STAND. COM. REP. NO. 626

Honolulu, Hawaii

RE: S.B. No. 139

S.D. 1

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 Water and Land, to which was referred S.B. No. 139 entitled:

"A BILL FOR AN ACT RELATING TO IMPORTANT HOUSING LANDS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish that all state-owned lands located within one mile of any rail mass transit station, excluding lands under the jurisdiction of the Department of Hawaiian Home Lands, shall be designated as important housing lands to promote the development of homes priced below market rates for eligible residents; and

(2) Require state and county housing policies, tax policies, land use plans, ordinances, and rules to promote the long-term viability of important housing lands consistent with certain policies.

Your Committees received testimony in opposition to this measure from the Department of Land and Natural Resources and City and County of Honolulu. Your Committees received comments on this measure from the Department of Budget and Finance and Office of Planning and Sustainable Development.

Your Committees find that there is a shortage of housing in the State, especially for low-income households. One solution to provide more affordable housing is by creating vibrant, multi-modal, mixed-use neighborhoods around transit stations. This measure establishes that all state-owned lands located within one mile of any rail mass transit station, excluding lands under the jurisdiction of the Department of Hawaiian Home Lands, shall be designated as important housing lands and requires state and county housing policies, tax policies, land use plans, ordinances, and rules to promote the long-term viability of important housing lands consistent with certain policies.

Your Committees acknowledge the testimony from various stakeholders recognizing that although identifying housing lands that could accommodate affordable housing is an important state goal, this measure would not significantly advance that goal.

Accordingly, your Committees have amended this measure by:

(1) Deleting its contents and:

(A) Inserting language that requires the Hawaii Public Housing Authority to conduct a study recommending certain state-owned lands located within a one-half mile radius of any rail mass transit station, excluding lands under the jurisdiction of the Department of Hawaiian Home Lands, that are most suitable for constructing at least one hundred thousand units of housing; and submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2024; and

(B) Inserting an appropriation in the amount of $500,000 for the Hawaii Public Housing Authority to conduct the study, or contract services to conduct the study; and

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

As affirmed by the records of votes of the members of your Committees on Housing and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 139, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 139, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ STANLEY CHANG, Chair