STAND. COM. REP. NO. 3159

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2662

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

 

Madam:

 

     Your Committees on Commerce, Consumer Protection, and Affordable Housing and Human Services and Public Housing, to which was referred H.B. No. 2662, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

 

beg leave to report as follows:

 

     The purpose of this measure is to increase the number of affordable housing units in Hawaii by exempting new multi-family housing condominium developments of seventy-five units or more per acre from certain state and county affordable housing requirements.

 

     Specifically, this measure exempts new multi-family housing condominium developments of seventy-five units or more per acre on privately-owned lands and privately financed without federal, state, or county financing assistance or subsidies from the Hawaii Housing Finance and Development Corporation's shared appreciation equity program and the ten-year occupancy requirements and transfer restrictions.

 

     Testimony in support of this measure was submitted by the Hawaii Housing and Finance Development Corporation; the Office of Hawaiian Affairs; Central Pacific Bank; Central Pacific HomeLoans, Inc.; Yamaguchi & Yamaguchi, Inc.; Marshall Realty, Inc.; and one private individual.  The Department of Planning and Permitting, City and County of Honolulu submitted comments.

 

     Affordable housing for Hawaii residents and the local workforce are in critically short supply.  Government cannot alone increase the needed supply to meet the overwhelming demand for affordable housing for those with incomes of 140 per cent and below the median income in Hawaii.  Your Committees find private landowners and developers need incentives in order to meet the demand for and increase the supply of affordable housing.  Providing an exemption from certain state and county requirements, including the equity sharing program and occupancy and transfer period, for new multi-family condominium housing developments for privately developed projects will encourage the private sector to build affordable workforce housing.

 

     Your Committees have amended this measure by:

 

     (1)  Replacing its contents with the contents of S.B. No. 2293, S.D. 1, which are substantively similar, except for technical differences;

 

     (2)  Changing the effective date from effective upon its approval to July 1, 2050, to ensure further discussion on this matter as this measure moves through the legislative process; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

 

     Your Committees believe that this measure, as amended, fulfills the intent of this measure, which is to increase the number of affordable housing units in Hawaii.

 

     As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Affordable Housing and Human Services and Public Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2662, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2662, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.


 

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Affordable Housing and Human Services and Public Housing,

 

____________________________

SUZANNE CHUN OAKLAND, Chair

 

____________________________

RUSSELL S. KOKUBUN, Chair