STAND. COM. REP. NO. 1447

Honolulu, Hawaii

RE:    S.C.R. No. 143

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 143 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION TO WORK WITH HOUSING STAKEHOLDERS AND OTHER STATE AND COUNTY AGENCIES TO EVALUATE AND UPDATE THE RENTAL HOUSING REVOLVING FUND PROGRAM'S POLICIES AND PROCEDURES AND REINSTATE THE PREDEVELOPMENT LOAN PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to urge the Hawaii Housing Finance and Development Corporation to work with housing stakeholders and other state and county agencies to evaluate and update its policies and procedures with respect to its administration of the Rental Housing Revolving Fund Program.

     The Hawaii Housing Finance and Development Corporation submitted written comments on the measure.

     Your Committee is well aware of the need for more housing units for the residents of Hawaii, especially rental units.  Projections indicate that Hawaii will need 64,000 new housing units by 2025, approximately 22,000 of which will need to be rental units.  In recognition of this need, the Legislature passed, and the Governor signed, a bill that became Act 127, Session Laws of Hawaii 2016.  Act 127 sets a goal to build 22,500 affordable rental housing units by 2026 and establishes a special action team on affordable rental housing to provide assistance and advice to achieve that goal.

     Within state government, the Hawaii Housing Finance and Development Corporation is the agency with primary responsibility for developing and funding affordable housing projects.  As this measure notes, the Corporation has substantial resources available to accomplish its duties.  Much of the resources are in or flow through the rental housing revolving fund.

     As this measure notes, non-profit and for-profit developers, construction industry stakeholders, and community housing stakeholders have requested "an evaluation of the policies and procedures of the administration of the rental housing revolving fund."  Your Committee adds its support for such an evaluation.  Your Committee believes that the evaluation is necessary to expedite the development, construction, and occupancy of more rental housing units for the residents of Hawaii.

     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. 143 and recommends its adoption.

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

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JILL N. TOKUDA, Chair