STAND. COM. REP. NO. 3717

Honolulu, Hawaii

RE: H.B. No. 1763

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1763, 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 address the shortage of affordable housing in the State.

More specifically, this measure:

(1) Amends the priority for which moneys in the Rental Housing Revolving Fund are to be used; and

(2) Requires the Hawaii Housing Finance and Development Corporation to prioritize the allocation of Rental Housing Revolving Fund moneys to certain housing projects.

Your Committee received written comments in support of this measure from the Department of Hawaiian Home Lands, Hawaii Public Housing Authority, Office of Hawaiian Affairs, AARP Hawaii, and Aloha United Way.

Your Committee received written comments in opposition to this measure from the Building Industry Association of Hawaii; Mark Development, Inc.; and Stanford Carr Development, LLC.

Your Committee received written comments on this measure from the Hawaii Housing Finance and Development Corporation, Catholic Charities Hawaii, King Lunalilo Trust, and one individual.

Your Committee finds that the State is facing a shortage of affordable housing. Your Committee also finds that the State's public housing inventory is aging and that many units are functionally obsolete. Your Committee further finds that the intent of this measure is to address the housing crisis by funding the development of additional affordable housing units.

Your Committee has amended this measure by:

(1) Adding a definition for the term "project readiness";

(2) Repealing the authorization to use Rental Housing Revolving Fund moneys to issue grants;

(3) Clarifying the permitted uses of the Rental Housing Revolving Fund;

(4) Clarifying that the Hawaii Housing Finance and Development Corporation shall not forgive any loan made from the Rental Housing Revolving Fund unless the Corporation forecloses on the project;

(5) Requiring the Hawaii Housing Finance and Development Corporation to submit a report to the Legislature on plans to revolve funds back into the Rental Housing Revolving Fund to ensure its self-sufficiency; and

(6) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 1763, 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. 1763, 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