STAND. COM. REP. NO. 397

Honolulu, Hawaii

RE: S.B. No. 867

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Housing and Public Safety and Intergovernmental and Military Affairs, to which was referred S.B. No. 867 entitled:

"A BILL FOR AN ACT RELATING TO INCLUSIONARY ZONING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Prohibit any law, ordinance, or rule from imposing an inclusionary zoning requirement on housing offered exclusively for sale in perpetuity to buyers who are residents of the State, are owner-occupants, and do not own any other real property; and

(2) Require each county to submit a report on inclusionary zoning requirements to the Legislature every year until the Regular Session of 2028.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation. Your Committees received comments on this measure from the Grassroot Institute of Hawaii.

Your Committees find that it is critical for the counties to take initiative in increasing the production of affordable housing. Regulations impose a considerable burden in supplying housing and by eliminating certain inclusionary zoning rules for certain projects, this measure will help facilitate the growth of housing in the State. Your Committees note that this measure would allow each county to set housing policies that meet the unique set of needs of their communities, without consideration of the effect of inclusionary zoning requirements.

As affirmed by the records of votes of the members of your Committees on Housing and Public Safety and Intergovernmental and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 867 and recommend that it pass Second Reading and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Public Safety and Intergovernmental and Military Affairs,

________________________________ GLENN WAKAI, Chair

________________________________ STANLEY CHANG, Chair