Honolulu, Hawaii



RE:    S.B. No. 2540

       S.D. 2




Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 2540, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to establish a rental deposit loan program to assist low-income, elderly, and homeless individuals and families in obtaining rental housing by providing loans for security deposit and first month's rent payments.


     The measure also appropriates $5,000,000 to establish the rental deposit loan program.


     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation and EAH Housing.


     Your Committee finds that one of the most difficult problems faced by low-income, elderly, and homeless persons in obtaining housing is the necessity of paying a security deposit in addition to paying the first month's rent.  Your Committee believes that the rental deposit loan program established by this measure will help the State's vulnerable populations obtain adequate and stable permanent rental housing.


     Your Committee has amended this measure by:


     (1)  Clarifying that the security deposit will be returned to the tenant when the tenant vacates the premises;


     (2)  Clarifying that the staff of the nonprofit organization assigned to administer the program shall provide information to prospective tenants on relevant provisions of the Residential Landlord-Tenant Code;


     (3)  Clarifying that the staff of the nonprofit organization shall be available to property owners and tenants during normal business hours to answer questions or complaints about the program;


     (4)  Changing the appropriation to an unspecified amount to facilitate further discussion on the measure; and


     (5)  Making technical nonsubstantive changes for purposes of clarity, consistency, and style.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2540, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2540, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,