STAND. COM. REP. NO. 2910

Honolulu, Hawaii

RE: S.B. No. 2571

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2571 entitled:

"A BILL FOR AN ACT PROPOSING AMENDMENTS TO THE HAWAII STATE CONSTITUTION RELATING TO SPECIAL PURPOSE REVENUE BONDS,"

begs leave to report as follows:

The purpose of this measure is to promote the development of low and moderate income housing by not-for-profit private organizations.

Specifically, this bill proposes to amend the state constitution to:

(1) Authorize the issuance of special purpose revenue bonds to assist not-for-profit private organizations in the development of low and moderate income housing; and

(2) Combine into a single issue of special purpose revenue bonds two or more proposed issues of bonds to assist not-for-profit private organizations to develop low and moderate income housing in a total amount not exceeding the entire sum of the proposed separate issues.

Your Committee finds that the rapid increase in housing costs in recent years has made affordable housing one of the major problems for the people of the State. Special purpose revenue bond financing could be an appealing means that provides access to funds for affordable housing projects and infrastructure at less than the prevailing market rates. For large projects, it is possible that the cost savings would be significant. Affordable housing for Hawaii residents is one of the top concerns of this Legislature and your Committee supports this measure as a means to solve the State's housing crisis.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2571 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair