Report Title:

Affordable Housing

Description:

Prohibits raid of housing special funds. Abolishes rental housing trust fund advisory commission. Allows use of DURF for permanent financing. Authorizes GO bonds to repair and build low-income housing. Establishes committee to consider HCDCH bifurcation. Appropriates funds. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1303

TWENTY-THIRD LEGISLATURE, 2005

H.D. 2

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

relating to housing.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I.

SECTION 1. The legislature finds that the urgency of the affordable housing shortage situation in Hawaii requires immediate state action. A 2003 housing policy study indicated that there is a need for affordable housing units over the next five years. However, Hawaii's lower and moderate income families are experiencing difficulties in entering the housing market with housing prices at an all time high.

The purpose of this part is to encourage the development of affordable rental housing units by streamlining the review and approval of affordable housing projects and providing financing incentives.

SECTION 2. Chapter 201G, Hawaii Revised Statutes, is amended by adding to part II a new subpart to be appropriately designated and to read as follows:

"    . REVOLVING FUNDS EXEMPT FROM LAPSE AND TRANSFER

§201G-   Revolving funds exempt from lapse and transfer. Notwithstanding any other provision of law, no moneys from the revolving funds administered by the corporation under subparts B, G, and H or sections 201G-45, 201G-142, and 201G-153 shall be lapsed or transferred to the general fund, except as determined by the corporation to be necessary to further the purposes of the revolving fund."

SECTION 3. Chapter 201G, Hawaii Revised Statutes, is amended by adding to part III a new subpart to be appropriately designated and to read as follows:

"    . REVOLVING FUNDS EXEMPT FROM LAPSE AND TRANSFER

§201G-   Revolving funds exempt from lapse and transfer. Notwithstanding any other provision of law, no moneys from the revolving funds administered by the corporation under subparts A, C, O, and Q or sections 201G-170, 201G-170.5, 201G-223, 201G-411, and 201G-432 shall be lapsed or transferred to the general fund, except as determined by the corporation to be necessary to further the purposes of the revolving fund."

SECTION 4. Chapter 237, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§237-   Affordable housing development exemption. (a) There shall be an exemption from the taxes imposed by this chapter for the development of affordable housing. The housing and community development corporation of Hawaii may certify for exemption any qualified person involved with the planning, design, financing, or construction of affordable housing units developed by a private developer; provided that in the case of projects involving the development of market-price as well as affordable housing units, the exemption under this section shall apply exclusively to the units developed as affordable housing units as defined in subsection (e).

(b) All claims for exemption shall be filed with and certified by the housing and community development corporation of Hawaii and forwarded to the department of taxation. The housing and community development corporation of Hawaii shall not be considered a governmental contracting party when it approves any claim for exemption for the purposes of section 104-2.

(c) The exemption shall apply to all amounts received by any certified person for the planning, design, financing, or construction in the State of affordable housing units as described in subsection (a), and on which actual construction has started between July 1, 2005, and June 30, 2007, and which is completed by June 30, 2009, as verified by the housing and community development corporation of Hawaii; provided that the exemption shall not be applied until verification by the housing and community development corporation of Hawaii has been completed; and provided further that if the developer is delayed or hindered from completing the project by reason of floods, earthquakes, or other acts of nature, strikes, lockouts, inability to procure materials, failure of power, riots, insurrection, war, civil or criminal proceedings, injunctions, writs, appeals, stays, or other reason of a like nature, which is not the fault of or capable of being prevented by the developer, then the December 31, 2007 completion deadline may be extended for a period equivalent to the period of the delay. In the event of a delay, the developer shall be required to submit verification of the date of commencement as well as the date of cessation of any of the delaying events, to the housing and community development corporation of Hawaii for verification.

(d) The exemption shall apply only to projects containing the first two thousand five hundred affordable housing units which are certified and completed by December 31, 2007. The amount of the exemption shall not exceed $           per affordable housing unit.

(e) For the purposes of this section:

"Actual construction" means construction of residential improvements, as well as grubbing, grading, or leveling of the land, construction of roads, installation of utilities, or otherwise preparing undeveloped land for the construction of improvements. "Actual construction" does not mean and shall exclude project planning, design, or obtaining necessary permits for construction.

"Affordable housing units" means housing units which are sold or rented at rates affordable to households earning up to one hundred forty per cent of the area median income as determined by the United States Department of Housing and Urban Development, and which meet the following unit size specifications:

(1) Not less than 400 square feet for a studio unit;

(2) Not less than 600 square feet for a one-bedroom unit; and

(3) Not less than 800 square feet for a two-bedroom unit.

