STAND. COM. REP. NO. 2359

Honolulu, Hawaii

RE:    S.B. No. 2539

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Human Services and Economic Development, Government Operations and Housing, to which was referred S.B. No. 2539 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY,"

beg leave to report as follows:

     The purpose and intent of this measure is to authorize the Hawaii Community Development Authority to sell or assign fee simple interest in certain Kakaako Community Development District lands with respect to reserved housing, without legislative approval, under certain conditions, and to fee simple interest to eligible owners.

     Your Committees received testimony in support of this measure from Kakaako United, Community Alliance for Mental Health, and one individual.  Your Committees received testimony in opposition to this measure from the Office of Hawaiian Affairs and two individuals.  Your Committees received comments on this measure from the Hawaii Community Development Authority.

     Your Committees find that one part of a larger solution to affordable housing is allowing the Hawaii Community Development Authority to sell reserved housing without legislative approval and in fee simple under certain conditions.  The intent of this measure is to allow expeditious turnaround by the Authority of reserved housing and to ensure that housing remains affordable for low-income or reserved housing income levels.  Your Committees heard testimony expressing concern about the buy-back terms and the provision that requires the reserved housing to remain affordable in perpetuity.  Your Committees believe that the buy-back period should be ten years instead of five years, and that this measure deserves additional exploration.

     Your Committees have amended this measure by:

     (1)  Adding language with respect to reserved housing that references the Hawaii Community Development Authority to more accurately reflect the title of the measure;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     As affirmed by the records of votes of the members of your Committees on Human Services and Economic Development, Government Operations and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2539, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2539, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Human Services and Economic Development, Government Operations and Housing,

____________________________ DONOVAN M. DELA CRUZ, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair