STAND. COM. REP. NO. 3632

Honolulu, Hawaii

RE: H.B. No. 2447

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Housing, to which was referred H.B. No. 2447, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AFFORDABLE HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to expedite the development of affordable rental units by temporarily exempting certain affordable housing projects of the Hawaii Housing Finance and Development Corporation from specific state fees relating to discretionary approval or ministerial permitting, except application fees that are payable to the Hawaii Housing Finance and Development Corporation.

Your Committee received testimony in support of this measure from the Maui Chamber of Commerce; The Michaels Organization, LLC; and two individuals. Your Committee received testimony in opposition to this measure from the Building Industry Association of Hawaii. Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation and Chamber of Commerce Hawaii.

Your Committee finds that there are other fees and costs charged by the Hawaii Housing Finance and Development Corporation for project-related administrative costs relating to financing programs such as the Rental Housing Revolving Fund and the Dwelling Unit Revolving Fund that should also be exempted from this waiver of state fees. Your Committee further finds that affordable housing projects developed under chapter 201H, Hawaii Revised Statutes, should also be exempted from county permits and exactions. Your Committee notes that measures such as this will help to incentivize affordable housing projects for households with incomes at or below one hundred forty percent of the area median family income.

Accordingly, your Committee has amended this measure by:

(1) Exempting project-related administrative costs from the waiver of state fees;

(2) Exempting affordable housing projects county fees and exactions; and

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

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2447, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2447, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair