STAND. COM. REP. NO. 3633

Honolulu, Hawaii

RE: H.B. No. 2687

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 2687, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DOWNPAYMENT LOAN LOSS RESERVE PROGRAM,"

begs leave to report as follows:

The purpose and intent of this measure is make affordable homeownership more achievable in Hawaii by creating a new Downpayment Loan Loss Reserve Program in the Hawaii Housing Finance and Development Corporation, which would leverage state funds in a public-private partnership to obtain downpayment loan capital from financial institutions.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation

Your Committee finds that homeownership creates strong communities through economic growth; helps families build equity and enjoy stability; and creates a greater sense of security, continuity, belonging, and pride in communities. However, the 2019 Hawaii Housing Planning Study, prepared for the Hawaii Housing Finance and Development Corporation, found that twenty‑seven percent of those interested in buying a single‑family home could not afford the downpayment. This measure facilitates the provision of downpayment loan assistance to first-time homebuyers by establishing a downpayment loan loss reserve program to address downpayment loan defaults.

Your Committee has amended this measure by inserting an effective date of July 1, 2050, 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. 2687, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2687, 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