STAND. COM. REP. NO. 159

Honolulu, Hawaii

, 2023

RE: H.B. No. 1117

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 1117 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) Require 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 ninety-five percent; and

(4) Appropriate funds.

Your Committee received testimony in support of this measure from the Hawaii State Council on Developmental Disabilities, one member of the Maui County Council, Hawaii State Teachers Association, Hawai‘i Association of REALTORS, and one individual. Your Committee received comments on this measure from the Department of Education and Hawaii Housing Finance and Development Corporation.

Your Committee finds that Hawaii is facing a shortage of qualified teachers and a lack of affordable housing. The lack of affordable housing exacerbates the shortage of qualified teachers, as many are leaving the State or the teaching profession in search of better pay and cheaper cost of living. Your Committee further finds that financial incentives are a key strategy for the recruitment and retention of teachers and that the Hawaii Housing Finance and Development Corporation currently has the necessary development tools and expertise to collaborate with other state agencies to develop affordable housing. Providing assistance in the form of housing will not only make the teaching profession more attractive, but also help to lessen the financial burden of teachers currently living in Hawaii.

Your Committee has amended this measure by:

(1) Authorizing, rather than requiring, the Department of Education to lease land and contract with private entities for the development, management, maintenance, or revitalization of teacher housing;

(2) Clarifying that if the occupancy of teacher housing units by teachers falls below a threshold set by the Department of Education, rather than at ninety-five percent of the total units, the project owner may rent available units to non-teachers;

(3) Clarifying that all teacher housing developed under this measure shall be in compliance with all applicable federal and state fair housing laws;

(4) Changing the effective date to June 30, 3000, to encourage further discussion; 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 Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1117, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1117, H.D. 1, and be referred to your Committee on Education.

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

____________________________

TROY N. HASHIMOTO, Chair