STAND. COM. REP. NO. 3210

Honolulu, Hawaii

RE: H.B. No. 2515

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 2515, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO WORKFORCE HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Workforce Housing Regulatory Sandbox Program;

(2) Establish an advisory council within the Workforce Housing Regulatory Sandbox Program to advise on environmental and cultural practices within specific developments;

(3) Require reports to the Legislature; and

(4) Appropriate funds.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Hawaii Public Housing Authority, Hawaiʻi Community Development Authority, Office of Planning and Sustainable Development, Chamber of Commerce Hawaii, Maui Chamber of Commerce, Housing Hawaiʻi's Future, Hawaiʻi Island Chamber of Commerce, and one individual.

Your Committee received comments on this measure from the Office of Hawaiian Affairs.

Your Committee finds that the State continues to face a significant shortage of affordable housing for local working families, which contributes to longer commutes, increased congestion, higher household costs, and challenges retaining essential workers. Temporary regulatory flexibility that also maintains environmental, cultural, and public safeguards would help alleviate these problems by facilitating the construction of workforce housing in areas of high demand. By authorizing the Hawaii Housing Finance and Development Corporation to approve temporary waivers or modifications to certain state or county permitting, zoning, or infrastructure requirements, this measure will help increase the production of workforce housing in the State and ensure access to homes for working families.

Your Committee has amended this measure by:

(1) Inserting language authorizing the Hawaii Housing Finance and Development Corporation to waive or modify state approval processes;

(2) Including the Chairperson of the Board of Trustees of the Office of Hawaiian Affairs as a member of the Workforce Housing Regulatory Sandbox Program Advisory Council; and

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

Your Committee notes that this measure contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $1,000,000 for the establishment and operation, including administrative costs and support for approved projects, of the Workforce Housing Regulatory Sandbox Program and for the establishment of one full-time equivalent (1.0 FTE) position.

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 H.B. No. 2515, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2515, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair