STAND. COM. REP. NO. 3557

Honolulu, Hawaii

RE: S.R. No. 63

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 Water, Land, Culture and the Arts and Housing, to which was referred S.R. No. 63 entitled:

"SENATE RESOLUTION URGING THE DEPARTMENT OF LAND AND NATURAL RESOURCES TO TRANSFER PARCELS THAT MAKE UP THE EAST KAPOLEI TRANSIT-ORIENTED DEVELOPMENT PROJECT TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION AND URGING THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION TO PARTNER WITH THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY TO FACILITATE THE DEVELOPMENT OF NON-HOUSING COMMUNITY DEVELOPMENT PORTIONS OF THE PROJECT,"

beg leave to report as follows:

The purpose and intent of this measure is to urge:

(1) The Department of Land and Natural Resources to transfer parcels that make up the East Kapolei Transit-Oriented Development Project to the Hawaii Housing Finance and Development Corporation; and

(2) The Hawaii Housing Finance and Development Corporation to partner with the Hawaii Community Development Authority to facilitate the development of non-housing community development portions of the Project.

Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands; Hawaii Housing Finance and Development Corporation; Hawaiʻi Community Development Authority; and one individual.

Your Committees received comments on this measure from the Department of Land and Natural Resources and Office of Planning and Sustainable Development.

Your Committees find that the proposed East Kapolei Transit‑Oriented Development Project (Project) comprises parcels owned by the Department of Land and Natural Resources that are partly to be developed into affordable rental units, with significant improvements needed to existing infrastructure in preparation for this development. Concurrently, the Hawaii Housing Finance and Development Corporation (HHFDC) and Hawaii Community Development Authority (HCDA), with the University of Hawaii – West Oahu, are developing adjacent parcels for a similar housing project. Recognizing that HHFDC is statutorily empowered to plan, construct, and finance housing projects and that HCDA is statutorily authorized to facilitate needed infrastructure improvements in transit-oriented development areas, your Committees believe that the responsibilities of these state agencies should align with their respective core functions. By transferring ownership of the parcels that form the Project to HHFDC and HCDA, this measure would best position the State to efficiently and sustainably increase housing and mixed-mode commuting on Oahu.

Your Committees have amended this measure by:

(1) Specifying that HHFDC is urged to prioritize the development of rental and for-sale housing, including leasehold properties, within the Project;

(2) Specifying that HHFDC, HCDA, and any other relevant agencies involved with the Project are requested to memorialize on memorandums of agreement their shared activities regarding the Project and to timely submit the memorandums to the Board of Land and Natural Resources for review; and

(3) 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 Water, Land, Culture and the Arts and Housing that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 63, as amended herein, and recommend its adoption in the form attached hereto as S.R. No. 63, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Culture and the Arts and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ CHRIS LEE, Chair