STAND. COM. REP. NO. 164

Honolulu, Hawaii

, 2019

RE: H.B. No. 543

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 543 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

The purpose of this measure is to preserve the Front Street Apartments project on Maui as an affordable rental housing project by:

(1) Requiring the Hawaii Housing Finance and Development Corporation to immediately initiate negotiations to acquire the leasehold and fee interests in the Front Street Apartments project, or exercise its power of eminent domain to acquire the interests if an agreement cannot be reached within a reasonable time; and

(2) Appropriating an unspecified amount to acquire the leasehold and fee interests in the Front Street Apartments project.

The Maui Chamber of Commerce, ILWU Local 142, UNITE HERE Local 5, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and two individuals submitted testimony in support of this measure. One individual submitted testimony in opposition. The Hawaii Housing Finance and Development Corporation, Front Street Affordable Housing Partners, and an individual offered comments on this measure.

Your Committee has amended this measure by:

(1) Inserting language to extend the date by which the Hawaii Housing Finance and Development Corporation must complete the construction of the Leialii affordable housing project in Lahaina, Maui to an unspecified date;

(2) Changing its effective date to January 1, 2050, to promote further discussion; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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 H.B. No. 543, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 543, H.D. 1, and be referred to your Committee on Judiciary.

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

____________________________

TOM BROWER, Chair