STAND. COM. REP. NO. 2455

Honolulu, Hawaii

RE: S.B. No. 2755

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Housing and Judiciary, to which was referred S.B. No. 2755 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify that any projects assisted by the Hawaii Housing Finance and Development Corporation that were developed or sold prior to the enactment of Act 159, Session Laws of Hawaii 2017 (Act 159), are grandfathered in and not subject to Act 159, to avoid unintended consequences and administrative burdens; and

(2) Limit the subsequent purchase price of the real property if the Hawaii Housing Finance and Development Corporation does not exercise its option to purchase the real property.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism and Hawaii Housing Finance and Development Corporation.

Your Committees find that Act 159 allows qualified non-profit housing trusts to utilize the Hawaii Housing Finance and Development Corporation's buyback option on affordable for-sale homes and condominium units resold by their original owner-occupants in situations when the Corporation decides not to do so itself. According to the Corporation, since the enactment of Act 159, the Corporation found that some of the Corporation's projects may not be covered by the existing grandfather provision. This measure excludes any project developed or sold prior to the enactment of Act 159.

Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Housing and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2755, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2755, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Judiciary,

________________________________ BRIAN T. TANIGUCHI, Chair

________________________________ WILL ESPERO, Chair