STAND. COM. REP. NO.847

Honolulu, Hawaii

, 2001

RE: H.B. No. 544

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 544 entitled:

"A BILL FOR AN ACT RELATING TO THE HOUSING AND COMMUNITY DEVELOPMENT CORPORATION OF HAWAII,"

begs leave to report as follows:

The purpose of this bill is to help stimulate the construction and sale of affordable housing units in government-sponsored projects by continuing the Housing and Community Development Corporation of Hawaii's (HCDCH) three-year buyback provision until December 31, 2004, at which time the buyback returns to ten years.

The original intent of the ten-year buyback provision was to prevent speculation and preserve housing affordability. However, as a result of the stabilization of the residential market, HCDCH found that the buyback provision was hindering the sale of affordable units, and developers of affordable projects could no longer compete in the residential market. As a result, Act 272, Session Laws of Hawaii 1998, temporarily reduced the buyback provision from ten to three years. The buyback provision automatically reverted to ten years on December 31, 2000.

HCDCH testified in support of this measure.

Your Committee has amended this bill by making technical, nonsubstantive revisions to correct technical drafting errors.

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. 544, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 544, H.D. 1.

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

____________________________

DWIGHT Y. TAKAMINE, Chair