STAND. COM. REP. NO. 379

Honolulu, Hawaii

RE:    S.B. No. 1350

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committees on Education and Housing and Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.B. No. 1350 entitled:

"A BILL FOR AN ACT RELATING TO KAKAAKO,"

beg leave to report as follows:

     The purpose of this measure is to increase the reserved housing requirement for a planned development in the Kaka‘ako Community Development District, Mauka Area.

     Specifically, this measure:

     (1)  Requires, for a planned development on a lot of at least one acre, at least fifty per cent of the floor area to be constructed and made available as reserved housing units for low- and moderate-income families;

     (2)  Requires, for a planned development with multi-family dwelling units on a lot of at least 20,000 square feet, but less than 80,000 square feet, at least twenty per cent of the multi-family dwelling units to be constructed and made available as reserved housing, a requirement currently authorized by administrative rule;

     (3)  Requires the Hawaii Community Development Authority to adopt implementing rules without regard to the notice and public hearing requirements of chapter 91, Hawaii Revised Statutes; and

     (4)  Prohibits the Authority from accepting applications until the rules take effect.

     Testimony in support of this measure was submitted by one state agency, one private business, one private organization, and one individual.  Testimony in opposition was submitted by three private organizations.  Comments were submitted by one state agency, one private organization, and three individuals.  Copies of written testimony are available for review on the Legislature's website.

     Your Committees find that this measure is one of many under consideration by the Legislature in response to severe shortages of affordable housing in Hawaii.  Your Committees are concerned that a long-term economic crisis will further worsen what is already a challenging housing market for Hawaii residents.

     Your Committees further find that while the federal economic stimulus legislation will provide some relief, much more needs to be done at the state level.  Your Committees have heard and approved a wide range of proposed affordable housing initiatives and encourage further legislative discussions on the proposal in this measure.

     Your Committees have amended this measure by:

     (1)  Raising the minimum lot size from one acre to 80,000 square feet for the increased reserved housing requirement for a planned development in the Kaka‘ako Community Development District, Mauka Area;

     (2)  Deleting industrial use from the calculations of "countable floor area";

     (3)  Amending the purpose section to reflect the changes; and

     (4)  Amending the effective date to July 1, 2050, for the purpose of encouraging further discussion.

     As affirmed by the records of votes of the members of your Committees on Education and Housing and Water, Land, Agriculture, and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1350, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1350, S.D. 1, and be referred to the Committee on Judiciary and Government Operations.

Respectfully submitted on behalf of the members of the Committees on Education and Housing and Water, Land, Agriculture, and Hawaiian Affairs,

____________________________ CLAYTON HEE, Chair

____________________________ NORMAN SAKAMOTO, Chair