STAND. COM. REP. NO. 2163

Honolulu, Hawaii

RE: S.B. No. 2064

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 Housing and Water and Land, to which was referred S.B. No. 2064 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Allow the Hawaii Housing Finance and Development Corporation the right of first refusal for the development of property on certain state lands, that are within county-designated transit-oriented development zones, or within a one-half mile radius of a proposed or existing transit station if the county has not designated transit-oriented development zones, which shall be triggered by a proposed development or proposed transfer of fee simple or leasehold property interest; and

(2) Require state departments to provide advance written notice of any approval of a proposed development as proposed transfer of lands.

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

Your Committees received testimony in opposition to this measure from the Department of Land and Natural Resources.

Your Committees received comments on this measure from the Department of Hawaiian Homelands and Disability and Communication Access Board.

Your Committees find that Hawaii is currently experiencing a housing crisis. In addition, Hawaii has faced several challenges in its attempts to lower the cost of housing. This measure will assist the State in its efforts to increase affordable housing supply near transit centers to save money on land costs, offer ease of access to public transit, and reduce the reliance on costly personal vehicles and garaging space.

Your Committees note that the Department of Land and Natural Resources currently has plans for four parcels near the planned rail station in East Kapolei. Rather than utilize these scarce transit-oriented development lands for construction of urgently-needed housing, the department intends to lease the parcels for income generating purposes. Your Committees further note that Kinau Hale is another site that could benefit from a larger mixed-use redevelopment project under the Hawaii Housing Finance and Development Corporation to provide workforce housing and office space, but the Department of Health instead plans to renovate the existing building purely for its own use. These are two examples of why this measure is necessary.

Your Committees also note the concerns raised in testimony regarding the minimum number of accessible housing units in public facilities. Currently only five percent of units are required to be accessible for individuals with mobility disabilities and two percent of units to be accessible for those with communication disabilities. The number of individuals in Hawaii with mobility and communication disabilities far exceed these minimums. Accordingly, your Committees note the need for additional supportive housing units in the State that are accessible for individuals with disabilities and request that these issues be taken into consideration as this measure moves through the legislative process.

Your Committees have amended this measure by:

(1) Deleting language that would have allowed the Hawaii Housing Finance and Development Corporation to undertake any development project that does not involve a transfer of land, regardless of whether the state agency or department proposes to develop the lands;

(2) Deleting language that would have established certain requirements for proposed transfers; and

(3) 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. 2064, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2064, 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