STAND. COM. REP. NO. 2576

Honolulu, Hawaii

RE: S.B. No. 2422

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, Energy and Intergovernmental Affairs, and Water, Land, Culture and the Arts, to which was referred S.B. No. 2422 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Pro-Housing Score Program to evaluate each county's performance in expanding housing opportunities and reducing regulatory barriers;

(2) Require the counties to publish their respective pro‑housing scores online and require the Hawaii Housing Finance and Development Corporation to publish certain related information and data on a public dashboard;

(3) Establish criteria for deeming a county noncompliant;

(4) Establish builder's remedies for certain housing projects in transit-oriented development areas;

(5) Specify that if a county is deemed noncompliant, the planning director or an equivalent county officer responsible for land use approvals shall be responsible for approving or denying certain affordable housing development applications;

(6) Establish procedures for certain transit-oriented development housing project appeals; and

(7) Appropriate funds.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Housing Hawaiʻi's Future, Avalon Development Company LLC, Hawaiʻi YIMBY, and one individual.

Your Committees received comments on this measure from the Hawaii Community Development Authority, Office of Planning and Sustainable Development, and one individual.

Your Committees find that the State's housing shortage is not only a consequence of market conditions, but also of government processes. Unpredictable permitting and inconsistent standards increase development costs and deter construction. These costs are then transferred to renters and buyers. To address unpredictable permitting processes and inconsistent standards, the State needs to promote accountability at the county level. By establishing a transparent, data-driven score system, this measure helps hold counties accountable for housing development processes. Additionally, it creates incentives for reform in permitting processes and offers the public transparency with respect to potential bottlenecks. Over time, this transparency can support further evidence-based reforms to more quickly develop urgently needed housing in the State.

Your Committees have amended this measure by:

(1) Requiring the Hawaii Housing Finance and Development Corporation to adopt rules establishing an appeals process for counties determined to be noncompliant;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

Your Committees note that no county submitted testimony on this measure; however, your Committees are concerned that the provisions in the measure prohibiting a county from denying approval, conditioning approval, or requiring a reduction of certain elements of the housing development project, except under certain circumstances, may be too stringent on the counties and may require a more flexible approach to determine whether to approve or deny a project. Accordingly, your Committees respectfully request that these concerns be considered as this measure moves through the legislative process.

Your Committees further note that this measure contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting an appropriation amount of $200,000 to implement the Pro-Housing Score Program.

As affirmed by the records of votes of the members of your Committees on Housing, Energy and Intergovernmental Affairs, and Water, Land, Culture and the Arts that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2422, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2422, 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, Energy and Intergovernmental Affairs, and Water, Land, Culture and the Arts,

________________________________ GLENN WAKAI, Chair	________________________________ STANLEY CHANG, Chair
	________________________________ CHRIS LEE, Chair