STAND. COM. REP. NO. 1502

Honolulu, Hawaii

RE: H.B. No. 1246

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1246, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the installation of infrastructure necessary for the development of affordable housing.

Specifically, this measure:

(1) Authorizes the Hawaii Housing Finance and Development Corporation to issue bonds to finance housing project infrastructure and the development of regional state infrastructure projects;

(2) Requires the Hawaii Housing Finance and Development Corporation to report to the Legislature on the housing units to be generated by the infrastructure projects;

(3) Authorizes the issuance of general obligation bonds, with the proceeds to be deposited into the dwelling unit revolving fund; and

(4) Appropriates funds into and out of the dwelling unit revolving fund.

Your Committee received written comments in support of this measure from Hawai`i REALTORS and one individual.

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

Your Committee finds that the costs of off-site infrastructure are a major barrier to the development of affordable housing. These costs are typically paid by private developers who, in turn, pass the costs on to homebuyers. Your Committee further finds that authorizing the use of bonds to finance infrastructure will help to offset these costs and keep housing prices affordable.

Your Committee has amended this measure by:

(1) Requiring the Hawaii Housing Finance and Development Corporation to submit a report to the Legislature prior to the Regular Session of 2026, rather than the Regular Session of 2025;

(2) Inserting a boilerplate section indicating that repealed statutory material is bracketed and stricken and that new statutory material is underscored; and

(3) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1246, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1246, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair