STAND. COM. REP. NO. 3046

Honolulu, Hawaii

RE: S.B. No. 2616

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2616, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to exempt affordable housing units, additions to existing dwelling units, accessory dwelling units, ohana dwelling units, and affordable housing projects developed by the Hawaii Public Housing Authority from fifty percent of the school impact fee revenues imposed and collected by the Department of Education.

Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority and EAH Housing.

Your Committee received written comments in opposition to this measure from the Building Industry Association of Hawaii and Chamber of Commerce Hawaii.

Your Committee received written comments on this measure from the Department of Education and Office of Hawaiian Affairs.

Your Committee finds that school impact fees increase the costs of development. Your Committee further finds that it is appropriate to reduce the total cost of developing affordable housing by reducing by fifty percent the school impact fees paid by developers of certain residential dwellings.

Your Committee has amended this measure by:

(1) Clarifying that certain housing projects and dwelling units shall be exempt from fifty percent of the fee revenues imposed and collected pursuant to section 302A‑1603(a), Hawaii Revised Statutes;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making a technical nonsubstantive change for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2616, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2616, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair