STAND. COM. REP. NO. 1442

Honolulu, Hawaii

RE: H.B. No. 1349

H.D. 1

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 H.B. No. 1349, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to prohibit the Hawaii Community Development Authority from allowing satisfaction of a development project's affordable housing requirement through a cash payment in lieu of providing reserved housing.

Your Committee received comments on this measure from the Hawaii Community Development Authority.

Your Committee finds that there is a severe lack of affordable housing, particularly for low- and moderate-income individuals in the State. Your Committee further finds that existing law authorizes the Hawaii Community Development Authority to accept cash payment from developers in lieu of providing reserved housing. This removes potential affordable housing opportunities for low- and moderate-income individuals. Your Committee believes that prohibiting the Hawaii Community Development Authority from accepting cash payments in lieu of reserved housing for low- and moderate-income individuals will help the State meet its high demand for affordable housing.

Your Committee has amended this measure by inserting an effective date of July 1, 2075, to encourage further discussion.

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. 1349, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1349, H.D. 1, 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