STAND. COM. REP. NO. 694________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1596
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred H.B. No. 1596 entitled: 

     "A BILL FOR AN ACT AUTHORIZING THE ISSUANCE OF GENERAL
     OBLIGATION BONDS AND MAKING AN APPROPRIATION FOR HOUSING,"

begs leave to report as follows:

     The purpose of this bill is to initiate revitalization and
redevelopment of the historic Oahu Railway and Land (OR&L)
Building site in Iwilei by appropriating funds to:

     (1)  Renovate the OR&L Building; and

     (2)  Construct low- and moderate-income housing.

     The Housing and Community Development Corporation of Hawaii
(Corporation) submitted testimony in support of this measure.  An
individual submitted testimony in support of the intent of this
measure, but suggested that funds be used for state offices
instead.

     Your Committee finds that the community agreed that the OR&L
Building site was due for revitalization and an image change.
However, there were differing views on its vision for the site.
Nevertheless, the community largely supported:

     (1)  Residential development at diversified income levels;

     (2)  Mix use options such as office or retail use; and

 
 
                                 STAND. COM. REP. NO. 694________
                                 Page 2

 
     (3)  Retaining the historic character of the OR&L Building.

     To proceed with the project, your Committee has amended this
measure by:

     (1)  Specifying that the appropriation will be used to
          design the renovation of building and constructing the
          OR&L Building for state offices as well as for low- and
          moderate-income housing;

     (2)  Deleting the construction and equipment components of
          the capital improvement project request because these
          requests are premature;

     (3)  Appropriating $178,500 to design the project;

     (4)  Naming the expending agency as the Corporation instead
          of the Department of Accounting and General Services;
          and

     (5)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1596, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1596, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair