STAND. COM. REP. NO. 3709

Honolulu, Hawaii

RE: H.B. No. 1718

H.D. 1

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 Ways and Means, to which was referred H.B. No. 1718, H.D. 1, 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 refine statutory provisions relating to county-supported mixed-use developments.

More specifically, the measure:

(1) Limits county-supported mixed-use housing developments to transit-oriented developments that include housing along a locally preferred alternative for a mass transit system;

(2) Specifies that a county's authority to share in facilitating the development, construction, financing, refinancing, or other aspects of mixed-use developments shall continue to apply to any project for which, prior to July 1, 2033, the county has obtained county council approval or entered into a binding agreement;

(3) Repeals the June 30, 2028, sunset date of Act 45, Session Laws of Hawaii 2024, to make permanent the Act's provisions establishing the counties' mixed-use development authority; and

(4) Clarifies that the counties' mixed-use development authority shall only apply to bonds originally issued before July 1, 2033.

Your Committee received written comments in support of this measure from the Hawaii Office of Planning & Sustainable Development, Department of Housing and Land Management for the City and County of Honolulu, and one individual.

Your Committee finds that placing mixed-use developments within transit-oriented developments, as provided by this measure, will direct the construction of homes where they are needed and create walkable, sustainable communities. Your Committee also finds that repealing the sunset date of Act 45, Session Laws of Hawaii 2024, will allow for the continuation of a critical funding source that empowers counties to address housing shortages with greater autonomy and financial flexibility.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1718, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair