CONFERENCE COMMITTEE REP. NO. 77

Honolulu, Hawaii

, 2025

RE: S.B. No. 38

S.D. 2

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 38, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to prohibit the legislative body of a county from imposing stricter conditions than the Hawaii Housing Finance and Development Corporation, stricter area median income requirements, or a reduction in fee waivers to housing development proposals that would increase the cost of the project.

Your Committee on Conference finds that certain exemptions for proposed housing developments under section 201H‑38, Hawaii Revised Statutes, ensure that housing units developed by the Hawaii Housing Finance and Development Corporation (HHFDC) remain primarily affordable. While the legislative body of a county serves an important role in reviewing the proposed development of certain housing units within their respective communities, the addition of stricter conditions imposed by a county's legislative body to the proposed housing development may inadvertently increase construction costs and delay completion of a project. Therefore, this measure will help to ensure the financial feasibility of housing development projects that assist the State in alleviating its housing shortage.

Your Committee on Conference has amended this measure by:

(1) Inserting language requiring HHFDC to provide counties with an opportunity to comment on certain housing projects;

(2) Making it effective upon its approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 38, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 38, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ LUKE A. EVSLIN Co-Chair	____________________________ STANLEY CHANG Chair
____________________________ DAVID A. TARNAS Co-Chair	____________________________ KARL RHOADS Co-Chair