STAND. COM. REP. NO. 2559

Honolulu, Hawaii

RE: S.C.R. No. 15

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.C.R. No. 15 entitled:

"SENATE CONCURRENT RESOLUTION APPROVING THE SALE OF THE LEASED FEE INTEREST IN 41-1373 HAUNAUKOI STREET, WAIMANALO, HAWAII,"

begs leave to report as follows:

The purpose and intent of this measure is to provide legislative approval, as required by law, to sell the leased fee interest in 41-1373 Haunaukoi Street, Waimanalo, Hawaii, to its current leasehold owner.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; and one individual. Your Committee received comments on this measure from the Office of Hawaiian Affairs.

Your Committee finds that the Hawaii Housing Finance and Development Corporation proposes to sell the leased fee interest in a single family home located at 41-1373 Haunaukoi Street, Waimanalo, Hawaii, to its leasehold owner. This dwelling unit was built in 1994 as part of the Waimanalo Village Annex, an affordable self-help housing development. Only twenty-eight units out of the total forty units in the development remain in leasehold. The long-term leases executed by the homebuyers in this development included a provision conferring the lessees the right to purchase the leased fee interest in the land. The fair market value of the leased fee interest of the dwelling unit was $398,200 as of May 9, 2017. The sale proceeds will be deposited into the rental housing revolving fund to support the development and construction of additional affordable housing units. Since the Corporation has met all statutory prerequisites, this measure will provide legislative approval of the sale of the leased fee interest in accordance with section 171-64.7, Hawaii Revised Statutes, relating to legislative approval of the sale or gift of lands.

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

As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 15, as amended herein, and recommends that it be referred to your Committee on Ways and Means, in the form attached hereto as S.C.R. No. 15, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Water and Land,

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KARL RHOADS, Chair