STAND. COM. REP. NO. 193

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 16

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Water, Land, and Housing, to which was referred S.B. No. 16 entitled:

 

"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to establish a loan guaranty for transit-oriented development projects that include affordable housing with a $10,000,000 limit on the total principal amount of the guaranteed portion of all loans outstanding.

 

     Your Committee received testimony in support of this measure from the Department of Planning and Permitting of the City and County of Honolulu and the Land Use Research Foundation of Hawaii.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Budget and Finance and the Hawaii Housing Finance and Development Corporation.

 

     Your Committee finds that transit-oriented development can be a significant contributor to sustainable living, savings in transportation costs, and reductions in traffic congestion, air pollution, and dependence on imported oil.  Your Committee recognizes, however, that transit-oriented development is associated with higher risk because of the multiple sources of financing required, the added costs of providing community benefits, and requirements that those benefits be provided sooner.  These risks make affordable housing that is part of transit-oriented development more difficult to develop.  This measure encourages transit-oriented development by offering loan guarantees to developers of transit-oriented development projects that include affordable housing components.

 

     Your Committee has amended this measure by making a technical nonsubstantive amendment for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Water, Land, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 16, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 16, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Housing,

 

 

 

____________________________

DONOVAN M. DELA CRUZ, Chair