STAND. COM. REP. NO. 2314

Honolulu, Hawaii

RE: S.B. No. 3110

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 Hawaiian Affairs, to which was referred S.B. No. 3110 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 add the Chairperson of the Hawaiian Homes Commission, or the Chairperson's designee, to the Board of Directors of the Hawaii Housing Finance and Development Corporation (HHFDC) as an ex officio nonvoting member.

Your Committees received testimony in support of this measure from the Department of Hawaiian Homelands; Hoʻomana Pono, LLC; and two individuals.

Your Committees received testimony in opposition to this measure from one individual.

Your Committees received comments on this measure from the Hawaii Housing Finance and Development Corporation.

Your Committees find that Native Hawaiians suffer from longstanding socioeconomic hardships that include the lack of affordable housing. Your Committees also find that HHFDC is tasked with developing and financing low- and moderate- income housing projects and administering homeownership programs within the State. This measure will promote collaborative engagement and direct communication between HHFDC and the Hawaiian Homes Commission.

Your Committees have heard the concerns raised by the HHFDC regarding quorum and note that since the Chairperson of the Hawaiian Homes Commission is being added as an ex officio nonvoting member, quorum should remain at five voting members. Your Committees also note that the Chairperson of the Hawaiian Homes Commission has fiduciary duties to trust beneficiaries and therefore your Committees are concerned as to what responsibilities the Chairperson would have, if any, to disclose any potential conflicts of interest, should a matter concerning the Hawaiian Homes Commission Trust come before the HHFDC Board of Directors. Your Committees ask that future committees to which the measure is referred consider this concern as this measure moves forward in the legislative process.

As affirmed by the records of votes of the members of your Committees on Housing and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3110 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Hawaiian Affairs,

________________________________ MAILE S.L. SHIMABUKURO, Chair

________________________________ STANLEY CHANG, Chair