STAND. COM. REP. NO. 953

Honolulu, Hawaii

, 2021

RE: H.B. No. 1124

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1124, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION ACT,"

begs leave to report as follows:

The purpose of this measure is to amend the Hawaiian Homes Commission Act to:

(1) Provide appraisal requirements for tracts or improvements thereon to determine replacement cost or leasehold market value;

(2) Prohibit the Department of Hawaiian Home Lands from canceling a lease solely based on a loan delinquency or default subject to certain conditions;

(3) Define "due notice" as it relates to the cancellation of leases or violation of lease conditions;

(4) Allow the Department of Hawaiian Home Lands to authorize second position loans on homestead leases by approved lenders and United States Treasury-certified community development financial institutions; and

(5) Require the Department of Hawaiian Home Lands to develop and implement a loan servicing manual, subject to Hawaiian Homes Commission approval, to standardize loan loss mitigation policies, procedures, and methods.

Your Committee received testimony in support of this measure from Sovereign Council of Hawaiian Homestead Associations and Kalama‘ula Mauka Homestead Association. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Hawaiian Home Lands.

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 H.B. No. 1124, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair