STAND. COM. REP. NO. 202

Honolulu, Hawaii

RE: S.B. No. 142

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 Housing, to which was referred S.B. No. 142 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 any affordable housing projects developed by the Hawaii Public Housing Authority from fifty percent of the required school impact fee.

Your Committee received testimony in support of this measure from the Hawaii Public Housing Authority. Your Committee received testimony in opposition to this measure from EAH Housing. Your Committee received comments on this measure from one individual.

Your Committee finds that there are currently thousands of Hawaii residents on the public housing wait list but not enough supply of affordable housing projects to meet the demand. The only way to meet this demand is to increase the current inventory of affordable housing. The school impact fee, as required by section 302A-1603, Hawaii Revised Statutes, presents a significant financial barrier to the development of affordable housing projects in Hawaii. Many developers of affordable housing projects rely on funds from the State's Rental Housing Revolving Fund or other state appropriations to pay for the school impact fee in order to make affordable housing projects financially viable. This creates a situation where, if funding requests are approved by the State, one state entity pays money to another state entity while critically needed affordable housing projects are delayed waiting on those funding decisions. The waiver of the school impact fee, as proposed by this measure, will make the development of affordable housing projects more financially viable.

Your Committee has amended this measure by increasing the exemption of the required school impact fee from fifty percent to one hundred percent for certain affordable housing projects.

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, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 142, 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