STAND. COM. REP. NO. 627

Honolulu, Hawaii

RE: S.B. No. 551

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 Housing, to which was referred S.B. No. 551, 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 clarify that notwithstanding any other law to the contrary, the Hawaii Housing Finance and Development Corporation may develop certain housing projects that shall be exempt from all statutes, ordinances, charter provisions, and rules relating to planning, zoning, and other certain standards, provided that certain conditions are met.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation. Your Committee received comments on this measure from the Department of Land and Natural Resources and the Hawai‘i Emergency Management Agency.

Your Committee finds that Hawaii is in housing crisis and all efforts must be taken to provide the necessary supply. Exempting certain housing projects from certain regulations can expedite the creation of more housing. Your Committee notes, however, that flood damage is among the most common disaster-related claims in the State. The State and four counties participate in the National Flood Insurance Program (NFIP), which requires compliance with the National Flood Insurance Act of 1968. According to testimony received by your Committee, the Federal Emergency Management Agency could suspend a participating community from the NFIP for failing to adequately administer and enforce floodplain development regulations, leading to the loss of federal flood insurance coverage for tens of thousands of property owners in the State and the State's exclusion from certain forms of federal disaster relief.

Accordingly, your Committee has amended this measure by amending language to clarify that the certain housing development projects are exempt only if they are not located within a Special Flood Hazard Area as identified on the current Federal Emergency Management Agency's Flood Insurance Rate Maps.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 551, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 551, S.D. 2, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair