STAND. COM. REP. NO. 740

Honolulu, Hawaii

RE: S.B. No. 387

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 387, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TEACHER RENTAL HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Hawaii Housing Finance and Development Corporation to collaborate with the Department of Education to plan rental housing projects for public school teachers and to require the Department of Education to contract with private entities to develop, manage, maintain, or revitalize teacher housing.

This measure also authorizes the issuance of general obligation bonds, provides that the proceeds shall be deposited into the dwelling unit revolving fund, and appropriates funds from the revolving fund for the development of rental housing for teachers.

Your Committee received written comments in support of this measure from the Department of Education; Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Hawaii State Teachers Association; Hawaii Association of REALTORS; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii; Democratic Party of Hawaii Education Caucus; Hawaiian Community Assets; and one individual.

Your Committee finds that providing housing assistance may help lessen Hawaii's teacher shortage.

Your Committee has amended this measure by:

(1) Changing the authorization to issue general obligation bonds into an appropriation of general funds of an unspecified amount;

(2) Clarifying that the threshold for authorizing the rental of available units to non-teachers shall be teacher occupancy falling below ninety-five percent of total units in a project;

(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(4) Making technical, nonsubstantive amendments for the 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. 387, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 387, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair