STAND. COM. REP. NO. 2867

Honolulu, Hawaii

RE: S.B. No. 2210

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Housing and Water and Land, to which was referred S.B. No. 2210 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION,"

beg leave to report as follows:

The purpose and intent of this measure is to promote the development of affordable housing around rail transit stations by authorizing the Hawaii Housing Finance and Development Corporation the right of first refusal for the development of property for all development on state lands that are within a one-half mile radius of a rail transit station.

Your Committees received testimony in support of this measure from one individual. Your Committees received comments on this measure from the Hawaii Housing Finance and Development Corporation, Stadium Authority, Hawaii Public Housing Authority, and Department of Hawaiian Home Lands.

Your Committees find that the cost and availability of housing in the State are significant challenges facing Hawaii residents. Despite efforts from the Legislature and Governor, the amount of new construction of housing, especially for low- to middle—income families, continues to be inadequate as the supply of housing remains constrained while demand for housing increases. Your Committees find that this lack of supply leads to higher housing prices and rents for households of all income levels, leaving all tenants with less disposable income, increasing the personal stress on buyers and renters, and exacerbating overcrowding and homelessness. Given these consequences, the lack of affordable housing requires the concentrated attention of state government at the highest level.

Your Committees further find that with Honolulu's construction of an elevated rail transit system, the State has an opportunity to enhance Oahu's urban environment and increase the quality of life for residents by increasing the affordable housing inventory and eliminating the need for personal automobiles, among other public benefits. As the largest landowner of properties along the transit line, with approximately two thousand acres under the jurisdiction of various departments, the State must be proactive in establishing a unified vision and approach toward redevelopment of its properties to maximize the benefits of state lands available for redevelopment. This measure promotes the development of affordable housing around rail transit stations by authorizing the Hawaii Housing Finance and Development Corporation the right of first refusal for the development of property for all development on state lands that are within a one-half mile radius of a rail transit station.

Your Committees further find that Hawaii Housing Finance and Development Corporation's right of first refusal should be triggered whenever there is a transfer of any property interest, including leasehold interest, in lands within one-half mile radius of a rail transit station. Your Committees further find that this right of first refusal should not apply to lands or properties owned by the Hawaii Public Housing Authority or the Department of Hawaiian Home Lands.

Your Committees have amended this measure by:

(1) Adding a provision that designates the transfer of any property interest, including leasehold interest, in lands within one-half mile radius of a rail transit station, as the event that triggers the Hawaii Housing Finance and Development Corporation's right of first refusal;

(2) Adding a provision that excludes lands and properties owned or operated by the Hawaii Public Housing Authority and the Department of Hawaiian Home Lands from the right of first refusal; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 2210, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2210, 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