STAND. COM. REP. NO. 331-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1988

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Housing and Water & Land, to which was referred H.B. No. 1988 entitled:

"A BILL FOR AN ACT RELATING TO COUNTY HOUSING POWERS,"

beg leave to report as follows:

The purpose of this measure is to expand the housing powers of the counties to include planning, development, construction, financing, and providing housing projects, including low- and moderate-income housing and mixed-use developments.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; one member of the Maui County Council; Office of Housing and Community Development of the County of Hawai‘i; Office of Housing of the City and County of Honolulu; Grassroot Institute of Hawaii; and AARP Hawai‘i.

Your Committees find that existing law authorizes the counties to have and exercise the same housing powers as Hawaii Housing Finance and Development Corporation, but only for the purposes of developing, constructing, and providing low- and moderate-income housing. However, to address the housing crisis in the State, your Committees believe that these powers should be expanded further to ensure that the counties can utilize all powers necessary to develop more affordable housing.

Your Committees have amended this measure by:

(1) Expanding the counties' authorization to include refinancing and mixed-income projects;

(2) Specifying that income-restricted housing units may be made available to households with higher incomes if there is an insufficient number of individuals who meet the income qualification requirements for a low- and moderate-income housing project;

(3) Defining "mixed-income project";

(4) Deleting the unnecessary savings clause;

(5) Specifying that this measure applies to bond proceeds expended by a county after December 31, 2023;

(6) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Housing and Water & Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1988, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1988, H.D. 1, and be referred to your Committee on Finance.

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

____________________________ LINDA ICHIYAMA, Chair

____________________________ LUKE A. EVSLIN, Chair