STAND. COM. REP. NO. 2860

Honolulu, Hawaii

RE: S.B. No. 2029

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 2029, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCLUSIONARY ZONING,"

beg leave to report as follows:

The purpose and intent of this measure is to prohibit any law, ordinance, or rule from imposing an inclusionary zoning requirement on housing offered exclusively for sale or rent in perpetuity to buyers or renters who are residents of the State, are owner-occupants or renters, and do not own any other real property.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Grassroot Institute of Hawaii, and Church of the Crossroads.

Your Committees received testimony in opposition to this measure from the City and County of Honolulu Department of Planning and Permitting and UNITE HERE Local 5.

Your Committees find that the State is experiencing a severe shortage of affordable housing. However, there has been a lack of measurable progress at the county level to enact policies that will stimulate housing production to meet the housing demand. Your Committees believe that this measure incentivizes the production of housing units at all price points and encourages more developers to build affordable housing in the State for residents.

Your Committees have amended this measure by inserting an effective date of April 14, 2112, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2029, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2029, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair