TRUST FUND,"

begs leave to report as follows:

The purpose of this measure is to support the development of mixed-use residential development by:

(1)  Authorizing the Rental Housing Trust Fund (RHTF) to be used for spaces for public uses within mixed-use residential developments in which the residential component consists of rental housing units; and

(2)  Establishing a separate mixed-use residential development subaccount within the RHTF to fund the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of spaces for public uses within mixed-use residential developments in which the residential component consists of rental housing units.

The Hawaii Housing Finance and Development Corporation, Land Use Research Foundation of Hawaii, PHOCUSED, and Catholic Charities Hawaii supported this measure. The Chamber of Commerce of Hawaii and the Building Industry Association of Hawaii supported the intent of this measure.

Your Committee has amended this measure by deleting its substance and inserting language that:

(1)  Allows the RHTF to fund the development of spaces for public uses within mixed-use residential developments, provided that the rental housing component is the primary use and the rental housing component meets the eligibility criteria for project funding under the RHTF;

(2)  Limits the amount of funding for loans and grants for the development of spaces for public uses unless otherwise authorized by the Legislature;

(3)  Requires the Hawaii Housing Finance and Development Corporation to include in its annual report to the Legislature any loans or grants provided for spaces for public uses;

(4)  Retains the definition of "spaces for public uses," but adds health care as one of the uses allowed within this definition; and

(5)  Incorporates an effective date of July 1, 2050.

     Should the Committee on Finance deliberate this measure further, your Committee respectfully requests that it consider $5,000,000 as the maximum loan or grant amount for the development of spaces for public uses within a mixed-use residential housing development.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 974, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 974, S.D. 1, H.D. 1, and be referred to the Committee on Water & Land.

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

____________________________

MARK J. HASHEM, Chair