STAND. COM. REP. NO. 491-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2548

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 2548, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ACCESSORY DWELLING UNITS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Accessory Dwelling Unit Loan Program to provide loans and technical assistance grants for the development of accessory dwelling units; and

(2) Establish the Accessory Dwelling Unit Loan Revolving Fund and appropriate funds into and out of the Revolving Fund to implement the Accessory Dwelling Unit Loan Program.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation; one member of the Maui County Council; and Hawaiʻi YIMBY. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that accessory dwelling units are an option for people to maximize their residential lots and adapt to changing living conditions and responsibilities and growing families. This measure promotes the development of accessory dwelling units, including the upgrade, conversion, and connection of cesspools, and will increase the inventory of rental units in Hawaii.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider establishing in this measure regulations or guardrails for how community development financial institutions would use the funds they receive through the Accessory Dwelling Unit Loan Program.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2548, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 2548, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

DANIEL HOLT, Chair