STAND. COM. REP. NO. 2905

Honolulu, Hawaii

RE: S.B. No. 1170

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 S.B. No. 1170, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING CREDITS,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the supply of affordable housing in the State.

More specifically, this measure requires the counties to issue affordable housing credits for affordable housing units that are constructed pursuant to chapter 201H, Hawaii Revised Statutes.

Your Committee received written comments in support of this measure from the Hawaii Community Development Authority, AARP Hawaii, EAH Housing, Hawaii Association of REALTORS, Kobayashi Group, Maui Chamber of Commerce, and NAIOP Hawaii.

Your Committee received written comments in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu and Office of Housing and Community Development of the County of Hawaii.

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

Your Committee finds that the State is experiencing an acute housing shortage. Your Committee also finds that there has been a lack of measurable progress at the county level to enact policies that will stimulate housing production to meet project demand. Your Committee further finds that increases in home loan and construction loan interest rates have severely impaired the ability of the Hawaii Housing Finance and Development Corporation to increase the affordable housing supply in the State.

Your Committee has amended this measure by:

(1) Deleting references to the Hawaii Community Development Authority;

(2) Correcting the text of section 46-15.1, Hawaii Revised Statutes, to accurately reflect the printed version of the statute;

(3) Making a correction to accurately reflect the date that section 46-15.1, Hawaii Revised Statutes, is scheduled to be repealed and reenacted, pursuant to Act 90, Session Laws of Hawaii 2023; and

(4) 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 S.B. No. 1170, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1170, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair