STAND. COM. REP. NO. 2168-26

Honolulu, Hawaii

, 2026

RE: S.C.R. No. 110

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committees on Transportation and Housing, to which was referred S.C.R. No. 110, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF TRANSPORTATION, IN COORDINATION WITH THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION, TO CONVENE A WORKING GROUP TO EVALUATE THE FEASIBILITY OF ESTABLISHING STATE-OWNED OR STATE-CONTROLLED WAREHOUSE AND LOGISTICS FACILITIES NEAR PORTS, HARBORS, AND AIRPORTS TO REDUCE MATERIAL COSTS ASSOCIATED WITH PUBLICLY FINANCED HOUSING PROJECTS,"

beg leave to report as follows:

The purpose of this measure is to request the Department of Transportation, in coordination with the Hawaii Housing Finance and Development Corporation, to convene a working group to:

(1) Evaluate the feasibility of establishing state-owned or state-controlled warehouse and logistics facilities near ports, harbors, and airports to reduce material costs associated with publicly financed housing projects; and

(2) Submit a report to the Legislature prior to the Regular Session of 2027.

Your Committees received testimony in support of this measure from the Department of Transportation; Hawaii Housing Finance and Development Corporation; Hawaiʻi Regional Council of Carpenters; and Hawaii Ironworkers Stabilization Fund.

Your Committees find that the high cost of construction materials remains a significant barrier to developing affordable housing across the State. Additionally, Hawaii's reliance on imported materials and associated supply chain inefficiencies contribute significantly to these high costs, hindering the State's ability to address its housing shortage. This measure requests the Department of Transportation and Hawaii Housing Finance and Development Corporation to convene a working group to evaluate the feasibility of establishing state-owned or state-controlled warehouse and logistics facilities near key transportation hubs. By exploring opportunities to leverage bulk purchasing and streamline logistics, this effort could reduce development costs and increase the supply of affordable housing for Hawaii residents.

Your Committees have amended this measure by:

(1) Designating the Executive Director of the Hawaii Housing Finance and Development Corporation, or the Executive Director's designee, as a Co-Chairperson of the working group;

(2) Adding a representative from the Department of Hawaiian Home Lands and the Executive Director of the Hawaii Building and Construction Trades Council, or the Executive Director's designee, to the working group; and

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

As affirmed by the records of votes of the members of your Committees on Transportation and Housing that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 110, S.D. 1, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 110, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committees on Transportation and Housing,

____________________________ LUKE A. EVSLIN, Chair

____________________________ DARIUS KILA, Chair