STAND. COM. REP. NO. 1064

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 84
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred S.C.R. No. 84 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING A FOLLOW-UP
     ANALYSIS OF THE EFFECTIVENESS OF LEGISLATION AUTHORIZING
     DIRECT LONG-TERM RESIDENTIAL LEASES AT MAUNALAHA, OAHU;
     MILOLII-HOOPULOA, HAWAII; AND KIKALA-KEOKEA, HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to request the Auditor, with
the assistance of the Legislative Reference Bureau, to conduct an
analysis of the effectiveness of legislation authorizing direct
long-term residential leases at Maunalaha, Oahu; Milolii-
Hoopuloa, Hawaii; and Kikala-Keokea, Hawaii.

     The Auditor is also requested to include alternative
recommendations to address problems in each of the communities.

     Testimony in support of the measure was received from the
Department of Land and Natural Resources and the Housing and
Community Development Corporation of Hawaii.

     Your Committee finds that under various acts of law enacted
by past legislatures, the residents of Maunalaha Valley, Oahu,
Milolii-Hoopuloa, Hawaii, and Kikala-Keokea, Hawaii were granted
the long-term use of the land for various reasons and
circumstances.


 
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     Your Committee also finds that at various times after the
issuance of these long-term lease agreements, residents from each
of the respective communities have requested assistance from the
Legislature, generally in the form of infrastructure development,
to improve the living conditions in these communities.  Various
other efforts were made in requests for statutory assistance that
would allow self-help housing to improve the living conditions
for residents in these communities.  Unfortunately, substandard
infrastructure development or descendent provisions in some of
the leases prevents many of the residents in these communities
from acquiring conventional mortgage loans.

     To remedy these problems, various alternatives have been
proposed regarding a permanent resolution for residents in these
communities, ranging from legislative funding for infrastructure
improvements to a "gratis" conveyance of the land in fee to the
lessees, or in the case of Maunalaha residents, to be held in
perpetuity and managed by the Maunalaha Valley Community
Association in a community land trust for the residents and
descendants of Maunalaha.  Another alternative has been to convey
these leases and fee simple interest in the lands to the Office
of Hawaiian Affairs, and allow them to decide on long-term
management of the areas.

     Your Committee has amended the measure by adding provisions
that request the Auditor to:

     (1)  Carefully weigh the unique needs and circumstances of
          each individual community;

     (2)  Outline issues and problems that may arise if control
          of the leases and lands are conveyed to the Office of
          Hawaiian Affairs and to recommend solutions; and

     (3)  Ensure that any recommended solution be equitable and
          sensitive to the needs of each individual community.

     Your Committee believes that the recommendations that stem
from this measure may result in a permanent and equitable
resolution to the problems currently experienced by these
communities.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee concurs with the intent and
purpose of S.C.R. No. 84, as amended herein, and recommends that
it be referred to the Committee on Ways and Means, in the form
attached hereto as S.C.R. No. 84, S.D. 1.


 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water, Land, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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