STAND. COM. REP. NO. 2966

Honolulu, Hawaii

RE: S.B. No. 2338

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 Ways and Means, to which was referred S.B. No. 2338, 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 give the Hawaii Housing Finance and Development Corporation and the Hawaii Public Housing Authority flexibility and support regarding certain personnel matters to facilitate the effective development and management of affordable housing in the State.

More specifically, this measure:

(1) Increases the salary cap for the Executive Director of the Hawaii Housing Finance and Development Corporation;

(2) Renames the position of the Executive Assistant of the Corporation to the Deputy Executive Director and increases the salary cap for that position;

(3) Establishes the Finance Director position within the Corporation;

(4) Requires the Corporation to measure personnel performance according to certain metrics;

(5) Provides the Corporation and Hawaii Public Housing Authority with autonomy in personnel matters, including establishing and filling positions and setting salaries; and

(6) Establishes a two-year cap on the term of employment contracts for the Corporation and the Authority, and requires legislative approval to exceed the cap.

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

Your Committee received written comments on this measure from the Department of the Attorney General, Hawaii Public Housing Authority, and Hawaii Housing Finance and Development Corporation.

Your Committee finds that the Hawaii Housing Finance and Development Corporation oversees the financing of affordable housing, and that the Hawaii Public Housing Authority manages the State's public housing programs and housing choice vouchers. Your Committee acknowledges that, over the last ten years, the production, scale, and complexity of affordable housing programs in the State have grown significantly. These programs demand leadership with deep knowledge of housing finance, housing development, regulatory compliance, and program development. Your Committee believes that the flexibility this measure offers in certain personnel matters, and the support the measure provides for the organizations' leadership positions, will help the Corporation and the Authority maximize the potential of existing and future housing programs.

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. 2338, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair