STAND. COM. REP. NO. 482

Honolulu, Hawaii

RE:    S.B. No. 671

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Water and Land, Economic Development, Tourism, and Technology, and Housing, to which was referred S.B. No. 671 entitled:

"A BILL FOR AN ACT RELATING TO LANDS CONTROLLED BY THE STATE,"

beg leave to report as follows:

     The purpose and intent of this measure is to authorize the Department of Land and Natural Resources (DLNR) and the Hawaii Community Development Authority (HCDA) to negotiate and execute leases up to ninety-nine years on DLNR and HCDA lands that are located within one-half mile of the City and County of Honolulu's planned rail transit stations, provided that affordable housing is included in the development plan for the lands to be leased.

     Your Committees received testimony in support of this measure from the Hawaii Habitat for Humanity Association.  Your Committees received testimony in opposition to this measure from one individual.  Your Committees received comments on this measure from the Department of Land and Natural Resources, Hawaii Community Development Authority, and Department of Human Services.

     Your Committees find that it is in the public interest to encourage mixed-use development that includes affordable housing on state lands near the planned rail transit stations, and that extending the maximum lease term that DLNR and HCDA may negotiate for certain property to ninety-nine years will incentivize such private development by supporting long-term sustainable development plans.  Your Committees find that encouraging transit-oriented development projects will contribute to the overall success of the public transportation projects in the State and will vitalize urban areas.  Your Committees further find that requiring safe, adequate, and affordable housing in mixed-use developments strengthens communities as affordable and stable housing is linked with improved health, education, and economic outcomes for families and children.

Your Committees have amended this measure by:

     (1)  Clarifying that the authority granted to DLNR and HCDA is contingent upon all housing built in a mixed-use development being reserved for residents and families earning up to sixty percent of the area median income, rather than affordable housing being included in the mixed-use development plan for lands to be leased;

     (2)  Expanding the geographic area to lands within one mile of a rail transit station being eligible for a lease;

     (3)  Inserting an effective date of March 15, 2050, to encourage further discussion; and

     (4)  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 and Land, Economic Development, Tourism, and Technology, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 671, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 671, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water and Land, Economic Development, Tourism, and Technology, and Housing,

________________________________ GLENN WAKAI, Chair	________________________________ KARL RHOADS, Chair
	________________________________ WILL ESPERO, Chair