STAND. COM. REP. NO. 866

Honolulu, Hawaii

RE: S.B. No. 1223

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Public Safety, Intergovernmental, and Military Affairs and Ways and Means, to which was referred S.B. No. 1223, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING ON HAWAIIAN HOME LANDS,"

beg leave to report as follows:

The purpose and intent of this measure is to extend the sunset date by five years to July 1, 2024, to continue to:

(1) Require each county to issue affordable housing credits to the Department of Hawaiian Home Lands; and

(2) Require the counties to issue affordable housing credits for each residential unit, or if allowed under the county's affordable housing program, vacant lot, developed by the Department of Hawaiian Home Lands.

Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and one individual. Your Committees received comments on this measure from the City and County of Honolulu Department of Planning and Permitting.

Your Committees find that affordable housing credits have provided the Department of Hawaiian Home Lands greater opportunities to gain resources to develop homesteads and, thus, meet its mission to return native Hawaiians to trust lands. Since Act 141, Session Laws of Hawaii 2009, as amended, was passed by the Legislature, this program has been successful at obtaining more affordable housing units in accord with the Department of Hawaiian Home Lands' mission. This program is scheduled to repeal on July 1, 2019.

Your Committees further find that by extending the sunset date, the Department of Hawaiian Home Lands can continue to utilize this innovative program to provide affordable housing opportunities for its beneficiaries at no cost to the State. For example, this program allowed for a reduction in the price of housing units offered by homebuilders on Hawaiian home lands and is currently under consideration for the purchase of additional land in a location that beneficiaries are interested in but where the Department has no available land in the area.

Your Committees have amended this measure by inserting an effective date of July 1, 2019.

As affirmed by the records of votes of the members of your Committees on Public Safety, Intergovernmental, and Military Affairs and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1223, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1223, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental, and Military Affairs and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ CLARENCE K. NISHIHARA, Chair