STAND. COM. REP. NO. 1385-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2177

S.D. 2

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Housing, to which was referred S.B. No. 2177, S.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) Require the Hawaii Housing Finance and Development Corporation or a county to accept a complete application seeking certain exemptions from law, ordinances, and rules within thirty days;

(2) Require the Hawaii Housing Finance and Development Corporation to process an application and bring it before the Board of Directors within one hundred twenty days of accepting the application; and

(3) Require county agencies to process an application and bring it before the county's legislative body within one hundred twenty days of accepting the application.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that delays and procedural uncertainty in the review of housing projects seeking exemptions from laws, charter provisions, ordinances, or rules have contributed to inefficiencies and hindered the timely development of affordable housing. The absence of defined acceptance and processing timelines, as well as unclear distinctions between State and county roles, has resulted in inconsistent review practices and prolonged approval processes across jurisdictions. This measure aims to improve predictability, enhance coordination between the State and counties, and support the timely delivery of affordable housing statewide.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

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 S.B. No. 2177, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2177, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

LUKE A. EVSLIN, Chair