STAND. COM. REP. NO. 314

Honolulu, Hawaii

RE: S.B. No. 878

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 878 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to establish the home ownership housing revolving fund to provide loans or grants for affordable housing projects or units in projects that are allocated low-income housing credits or that are funded by certain federal programs or agencies.

Your Committee received testimony in support of this measure from the Hawaii Habitat for Humanity Association, Habitat for Humanity Hawai‘i Island, Habitat for Humanity Maui, Hawaiian Community Assets, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and two individuals. Your Committee received comments on this measure from the Department of Budget and Finance and Hawaii Housing Finance and Development Corporation.

Your Committee finds that Hawaii has one of the lowest home ownership rates in the nation. The lack of construction and development of affordable for-sale housing contributes to the State's low affordable housing inventory. Your Committee further finds that loans provided by the State will assist in addressing Hawaii's current critical shortage of affordable housing and the need for 66,000 additional housing units by the year 2025.

Your Committee additionally finds that qualified nonprofit housing trusts can help families by reducing housing costs significantly for income-qualified families. These nonprofit housing entities often utilize grants and other low-cost courses of financing that require matching funds to acquire or develop housing units. Your Committee notes that Senate Bill No. 1186, Regular Session of 2019, establishes a qualified nonprofit housing trust revolving fund to provide loans to qualified nonprofit housing trusts to develop affordable housing projects under a self-help housing model.

Accordingly, your Committee has amended this measure by:

(1) Deleting its contents and inserting the contents of part II of Senate Bill No. 1186, Regular Session of 2019, which:

(A) Establishes a qualified nonprofit housing trust revolving fund and a qualified nonprofit housing trust program for affordable for-sale housing development; and

(B) Appropriates funds into and out of the qualified nonprofit housing trust revolving fund;

(2) Authorizing the Hawaii Housing Finance and Development Corporation to provide loans to nonprofit community development financial institutions, as well as qualified nonprofit housing trusts;

(3) Inserting a new preamble as suggested by the Hawaii Habitat for Humanity Association;

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

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

Your Committee notes that although the appropriation amount is blank, the Hawaii Habitat for Humanity Association requests an appropriation of $25,000,000 for the qualified nonprofit housing trust program.

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 S.B. No. 878, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 878, 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,

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STANLEY CHANG, Chair