STAND. COM. REP. NO. 581

Honolulu, Hawaii

, 2023

RE: H.B. No. 1117

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 1117, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TEACHER RENTAL HOUSING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize the Hawaii Housing Finance and Development Corporation to assist the Department of Education in developing teacher rental housing projects and contract or sponsor an experimental or demonstration housing project with any state department or agency;

(2) Authorize the Department of Education to lease land and contract with private entities for the development, management, maintenance, or revitalization of teacher housing;

(3) Permit the project owner to lease teacher housing to other eligible tenants if occupancy of teacher housing falls below a threshold set by the Department of Education; and

(4) Appropriate funds for the development of teacher rental housing.

Your Committee received testimony in support of this measure from the State Council on Developmental Disabilities, State Public Charter School Commission, one member of the Maui County Council, Hawaii State Teachers Association, Hawai‘i Association of REALTORS, Maui Chamber of Commerce, and two individuals. Your Committee received testimony in support of the intent of this measure from the Department of Education. Your Committee received comments on this measure from the Department of the Attorney General; Hawaii Housing Finance and Development Corporation; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and one individual.

Your Committee finds that the State continues to suffer from a shortage of licensed teachers, with over one thousand vacancies each year. Your Committee further finds that financial incentives and affordable options for teacher housing are effective tools in lessening the financial burden of being a public school teacher. Your Committee notes that the Hawaii Housing Finance and Development Corporation currently has the appropriate development tools and expertise to collaborate with other state agencies to develop affordable housing. This measure allows the Hawaii Housing Finance Development Corporation to work with the Department of Education to make teacher housing available for teachers and lessen their financial burdens.

Your Committee has amended this measure by:

(1) Extending the availability of housing made available through this measure to public prekindergarten teachers employed through the Executive Office on Early Learning Public Prekindergarten Program and school employees employed by the Department of Education, charter schools, or the Public Prekindergarten Program;

(2) Clarifying that if the occupancy of housing units by teachers or other school employees falls below a percentage threshold as determined by the Department of Education through administrative rules, the available units may be rented to eligible non-teacher and school employee tenants;

(3) Specifying that all housing developed pursuant to this measure shall be rented and operated in compliance with all applicable federal and state fair housing laws;

(4) Deleting the definition of "project owner"; and

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

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1117, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1117, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

JUSTIN H. WOODSON, Chair