STAND. COM. REP. NO. 524

Honolulu, Hawaii

RE: S.B. No. 779

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. 779 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require each county to authorize construction for a specified number of new housing units; and

(2) Reduce the amount of transient accommodation tax revenue the counties receive if they fail to meet the authorized housing requirements.

Your Committee received testimony in support of this measure from the Building Industry Association of Hawaii. Your Committee received comments on this measure from the Maui Chamber of Commerce.

Your Committee finds that Hawaii has a housing crisis. A recent study by the Department of Business, Economic Development, and Tourism found that the State will require more than fifty thousand additional new homes by the year 2025. And while this forecast projects an acute housing shortage, there has been a lack of measurable progress at the county level to enact policies that will stimulate housing production to meet project demand. This measure will require each county to annually authorize the construction of ten percent of the forecasted demand by 2025, thus creating more housing for the residents of the State.

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. 779 and recommends that it pass Second Reading 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