STAND. COM. REP. NO. 1161-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3324

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3324, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INFRASTRUCTURE MAINTENANCE IN HOUSING SUBDIVISIONS,"

begs leave to report as follows:

The purpose of this measure is to establish a working group to address housing subdivision infrastructure repair and maintenance for planned housing subdivisions that do not have compulsory community associations in counties with populations greater than 170,000 but less than 300,000.

Your Committee received testimony in support of this measure from three individuals.

Your Committees find that there is a lack of guidance on the rights and responsibilities of homeowners regarding housing subdivision infrastructure repair and maintenance in planned housing subdivisions that do not have compulsory homeowners or community associations. Your Committee also finds that these homeowners need a mechanism whereby they can organize an association to collect any fees required to repair and maintain infrastructure that abuts their property. This measure will create a task force to determine how to address this problem.

Your Committee has amended this measure by:

(1) Specifying that the infrastructure repair and maintenance issues addressed by this measure relate to planned housing subdivisions that do not have compulsory homeowner, rather than community, associations;

(2) Amending the composition of the working group;

(3) Expanding the responsibilities of the working group to include addressing the location, condition, and cost of improving and maintaining substandard and deteriorating roads and other infrastructure and the development of one or two homeowner associations;

(4) Requiring the working group to submit the report to the Legislature prior to the Regular Session of 2024 rather than the Regular Session of 2023;

(5) Dissolving the working group on June 30, 2024, instead of on June 30, 2023;

(6) Appropriating an unspecified amount of funds for the working group to be matched and expended by a county with a population greater than 170,000 but less than 300,000; and

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

Your Committee respectfully requests that should your Committee on Finance deliberate on this matter further, that it consider appropriating $250,000 for fiscal year 2022-2023, to be matched by funds from a county with a population greater than 170,000 but less than 300,000.

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. 3324, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3324, S.D. 2, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

NADINE K. NAKAMURA, Chair