STAND. COM. REP. NO. 1378

Honolulu, Hawaii

, 2021

RE: S.B. No. 142

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 142, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to exempt certain housing developments from the school impact fee.

Your Committee received testimony in support of this measure from the Hawaii Public Housing Authority and Catholic Charities Hawai‘i. Your Committee received comments on this measure from the Department of Education.

Your Committee finds that thousands of Hawaii residents are on the wait list for public housing, as there are not enough affordable housing projects to meet demand. An increase in the supply of affordable housing is necessary to meet Hawaii's housing needs. Your Committee finds that exempting certain housing development projects from the school impact fee will make development of those projects more financially viable, thus increasing the housing supply.

Your Committee has amended this measure by:

(1) Specifying that affordable housing units in projects or property developed by the Hawaii Public Housing Authority are exempt from the school impact fee;

(2) Exempting affordable housing units in projects assisted by the Hawaii Housing Finance and Development Corporation from the school impact fee;

(3) Changing the effective date to December 1, 2050, to encourage further discussion; and

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

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. 142, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 142, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

NADINE K. NAKAMURA, Chair