STAND. COM. REP. NO. 1833

Honolulu, Hawaii

RE: H.B. No. 678

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 678, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify a county's obligations with respect to housing developed through the housing development programs overseen by the Hawaii Housing Finance and Development Corporation.

Your Committee received written comments in support of this measure from American Savings Bank; Housing Hawaii's Future; Kobayashi Group, LLC; Hawaii Chapter of NAIOP; Ikenakea Development, LLC; First Hawaiian Bank; and one individual.

Your Committee received written comments in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu.

Your Committee received written comments on this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that the affordable housing credit program supported by this measure will help address the State's affordable housing crisis by incentivizing the development of housing pursuant to Chapter 201H, Hawaii Revised Statutes.

Your Committee has amended this measure by:

(1) Clarifying that the purpose of the measure is to provide a new source of interim financing for affordable housing using the housing program in Chapter 201H, Hawaii Revised Statutes;

(2) Requiring the Hawaii Housing Finance and Development Corporation to conduct a study and report to the Legislature on the efficacy of housing credit programs;

(3) Requiring the Hawaii Housing Finance and Development Corporation, in conducting the study required by the measure, to coordinate its efforts with the Land Use Commission, Hawaii Community Development Authority, and planning and housing departments for each county;

(4) Appropriating an unspecified sum to the Hawaii Housing Finance and Development Corporation for fiscal year 2023-2024 to contract for services to conduct the study required by the measure;

(5) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

Your Committee further finds that the study required and funded by this amended measure will assist the State in determining how to improve the affordable housing credit program and whether to extend it.

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 H.B. No. 678, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 678, H.D. 1, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair