STAND. COM. REP. NO. 3882

Honolulu, Hawaii

RE: H.C.R. No. 118

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Government Operations and Housing, to which was referred H.C.R. No. 118, H.D. 1, entitled:

"HOUSE CONCURRENT RESOLUTION URGING THE COUNTIES TO AMEND OR ADOPT ORDINANCES TO BE CONSISTENT WITH THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION'S RULES REGARDING RESIDENTIAL INCOME REQUIREMENTS ON HOUSING PROJECTS,"

beg leave to report as follows:

The purpose and intent of this measure is to urge the counties to amend or adopt ordinances to be consistent with the Hawaii Housing Finance and Development Corporation's rules regarding residential income requirements on housing projects.

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

Your Committees find that inconsistent housing regulations between the State and counties can contribute to the high cost of housing in the State. Your Committees further find that the State's housing strategies are undermined when the residential income requirements on certain housing projects established by the counties are lower than those adopted or established by the State. This measure alleviates the stress on residents and housing developers in the State by urging the counties to align their residential income requirements on housing projects with those adopted by the Hawaii Housing Finance and Development Corporation.

Your Committees note that while it is important for counties to have their own regulations in some projects, they must recognize that this could potentially cause a shortfall in funding for said projects. As such, in those instances, the county must come up with the needed funds to cover the shortfall from their own budget.

Accordingly, your Committees have amended this measure by:

(1) Inserting language to urge the counties to amend or adopt ordinances to be consistent with the Hawaii Housing Finance and Development Corporation's rules regarding not only residential income requirements, but also, affordability terms on housing projects or subsidize any resulting revenue shortfall to the housing project; and

(2) Amending its title to reflect its amended purpose.

As affirmed by the records of votes of the members of your Committees on Government Operations and Housing that are attached to this report, your Committees concur with the intent and purpose of H.C.R. No. 118, H.D. 1, as amended herein, and recommend its adoption in the form attached hereto as H.C.R. No. 118, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ ANGUS L.K. MCKELVEY, Chair