STAND. COM. REP. NO.  1302

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 1268

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committees on Hawaiian Affairs and Housing, to which was referred S.B. No. 1268, S.D. 2, entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this bill is to encourage and support the development of affordable housing by the Department of Hawaiian Home Lands (DHHL) by:

 

(1)  Authorizing the counties to issue affordable housing credits to, and approve a transfer or assignment of, those credits by DHHL; and

 

(2)  Providing that the credits are to be issued on a one-for-one basis and may be applied by the developer who built the affordable units to any project within the same county where the credits were earned to satisfy county affordable housing obligations.

 

     DHHL, the Sovereign Councils of the Hawaiian Homelands Assembly, Hawaii Developers' Council, Chamber of Commerce of Hawaii, Building Industry Association of Hawaii, Gentry Homes, Ltd., Council for Native Hawaiian Advancement, Pacific Resource Partnership, Maluohai Residents' Association, and a concerned individual supported this bill.  The Department of Planning and Permitting of the City and County of Honolulu opposed this measure.  A member of the Maui County Council commented on this bill.

 

     Your Committees have concerns that allowing DHHL's housing developments to satisfy the affordable housing requirements of other developers would result in the segregation of low-income housing in certain areas of the islands, or on certain islands, defeating the purpose of integrating affordable housing with other types of new developments throughout the state.  In addition, it is unclear from the new language whether the credit requires county approval.

 

Accordingly, this bill has been amended by:

 

(1)  Clearly restricting credits to the county in which the corresponding DHHL development is located;

 

(2)  Clarifying that the county has the power to authorize the credit, and deny or approve any transfer of the credit by DHHL; and

 

(3)  Providing that this measure will sunset on July 1, 2011.

 

     It is your Committees' intention that affordable housing developed under this bill should not be segregated on a single island, and that each island should share equally in the benefits and burdens of both luxury and affordable developments.

 

     As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1268, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1268, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Hawaiian Affairs and Housing,

 

 

____________________________

RIDA CABANILLA, Chair

 

____________________________

MELE CARROLL, Chair