(f) The provisions of this section shall apply to property subject to chapter 238.

§237-   Taxes paid on the rental of residential rental dwellings other than transient accommodations; disposition. (a) Twenty-five per cent of all taxes paid under this chapter for the rental of residential rental dwellings other than transient accommodations shall be deposited into the rental housing trust fund under section 201G-432.

(b) The department shall adopt rules in accordance to chapter 91 and create forms necessary to effectuate this section.

For the purposes of this section, "residential rental dwellings other than transient accommodations" means the furnishing of a room, apartment, suite, house, or similar dwelling that is customarily occupied by a tenant for more than one hundred eighty consecutive days for each letting by a homeowner, hotel, apartment hotel, motel, condominium property regime or apartment as defined in chapter 514A, cooperative apartment, or rooming house that provides living quarters, or sleeping accommodations, or other place in which lodgings are regularly furnished to tenants for consideration."

SECTION 5. Section 201G-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created a board consisting of nine members, of whom six shall be public members appointed by the governor as provided in section 26-34. Public members shall be appointed from each of the counties of Honolulu, Hawaii, Maui, and Kauai. [One public member shall be the chairperson of the rental housing trust fund advisory commission.] One member shall be a person appointed from a list of nominees submitted by the continuum of care systems of each county. Each county continuum of care system shall submit three nominees. For purposes of this section, "continuum of care system" shall have the same meaning that it does in title 24 Code of Federal Regulations section 586.5. At least one public member shall be a person who is directly assisted by the corporation under the federal low-rent public housing or federal section 8 tenant-based housing assistance payments program while serving on the board. The public members of the board shall serve four-year staggered terms; provided that the initial appointments shall be as follows: two members to be appointed for four years; two members to be appointed for three years; and one member to be appointed for two years. [The chairperson of the rental housing trust fund advisory commission shall serve a concurrent term on the board.] The director of business, economic development, and tourism and the director of human services, or their designated representatives, and a representative of the governor's office, shall be ex officio voting members. The corporation shall be headed by the board."

SECTION 6. Section 201G-44, Hawaii Revised Statutes, is amended to read as follows:

"§201G-44 Administration of state low income housing projects and programs. (a) The corporation may construct, develop, and administer property or housing for the purpose of state [low income] low-income housing projects and programs.

(b) The corporation shall complete all repairs and renovations to vacant low-income housing units in the State necessary to ensure that the units are sanitary, habitable, and available for rent by December 31, 2008. Twenty-five per cent of all vacant units shall be repaired and ready for occupancy by December 31, 2006; fifty per cent shall be completed by December 31, 2007; and the balance shall be completed by December 31, 2008.

(c) The corporation shall apply for federal funds through capital fund program grants administered by the United States Department of Housing and Urban Development and may issue bonds in accordance with part III to complete the repairs to the vacant low income housing units as required by subsection (b).

(d) The corporation shall construct       new low-income housing units in the State to be available for rent by December 31, 2008. Twenty-five per cent of the units shall be completed and ready for occupancy by December 31, 2006; fifty per cent by December 31, 2007; and the balance shall be completed by December 31, 2008.

(e) The corporation may issue bonds in accordance with part III to complete construction of low-income housing units as required by subsection (c).

[(b)] (f) The corporation shall adopt necessary rules in accordance with chapter 91 including the establishment and collection of reasonable fees for administering the projects or programs and to carry out any state program under [[]subsection[]] (a)."

SECTION 7. Section 201G-118, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation may develop, on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects which shall be exempt from all statutes, ordinances, charter provisions, and rules of any governmental agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of units thereon; provided that:

(1) The corporation finds the project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;

(2) The development of the proposed project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or the various boards of water supply authorized under chapter 54; and

(3) The legislative body of the county in which the project is to be situated shall have approved the project.

(A) The legislative body shall approve or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;

(B) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, or disapproving the plans and specifications; and

(C) The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications. The final plans and specifications for the project shall constitute the zoning, building, construction, and subdivision standards for that project. If the project comprises a land area of fifty acres or less, the final plans and specifications for the project shall constitute the land use classification for the project. For purposes of sections 501-85 and 502-17, the executive director of the corporation, or the responsible county official may certify maps and plans of lands connected with the project as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar[; and

(4) The land use commission shall approve or disapprove a boundary change within forty-five days after the corporation has submitted a petition to the commission as provided in section 205-4. If on the forty-sixth day the petition is not disapproved, it shall be deemed approved by the commission]."

SECTION 8. Section 201G-121, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In any county, the corporation may develop or may enter into agreements for housing projects with an eligible developer if in the corporation's reasonable judgment a project [is primarily designed for lower income housing.] provides       per cent of lower income housing units. The agreement may provide for the housing to be placed under the control of the corporation, or to be sold by the corporation, or to be sold to the corporation as soon as the units are completed and shall contain terms, conditions, and covenants as the corporation, by rules, deems appropriate. Every agreement shall provide for the developer to furnish a performance bond[,] in favor of the corporation, assuring the timely and complete performance of the housing project. Sureties on the bond must be satisfactory to the corporation."

SECTION 9. Section 201G-411, Hawaii Revised Statutes, is amended to read as follows:

"§201G-411 Dwelling unit revolving fund. There is created a dwelling unit revolving fund. The funds appropriated for the purpose of the dwelling unit revolving fund and all moneys received or collected by the corporation for the purpose of the revolving fund shall be deposited in the revolving fund. The proceeds in the revolving fund shall be used to reimburse the general fund to pay the interest on general obligation bonds issued for the purposes of the revolving fund, for the necessary expenses in administering subpart F, part II, and for carrying out the purposes of subpart F, part II, including but not limited to the expansion of community facilities constructed in conjunction with housing projects, permanent financing, and supplementing building costs, federal guarantees required for operational losses, and all things required by any federal agency in the construction and receipt of federal funds for housing projects."

SECTION 10. Section 201G-432, Hawaii Revised Statutes, is amended to read as follows:

"§201G-432 Rental housing trust fund. (a) There is hereby established a rental housing trust fund to be placed within the corporation.

(b) An amount from the fund, to be set by the corporation and authorized by the legislature, may be used for administrative expenses incurred by the corporation in administering the fund; however, fund moneys may not be used to finance day-to-day administrative expenses of projects allotted fund moneys.

(c) The following may be deposited into the fund: appropriations made by the legislature, revenues from the rental of residential rental dwellings other than transient accommodations as provided in section 237-  , private contributions, repayment of loans, interest, other returns, and moneys from other sources.

(d) The fund shall be used to provide loans or grants for the development, pre-development, construction, acquisition, preservation, and substantial rehabilitation of rental housing units. Permitted uses of the fund may include but are not limited to planning, design, land acquisition, costs of options, agreements of sale, downpayments, equity financing, capacity building of nonprofit housing developers, or other housing development services or activities as provided in rules adopted by the corporation pursuant to chapter 91. The rules may provide for a means of recapturing loans or grants made from the fund if a rental housing project financed under the fund is refinanced or sold at a later date. The rules may also provide that moneys from the fund shall be leveraged with other financial resources to the extent possible.

[(e) Moneys in the fund shall be used for the purpose of providing in whole or in part loans or grants for housing projects wherein:

(1) At least fifty per cent of the available units are for persons and families with incomes at or below sixty per cent of the median family income;

(2) At least ten per cent of the available units are for persons and families with incomes at or below thirty per cent of the median income; and]

(3) The remaining units are for persons and families with incomes at or below one hundred per cent of the median family income; provided that the corporation may establish rules to ensure full occupancy of fund projects.

(f) Commencing with fiscal year 1999-2000, at the close of each biennium, at least one-third of the funds allocated to construction projects for the period shall have been committed to projects that guarantee affordable units to persons or families with incomes at or below thirty per cent of the median income pursuant to [subsection] (e)(2). Commencing with the regular session of 2000, the corporation shall submit an annual report to the legislature documenting existing projects in compliance with this subsection no later than twenty days prior to the convening of each regular session.

(g)] (e) For the purposes of this subpart, the applicable median family income shall be the median family income for the county or standard metropolitan statistical area in which the project is located as determined by the United States Department of Housing and Urban Development, as adjusted from time to time.

[(h) providing] (f) In providing loans and grants under this section[; provided that], the corporation [shall] may establish loan-to-value ratios to protect the fund from inordinate risk [and that under no circumstances shall the rules permit the loan-to-value ratio to exceed ninety-five per cent]; [and] provided [further] that the underwriting guidelines shall include a debt-coverage ratio of not less than [1.05 to 1.] 1.0 to 1.0."

SECTION 11. Section 201G-434, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201G-434[]] Duties of the [advisory commission.] corporation. (a) In addition to any other duties granted by this subpart, the [advisory commission shall advise and assist the board of the corporation,] corporation shall evaluate the fund program each year, and report its evaluation with suggested changes to the legislature not fewer than twenty days before the convening of each regular session starting with the regular session of 1998.

(b) In addition to any other powers and duties granted under subsection (a), the [commission] corporation shall[:

(1) Define] define the guidelines, procedures, conditions, and details of loans and grants under this section[;], including[,] but not limited to the establishment of loan-to-value and debt-coverage ratios[; and

(2) Have the authority to obtain the services of technical and support staff from other government agencies to carry out the purposes of this chapter]."

SECTION 12. Section 201G-435, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201G-435[]] Eligible applicants for funds. Eligible applicants for funds shall include nonprofit and for-profit [developers, including] corporations, limited liability corporations or partnerships, partnerships, and government agencies, who are qualified in accordance with rules adopted by the corporation pursuant to chapter 91."

SECTION 13. Section 201G-436, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201G-436[]] Eligible projects. (a) Activities eligible for assistance from the fund shall include but not be limited to:

(1) New construction, rehabilitation, or preservation of [low-income] rental housing units for persons and families with incomes at or below one hundred forty per cent of the median family income that meet the criteria for eligibility described in subsection (c);

(2) The leveraging of moneys with the use of fund assets;

(3) Pre-development activity grants or loans to nonprofit organizations; and

(4) Acquisition of rental housing units for the purpose of preservation as [low-income or very low-income housing.] rental housing units for persons and families with incomes at or below one hundred forty per cent of the median family income.

(b) [Preference shall be given to projects producing] An eligible project shall produce units in at least one of the following categories:

(1) Multifamily units;

(2) Attached single-family units;

(3) Apartments;

(4) Townhouses;

(5) Housing units above commercial or industrial space;

(6) Single room occupancy units;

(7) Accessory apartment units;

(8) Employee housing; [and]

(9) Mixed finance public housing developments; and

[(9)] (10) Other types of units meeting the criteria for eligibility set forth in subsection (c).

(c) The corporation shall establish an application process for fund allocation that gives preference to projects meeting the criteria set forth below [that are listed in descending order of priority]:

(1) Serve the original target group;

(2) Provide at least       per cent of the total number of units for persons and families with incomes at or below thirty per cent of the median family income;

[(2)] (3) Provide the maximum number of units [for the least amount of subsidy;] for persons and families with incomes at or below       per cent of the median family income;

[(3)] (4) Are committed to serving the target population over a longer period of time;

[(4)] (5) Increase the integration of income levels of the immediate community area;

[(5)] (6) Meet the geographic needs of the target population, such as proximity to employment centers and services; and

[(6)] (7) Have favorable past performance [with fund moneys.] in developing, owning, managing, or maintaining affordable rental housing.

The corporation may include other criteria in the above process as it deems necessary to carry out the purposes of this part.

If the corporation, after applying the process described in this subsection, finds a nonprofit project equally ranked with a for-profit or government project the corporation shall give preference to the nonprofit project in allotting fund moneys."

SECTION 14. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"§237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [and]

(3) The sum from all general excise tax revenues realized by the State that represents twenty-five per cent of all taxes paid under this chapter for the rental of residential rental dwellings other than transient accommodations shall be deposited into the rental housing trust fund under section 201G-432; and

[(3)] (4) A sum, not to exceed the amount necessary to meet the obligations of the integrated tax information management systems performance-based contract may be retained and deposited in the state treasury to the credit of the integrated tax information management systems special fund. The sum retained by the director of taxation for deposit to the integrated tax information management systems special fund for each fiscal year shall be limited to amounts appropriated by the legislature. This paragraph shall be repealed on July 1, 2005."

SECTION 15. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year, [twenty-five] fifty per cent shall be paid into the rental housing trust fund established by section 201G-432 and twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; and provided further that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources after joint consultation with the forest stewardship committee and the natural area reserves system commission in the following priority:

(1) To natural area partnership and forest stewardship programs;

(2) Projects undertaken in accordance with watershed management plans pursuant to section 171-58 or watershed management plans negotiated with private landowners; and

(3) The youth conservation corps established under chapter 193."

SECTION 16. Section 201G-433, Hawaii Revised Statutes, is repealed.

["§201G-433 Rental housing trust fund advisory commission. (a) There is established within the corporation the rental housing trust fund advisory commission consisting of seven members, five of whom shall be public members and appointed pursuant to section 26-34. The public members of the advisory commission shall serve four-year staggered terms; provided that the initial appointments shall be as follows: two members to be appointed for four years; two members to be appointed for three years; and one member to be appointed for two years. As part of this appointment process, an appropriate organization from each of the categories of organizations enumerated below shall submit a list of three public member nominees to the governor. The governor shall select and appoint one public member from each list.

