STAND. COM. REP. NO. 2454

Honolulu, Hawaii

RE: S.B. No. 3034

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3034 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to require the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to require that affordable housing be included as part of the development or redevelopment plan for any state property located within one mile of the Honolulu rail transit system, unless the Honolulu City Council determines that housing is not feasible or desirable on a particular property.

Your Committee received testimony in support of this measure from the Department of Human Services, Hawaii Housing Finance and Development Corporation, Office of Planning, League of Women Voters of Hawaii, and one individual. Your Committee received testimony in opposition to this measure from the Department of Land and Natural Resources.

Your Committee finds that there is a housing shortage crisis in Hawaii. The need for affordable rental units in the State and around the Honolulu rail transit system is particularly important for households with low incomes. This measure will assist in focusing the State's efforts on increasing the number of affordable dwelling units.

Your Committee notes the concerns raised by the Department of Land and Natural Resources regarding the mandatory provisions of this measure. The Hawaii Interagency Council for Transit-Oriented Development serves as an advisory body coordinating and facilitating discussions or actions between the State and counties on transit-oriented development initiatives. The Department expressed concerns that this measure may transform the Council into a regulatory entity, which may frustrate the Department's planned objectives for the four parcels under its jurisdiction that are adjacent or in close proximity to the planned University of Hawaii West Oahu rail transit station in East Kapolei. The Department's long-term objective is to lease these parcels for income generating purposes to support the Department's natural resource management and protection programs and has already agreed to the placement of a 1,000-stall park and ride facility on the parcel immediately adjacent to the University of Hawaii West Oahu rail transit station. The requirements imposed by this measure impede this objective.

Your Committee further notes that Act 130, Session Laws of Hawaii 2016, established the Office of Planning as the lead agency to coordinate and advance smart growth and transit-oriented development planning within the State, including targeting transit-oriented development areas for significant increases in affordable housing and rental units and approving all state agencies' development plans for parcels along the rail transit corridor. Your Committee believes that requiring affordable housing to be included as part of the development or redevelopment plan for state transit-oriented development along the rail transit corridor as part of the Office of Planning's functions will increase the affordable housing stock, and support rail ridership goals.

Accordingly, your Committee has amended this measure by:

(1) Removing language that would have required the strategic plan developed by the Hawaii Interagency Council for Transit-Oriented Development to require that affordable housing be included as part of the development or redevelopment plan for any state property located within one mile of the Honolulu rail transit system;

(2) Inserting language that:

(A) Includes approval of all state agencies' redevelopment plans for parcels along the rail transit corridor among the Office of Planning's duties as lead agency to coordinate and advance smart growth and transit-oriented development planning within the State; and

(B) Requires affordable housing to be included as part of every development or redevelopment plan for state transit-oriented development along the rail transit corridor, unless the Office of Planning determines that housing is not feasible or desirable on a particular property; and

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

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3034, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3034, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Housing,

________________________________

WILL ESPERO, Chair