STAND. COM. REP. NO. 1434-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2021
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2021, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to provide low-income tenants
who live in housing projects subsidized under the U.S. Department
of Housing and Urban Development (HUD) Section 8 program (Section
8) with some assurance that affordable housing will continue to
be available, by requiring:

     (1)  Section 8 housing owners to provide the Housing and
          Community Development Corporation of Hawaii (HCDCH)
          with all HUD documents regarding the owner's intention
          to opt out of the Section 8 contract, as well as
          pertinent project and market information;

     (2)  HCDCH to:

          (A)  Collaborate with HUD to encourage the owner to
               preserve the affordability of the project; and

          (B)  Encourage the owner to give the tenant association
               an opportunity to purchase the project, and
               provide the owner with:


 
 
 
                                 STAND. COM. REP. NO. 1434-00
                                 Page 2

 
               (i)  Information on government assisted financing
                    programs; and

               (ii) A list of nonprofit organizations that may be
                    interested in acquiring the assisted housing
                    development.

     The bill also requires that entities receiving state
assistance would be required to maintain the affordability of the
project for a specified time and target households with income
ranges approximating those of tenants occupying the project when
the owner gave notice of intent to opt out of Section 8.

     Testimony in support of this measure was received from
HCDCH, Affordable Housing and Homeless Alliance, Salvation Army
Family Services Office, Honolulu Community Action Program, Inc.,
Catholic Charities, American Association of Retired Persons, and
Welfare and Employment Rights Coalition.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2021, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair