STAND. COM. REP. NO. 2311

Honolulu, Hawaii

RE: S.B. No. 3177

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3177 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt from certain land use regulations for-sale housing projects that, in perpetuity, do not impose income restrictions and are built for qualified owner-occupants who own no other real property.

Your Committee received testimony in opposition to this measure from the Hawaii Housing Finance and Development Corporation.

Your Committee finds that the State faces an unprecedented housing crisis. While many regulations and restrictions on housing development are necessary, some increase the costs associated with the construction of new housing projects. This measure exempts certain for-sale housing projects from restrictions that unnecessarily inhibit the construction of new housing projects. Your Committee further finds that residential units at all price points are needed to solve the housing shortage for Hawaii residents and that utilizing the expedited process in chapter 201H, Hawaii Revised Statutes, is a viable solution.

Your Committee has amended this measure by replacing the contents in section 1 with new language that adds a new section to chapter 201H, Hawaii Revised Statutes, which:

(1) Establishes a new exemption from statutes, ordinances, charter provisions, and rules;

(2) Prohibits the implementation of income restrictions for housing projects developed pursuant to the new section;

(3) Requires housing projects developed pursuant to the new section be exclusively sold or transferred:

(A) As leasehold or fee simple units;

(B) To owner-occupants;

(C) To prospective owners who own no other real property; and

(D) To residents of the State; and

(4) Requires that the provisions of the new section apply in perpetuity.

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. 3177, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3177, 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 Housing,

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STANLEY CHANG, Chair