STAND. COM. REP. NO. 2870

Honolulu, Hawaii

RE: S.B. No. 2852

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 S.B. No. 2852 entitled:

"A BILL FOR AN ACT RELATING TO THE HOUSING LOAN AND MORTGAGE PROGRAM,"

begs leave to report as follows:

The purpose and intent of this measure is to promote affordable housing in the State by increasing the authorization ceiling amount of the Housing Loan and Mortgage Program, popularly known as the Hula Mae Multifamily Revenue Bond, for the continued financing of statewide affordable rental housing.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; Department of Business, Economic Development and Tourism; Building Industry Association Hawaii; Chamber of Commerce Hawaii; and EAH Housing.

Your Committee finds that the affordable housing crisis continues to be one of the State's most significant and challenging social problems and is a critical issue for many Hawaii residents. The Hula Mae Multifamily Bond Program promotes the development of new or the acquisition and rehabilitation of existing rental housing projects through the issuance of mortgage revenue bonds for interim and permanent financing at rates below conventional market interest rates. Your Committee received testimony from the Hawaii Housing Finance and Development Corporation who stated that as of December 31, 2019, Hula Mae Multifamily bonds have assisted in financing the development or acquisition and rehabilitation of forty-four projects totaling 5,449 affordable rental units statewide. An additional eleven projects, totaling an additional 1,392 units, are in the planning phase and are pending the issuance of approximately $345,910,271 in bonds. However, the Hawaii Housing Finance and Development Corporation only has $221,858,518 in uncommitted Hula Mae Multifamily bond authority remaining. This measure will allow the Hawaii Housing Finance and Development Corporation to move forward with affordable housing development by raising the ceiling to $2,500,000,000.

Your Committee has amended this measure by making a technical, nonsubstantive amendment 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. 2852, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2852, 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