STAND. COM. REP. NO. 2869

Honolulu, Hawaii

RE: S.B. No. 2661

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 S.B. No. 2661 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase affordable housing in the State by requiring the counties to be proactive in planning for new housing at all price points to meet anticipated demand.

Your Committee received testimony in support of this measure from the Building Industry Association of Hawaii, Chamber of Commerce Hawaii, and one individual. Your Committee received testimony in opposition to this measure from the Office of the Mayor, Hawaii County. Your Committee received comments on this measure from the Maui Chamber of Commerce and Young Progressives Demanding Action.

Your Committee finds that there is a severe shortage of affordable housing in Hawaii, and the shortage places an immense strain on lower—income households. As several government studies have concluded that the State does not have and is not producing enough new housing units to meet normal population growth projections to 2025, it is critical for the counties to also take initiative to increase the production of housing to meet the anticipated housing demands in their respective jurisdictions. This measure requires each county to prepare a housing supply plan to plan for projected increases in the State's housing supply to meet housing demands of the respective counties, identify and analyze existing and projected housing needs for all income levels, and identify adequate sites for housing, including rental housing.

Your Committee notes that the current definition of "housing demand", defined as the number of births minus number of deaths, divided by two, falls short of the actual housing demand in Hawaii. Your Committee acknowledges the testimony of the Office of the Mayor for the County of Hawaii and the Maui Chamber of Commerce, who commented that the study required by this measure will incur a large expense. Accordingly, your Committee has amended this measure by:

(1) Requiring the counties to define the housing demand within their respective jurisdictions and account for the current shortage of housing in the State;

(2) Appropriating funds for the counties to conduct the study required by this Act; and

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

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 S.B. No. 2661, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2661, 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