CONFERENCE COMMITTEE REP. NO. 142

Honolulu, Hawaii

, 2023

RE: H.B. No. 677

H.D. 1

S.D. 2

C.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 677, H.D. 1, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DWELLING UNIT REVOLVING FUND,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Change the computation of interest that a purchaser of certain real property is required to pay the Hawaii Housing Finance and Development Corporation upon the purchaser's sale or assignment of the real property after a specified period of time;

(2) Require the Hawaii Housing Finance and Development Corporation to establish a five-year Dwelling Unit Revolving Fund Equity Pilot Program (Pilot Program) to address the high, unmet demand of for-sale units by certain residents;

(3) Establish and appropriate funds for one full-time equivalent (1.00 FTE) Housing Development Specialist III position; and

(4) Appropriate funds into and out of the Dwelling Unit Revolving Fund for the Pilot Program.

Your Committee on Conference has amended this measure by:

(1) Authorizing, rather than requiring, the Hawaii Housing Finance and Development Corporation to:

(A) Establish the Pilot Program;

(B) Purchase equity in for-sale housing development projects;

(C) Establish rules for the Pilot Program; and

(D) Establish criteria for the prioritization of eligible buyers based on state goals and policies and submit a report on the criteria to the Legislature;

(2) Clarifying that the Pilot Program shall be funded by the Dwelling Unit Revolving Fund;

(3) Establishing new qualification requirements for residents to be eligible to participate in the Pilot Program;

(4) Deleting appropriations for the Pilot Program and the establishment and hiring of the housing specialist;

(5) Authorizing the Hawaii Housing Finance and Development Corporation to spend up to $10,000,000 for fiscal year 2023-2024 from the Dwelling Unit Revolving Fund for the Pilot Program;

(6) Changing the effective date to July 1, 2023; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 677, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 677, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ STANLEY CHANG Chair	____________________________ TROY N. HASHIMOTO Co-Chair
____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair	____________________________ MICAH AIU Co-Chair