STAND. COM. REP. NO.  807-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2242

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 2242 entitled:

"A BILL FOR AN ACT RELATING TO COUNTIES,"

begs leave to report as follows:

     The purpose of this bill is to encourage the construction of affordable housing by allowing each county to impose an affordable housing requirement upon certain subdividers or developers as a condition for the approval of a subdivision or building permit.

     The Office of Hawaiian Affairs, County of Hawaii Planning Department, and a member of the Hawaii County Council testified in support of this bill.  Kauai County Housing Agency supported this bill with amendments.  The Department of Planning and Permitting of the City and County of Honolulu, the Hawaii Chamber of Commerce, Wyndham Worldwide, and the Land Use Research Foundation opposed this bill.

     Affordable housing is not only a necessity in our communities but also stimulates economic development.  However, your Committee fears that affordable housing percentages imposed by the counties may be unreasonable and cause unwanted distortions in the housing market.

Accordingly, your Committee has amended this measure by requiring that affordable housing requirements imposed by the counties must be reviewed and approved by the Land Use Commission.  Additionally, to encourage further discussion, the effective date of this measure has been changed to July 1, 2034.  Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2242, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2242, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair