STAND. COM. REP. NO. 3436

Honolulu, Hawaii

RE: S.C.R. No. 143

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Higher Education, to which was referred S.C.R. No. 143 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE FEDERAL EMERGENCY MANAGEMENT AGENCY TO CONSIDER UTILIZING FUNDS FOR NON-CONGREGATE HOUSING FOR INFRASTRUCTURE AND DEVELOPMENT NEEDS FOR AFFORDABLE RENTAL HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to urge the Federal Emergency Management Agency to consider utilizing funds for non-congregate housing for infrastructure and development needs for affordable rental housing.

Prior to decision making on this measure, your Committee made available for public review a proposed S.D. 1 of this measure. The proposed S.D. 1 requests the University of Hawaii to develop a comprehensive plan to address student housing facility needs at the Manoa campus.

Your Committee received testimony in support of the proposed S.D. 1 from the University of Hawaiʻi System.

Your Committee finds that there is a shortage of available and affordable housing statewide. Additionally, there is a limited supply of on-campus student housing available for students attending the University of Hawaii, which has placed students into the general rental market, further increasing demand for rental housing. While the University of Hawaii Student Housing Services comprise of twenty-one residential buildings, a majority of the Student Housing Services residences have not undergone any major renovation or improvement since constructed in the 1970s, with the exception for renovations and construction of the Hale Aloha Towers and Frear Hall in 2008-2009. The Student Housing Services business model has historically prioritized affordability, which has now compromised the future financial and economic sustainability of needed major repairs and renovations of the aging facilities. Moreover, the physical condition of certain on-campus facilities have compromised their ability to remain in service.

Your Committee further finds that the Hale Noelani facility is an on-campus Student Housing Services facility comprised of five buildings, originally constructed in 1978 and included over five hundred beds. However, the Hale Noelani buildings were closed and taken out of service in 2018 due to significant deficiencies in the building conditions. Furthermore, the University of Hawaii also operates faculty housing and offers below-market rates to new faculty members, but does not generate sufficient revenue to help offset the construction of additional faculty housing units. Your Committee also finds that the University of Hawaii must seek new repair, maintenance, and development models, to include novel approaches to financing the renovation, improvements, and expansions of its existing on-campus housing inventory for students and faculty members, both through public financing or public-private partnership options. As the Student Housing Services business model does not provide for long-term financial stability, diverse sources of funds should be utilized for student housing facilities as evidenced by the Residences for Innovation and Student Entrepreneurs and residences for graduate students at the former National Marine Fisheries site, which would provide funding necessary to operate and maintain housing programs on campus. Therefore, this measure requests the University of Hawaii to establish a business model that provides a reliable stream of revenue to sustain long-term viability of buildings utilized for student housing operations at the Manoa campus.

Your Committee has amended this measure by:

(1) Adopting the proposed S.D. 1; and

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

As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 143, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 143, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

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DONNA MERCADO KIM, Chair