Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1519
                                     S.D. 3
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred S.B. No.
1519, S.D. 3, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to support tenants' efforts to
preserve the affordability of their rental homes by:

     (1)  Requiring assisted housing development owners to give a
          one-year notice to tenants if the owner is going to
          terminate a subsidy contract or mortgage prepayment;

     (2)  Giving tenants or nonprofit organizations the
          opportunity to purchase the development if the owner of
          the development has not given notice to sell prior to
          July 1, 1999; and

     (3)  Authorizing the issuance of general obligation bonds
          for the Rental Housing Trust Fund to encourage the
          development and availability of low income rental

     The Office of the Governor, the Legal Aid Society of Hawaii,
the Affordable Housing and Homeless Alliance, Hawaii Investors
for Affordable Housing, Catholic Charities Elderly Services, the
Hawaii Area Program of the American Friends Service Committee,
Hawaii Catholic Conference, and several individuals testified in

                                 STAND. COM. REP. NO. 1838
                                 Page 2

support of this measure.  The Housing and Community Development
Corporation of Hawaii commented on this measure.
     Your Committee has amended this measure by making technical,
nonsubstantive amendments for clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1519, S.D. 3, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1519,
S.D. 3, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair