STAND. COM. REP. NO. 377

Honolulu, Hawaii

RE: S.B. No. 362

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Housing and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 362 entitled:

"A BILL FOR AN ACT RELATING TO INCLUSIONARY ZONING,"

beg leave to report as follows:

The purpose and intent of this measure is to prohibit any law, ordinance, or rule from imposing an inclusionary zoning requirement on housing offered exclusively for sale in perpetuity to buyers who are residents of the State, are owner-occupants, and do not own any other real property.

Your Committees received testimony in support of this measure from the Building Industry Association Hawaii. Your Committees received testimony in opposition to this measure from Hawaiian Community Assets.

Your Committees find that the State is experiencing a severe shortage of affordable housing. Reports have shown that the State would need at least 44,000 new housing units to solve the shortage. However, there has been a lack of measureable progress at the county level to enact policies that will stimulate housing production to meet this project demand. Your Committees believe that this measure incentivizes the production of housing units at all price points and encourages more developers to build affordable housing in the State for residents.

Your Committees note the concerns raised regarding the enforcement of this measure and will continue to work with the counties to address these concerns.

As affirmed by the records of votes of the members of your Committees on Housing and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 362 and recommend that it pass Second Reading and be referred to your Committees on Judiciary and Ways and Means.

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

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ STANLEY CHANG, Chair