STAND. COM. REP. NO. 1057

Honolulu, Hawaii

RE:    H.B. No. 884

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Education and Housing, to which was referred H.B. No. 884, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL IMPACT FEES,"

beg leave to report as follows:

     The purpose and intent of this measure is to exempt affordable housing units, additions to existing dwelling units, accessory dwelling units, and ohana dwelling units from school impact fee requirements

     Your Committees received testimony in support of this measure from the Office of Planning, Hawaii Public Housing Authority, Department of Planning and Permitting of the City and County of Honolulu, EAH Housing, Hawaii Construction Alliance, and Pacific Resource Partnership.  Your Committees received testimony in opposition to this measure from the Department of Education, Land Use Research Foundation of Hawaii, Chamber of Commerce Hawaii, IMUAlliance, Building Industry Association of Hawaii, and one individual.  Your Committees received comments on this measure from the Hawaii Housing Finance and Development Corporation.

     Your Committees find that a shortage of affordable housing exists in Hawaii.  School impact fees can significantly raise the cost of new housing development projects.  Your Committees further find that the increased cost of development is particularly prohibitive for affordable housing projects. 

     Your Committees have amended this measure by:

     (1)  Exempting affordable housing projects and properties developed by the Hawaii Public Housing Authority from school impact fee requirements; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Education and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 884, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 884, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Housing,

________________________________ WILL ESPERO, Chair

________________________________ MICHELLE N. KIDANI, Chair