STAND. COM. REP. NO. 3169

Honolulu, Hawaii

RE: S.B. No. 3261

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Ways and Means and Water and Land, to which was referred S.B. No. 3261, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to facilitate affordable housing development.

More specifically, this measure:

(1) Establishes the ALOHA Homes Program to facilitate the creation of low-cost leasehold homes for sale to Hawaii residents on state-owned land near public transit stations;

(2) Authorizes the Hawaii Housing Finance and Development Corporation to sell the leasehold interest in residential condominium units located on state lands for lease terms of ninety-nine years;

(3) Directs the Hawaii Housing Finance and Development Corporation to conduct a study and form a working group on the implementation of the ALOHA Homes Program;

(4) Directs the Hawaii Housing Finance and Development Corporation to conduct a study of the market depth for leasehold housing; and

(5) Appropriates funds to the Department of Business, Economic Development, and Tourism for the Hawaii Housing Finance and Development Corporation to implement the ALOHA Homes Program.

Your Committees received written comments in support of this measure from the Building Industry Association of Hawaii, Church of the Crossroads, Policy Advisory Board for Elder Affairs, and one individual.

Your Committees received written comments in opposition to this measure from the Hawaii Housing Finance and Development Corporation.

Your Committees received written comments on this measure from the Department of Budget and Finance, Grassroot Institute of Hawaii, and Sierra Club of Hawaii.

Your Committees find that the cost and availability of housing in the State are significant challenges facing Hawaii residents. Although Hawaii has the tenth-highest median wage nationally, living expenses are two-thirds higher than the rest of the nation, with the cost of housing being a major contributing factor. Your Committees also find that, due to many barriers hindering the production of new housing, such as geographic limitations, lack of major infrastructure, construction costs, and government regulation, the State and housing developers have not been able to produce enough housing for Hawaii residents. Your Committees further find that, despite previous legislative efforts, the amount of new construction of housing, especially for low- to middle-income families, continues to be inadequate as the supply of housing remains constrained while demand for housing increases.

Your Committees have amended this measure by:

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

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

As affirmed by the records of votes of the members of your Committees on Ways and Means and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3261, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 3261, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair