STAND. COM. REP. NO. 729

Honolulu, Hawaii

RE: S.B. No. 576

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 576 entitled:

"A BILL FOR AN ACT RELATING TO FINANCIAL ADMINISTRATION,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the laws pertaining to the financial administration of the Hawaii Public Housing Authority.

Specifically, the measure:

(1) Amends the requirements of reports to be submitted by the Hawaii Public Housing Authority and Hawaii Housing Finance and Development Corporation;

(2) Amends the scope of moneys to be deposited into and the purposes of the Public Housing Special Fund; and

(3) Exempts expenditures of the Public Housing Special Fund from appropriation and allotment by the Legislature, subject to certain requirements.

Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that the Public Housing Special Fund was established to support long-term and special projects by Hawaii Public Housing Authority. Your Committee notes that the special fund does not have regular revenue streams like the Rental Housing Revolving Fund or the Dwelling Unit Revolving Fund. Allowing repayments into the fund from completed projects will make available additional funds for critical pre-construction activities, lower overall development costs, and support the self-sustainability of the fund.

Your Committee further finds that with direct appropriations, the Hawaii Public Housing Authority can move forward without administrative delays, which is essential for projects secured with public-private partnerships and layered financing.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 576, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 576, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair