STAND. COM. REP. NO. 2457

Honolulu, Hawaii

RE: S.B. No. 2232

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Housing and Energy and Intergovernmental Affairs, to which was referred S.B. No. 2232 entitled:

"A BILL FOR AN ACT RELATING TO A TINY HOME GRANT PILOT PROGRAM,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish a three-year Tiny Home Grant Pilot Program within the Hawaii Housing Finance and Development Corporation;

(2) Require counties and nonprofit organizations that are awarded a grant to submit an annual report to the Hawaii Housing Finance and Development Corporation;

(3) Require a report to the Legislature; and

(4) Appropriate funds for the Tiny Home Grant Pilot Program.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Maui Chamber of Commerce, and two individuals.

Your Committees received testimony in opposition to this measure from two individuals.

Your Committees received comments on this measure from the Statewide Office on Homelessness and Housing Solutions.

Your Committees find that this measure would establish the Tiny Home Grant Pilot Program to target the housing needs of the State's most vulnerable populations, including kupuna, low-income families, Native Hawaiian beneficiaries, and individuals experiencing homelessness. By leveraging shared resources and renewable energy, tiny home villages offer a cost-effective and environmentally responsible approach to increasing housing inventory.

Your Committees further find, however, that the Tiny Home Grant Pilot Program would place new administrative burdens on the Hawaii Housing Finance and Development Corporation. Additionally, your Committees find that the primary purpose of the Tiny Home Grant Pilot Program is to provide cost-efficient homes exclusively for residential use. Amendments to this measure are therefore necessary to address these issues.

Accordingly, your Committees have amended this measure by:

(1) Requiring tiny home villages to be exclusively for residential use;

(2) Specifying that the funds appropriated shall be allocated to the establishment of one full time equivalent (1.0 FTE) housing development specialist II; and

(3) Inserting a blank appropriation amount.

Your Committees note that this measure, as amended, contains blank appropriation amounts. Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider an appropriation amount of $10,000,000 for the Tiny Home Grant Pilot Program and $170,000 for one full-time equivalent (1.0 FTE) housing development specialist II position, plus benefits.

As affirmed by the records of votes of the members of your Committees on Housing and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2232, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2232, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Energy and Intergovernmental Affairs,

________________________________ GLENN WAKAI, Chair

________________________________ STANLEY CHANG, Chair