STAND. COM. REP. NO. 1787-26

Honolulu, Hawaii

, 2026

RE: H.C.R. No. 126

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committees on Transportation and Housing, to which was referred H.C.R. No. 126 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF TRANSPORTATION, IN COORDINATION WITH THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION, TO CONVENE A WORKING GROUP TO EVALUATE THE FEASIBILITY OF ESTABLISHING STATE-OWNED OR STATE-CONTROLLED WAREHOUSE AND LOGISTICS FACILITIES NEAR PORTS, HARBORS, AND AIRPORTS TO REDUCE MATERIAL COSTS ASSOCIATED WITH PUBLICLY FINANCED HOUSING PROJECTS,"

beg leave to report as follows:

The purpose of this measure is to request the Department of Transportation, in coordination with the Hawaii Housing Finance and Development Corporation, to convene a working group to evaluate the feasibility of establishing state-owned or state-controlled warehouse and logistics facilities near ports, harbors, and airports to reduce material costs associated with publicly financed housing projects.

Your Committees received testimony in support of this measure from the Department of Transportation; Hawaii Housing Finance and Development Corporation; Hawaii Regional Council of Carpenters; Pacific Resource Partnership; and General Contractors Association of Hawaii.

Your Committees find that the State continues to face a critical shortage of affordable housing, with the high cost of construction materials significantly driving up the price of publicly financed housing projects. Your Committees further find that Hawaii's geographic isolation and reliance on imported materials increase transportation, storage, and supply chain costs, creating inefficiencies that can delay projects and inflate per-unit housing expenses. By requesting the Department of Transportation, in coordination with the Hawaii Housing Finance and Development Corporation, to convene a working group to evaluate the feasibility, costs, and benefits of establishing such facilities and to identify potential strategies to reduce housing development costs statewide, this measure provides opportunities to leverage bulk purchasing, improve coordination, and stabilize material costs.

Your Committees have amended this measure by:

(1) Designating the Executive Director of the Hawaii Housing Finance and Development Corporation, or the Executive Director's designee, as a Co-Chairperson of the working group;

(2) Adding a representative from the Department of Hawaiian Home Lands to the working group; and

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

As affirmed by the records of votes of the members of your Committees on Transportation and Housing that are attached to this report, your Committees concur with the intent and purpose of H.C.R. No. 126, as amended herein, and recommend its adoption in the form attached hereto as H.C.R. No. 126, H.D. 1.

Respectfully submitted on behalf of the members of the Committees on Transportation and Housing,

____________________________ LUKE A. EVSLIN, Chair

____________________________ DARIUS KILA, Chair