STAND. COM. REP. NO. 3267

Honolulu, Hawaii

RE: S.C.R. No. 35

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.C.R. No. 35 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE HONOLULU CITY COUNCIL TO ADOPT A NEW PERMITTING PROCESS TO ALLOW THE CONSTRUCTION OF LARGE-SCALE HOUSES IN CERTAIN RESIDENTIAL ZONED AREAS,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Honolulu City Council to adopt a new permitting process to allow for the construction of large-scale houses in certain residential zoned areas.

Your Committee received testimony in support of this measure from the Department of Planning and Permitting of the City and County of Honolulu, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and two individuals. Your Committee received testimony in opposition to this measure from the Building Industry Association Hawaii.

Your Committee finds that large-scale houses, commonly referred to as "monster homes", that are triple in size to traditional three-bedroom, two-bathroom homes are being built across Oahu. Those living near these large-scale houses are concerned about parking, local traffic, sewer capacity, and other infrastructure capacity, and about the potential impact of these larger homes on the character of their neighborhoods. Many believe the large-scale houses are being used for unauthorized residential or vacation rentals, adult care homes, dormitories, and illegal commercial operations. As a result, the Honolulu City Council passed and the Mayor of the City and County of Honolulu signed into law a measure that calls for the Department of Planning and Permitting of the City and County of Honolulu to immediately halt issuing building permits for large-scale houses until the City Council can adopt stricter regulations on the structures, or up to two years.

Your Committee further finds that Hawaii is experiencing a severe housing crisis and these large-scale houses could play a role in ending the State's homeless situation by providing affordable rooms for rent. Thus, in light of the moratorium and the pressing need for the creation of affordable dwelling units, this measure requests for the inclusion of a new permitting process to allow for the construction of large-scale houses.

Your Committee notes that these large-scale houses could be situated in master planned communities, so that purchasers are fully aware of the types of housing under development, and be subject to rental price restrictions or requirements in order to maintain affordability. However, your Committee believes that such large-scale houses should be considered for inclusion in new or future master planned communities, rather than existing master planned communities.

Your Committee has amended this measure by:

(1) Requesting that the new permitting process allow large-scale housing in areas such as new master planned communities; and

(2) 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 concurs with the intent and purpose of S.C.R. No. 35, as amended herein, and recommends that it be referred to your Committee on Public Safety, Intergovernmental, and Military Affairs, in the form attached hereto as S.C.R. No. 35, S.D. 1.

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

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WILL ESPERO, Chair