STAND. COM. REP. NO. 180

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1150

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committees on Education and Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 1150 entitled:

 

"A BILL FOR AN ACT RELATING TO TEACHER HOUSING,"

 

beg leave to report as follows:

 

     The purpose of this measure is to provide affordable housing to public school teachers.

 

     Specifically, the measure establishes an affordable housing program that allows an eligible teacher to purchase an interest in residential real property to be used as the teacher's primary residence.

 

     Testimony in support of this measure was submitted by the Department of Education, the Hawaii Public Housing Authority, the Hawaii State Teachers Association, and one individual.

 

     Your Committees find that the ability to recruit and retain qualified teachers for our public school system is a challenging endeavor, particular during times of teacher shortages.  The high cost of living in Hawaii, including the high cost of housing and the lack of available housing, especially in geographically isolated areas, all conspire to exacerbate the teacher shortage problem.  Your Committees are committed to growing and investing in a qualified teacher workforce and believe that innovative ideas must be entertained to recruit and retain qualified teachers.  Providing assistance to public school teachers to obtain affordable housing is a highly desirable incentive that would demonstrate the State's commitment to staffing public schools with qualified teachers.

 

     This measure allows an eligible teacher to purchase an interest in residential real property at a fraction of the property's fair market value.  Eligible teachers are required to be actively employed as full-time teachers in the public school system, who purchase property as their primary permanent residence, and who do not own any other real property.  Upon termination from employment with the public school system, the property will be sold back to the State and the teacher will receive twenty per cent of the fair market value of the property, based on the price at the time of purchase or at the time of sale, depending upon the duration of the teacher's time in service.

 

     Your Committees understand that the responsibility for existing teacher housing will be transferred to the Department of Education on July 1, 2008.  In light of the impending transfer, your Committees believe that delayed commencement of the program established under this Act may be appropriate to allow the Department of Education to be prepared to fully assume all responsibilities associated with its teacher housing programs.

 

     Accordingly, your Committees have amended this measure by:

 

     (1)  Changing the effective date of the Act to July 1, 2008; and

 

     (2)  Making technical, nonsubstantive changes for purposes of clarity and style.

 

     As affirmed by the records of votes of the members of your Committees on Education and Commerce, Consumer Protection, and Affordable Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1150, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1150, S.D. 1, and be referred to the Committee on Ways and Means.

 


Respectfully submitted on behalf of the members of the Committees on Education and Commerce, Consumer Protection, and Affordable Housing,

 

____________________________

BRIAN T. TANIGUCHI, Chair

 

____________________________

NORMAN SAKAMOTO, Chair