STAND. COM. REP. NO. 1014

Honolulu, Hawaii

RE: S.B. No. 1145

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 S.B. No. 1145, 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 require housing projects developed by the Hawaii Housing Finance Development Corporation to be subject to a restrictive covenant that requires units designated as affordable housing to remain as affordable housing in perpetuity.

Your Committee received written comments in support of this measure from three individuals.

Your Committee received written comments in opposition to this measure from NAIOP Hawaii; Stanford Carr Development, LLC; Highridge Costa; Housing Hawaii's Future; Affordable Housing Connections, LLC d/b/a AHC Hawaii; and one individual.

Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation, Department of Land and Natural Resources, and Maui Chamber of Commerce.

Your Committee finds that when the Hawaii Housing Finance and Development Corporation or another entity develops affordable housing that is exempt from the various planning, zoning, and construction laws pursuant to section 201H-38, Hawaii Revised Statutes, requiring those housing units developed to remain affordable in perpetuity will help to increase the supply of affordable housing statewide.

Your Committee has amended this measure by:

(1) Specifying that the exemptions authorized by section 201H-38, Hawaii Revised Statutes, do not apply to any housing development within a special flood hazard area as identified on the current Federal Emergency Management Agency's flood insurance rate maps;

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

(3) Making a technical nonsubstantive amendment for purposes of consistency and style.

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. 1145, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1145, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair