STAND. COM. REP. NO. 482

Honolulu, Hawaii

RE: S.B. No. 1189

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 1189 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Make technical and housekeeping amendments to Act 150, Session Laws of Hawaii 2018; and

(2) Appropriate funds out of the dwelling unit revolving fund for the acquisition of the ground lease of Front Street Apartments in Lahaina, Maui.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; and one individual. Your Committee received comments on this measure from the Front Street Affordable Housing Partners.

Your Committee finds that the tenants of the Front Street Apartments are facing an August 2019 deadline by the building owner, who plans to raise the rents to market-level prices, removing its status as affordable housing and effectively evicting the tenants. This measure authorizes the Hawaii Housing Finance and Development Corporation to expend an unspecified amount from the dwelling unit revolving fund for the acquisition of the ground lease of the Front Street Apartments, as part of its effort to develop and preserve affordable rental housing in the County of Maui.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) 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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1189, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1189, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair