SB2335

SECTION 1. The legislature finds that the State is experiencing a major and worsening housing crisis. Residents of Hawaii face the highest housing costs in the nation. Median housing costs in Hawaii are 2.7 times the median housing costs nationally. In the last year, the median price of a single‑family home sold in Hawaii was $825,000, and the median price of a condominium was $600,000. The last thirty years have brought incredible increases in local housing prices. The median prices of single-family homes and condominiums have more than tripled since the 1990s. These costs have increased further due to the impact of the coronavirus pandemic on building material costs and supply chains. Hawaii's isolated geographic location also adds to the cost of housing, because shipping and labor costs are higher.

The legislature also finds that fewer than one-third of Hawaii's households can afford to buy a typical home in the State. A household earning the state median income can no longer afford a median-priced condominium. High prices and high interest rates for mortgages mean that home ownership is out of reach for a large share of the State's residents. In the past two years, the share of households in the State that can afford mortgage payments on a median-priced single-family home has fallen from forty-four per cent to thirty per cent. This means that fewer than one in three households can afford the typical single-family home, while fewer than half of the State's households can afford the typical condominium.

The legislature recognizes that prohibitively high housing costs lower the standard of living for the State's residents. Some families are forced to live in crowded conditions, leave the State to find affordable housing, or survive without housing at all. High housing costs also hinder Hawaii's ability to attract out-of-state workers.

Accordingly, the purpose of this Act is to help facilitate the development of housing at every price point by:

(1) Amending the membership, authority, and duties of the State Building Code Council; and

(2) Clarifying that the counties have the sole discretion to amend, adopt, and update the Hawaii state building codes as they apply within each county's respective jurisdiction.

SECTION 2. Section 107-22, Hawaii Revised Statutes, is amended to read as follows:

"§107-22 State building code council. (a) There is established a state building code council. The council shall be placed within the department of accounting and general services for administrative purposes only. The council shall consist of [~~twelve~~] sixteen voting members and one nonvoting member, who shall be the comptroller or the comptroller's designee. The council members shall serve four-year terms. The voting members shall include:

(1) One county building official from each of the four counties appointed by the mayor;

(2) One member representing the state fire council;

(3) One member representing the department of labor and industrial relations, who has significant experience in elevator safety;

(4) One member representing the Hawaii state energy office of the department of business, economic development, and tourism;

(5) One member representing the Hawaii emergency management agency, appointed by the director of Hawaii emergency management;

(6) One member representing the Structural Engineers Association of Hawaii;

(7) One member representing the American Institute of Architects, Hawaii State Council;

(8) One member representing the Building Industry Association of Hawaii [~~or the General Contractors Association of Hawaii~~], who has significant experience with building codes[~~, with alternating four-year terms between the two organizations and the first four-year term to be served by the Building Industry Association of Hawaii; and~~];

(9) One member representing the Subcontractors' Association of Hawaii, who has significant experience with building codes[.];

(10) One member representing the General Contractors Association of Hawaii, who has significant experience with building codes;

(11) One member representing the American Council of Engineering Companies - Hawaii, who has significant experience with building codes;

(12) One member representing the Land Use Research Foundation, who has significant experience with building codes; and

(13) One member representing the Hawaii chapter of the NAIOP Commercial Real Estate Development Association, who has significant experience with building codes.

(b) Seven voting members shall constitute a quorum. The chairperson of the council shall be elected annually from among its members by a majority vote of the voting members of the council.

(c) Members shall serve without compensation, but shall be reimbursed for expenses, including travel expenses necessary for the performance of their duties."

SECTION 3. Section 107-24, Hawaii Revised Statutes, is amended to read as follows:

"§107-24 Authority and duties of the council. (a) Any law to the contrary notwithstanding, the council shall establish the Hawaii state building codes.

[(b) The council shall appoint a subcommittee comprising the four council members representing county building officials, whose duty shall be to recommend any necessary or desirable state amendments to the codes and standards identified in section 107-25. Any recommended state amendments shall require the unanimous agreement of the subcommittee.]

[~~(c)~~] (b) The council shall adopt, amend, or update codes and standards identified in section 107-25 on a staggered basis as established by the council; provided that the adoption, amendment, or updating of a code or standard shall be within two years of [~~the~~] every other official publication date of the code or standard, pursuant to chapter 92, and exempt from the requirements of chapter 91. If the council does not adopt a code or standard identified in section 107-25 within the two‑year time period, that code or standard shall automatically become part of the Hawaii state building code until superseded by the adoption of an amended version of the code or standard by the council pursuant to this subsection.

(c) The council shall carry out a cost benefit analysis before making any amendment or update to the codes and standards identified in section 107-25 that increases the cost of construction. The cost benefit analysis shall be prepared at the expense of the proponent of the amendment or update.

(d) The council may appoint other investigative, technical expertise committees, which may include council members[.]; provided that the committee shall not have fewer than three members.

(e) The council shall consult with general building contractor associations and building trade associations to gather information and recommendations on construction practices and training relevant to building codes and standards.

(f) The council may make expenditures for technical references, equipment and supplies, and other operating expenses, and may contract for the conduct of research studies and other technical services.

(g) The council may provide education and technical training and administrative assistance in the form of services or grants at the state and county levels relating to the implementation and enforcement of the Hawaii state building codes adopted pursuant to this part.

(h) At the end of each fiscal year, the council shall submit a written report to the governor on the council's activities, including the codes and standards adopted, amended, or updated by the council."

SECTION 4. Section 107-28, Hawaii Revised Statutes, is amended to read as follows:

"§107-28 County authority to amend and adopt the Hawaii state building codes without council approval. (a) The governing body of each county shall amend, adopt, and update the Hawaii state building codes as they apply within their respective jurisdiction, [~~in accordance with section 46-1.5(13),~~] in the governing body's sole discretion and without approval of the council. Each county shall amend and adopt the Hawaii state building codes and standards listed in section 107‑25, as the referenced Hawaii state building codes and standards for its respective county building code ordinance, no later than two years after the adoption of the Hawaii state building codes.

(b) If a county does not amend the Hawaii state building codes within the two-year time frame, the Hawaii state building codes shall become applicable as an interim county building code[.] but may be superseded by the county's adoption of an amended version of the Hawaii state building codes or standards pursuant to this section."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2335
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII