STAND. COM. REP. NO. 3464

Honolulu, Hawaii

RE: S.C.R. No. 110

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 Transportation and Housing, to which was referred S.C.R. No. 110 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 and intent 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 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.

Your Committees received testimony in support of this measure from the Department of Transportation, Hawaii Housing Finance and Development Corporation, and one individual.

Your Committees find that the State continues to face a critical shortage of affordable housing and the cost of construction materials is a considerable factor in the high overall cost of publicly financed housing projects. The State's geographic isolation and reliance on imported building materials increase transportation, storage, and handling costs. Centralized warehouse and logistics facilities located near ports, harbors, and airports may mitigate the costs of construction materials, improve supply chain coordination, and reduce delays for publicly financed housing developments. This measure will address the costs associated with publicly financed housing developments to support an increase in the State's affordable housing supply.

Your Committees have amended this measure by:

(1) Expanding the working group to include the respective Chairpersons of the Senate and House of Representatives Standing Committees on Transportation or their designees; and

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

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, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 110, S.D. 1.

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

________________________________ STANLEY CHANG, Chair

________________________________ LORRAINE R. INOUYE, Chair