STAND. COM. REP. NO. 310

Honolulu, Hawaii

RE: S.B. No. 330

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Housing and Water and Land, to which was referred S.B. No. 330 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

beg leave to report as follows:

The purpose and intent of this measure is to authorize the Hawaii Housing Finance and Development Corporation (HHFDC) the right of first refusal for the development of property for all development on state lands, excluding Hawaii Public Housing Authority and Department of Hawaiian Home Land lands, that are within a one-half mile radius of a rail transit station, provided there is a transfer of any property interest, including a leasehold interest, in state lands that are within a one-half mile radius of a rail transit station.

Your Committees received testimony in support of this measure from the Hawaii Public Housing Authority. Your Committees received comments on this measure from the Department of Land and Natural Resources, Department of Hawaiian Home Lands, and Department of the Attorney General.

Your Committees find that there is a severe shortage of affordable housing in the State. Providing HHFDC with the opportunity to obtain control of and develop affordable housing on state lands near rail transit stations will help to increase the State's inventory of affordable housing.

Your Committees have amended this measure by:

(1) Exempting lands within the Stadium Development District from this measure;

(2) Incorporating language recommended by the Department of the Attorney General, which:

(A) Clarifies that the proposed development or transfer of any fee simple or leasehold property interest shall trigger HHFDC's right of first refusal;

(B) Provides HHFDC with sixty days advance notice of any proposed development or transfer of property interest; and

(C) Establishes a sixty-day deadline for HHFDC to exercise its right of first refusal; and

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

As affirmed by the records of votes of the members of your Committees on Housing and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 330, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 330, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ STANLEY CHANG, Chair