STAND. COM. REP. NO. 3383

Honolulu, Hawaii

RE: S.B. No. 2409

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 S.B. No. 2409, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DOWN PAYMENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to encourage former residents to return to the State by establishing a returning resident down payment program to assist qualified applicants with the purchase of a single family home for use as a primary residence.

More specifically, this measure:

(1) Requires the Hawaii Housing Finance and Development Corporation to administer the program;

(2) Specifies the maximum amount of matching funds that may be awarded to a qualified applicant under the program and the eligibility criteria that must be satisfied;

(3) Establishes the returning resident down payment special fund and deposits an unspecified amount of general funds into the special fund; and

(4) Appropriates an unspecified sum to the Corporation for the program.

Your Committee received written comments in support of this measure from Hana High and Elementary School and eight individuals.

Written comments in opposition were received from the Hawaii Housing Finance and Development Corporation and two individuals.

The Department of Budget and Finance submitted written comments on this measure.

Your Committee finds that the continued out-migration of Hawaii residents due to the State's high cost of living, including many skilled and educated members of the workforce, results in economic, social, and cultural burdens for the State. Your Committee further finds that encouraging the return of former residents by helping them to afford the purchase of a home in the State's high-priced housing market is a concept that merits further discussion as this measure moves forward in the legislative process.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; 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 S.B. No. 2409, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2409, 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