THE SENATE

S.B. NO.

2338

THIRTY-THIRD LEGISLATURE, 2026

S.D. 1

STATE OF HAWAII

H.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HOUSING.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the Hawaii housing finance and development corporation and Hawaii public housing authority both provide critical services to address Hawaii's affordable housing crisis.  The Hawaii housing finance and development corporation oversees the financing of affordable housing and the Hawaii public housing authority manages the State's public housing programs and housing choice vouchers.  Through these two entities, the supply of affordable housing in Hawaii has grown, with billions of dollars financed and more than six thousand public housing units currently being managed.

     The legislature further finds that the executive directors of the two entities face different compensation limitations, with the executive director of the Hawaii public housing authority being paid no more than the governor, and the executive director of the Hawaii housing finance and development corporation being paid a lower salary of no more than the director of business, economic development, and tourism--a difference of more than $10,000.  In addition, the salary of the executive assistant of the Hawaii housing finance and development corporation is also capped at a percentage of the executive director's salary.

     The legislature further finds that the Hawaii housing finance and development corporation would benefit from the creation of a finance manager position to oversee all finance programs of the corporation.

     The legislature believes that increasing certain salary caps will help the State compete with the private sector for highly skilled individuals and further increase the supply of affordable housing in Hawaii.  Additionally, the legislature recognizes that an increase in salary caps and the creation of a finance manager position are necessary, not merely to reward the greater responsibilities of the housing agencies over the last ten years, but also to greatly expand the housing agencies' development plans.

     Accordingly, the purpose of this Act is to:

     (1)  Exempt certain positions under the Hawaii housing finance and development corporation (HHFDC) from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the director of business, economic development, and tourism;

     (2)  Increase the salary cap for the executive director of HHFDC to an amount that does not exceed the governor's salary;

     (3)  Rename the position of executive assistant to deputy executive director for HHFDC and increase the salary cap for the deputy executive director;

     (4)  Establish the finance manager position within HHFDC; and

     (5)  Establish a cap on the term of employment contracts for HHFDC and the Hawaii public housing authority.

     SECTION 2.  Section 201H-2, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established the Hawaii housing finance and development corporation to be placed within the department of business, economic development, and tourism for administrative purposes only.  The corporation shall be a public body and a body corporate and politic.  All employees covered under subsection (b) shall be exempt from the requirements of section 26-35(a)(4).

     (b)  The corporation shall employ, exempt from chapter 76 [and section 26-35(a)(4)], an executive director [and an executive assistant.], a deputy executive director, and a finance manager.  The executive director shall be paid a salary not to exceed the salary of the [director of business, economic development, and tourism.] governor.  The [executive assistant] deputy executive director shall be paid a salary not to exceed [ninety] ninety-five per cent of the executive director's salary.  The corporation may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent and temporary, as required.  The corporation may also employ officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, not subject to chapter 76, when in the determination of the corporation, the services to be performed are unique and essential to the execution of the functions of the corporation.  The corporation shall not offer an employment contract entered into on or after the effective date of this Act that exceeds three years.  The corporation may call upon the attorney general for legal services as it may require.  The corporation may delegate to one or more of its agents or employees its powers and duties as it deems proper."

     SECTION 3.  Section 356D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director, an executive assistant, a chief financial management advisor, a property management branch chief, a chief planner, and a redevelopment officer, whose salaries shall be set by the board established under section 356D-3; provided that no salary shall exceed the governor's salary.  The authority may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent or temporary, as required.  The authority may also employ officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, not subject to chapter 76, when in the determination of the authority, the services to be performed are unique and essential to the execution of the functions of the authority; provided that if the authority hires an officer, agent, or employee in a capacity not subject to chapter 76, the authority shall include in an annual report to the legislature, to be submitted [not] no later than twenty days prior to the convening of each regular session, the position descriptions and reasons for hiring the personnel in a civil service exempt capacity.  The authority shall not offer an employment contract entered into on or after the effective date of this Act that exceeds three years.  The authority may call upon the attorney general for legal services as it may require.  The authority may delegate to one or more of its agents or employees the powers and duties it deems proper."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

 

 

Report Title:

HHFDC; HPHA; Executive Director; Deputy Executive Director; Finance Manager; Salary; Employment Contracts

 

Description:

Exempts certain positions under the Hawaii Housing Finance and Development Corporation (HHFDC) from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the Director of Business, Economic Development, and Tourism.  Increases the salary cap for the Executive Director of HHFDC.  Renames the position of Executive Assistant to Deputy Executive Director for HHFDC and increases the salary cap for the Deputy Executive Director.  Establishes the Finance Manager position within HHFDC.  Establishes a cap on the term of employment contracts for HHFDC and the Hawaii Public Housing Authority.  Effective 7/1/3000.  (HD2)

 

 

 

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