The public members shall be representative of the following categories of organizations:

(1) Real estate brokers and rental property managers;

(2) Tenants and renters advocacy organizations;

(3) Nonprofit housing developers and low income service providers;

(4) Mortgage lenders; and

(5) Architects and planners.

A county government official who shall be appointed for a two-year term on a rotating basis among counties and the governor's designated representative shall be ex officio voting members of the advisory commission.

(b) The chairperson shall be a public member elected by the members of the advisory commission and shall serve not more than two one-year terms as chair.

(c) The vice-chair shall be a public member elected by the members of the advisory commission.

(d) Four members shall constitute a quorum. Four affirmative votes shall be necessary for all actions by the advisory commission.

(e) The members shall receive no compensation for services, but shall be entitled to necessary expenses, including traveling expenses, incurred in the performance of their duties.

(f) The advisory commission shall advise and serve as the liaison between the board of the corporation and the general public."]

SECTION 17. Section 201G-431, Hawaii Revised Statutes, is amended by repealing the definition of "advisory commission".

[""Advisory commission" means the rental housing trust fund advisory commission established by this subpart."]

PART II.

SECTION 18. The legislature finds that the demand for low income housing in Hawaii outweighs the supply. Currently, there is a waiting period from two to five years for low-income housing for both state and federal low-income housing projects. Despite the scarcity of low-income housing, there are a number of vacant state and federal low-income housing units that are currently uninhabitable. If repaired and renovated, these units would be available for applicants on the low-income housing waiting lists, reducing the State's affordable housing shortage.

The legislature further finds that funds for the modernization of federal housing projects are available to low-income housing agencies through capital fund program grants administered by the United States Department of Housing and Urban Development. Grant moneys are designated for improvements to federal low-income housing units, including redesigning, reconstructing, and reconfiguring public housing projects, reducing vacancy, and demolishing and replacing existing low-income housing units.

The purpose of this part is to authorize the issuance of general obligation bonds for the renovation, repair, and construction of low-income housing units, and to require the housing and community development corporation of Hawaii to repair and renovate vacant low-income housing units by December 31, 2008, and to apply for federal capital fund program grants.

SECTION 19. 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 2005-2006 for the purpose of repairing and renovating vacant low-income housing units and constructing new low income housing units.

SECTION 20. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2008, shall lapse as of that date.

SECTION 21. The sums appropriated shall be expended by the housing and community development corporation for the purposes of this Act.

PART III.

SECTION 22. The affordable housing task force established pursuant to Senate Concurrent Resolution (S.C.R.) No. 135, Senate Draft (S.D.) 1 (2004), developed numerous proposals to provide near-term solutions to Hawaii's affordable housing shortage problem. One of the task force's recommendations submitted was to reorganize the housing and community development corporation of Hawaii into two separate entities, one agency to administer public housing functions, and the other to administer housing finance and development functions. The purpose of this part is to establish a process to effectuate that recommendation.

SECTION  23. The housing and community development corporation of Hawaii shall establish a committee of stakeholders to effectuate the recommendation of the affordable housing task force, as contained in its 2004 report to the legislature pursuant to S.C.R. No. 135, S.D. 1, to split the corporation into two separate entities: one agency to administer public housing functions, and the other to administer housing finance and development functions.

The stakeholders appointed to the committee shall represent:

(1) The housing and development corporation of Hawaii;

(2) Federal housing agencies;

(3) State agencies;

(4) County agencies;

(5) Housing developers;

(6) Financial institutions;

(7) The real estate industry;

(8) Affordable housing advocates; and

(9) Any other entities or stakeholders the housing and development corporation of Hawaii deems appropriate.

SECTION 24. The committee established under section 23 shall:

(1) Make recommendations on the organizational structure and functions of the two resulting agencies;

(2) Develop proposed staffing, infrastructure, and budgetary needs for each resulting agency;

(3) Develop an implementation timeline for its recommendations so that the two resultant agencies will be operational by January 1, 2007, if the committee's recommendations and any amendments made thereto are enacted into law by the twenty-third legislature in 2005;

(4) Make recommendations on any other issue that the legislature may need to consider in adopting the committee's proposal; and

(5) Submit proposed legislation and a report that includes its findings and recommendations to the legislature not later than twenty days prior to the convening of the 2006 regular session.

SECTION 25. The committee established under section 23 shall cease to exist upon the adjournment sine die of the 2006 regular session.

SECTION 26. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2005-2006, for the purposes of this Act.

SECTION 27. The sum appropriated shall be expended by the housing and community development corporation of Hawaii for the purposes of this Act.

PART IV.

SECTION 28. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 29. This Act shall take effect on July 1, 2050.