STAND. COM. REP. NO. 3941

Honolulu, Hawaii

RE: GOV. MSG. NOS. 700, 701

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Housing, to which was referred Governor's Message Nos. 700 and 701, submitting for study and consideration the nominations of:

Board of Directors of the Hawai'i Housing Finance and Development Corporation

G.M. No. 700	CAROL REIMANN, for a term to expire 06-30-2028; and
G.M. No. 701	SEAN SASAKI, for a term to expire 06-30-2028,

begs leave to report as follows:

Your Committee reviewed the personal histories, resumes, and statements submitted by Carol Reimann and Sean Sasaki for service on the Board of Directors of the Hawaii Housing Finance and Development Corporation.

Carol Reimann

Your Committee received testimony in support of the nomination for the reappointment of Carol Reimann from the Hawaii Housing Finance and Development Corporation; Department of Business, Economic Development, and Tourism; Pacific Resource Partnership; and Hale Mahaolu.

Upon review of the testimony, your Committee finds that Ms. Reimann's experience, knowledge, and prior service on the Board of Directors of the Hawaii Housing Finance and Development Corporation qualify her for reappointment as a public member from the County of Maui who has affordable housing knowledge and expertise. Your Committee notes that Ms. Reimann has been the Vice President of Alexander & Baldwin-Maui since 2018 and has ample experience in land development. Ms. Reimann previously served as the Director of Housing and Human Concerns for the County of Maui where she initiated programs to facilitate the development of affordable housing in conjunction with the Hawaii Housing Finance and Development Corporation. Ms. Reimann has served as a member of the Board of Directors of the Hawaii Housing Finance and Development Corporation since 2020 and currently serves as the Board's Vice Chair. Your Committee therefore recommends that Carol Reimann be reappointed to the Board of Directors of the Hawaii Housing Finance and Development Corporation based on her experience, knowledge, and commitment to public service.

Sean Sasaki

Your Committee received testimony in support of the nomination for the reappointment of Sean Sasaki from the Hawaii Housing Finance and Development Corporation and Department of Business, Economic Development, and Tourism.

Upon review of the testimony, your Committee finds that Mr. Sasaki's experience, background, and prior service on the Board of Directors of the Hawaii Housing Finance and Development Corporation qualify him for reappointment as a public member from the City and County of Honolulu. Your Committee finds that Mr. Sasaki has over twenty-five years of construction management and project controls experience and has been involved at all levels of the project lifecycle from proposal to closeout. Mr. Sasaki further has an extensive background in civil engineering, cash-flow management and quality control, and project audits, performance analysis, and management reviews. Mr. Sasaki is currently the Project Manager of Financial Controls for Na Aliʻi Consulting & Sales, LLC, an affiliate of the Nakupua Companies, a Native Hawaiian organization that specializes in management consulting, facilities support, and environmental services to federal and defense organizations. Your Committee notes that Mr. Sasaki has served as a member of the Hawaii Housing Finance and Development Corporation's Board of Directors since 2021 and currently serves as the Board's Secretary. Your Committee therefore recommends that Sean Sasaki be reappointed to the Board of Directors of the Hawaii Housing Finance and Development Corporation based on his experience, background, and dedication to public service.

Your Committee further notes the ongoing critical housing shortage that continues to be an urgent priority for the State and recognizes the need for tangible outcomes from the Hawaii Housing Finance and Development Corporation, more specifically a targeted vision from its Board of Directors, to successfully accomplish the provision of housing to meet the State's needs. Of concern to your Committee is the apparent lack of sufficient, qualified staffing within the Hawaii Housing Finance and Development Corporation in comparison to the extent of the projects needed to meet the State's housing demands. Your Committee notes that crafting unique policies and exploring all options available to the Hawaii Housing Finance and Development Corporation should be proactively pursued by its leadership, namely its Board of Directors. As Hawaii's primary housing development agency, the Hawaii Housing Finance and Development Corporation should be at the forefront of the State's efforts to develop additional housing. Your Committee has worked to address these issues for a number of years and remains of the opinion that the Hawaii Housing Finance and Development Corporation could move with much greater speed to address these concerns. As each year goes by, more local families are faced with having to leave the State due to a lack of affordable housing options. Accordingly, it is incumbent upon the Board of the Directors of the Hawaii Housing Finance and Development Corporation to guide the direction of the Corporation to achieve its purpose in developing the housing urgently needed to prevent Hawaii families from leaving the State.

In recognition of these issues, at the public hearing to consider the reappointment of these nominees, your Committee asked the nominees whether they, as members of the Board of Directors of the Hawaii Housing Finance and Development Corporation, would commit to annually and publicly evaluating the performance of the Executive Director of the Corporation, being that it has been more than one year since the last evaluation. Your Committee notes that both nominees responded in the affirmative. Your Committee further questioned the nominees' commitment to the Corporation's formulation of a plan to develop one hundred thousand units, or however many units may be necessary to end the housing shortage in the State. Both nominees answered in the affirmative regarding their support for the formulation of such a plan. Your Committee additionally expressed its concerns with the terms of the loans made from the Rental Housing Revolving Fund and the Qualified Allocation Plan adopted by the Corporation with regard to the Low-Income Housing Tax Credit program. When the nominees were questioned as to whether they would vote to amend the Qualified Allocation Plan to prioritize projects that are state- or county-owned, or if privately owned, projects that are perpetually affordable, are required to use their profits to build more housing, or repay their loans early, both nominees answered in the affirmative.

As affirmed by the records of votes of the members of your Committee on Housing that are attached to this report, your Committee, after full consideration of the background, experience, and qualifications of the nominees, has found the nominees to be qualified for the positions to which nominated and recommends that the Senate advise and consent to the nominations.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair