STAND. COM. REP. NO. 1202-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1742

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1742, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize the construction and occupation of self-contained relocatable housing units by right on any parcel of land with the consent of the property owner, with certain restrictions; and

(2) Specify that a manufactured home is considered real property, requiring its transfer, conveyance, and mortgage to follow the same recording and enforcement requirements as other real property.

Your Committee received testimony in support of this measure from the Hawaiʻi Association of REALTORS; Housing Hawaiʻi's Future; and Grassroot Institute of Hawaii. Your Committee received testimony in opposition to this measure from the Plumbers and Fitters UA Local 675 and Hawaii Building & Construction Trades Council. Your Committee received comments on this measure from the Department of Health and one individual.

Your Committee finds that the State is in need of practical options that can provide immediate, flexible, and cost-effective options to meet urgent housing needs. Self-contained relocatable housing and manufactured homes are two such options. This measure establishes a framework for regulating and permitting self-contained relocatable housing, which is movable, can operate independently of utilities, and be completed at a lower cost than many traditional homes.

Your Committee further finds that manufactured homes, which must meet federal building and safety standards, are built in controlled factory settings, which allows them to be completed faster, at a lower cost, and with less construction waste than many traditional homes. This measure therefore reduces barriers for the use of self-contained relocatable housing units and manufactured homes in Hawaii, which can help expand housing options and increase the supply of homes across the State.

Your Committee has amended this measure by:

(1) Deleting the definition of "residentially zoned lot";

(2) Deleting language requiring the installation of a self-contained relocatable housing unit to be manufactured in the State or procured by a state-approved distributor; and

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

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1742, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1742, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair