Honolulu, Hawaii



RE:    S.B. No. 120

       S.D. 1




Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Human Services and Housing, to which was referred S.B. No. 120 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Authorize the issuance of general obligation bonds and the appropriation of funds for deposit into the rental housing trust fund and the dwelling unit revolving fund to finance affordable rental housing development and infrastructure development;


     (2)  Appropriate funds for the construction of micro apartment housing units; and


     (3)  Appropriate funds to the Department of Human Services to continue to administer housing first programs for chronically homeless.


     Your Committee received testimony in support of this measure from the Department of Human Services, Hawaii Housing Finance and Development Corporation, Chamber of Commerce Hawaii, Catholic Charities Hawaii, Faith Action for Community Equity, Hawaii Association of REALTORS, Hawaii Catholic Conference, Hawaii Primary Care Association, Partners in Care, The CHOW Project, PHOCUSED, Building Industry Association of Hawaii, Hawaii Appleseed Center for Law and Economic Justice, and nine individuals.  Your Committee received comments on this measure from the Department of Taxation.


     Your Committee finds that affordable housing is a serious concern for many Hawaii residents.  According to the 2011 Hawaii Housing Planning Study, up to 50,000 new housing units will need to be built by 2016 to meet the new demand generated by changing demographics and economic conditions.  Failure to produce sufficient units for low- and moderate-income households will cause pent-up demand in these market segments.


     Your Committee has amended this measure by:


     (1)  Increasing the amount of general obligation bonds authorized for issuance, the proceeds of which are for deposit into the rental housing trust fund, from $60,000,000 to $100,000,000;


     (2)  Increasing the amount of funds appropriated out of the rental housing trust fund from $60,000,000 to $100,000,000 for the purposes set forth in section 201H‑202, Hawaii Revised Statutes; and


     (3)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.


     As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 120, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 120, S.D. 1, and be referred to the Committee on Ways and Means.


Respectfully submitted on behalf of the members of the Committee on Human Services and Housing,