STAND. COM. REP. NO. 1236

Honolulu, Hawaii

RE: H.B. No. 502

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred H.B. No. 502, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO RURAL DISTRICTS,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the counties to allow dwellings on each quarter acre, rather than half-acre, of lands in rural districts; provided that the dwellings are consistent with the county general plan and community development plans.

Your Committee received testimony in support of this measure from the Hawai‘i Association of REALTORS. Your Committee received comments on this measure from the Department of Agriculture.

Your Committee finds that Hawaii faces numerous affordable housing challenges, including land and infrastructure costs, funding, and regulation and permitting. According to the Department of Business, Economic Development, and Tourism's 2019 report on Housing Demand in Hawaii, the State needs up to 46,000 housing units to meet anticipated demand by 2030. This measure represents a creative approach to address Hawaii's housing supply crisis.

Your Committee has amended this measure by:

(1) Making it effective upon its approval; and

(2) 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 Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 502, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 502, H.D. 2, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Water and Land,

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LORRAINE R. INOUYE, Chair