STAND. COM. REP. NO. 3784

Honolulu, Hawaii

RE: H.B. No. 1929

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1929, H.D. 2, S.D. 1, 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 extend the date by which the Hawaii Housing Finance and Development Corporation is required to renegotiate an existing, or issue a new, ground lease for the Front Street Apartments affordable housing project on the island of Maui.

Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation and one individual.

Your Committee finds that, due to a pending lawsuit, the Hawaii Housing Finance and Development Corporation has been unable to obtain an accurate appraisal of the value of the ground lease for the Front Street Apartments affordable housing project. Your Committee further finds that the absence of an accurate appraisal prevented the Corporation from renegotiating the terms of the ground lease by December 31, 2019, in accordance with Act 150, Session Laws of Hawaii 2018, as amended by Act 98, Session Laws of Hawaii 2019, thus triggering a requirement for the Corporation to initiate condemnation proceedings. Accordingly, your Committee believes that an extension of the December 31, 2019, deadline is warranted to allow further opportunity for the litigation to be resolved.

Your Committee has amended this measure by:

(1) Making the measure effective upon its approval, to apply retroactively to December 30, 2019; and

(2) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1929, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1929, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair