STAND. COM. REP. NO. 68

Honolulu, Hawaii

, 2001

RE: S.B. No. 1018

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1018 entitled:

"A BILL FOR AN ACT RELATING TO THE FEE SIMPLE RESIDENTIAL REVOLVING FUND,"

begs leave to report as follows:

The purpose of this measure is to facilitate the purchase of leased fee interests under the land reform program.

The Housing and Community Development Corporation of Hawaii testified in support of the measure.

Under the residential leaseholds law, a lessee of a residential houselot within a development tract acquired by the HCDCH, who fails to enter into a contract to purchase the leased fee interest, is liable to the corporation for the lessee's prorated share of costs incurred by the corporation in the acquisition. This measure limits the costs assessable against the lessee to the lessee's prorated share of the direct costs of acquisition and authorizes use of moneys in the Fee Simple Residential Revolving Fund for indirect costs incurred in the administration of the land reform program.

Additionally, this measure requires that moneys collected from lessees as reimbursement for direct costs be deposited in the Fee Simple Residential Revolving Fund and that all interest earned on deposits collected from lessees accrue to the lessees. Your Committee finds that this measure will help qualified lessees to purchase their fee interest by limiting their costs. Your Committee has amended this measure to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1018, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1018, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair