STAND. COM. REP. NO. 1474
RE: H.B. No. 1142
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committee on Housing, to which was referred H.B. No. 1142, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE HOUSING LOAN AND MORTGAGE PROGRAM,"
begs leave to report as follows:
The purpose and intent of this measure is to amend the Hula Mae Multifamily revenue bond authorization amount.
Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation and Hawai‘i Association of REALTORS.
Your Committee finds that the housing loan and mortgage program, more commonly known as the Hula Mae multifamily bond program or Hula Mae program, promotes the development of new rental housing projects or the acquisition and rehabilitation of existing rental housing projects through the issuance of mortgage revenue bonds for interim and permanent financing at rates below conventional market interest rates. The Hula Mae program has become a popular financing tool for nonprofit and for-profit developers of affordable rental housing and is intended to make home buying more affordable for qualified families by offering eligible first-time homebuyers mortgage loans at very competitive interest rates. The program also assists eligible first-time homebuyers with downpayment assistance, the largest obstacle for many residents hoping to purchase a home. This measure increases the opportunities for residents of the State to become homeowners by increasing the Hula Mae multifamily revenue bond authorization amount.
Your Committee has amended this measure by:
(1) Inserting an effective date of July 1, 2075, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
Your Committee notes that during the hearing, the Hawaii Housing Finance and Development Corporation stated that an increased bond authorization amount of $2.5 billion would be sufficient for future projects.
As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1142, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1142, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Housing,
STANLEY CHANG, Chair