STAND. COM. REP. NO. 177

Honolulu, Hawaii

, 2021

RE: H.B. No. 902

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Housing and Water & Land, to which was referred H.B. No. 902 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Exempt lands set aside by the Governor to the Hawaii Housing Finance and Development Corporation and lands leased to the Hawaii Housing Finance and Development Corporation by any state department or agency from classification as public lands subject to Department of Land and Natural Resources management;

(2) Require legislative approval of these exempt lands prior to the sale or gift of the lands; and

(3) Require state department or agency lands leased to the Hawaii Housing Finance and Development Corporation that are no longer needed for housing, finance, or development, to be returned to the state department or agency that leased the lands to the Hawaii Housing Finance and Development Corporation.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism and Hawaii Housing Finance and Development Corporation. Your Committees received testimony in opposition to this measure from the Office of Hawaiian Affairs and Kūpuna for the Mo‘opuna. Your Committees received comments on this measure from the Department of Land and Natural Resources.

Your Committees find that this measure will help streamline the development of affordable housing on state land, including leasehold housing on land located within one-half mile of the Honolulu Rail Transit line, by reducing the number of approvals required by the Department of Land and Natural Resources once the land is set aside to the Hawaii Housing Finance and Development Corporation.

Your Committees note that some of the lands under the Hawaii Housing Finance and Development Corporation are public trust lands that the Corporation manages under executive orders recommended by the Board of Land and Natural Resources. Your Committees further note that currently, this measure only requires that lands leased by the Hawaii Housing Finance and Development Corporation be returned to the public trust administered by the Department of Land and Natural Resources.

Accordingly, your Committees have amended this measure by:

(1) Specifying that lands set aside to the Hawaii Housing Finance and Development Corporation by any state department or agency and no longer needed for housing, finance, or development shall be returned to the state department or agency that approved the set aside of the lands;

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

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

Your Committees request the Hawaii Housing Finance and Development Corporation to gather better data on Native Hawaiians who are living and renting in Hawaii Housing Finance and Development Corporation-financed projects. Your Committees also encourage the Office of Hawaiian Affairs to prepare Native Hawaiians for renting with downpayment assistance and security deposits and for homeownership, and develop a list of individuals who are ready to apply for Hawaii Housing Finance and Development Corporation-financed units once the units become available.

As affirmed by the records of votes of the members of your Committees on Housing and Water & Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 902, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 902, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committees on Housing and Water & Land,

____________________________ DAVID A. TARNAS, Chair

____________________________ NADINE K. NAKAMURA, Chair