STAND. COM. REP. NO. 445-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1917

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1917 entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

The purpose of this measure is to remove the deadline for the Hawaii Housing Finance and Development Corporation to renegotiate an existing, or issue a new, ground lease for the Front Street Apartments affordable housing project in Lahaina, Maui, before the initiation of condemnation proceedings.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and the one member of the Maui County Council.

Your Committee finds that there is a severe shortage of affordable rental housing in the County of Maui, particularly in the western part of the island. To address this shortage, the Legislature passed acts in 2018 and 2019 to support the Front Street Apartments in Lahaina, Maui, and preserve their affordability. The Hawaii Housing Finance and Development Corporation has since acquired the leased fee interest in the Front Street Apartments and was required by the Legislature to initiate condemnation proceedings unless it renegotiated the ground lease for the Front Street Apartments project or issued a new ground lease on terms acceptable to the Hawaii Housing Finance and Development Corporation by December 31, 2021. However, due to a federal lawsuit, the Hawaii Housing Finance and Development Corporation was unable to obtain an accurate appraisal of the fair market value of the ground lease for the property for purposes of condemnation or negotiating a ground lease agreement. Therefore, removing the December 31, 2021, deadline and applying it retroactively is necessary.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1917 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

MARK M. NAKASHIMA, Chair