STAND. COM. REP. NO. 2121

Honolulu, Hawaii

RE: S.B. No. 2469

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 2469 entitled:

"A BILL FOR AN ACT RELATING TO THE RENTAL HOUSING REVOLVING FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Add credit enhancement for construction loans to the list of permitted uses of moneys in the Rental Housing Revolving Fund; and

(2) Require the Hawaii Housing Finance and Development Corporation to adopt administrative rules.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that Hawaii has extremely high housing development costs, which have worsened in light of currently high interest rates. These costs put added strain on housing developers. This measure will allow the Rental Housing Revolving Fund to provide credit enhancement for construction loans, which will help alleviate related financing and development costs at very little risk to the fund.

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. 2469 and recommends that it pass Second Reading 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