STAND. COM. REP. NO. 2940

Honolulu, Hawaii

RE: S.B. No. 2177

S.D. 2

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 S.B. No. 2177, 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 clarify and streamline procedures applicable to housing projects for which exemptions are requested under section 201H-38, Hawaii Revised Statutes.

More specifically, this measure:

(1) Gives the Hawaii Housing Finance and Development Corporation or a county thirty days to accept a complete application submitted under section 201H-38, Hawaii Revised Statutes;

(2) Requires the corporation or county to process and forward for board approval the application within one hundred twenty days from acceptance, unless the applicant requests additional time; and

(3) Requires the appropriate county agency to process and forward for council approval the application within one hundred twenty days from acceptance, unless the applicant requests additional time.

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

Your Committee finds that although section 201H-38, Hawaii Revised Statutes, provides an expedited application process for developers proposing certain affordable housing projects, the process remains insufficient to meet the State's need for affordable housing. This measure establishes processing timeframes, but also allows applicants to request additional time, to help ensure more flexibility for applicants and facilitate timely processing of applications.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on this measure.

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 S.B. No. 2177, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2177, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair