STAND. COM. REP. NO. 431

Honolulu, Hawaii

RE: S.B. No. 1653

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Hawaiian Affairs, to which was referred S.B. No. 1653 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION ACT, 1920, AS AMENDED,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the limit of the State's liability from $100,000,000 to $500,000,000 for moneys borrowed by the Department of Hawaiian Home Lands or loans made to lessees that are guaranteed by the Department.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands and one individual.

Your Committee finds that the Department of Hawaiian Home Lands' ability to deliver homesteads and home ownership opportunities to beneficiaries is directly tied to the Department's ability to guarantee mortgage loans. As lands held in trust by the Department of Hawaiian Home Lands are inalienable, the Department is required to guarantee mortgage loans made for homes on Hawaiian home lands when lenders do not have a loan assurance program. Your Committee finds that the increase in the liability ceiling effectuated by this Act will allow the Department of Hawaiian Home Lands to increase construction of affordable units and homeownership for beneficiaries.

As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1653 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 Hawaiian Affairs,

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HERBERT RICHARDS, Chair