STAND. COM. REP. NO. 1392

Honolulu, Hawaii

RE: H.B. No. 439

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Water and Land and Housing, to which was referred H.B. No. 439, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

beg leave to report as follows:

The purpose and intent of this measure is to exempt from the definition of "public lands", lands set aside by the Governor to the Hawaii Housing Finance and Development Corporation (HHFDC) for the primary purpose of developing affordable housing.

Your Committees received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Chamber of Commerce Hawaii, Land Use Research Foundation of Hawaii, and Building Industry Association of Hawaii. Your Committees received testimony in opposition to this measure from the Office of Hawaiian Affairs and one individual. Your Committees received comments on this measure from the Hawaiian Affairs Caucus of the Democratic Party of Hawai‘i.

Your Committees find that the State is experiencing a severe shortage of affordable housing. Your Committees further find that under existing law, only lands to which the HHFDC holds title are exempted from the definition of "public lands", which does not take into consideration other forms of lands that the HHFDC is developing. This measure would expand the exemption to include lands that the Governor has set aside to the HHFDC for the primary purpose of developing affordable housing, thereby expediting the development of housing on public lands.

Your Committees have amended this measure by:

(1) Inserting language to require lands that are set aside to the HHFDC by the Governor for the primary purpose of developing affordable housing to be subject to legislative approval prior to any sale or transfer by gift; and

(2) 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 and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 439, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 439, H.D. 2, 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 and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ KAIALI'I KAHELE, Chair