FLOOR AMENDMENT NO.  2                   DATE: March 9, 1999     

TO:  S.B. No. 1519, S.D. 2

     SECTION 1.  Senate Bill No. 1519, S.D. 2, is amended as

     1.  By adding three new sections after line 5, on page 19 to

     "SECTION 3.  The legislature finds that it is in the best
interest of the State to encourage rental housing that does not
compete with private developers in the housing sales market.  

     The legislature further finds that the greatest need for
housing in the State of Hawaii is for families below eighty per
cent of the median income and that the most effective way to
perpetuate housing for low-income families is through nonprofit

     In 1992, the rental housing trust fund was created under Act
308, Session Laws Hawaii, 1992.  The legislature created this
fund to provide loans and grants for the development,
pre-development, construction, acquisition, preservation, and
substantial rehabilitation of rental housing units.

     As of June 30, 1998, the rental housing trust fund
commission had committed project award loans to twenty-one
affordable rental developments.  Together they total 1,473 units
of affordable rental housing.  Projects assisted by the rental
housing trust fund, provide low interest, flexible term loans for
low income housing on Oahu, Maui, Kauai, and Hawaii.

     The purpose of sections 4 and 5 of this Act is to authorize
general obligation bonds and to appropriate money to the rental
housing trust fund to encourage the development and availability
of low income rental housing throughout the State of Hawaii.

     SECTION 4.  The director of finance is authorized to issue
general obligation bonds in the sum of $      , or so much
thereof as may be necessary, and the same sum, or so much thereof
as may be necessary, is appropriated for fiscal year 1999-2000 to
be paid into the rental housing trust fund created in section
201G-432, Hawaii Revised Statutes.

     SECTION 5.  The sum appropriated shall be expended by the
housing and community development corporation of Hawaii for the
purpose of this Act."

FLOOR AMENDMENT NO.__________________                      Page 2

     2.  By renumbering section 3 as section 6.

     3.  By renumbering section 4 on page 19 and amending it to

     "SECTION 7.  This Act shall take effect upon its approval;
provided that sections 4 and 5 shall take effect on July 1,

Offered by:_____________________       (    ) Carried

                                       (    ) Failed to Carry

                                       (    ) Withdrawn