STAND. COM. REP. NO. 2951

Honolulu, Hawaii

RE: S.B. No. 3202

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. 3202, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO URBAN DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the availability of homes for residents of the State.

Specifically, the measure:

(1) Authorizes the development of a minimum of four homes per lot in the state urban land use district;

(2) Authorizes approval for subdivisions of parcels with a minimum lot size of one thousand two hundred square feet in the state urban land use district; and

(3) Amends the calculation of impact fees for certain developments.

Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Office of Planning and Sustainable Development, Mayor of Maui County, one member of the Kauai County Council, County of Kauai Planning Department, County of Hawaii Planning Department, AARP Hawaii, Hawaii YIMBY, Housing Hawaii's Future, Hawaii Appleseed Center for Law and Economic Justice, NAIOP Hawaii Chapter, Holomua Collaborative, Grassroot Institute of Hawaii, Chamber of Commerce Hawaii, Maui Chamber of Commerce, Land Use Research Foundation of Hawaii, and five individuals.

Your Committee received written comments in opposition to this measure from the Outdoor Circle, HI Good Neighbor, and numerous individuals.

Your Committee received written comments on this measure from the City and County of Honolulu Department of Planning and Permitting, Hawaii REALTORS, and one individual.

Your Committee recognizes that our island state has limited lands that are suitable for residential development. Your Committee finds that promoting higher density, compact development, and efficient use of residential lands in urban areas addresses the State's shortage of housing units and reduces the pressure to convert agricultural and conservation lands into urban uses.

Your Committee has amended this measure by:

(1) Deleting its findings and purpose section;

(2) Replacing language that authorizes the development of a minimum of four homes per lot in the state urban land use district with language that requires each county to allow for at least two additional dwelling units on residentially zoned lots;

(3) Authorizing counties to adopt and apply certain zoning‑relating requirements;

(4) Providing that any application for subdivision, consolidation, or resubdivision of parcels within the state urban land use district shall be reviewed and acted upon by the director of the county agency responsible for land use;

(5) Requiring that all resulting parcels subdivided, consolidated, or resubdivided be residentially zoned and at least two thousand square feet in area, except that a county may by ordinance or rule allow for smaller residentially zoned parcels;

(6) Expanding the scope of historic sites that are protected from subdivision, consolidation, or resubdivision;

(7) Prohibiting the subdivision, consolidation, or resubdivision of a parcel that is subject to any land condition or features that render the site unsuitable or hazardous to the health, safety, and welfare of future residents or the surrounding community;

(8) Providing that condominium law under Chapter 514B, Hawaii Revised Statutes, shall not apply to parcels resulting from a subdivision, consolidation, or resubdivision made pursuant to section 46-4(g), Hawaii Revised Statutes; and

(9) Making technical nonsubstantive changes 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. 3202, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3202, 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