STAND. COM. REP. NO. 3205

Honolulu, Hawaii

RE: S.B. No. 2372

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2372, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to plan for the use of certain lands to establish temporary ohana zones pilot program housing or affordable housing.

More specifically, this measure requires the Governor's Coordinator on Homelessness to:

(1) Review the July 2018 Affordable Rental Housing Report and Ten-Year Plan;

(2) Determine whether any of the lands identified in the report are suitable for development of temporary housing for the ohana zones pilot program or other forms of affordable housing and the actions required to develop those lands; and

(3) Submit a report of the Coordinator's findings and recommendations to the Legislature.

Your Committee received written comments in support of this measure from the Department of the Prosecuting Attorney of the City and County of Honolulu.

Your Committee received written comments on this measure from the Department of Human Services and Governor's Coordinator on Homelessness.

Your Committee finds that this measure will help the State strategize how to house the many residents of the State who are experiencing homelessness or who require affordable housing.

Your Committee has amended this measure by:

(1) Appropriating moneys into and out of the rental housing revolving fund for the purposes for which the revolving fund was established;

(2) Requiring the Hawaii Housing Finance and Development Corporation to establish a five-year dwelling unit revolving fund equity pilot program to address the demand of for-sale units by residents having low or moderate income;

(3) Requiring the Hawaii Housing Finance and Development Corporation to purchase equity in for-sale housing development projects to lower the per-unit purchase price to be paid by eligible buyers;

(4) Requiring each buyer to repay to the Hawaii Housing Finance and Development Corporation an appreciated equity value upon reselling the unit or within thirty years of the date that the buyer purchased the unit;

(5) Requiring the Hawaii Housing Finance and Development Corporation to adopt rules for, and submit reports on, the pilot program;

(6) Appropriating moneys into and out of the dwelling unit revolving fund for the dwelling unit revolving fund equity pilot program;

(7) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(8) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2372, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2372, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair