STAND. COM. REP. NO. 2903

Honolulu, Hawaii

RE: S.B. No. 2424

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. 2424, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to support the sustainable development of affordable housing.

More specifically, this measure:

(1) Removes unnecessary financial screening and property‑ownership requirements from the definition of "qualified resident" for purposes of participation in certain affordable housing projects and programs;

(2) Eases the requirements for a project to qualify for certain exemptions from planning, zoning, construction, and development laws and ordinances that apply to certain affordable housing projects; and

(3) Imposes perpetual deed restrictions on the sale of certain units within the housing project.

Your Committee received written comments in support of this measure from the Hawaii Community Foundation, aio, AARP Hawaii, Holomua Collaborative, HPM Building Supply, Mana Up, Title Guaranty, and Tori Richard.

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

Your Committee finds that addressing Hawaii's affordable housing shortage is of critical importance to the State. To address this issue effectively, not only must the State increase the supply of affordable housing, but the supply of affordable housing must also be made sustainable and accessible. Your Committee believes that this measure furthers those goals by removing duplicative and unnecessary restrictions on qualified purchasers and tenants of affordable housing, while also expanding eligibility for affordable housing incentives.

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. 2424, 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