STAND. COM. REP. NO. 28

Honolulu, Hawaii

RE: S.B. No. 516

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 S.B. No. 516 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the definition of "eligible project loan" to allow loans to be made for certain rent-to-own housing projects;

(2) Require the Hawaii Housing Finance and Development Corporation to implement the homebuyers' club and rent-to-own housing programs;

(3) Require the Hawaii Housing Finance and Development Corporation to offer housing projects exclusively to those who are Hawaii residents and owner occupants and own no other real property; and

(4) Authorize the issuance of revenue bonds to finance housing loan programs of the Hawaii Housing Finance and Development Corporation.

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

Your Committee finds that the Hawaii Housing Finance and Development Corporation's homebuyers' club program and rent-to-own program are inactive and have been since their inception because they have not been funded and other available programs serve similar purposes. Your Committee notes that while these programs fulfill similar roles as the homebuyers' club program and rent-to-own program, some rely largely on federal approval or funding. Your Committee believes that the State needs to play a bigger role in assisting residents of Hawaii by offering more programs dedicated to purchasing a home.

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. 516 and recommends that it pass Second Reading 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