STAND. COM. REP. NO. 493

Honolulu, Hawaii

RE: S.B. No. 498

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 Housing and Water and Land, to which was referred S.B. No. 498 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to require all development or redevelopment plans of state agencies to include affordable housing units with at least 20 percent reserved for residents with an income of less than or equal to 80 percent of the area median income, unless the Office of Planning determines that housing is not feasible or desirable on a particular property.

Your Committees received testimony in support of this measure from the Office of Planning, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and one individual.

Your Committees find that the State is in critical need of the development and construction of affordable housing units. Your Committees further find that the transit-oriented development associated with the construction of a rail transit system on Oahu has the potential to fulfill a housing goal of developing at least 22,500 affordable rental housing units by 2026. Your Committees believe that requiring an affordable housing component as part of development and redevelopment of state properties along the rail transit line will increase the affordable housing stock and encourage use of the transit system. This measure will assist in focusing the State's efforts on affordable housing.

Your Committees have amended this measure by:

(1) Inserting a blank percentage of affordable housing units that must be reserved for residents with an income less than or equal to eighty percent of the area median income; and

(2) Inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Housing and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 498, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 498, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Water and Land,

________________________________ KAIALI'I KAHELE, Chair

________________________________ STANLEY CHANG, Chair