STAND. COM. REP. NO. 2237

Honolulu, Hawaii

RE: S.B. No. 2190

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 Housing, to which was referred S.B. No. 2190 entitled:

"A BILL FOR AN ACT RELATING TO INCLUSIONARY ZONING,"

begs leave to report as follows:

The purpose and intent of this measure is to prohibit any law, ordinance, or rule from imposing an inclusionary zoning requirement on housing offered exclusively for sale or rent in perpetuity to buyers or renters who are residents of the State, are owner-occupants or renters, and do not own any other real property.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Hawaiʻi YIMBY, Grassroot Institute of Hawaii, Hawaii Appleseed Center for Law & Economic Justice, Housing Hawaiʻi's Future, and four individuals.

Your Committee received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu.

Your Committee finds that the State continues to face a housing shortage. While inclusionary zoning requirements can help produce below-market rate housing, they often have the unintended effect of stifling housing production. Over the long term, this reduced housing production limits the amount of housing available for residents and drives prices higher.

Your Committee further finds that incentivizing greater production of units offered for sale or rent in perpetuity exclusively for residents who are owner-occupants and do not own any other real property would more effectively address the State's housing shortage. This measure incentivizes housing development for residents of the State who are owner-occupants and do not own any other real property by exempting that development from county-level inclusionary zoning requirements.

Your Committee has amended this measure by:

(1) Making it effective upon its approval; and

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

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. 2190, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2190, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

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

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STANLEY CHANG, Chair