STAND. COM. REP. NO. 828

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1244

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1244, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to help ensure that an adequate supply of affordable housing units is maintained in the State.

 

     Specifically, the measure:

 

     (1)  Authorizes the Hawaii Community Development Authority to transfer a right to repurchase a reserved or workforce unit and transfer the right of repurchase to a qualified nonprofit housing trust;

 

     (2)  Authorizes the counties to waive their right of first refusal to repurchase certain privately developed affordable housing units and transfer that right of repurchase to a qualified nonprofit housing trust;

 

     (3)  Authorizes the Hawaii Housing Finance and Development Corporation to waive its option to repurchase certain real property and transfer the right of repurchase to a qualified nonprofit housing trust; and

 

     (4)  Amends the means of calculating the maximum price for the Hawaii Housing Finance and Development Corporation's first option to purchase real property.

 

     Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation; Hawaii HomeOwnership Center; and Gentry Homes, Ltd.

 

     Your Committee received written comments on this measure from the Hawaii Community Development Authority; and the Department of Planning and Permitting of the City and County of Honolulu.

 

     Your Committee finds that for decades, there has been a persistent shortage of safe, decent, and sanitary housing, and the median price for a single family home on Oahu has risen to approximately $750,000.  Your Committee further finds that recent studies show a need for sixty thousand housing units by the year 2020.  Your Committee therefore believes that it is necessary to take steps to preserve existing affordable housing units for as long as possible.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that for an entity to qualify as a nonprofit housing trust, it, among other requirements, must be recognized by the Internal Revenue Service as a charitable or otherwise tax exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and

 

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

 

     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. 1244, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1244, S.D. 2.

 

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

 

 

 

________________________________

JILL N. TOKUDA, Chair