STAND. COM. REP. NO. 1098

Honolulu, Hawaii

, 2021

RE: S.B. No. 866

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 866, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to temporarily exempt affordable housing projects by the Hawaii Housing Finance and Development Corporation from specific state and county fees and exactions related to discretionary approval or ministerial permitting, except application fees and costs payable to the Hawaii Housing Finance and Development Corporation, when the housing units are exclusively for certain qualified residents.

Your Committee received testimony in support of this measure from the Land Use Research Foundation of Hawaii; Hunt Companies – Hawaii; Stanford Carr Development, LLC; The Michaels Organization; and Building Industry Association of Hawaii. Your Committee received comments on this measure from the Hawaii Housing Finance and Development Corporation, NAIOP Hawaii, EAH Housing, Hawaii Habitat for Humanity Association, and Hawaii Appleseed Center for Law & Economic Justice.

Your Committee finds that the affordable housing crisis has been exacerbated by the coronavirus (COVID-19) pandemic. This measure provides fiscal incentives to allow affordable housing projects to be more financially feasible, thereby promoting the development of affordable housing in the State.

Your Committee has amended this measure by:

(1) Retaining statutory language that specified that the legislative bodies of the counties must approve, approve with modifications, or disapprove affordable housing projects;

(2) Clarifying that the temporary exemption shall apply to affordable housing units in project developments; and

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

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. 866, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 866, 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